- Website: www.agricareltd.com
- Sector: Agriculture
- Country of operations: Ghana
It’s fair to say business is booming for Agricare. The company, which produces animal feed for the Ghanaian and West African markets from its base in Kumasi in Ghana’s Ashanti region, has increased sales by over 500% since 2014.
Such growth is testament to the company’s ability to produce feed for everything from poultry, small ruminants and research rodents to swine, other farm animals and aquaculture. The firm has continued to expand its operations since it was founded in 1968 – and there’s more to come, according to CEO William Ahiadormey. “We believe that we will continue to grow our workforce after we fully develop our West African presence,” he says.
The firm’s recent growth has been fuelled in part by its investment partnership with Injaro Agriculture Capital Holdings. “This brought us a substantial amount of capital for use as working capital, among other key benefits,” says William.
Automating production will help Agricare to ensure quality feed is delivered on time
This capital will help Agricare meet the market challenges that lie ahead. The company expects to have to deal with higher input costs due to economic instability, currency risk and a lack of reliable energy sources. William is confident, though, that Agricare is well equipped to handle adversity and believes that some of the economic difficulties faced may also present opportunities. “The currency risk challenge, more specifically the potential for further Ghana cedi depreciation, also stands as an opportunity in that it may dampen competing import volumes,” he explains.
In response to tricky economic conditions, the company has developed cost-saving strategies by integrating its operations with those of its maize suppliers. “We have recently involved smallholder maize farmers in an out-grower scheme that should increase yields and reduce costs for both Agricare and the smallholders,” says William, who adds that the company is working to automate its entire production system by the end of 2017.
“The result will be quality feed for all, delivered in a timely manner and within a proper business atmosphere to ensure client retention.”
- 500% - The increase in sales that Agricare has achieved since 2014