2014 - 2020
Plan prepared
by
Abu Ibrahim Azebre
General Manager
2014
1
1.0 INTRODUCTION
1.1 About Azabre Farms
Azabre Farms is an agricultural business enterprise that engages in cashew and
mango plantation, poultry & animal production, trade in farm produce, and supply of
agro-inputs as well as farmer education. The farms which are located in the
Kintampo South District provide a great opportunity to create employment
opportunities and wealth out of farming, and at the same time minimize
environmental degradation to reduce negative effects of climate change.
Experience on the field have shown that mango and cashew plantation as well as
other forms of plantations, and animal production are long term lucrative ventures
and thus Azabre Farms is exploring these potentials for employment creation.
Farming is a more lucrative, attractive and sustainable business when properly
managed and Azabre Farms is poised to maximize this natural business potential for
employment and wealth creation.
1.2 Vision and Mission
Vision:
The Vision of Azabre Farms is to become a first class competitor and most valued
and preferred business partner in the agric sector; being a major supplier of quality
marketable farm products and services such as mango, cashew, livestock, poultry,
agro-inputs and farmer extension services.
.
Mission
Azabre Farms exists to create employment opportunities for the youth and provide
wealth creation avenues through agric business in plantation, livestock and poultry,
and supply of agro-inputs. Azabre Farms wants to bolster the agricultural sector
through engagement and training of youth in livestock, poultry and crop production
as well as provision of extension services to deprived rural farmers.
1.3 Main Objectives
To create sustainable direct and indirect jobs and wealth for the youth through
agriculture and agric-business by 2020
2
The specific objectives are:
a. To Maintain and expand the existing farms (mango & cashew) to more
than 3,000 trees
b. To produce an annual average yield of 750 bags (50kg weight) of cashew
and more 500 boxes of mango fruits.
c. To obtain a livestock population of more than 500 animals such as goat,
sheep.
d. To obtain chicken population of more than 400 of both local and exotic
breeds.
e. To have a guinea fowl population of 500 or more.
f. To have more than 20 permanent and casual employees
Other objectives are:
g. To have well-established structures, tools and equipment necessary for
proper care and maintenance of farms.
h. To start the supply of agro-inputs other farmers
i.
Established linkage with market centers and farmer organizations
j.
Provision of extension services through farmer education
k. To train least 100 youth yearly on animal rearing, poultry and plantation
business as well as other agric-business opportunities.
l.
Collaborate with all relevant stakeholders such as District Assemblies,
MOFA, civil society and agric companies to help execute direct actions,
advocacy strategies and agric development policies to improve the
agricultural productivity in general.
1.4 Farms status
Azabre Farms has already two (2) acres of mango, one (1) acre of tick trees and five
(5) acres of matured cashew and five (5) acres of newly planted cashew plantation.
The farms can also boost of twelfth (12) sheep and fifteen (20) goat, and local breed
of chicken numbering to twenty (20). Currently two (2) casual workers are employed
to take care of the farms. The farms’ target for 2020 is to have an animal population
of more than 500 and more than 3,000 mango and cashew trees.
3
1.5 Location and Farm facilities
Azabre Farms can be located at Attakrom-Nyamebekyere, 7km away from Akora on
Kintampo – Apesika road and about 30km away from Kintampo. The farm lies in the
Kintampo South District in Brong-Ahafo region. See the summary below.
Location:
Attakrom-Nyamebekyere (7km) away from Akora
Kintampo South District
Brong-Ahafo Region
Address:
c/o
House No. XA 0486
Kyeremankuma - Kintampo
Mobile: 0240393109 or 0200536570 or Alhassan : 0547847473
Email: ibrahimazabre@gmail.com
Structures:
Currently we have more than 100 acres of litigation free land and a pen for the
animals and we are working hard to get the following facilities before end of year
2015.
 An Administrative Office at Kintampo
 A well constructed Livestock house/pen
 A poultry pen to start the exotic breeds
 Motor bike for easy mobility to MOFA office and other extension services
1.6 Demography Suitability of Farms
1.6.1 Region:
The Brong-Ahafo Region is being severally nicknamed the ‘The Food Basket of
Ghana’ due to it favorable atmosphere for agricultural purpose. The region has one
of the largest agric markets, that is, Techiman and Kintampo in West Africa serving
countries like Togo, Mali, Burkina Faso, Benin, and so on.
1.6.2 Climate and Soil
The climate is the semi-residual type with double maxima rainfall pattern making the
region very suitable for any type of crop. The soil components are very rich in
ingredients too. Almost any crop grown in the land of Brong-Ahafo is likely to record
good yield. Not only is the land suitable for crop and tree plantation, but also very
4
conducive for rearing of livestock and poultry due to its blend of forest cover and
grasslands.
