Category: Ghana

Date: Wednesday, July 27, 2016

Location: Ghana
Grant Amount:US$250,000

Akate Farms & Trading Company Limited is a Poultry Farm with its operating base and head office located at Plot 8, Dote Junction, off Antoa Road, Kumasi near Buokrom Estate in Kumasi, Ashanti Region of Ghana. It commenced operations in December 1989 with only 1,500 birds, but has now expanded into a big name in the production and marketing of high-quality and affordable poultry products. Among other things, it produces “birds and eggs for dining tables in Ghana and its neighboring countries,” especially in the ECOWAS region. The farm’s present egg production capacity is about 6,000 crates of eggs a day.

The components of Akate of Akate Farms include numerous farming units, hatchery, feed mill, and farmers’ out-growers’ scheme:

  • Four “Commercial farms” with a total capacity of 500,000 birds;
  • Two “Breeder farms” each of which has a capacity of 100,000 birds, which “produce hatching eggs to the Hatchery for Day Old Chick production;”
  • A “Broiler farm” with a capacity of 30,000 broilers – a part of the birds that are products of this farm “are dressed for direct sale to outsiders” while a part is “prepared for roasting at company’s joints.”

  • Guinea Fowl” and “Turkey” farming has also been added to Akate’s core business at the farms. Guinea fowls are in the region of 34, 000, and the company also maintains a “sizeable number of turkeys.”

  • Cattle, sheep and fish farming” units are also part of Akate farms operations.

  • Hatchery. Akate Farms Hatchery uses two sets of machines – “Egg Setter” machine (with a capacity of 691,200 eggs) and “Egg Hatching” machines (with additional capacity of 115,200 eggs).  Day Old Chicks produce from the Hatchery are sold to poultry farmers in Ghana and beyond. Hatching these high number of day old chicks takes place twice a week and has over 82 per cent success rate.

  • “Feed Mill.” The ultra-modern large scale feed mill that produces feed for the over one million birds is located at Bosore in the Kwabre East District, of Ashanti Region. It was constructed in 2014 and has the capacity of producing 14 tons of feed per hour totaling 100 tons. Almost all the inputs for making high quality feed are locally sourced with exception of protein concentrate. The basic raw materials in use in the feed mill are maize, soybean, cotton seeds, bone meal (“concentrates”), Oyster shell, and wheat bran.   

  • “Out-growers’ Unit.” As Maize is the core ingredient in feed production Akate Farms is supporting over 1,500 maize farmers directly or indirectly in the cultivation of large tracts of land to feed the feed mill. Currently, over 7200 acres of land are under cultivation in Tumu in Upper West and Ejura in the Ashanti Region. These large tracts farms alone could not satisfy the mill that produces the 14 tons of feed per hour, and this has led to the extra demand for some from the outside market to top up.

AFT Grant of two hundred and fifty thousand US dollars (US$250,000) was approved for Akate Farms and Trading Company Limited on 27 July 2016. The Grant is to support the company’s project “Rebuilding Ghana Domestic Broiler Industry.” The project has three components as follows: a) Feasibility Study – feasibility study for an integrated poultry processing plant (technical, financial and market); and b) environmental and social impact assessment (ESIA). In addition, the management of Akate Farms stated that the company partners with reputable organizations like “Technoserve” and the “Ghana Poultry Project (GPP)” of USAID in its farming operations. According Alhaji Abdul Salam Akate, the Managing Director and CEO of Akate Farms, “the broiler market in Ghana had been taken over by foreigners and marketers who import finished poultry products” making it increasing more difficult for the local producers to compete because of lack of resources. The company, like other indigenous poultry farms has found it difficult to raise financing owing to the fact that the financial institutions require a lot of documentations, including good feasibility and environmental and social impact assessments (ESIA) reports, which is the company’s reason for applying for the AFT grant. He expressed optimism that after successful completion of the grant implementation Akate Farms should be able to access the necessary financing to expand its broiler project and compete in the highly competitive poultry industry in Ghana and neighboring ECOWAS member countries.