1.6.3 Suitability
The location of the Azabre Farms in the region is very pleasing since the climate and
soil type are suitable for the business we are entering and what is important is proper
management and care to avoid any outbreak of disease in the Farms. The soil and
climate support many species of plants and animal life.
Among plants with suitable yield grown in the area include yam, maize, beans, rice;
fruit & nuts include pears, pawpaw, plantain, mango, cashew, guava; animals include
sheep, goat, cattle, pigs, rabbit, grass-cutter; and poultry include chicken, guineafowl, duck, turkey, and doves, just to mention but a few.
5
2.0 PRODUCTS AND SERVICES
Azabre Farms is targeting four (4) forms of products and services: Fruit and Nut
Plantation; Livestock and Poultry rearing, supply of agro-inputs and provision of
extension services.
2.1 Fruit and Nut Plantation
Azabre Farms will provide three main products which will include plantation/fruits,
livestock and poultry, as well as agro-inputs.
2.1.1 Mango Fruits
Mango varieties grown in Ghana include Kent, Keitt, Palmer, Haden, Tommy Atkins,
Irwin, Sensation, Julie, the local variety. Data available to Azabre Farms shows
greater potential in the mango and cashew production as they are newly emerging
export products and are yet to be visible in wider
scope. Azabre Farms has greater focus on this
sector because mango and cashew nuts have
higher demand from both local and international
markets. For instance, the Ghana Export Promotion
Council (GEPC) (2005) revealed that, Ghana’s total
mango exports in 2003 were 157mt valued at $ 568,000.00. The estimated
production figure for mango in 2008 was 70,000mt (MOFA (SRID), 2009) and has
continue to increase significantly over the years. The demand of mango keeps
increasing due to its value in terms of uses;
o
o
o
o
o
o
For the manufacture of mango juice
For the preparation of fruit salads
For fresh consumption
Dried and consumed in the dry form
As mango concentrate
Whole fresh mango
o Local variety exported green to UK and used as pickle
o Increased in mango export markets to UK, US, UAE, China, India, Lebanon,
Germany, etc.
Trend of mango production in Ghana since 1995
Year 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
MT 26 43 80 136 167 268 232 126 234 376
Source: FMSL, 2003; MT=metric tones
6
Base on this observation, Azabre Farms would increase the production of mangoes
especially the Kent and Keitt types which have higher yields and good demand in the
mango market.
2.1.2 Cashew nuts
The cashew industry is growing steadily and in no time, it will out-place other
commodities in the agricultural commodities market.The cashew nuts can be
consumed as roasted and salted, or used as an
ingredient in confectionery and bakery products
such as sweets, ice creams, cakes and chocolates.
The production base of cashew could grow
significantly through the support of such programs
as the Cashew Development Project (CDP) being
managed by MOFA, as well as a clear interest in the crop on the part of professional
traders active throughout the sub-region. This Azabre Farms will not waste time than
to take advantage of. The Farms is targeting not less than 2,000 cashew trees with
an annual average of 750 (50kg) bags of cashew nuts.
Exports of cashew nuts for the year 2003: Ghana
Exptd
Value
Qnty
in Exptd
Qnty
Unit
Annual
AGR in AGR
Unit
value
growth
Qnty
value
world
US$
rate(AGR)
1999-
2002-
export
1999-2003
2003
2003
59%
78%
554%
US $000
19,992
31,993
Tons
625
in Share
in
7%
Source: GEPC, 2005.
2.1.3 Other Plantations:
Even though the major focus of the Farms is on mango and cashew, Azabre Farms
already has a one acre teak trees plantation and would exploit other potentials such
as Plantain and oil palm
7
2.2 Livestock and Poultry
Azabre Farms intends to invest in animal industry because Ghanaians in general like
meat and it forms a permanent part of daily meals. Ghanaians love festivities and
occasions and these events are usually marked with products of sheep, goat, and
poultry. This Azabre Farms wants to take advantage off to produce quality breeds of
sheep and goat for the local markets. The Farms wishes invest in poultry production
in mainly layers and broilers as well as guinea fowls. The production of exotic poultry
would start after the livestock began and the necessary resources and capacity
because it’s very lucrative but risky.
Production trend in domestic livestock from 2003-2008 is shown below.
Livestock Population (‘000) Trends in Ghana
Livestock
2007
2008
type
Cattle
1,407
1,422
Sheep
3,420
3,529
Goat
4,196
4,405
Poultry
37,038
39,816
Source: MOFA, 2010 (Facts and Figures)
2009
2010
1,438
3,642
4,625
43,320
1,454
3,759
4,855
47,752
Domestic Meat Production: 2003-2008 (Metric Tons)
Domestic meat production
Livestock/year
Sheep
2003
2004
13,568 14,004
2005
14,450
2006
14,913
2007
15,390
2008
15,831
% by
type
16.7
Goats
13,884 15,308
15,300
15,588
16,364
17,180
17.8
Poultry
21,116 22,982
22,709
27,224
29,630
32,249
29.6
Total
77,235 80,959
76,582
92,893
97,229
101,895
100.0
Source: MOFA (SRID), 2009.
Sheep
Goat
Chicken
8
Guinea-fowl
2.3 Agro-inputs
Azabre Farms wish to adopt the best agronomic practices especially the promotion
and use of modern methods of farming. The Farms wish to make agro-inputs more
accessible and cost-effective to other farmers who may not have the access. It would
adopt and propagate the best methods of
chemical application procedures and transfer
them to others. The Farms would supply and
provide inputs such as quality seeds, fertilizer,
chemicals for spraying, farm machines, and so
on.
2.4 Farm Extension
Azabre Farms wish provide agric extension to other farmers through farmer
education, forums and other forms of interactions.
Azabre Farms is not only interested in making
wealth for ourselves, but we also want to extend a
helping hand to other upcoming farmers especially
young people. We wish to do this by constantly
being in touch with MOFA and other farmer
organizations to learn more and assistance others
in accessing agric extension services.
This, Azabre Farms hopes to regularly organizes training for youth and farmer-based
groups to educate them on the business aspect of agriculture, the opportunities,
disease control, marketing trends and mechanisms, agricultural technology, and
other vital farm related issues.
Azabre Farms would work in partnership with MOFA and other groups to ensure that
agricultural policies and programmes are successfully implemented at the farmer
level to enhance the development of the agricultural sector. This service will be
provided to farmers free of charge, but as part of our social responsibility. We will
start providing this service only when we successfully established our farms and at
least have a certain level of knowledge and information on effective farm
management and agric extension.
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3.0 MANAGEMENT AND ADMINISTRATION
The management philosophy of Azabre Farms is based on responsibility and mutual
respect. Azabre Farms has an environment and structure that encourages
productivity and respect for customers and fellow employees.
3.1 Management Structure
Azabre Farms management team will be led by the General Manager, Abu Ibrahim
Azebre, who is a University graduate, and has vast knowledge and experience on
community development including agriculture both theoretically and practically as a
farmer.
Overall, Azabre Farms currently managed by three (3) member team – the General
Manager, Farms Superviser and Field Officer. It is expected to employ 5 temporary
employees as labourers during the first phase of establishment, additional three (3)
employees on a permanent basis as labourers for maintenance and security of the
farms.
Management will be responsible for supervising and participating in the daily
operations of the farms. Management structure is shown in the diagram below.
General Manager
Farms Coordinator
1
Field
Officer/Extension
Agent
Farms Coordinator
2 / Field superviser
Records
Officer/Accounting
Field/Casual
workers
10
Team Leader
Security Guards
3.2 Profile of the Current Management Team
Name
Abu Ibrahim Azebre
Position
General Manager
Qualification
University Degree
Basiru Azabre
Farms Supervisor
WASSCE
Osman Akolgo
Casual Worker
Primary level
The contract personnel/casual workers would be utilized for the clearing of bushes,
pegging and staking, spraying, weeding and application of fertilizers as well as
harvesting of fruits.
3.3 Personnel Plan
Draft estimates of Annual Personnel Plan.
Position
Gross Amt.(per Yr)
Net Amt.(per Yr)
Manager
18,000GHc
10,000GHc
Coordinator
14,400GHc
9,500GHc
Documentation officer
20,000GHc
19,000GHc
Field Supervisor
18,900GHc
17,500GHc
Operations officer
15,500GHc
15,000GHc
Contract persons
12,000GHc
11,500GHc
Family costs
40,000GHc
35,000GHc
Other costs
30,000GHc
28,000GHc
184,900GHc
171,500GHc
TOTAL
Subject to review
11
4.0 MARKET ANALYSIS
Azabre Farms has done some analysis of the market potentials for its products and
is convinced that there will be a lucrative market for mango, cashew nuts, and meat
in the coming years. These markets exist locally and internationally. Because mango
and cashew are newly emerging products in Ghana, their buyers are limited.
However, there is significant number of companies that exports mangoes and
cashew nuts from Ghana and the number is likely to increase in the coming years.
With domestic share, Azabre Farms will identify vibrant exporting companies to
market its products. It also rely significantly in marketing its products domestically
especially livestock and poultry products.
4.1 Market segmentation
Two market opportunities exist: domestic and external markets
Domestic markets include retailers of mangoes in our local market places,
restaurants, canteens, street buyers, home sale, and institutional demands. With that
of cashew, the local consumption is low compare to mango. The livestock and
poultry have high consumption rate locally due to ineffective exports opportunities for
these products.
4.1.1 International market for cashew nuts
India ranks No. 1 in the world import of cashew nuts, importing 90% of total world
production. So far African countries are the major suppliers of raw cashew nut to
India and are likely to remain so in the next few years, although Vietnam and Brazil
compete with India for their purchases of raw nuts from Africa (GEPC, 2005).
Cashew exporters
Major exporters of cashew nuts from Ghana include Sri- Krishna Produce Limited,
Ghana National Procurement Agency (GNPA), BET Export Ghana Ltd, OLAM GH
Ltd., Jonaya Co. Ltd
4.1.2 International market for mangoes
Major exporters from Ghana include Gannat Farms Ltd, Tacks Farms Ltd, Prudent
Exports Ltd, John Lawrence Farms Ltd, Missions Farms Ltd and Lartey Associates.
The destination of Ghana mangoes include; Switzerland, U.K, Lebanon, Italy,
Germany, UAE, etc.
Volume of mangoes and cashew exports in Ghana between 2005-2010
Commodity 2005
2006
2007
2008
2009
2010
Mango
405
182
824
Cashew
14,487
34,962
23,616
Source: MOFA, 2010 (Facts and Figures)
4.2 Sales forecast
12
858
435
18,190 52,965
291
57.095
5.0 Financial Analysis and Investment Costs
5.1 Investment estimates for mango production (first three years)
FARM ESTABLISHMENT
land clearing
shrubs gathering
Stumping
Ploughing
Lining
Pegging
Seedlings
Carting
Planting
SUB-TOTAL
FARM MAINTENANCE
Spraying
Weeding
chemical application
fire protection
SUB-TOTAL
FARM MANAGEMENT
FARM SECURITY
GOODS
Knapshack sprayer (5)
Cutlasses(5)
hoes (5)
Fertilizer (25 bags)
weedicides (5boxes)
Others
MISCELLANEOUS
SUB-TOTAL
NO OF ACRES
25
25
25
25
25
25
25
25
25
AMT/per ACRE (GHs)
GHC 70.00
GHC 50.00
GHC 45.00
GHC 90.00
GHC 25.00
GHC 25.00
GHC 300.00
GHC 35.00
GHC 55.00
25
25
25
25
GHC 30.00
GHC 50.00
GHC 35.00
GHC 55.00
25
25
GHC 550.00
GHC 350.00
GHC 750.00
GHC 1,250.00
GHC 875.00
GHC 1,375.00
GHC 4,250.00
GHC 13,750.00
GHC 8,750.00
5
5
GHC 75.00
GHC 25.00
GHC 375.00
GHC 125.00
5
25
5
GHC 20.00
GHC 65.00
GHC 150.00
GHC 750.00
GHC 1,250.00
GHC 100.00
GHC 1,625.00
GHC 750.00
GHC 750.00
GHC 31,250.00
GHC 65,975.00
25
YEAR 1 TC (GHs)
GHC 1,750.00
GHC 1,250.00
GHC 1,125.00
GHC 2,250.00
GHC 625.00
GHC 625.00
GHC 7,500.00
GHC 875.00
GHC 1,375.00
GHC 17,375.00
GHC 87,600.00
GRANT TOTAL
Year two and three investment cost is projected by each preceding year’s cost
Year one
GHC 87,600.00
Year two (less 20%of YR1)
GHC 70,225.00
13
Year three (plus15% of YR2)
GHC 80,758.75
5.2 Investment estimates for cashew production (First three years)
FARM
ESTABLISHMENT
land clearing
shrubs gathering
Stumping
Ploughing
Lining
Pegging
Seedlings
Carting
Planting
SUB-TOTAL
FARM MAINTENANCE
Spraying
Weeding
chemical application
fire protection
SUB-TOTAL
FARM MANAGEMENT
FARM SECURITY
GOODS
Knapshack sprayer (5)
Cutlasses(5)
hoes (5)
Fertilizer (25 bags)
weedicides (5boxes)
Others
MISCELLANEOUS
SUB-TOTAL
NO OF ACRES
25
25
25
25
25
25
25
25
25
AMT/per ACRE
(GHs)
GHC 70.00
GHC 50.00
GHC 45.00
GHC 90.00
GHC 25.00
GHC 25.00
GHC 300.00
GHC 55.00
GHC 35.00
25
25
25
25
GHC 30.00
GHC 50.00
GHC 35.00
GHC 55.00
25
25
GHC 550.00
GHC 350.00
5
5
5
25
5
GHC 75.00
GHC 25.00
GHC 20.00
GHC 65.00
GHC 150.00
GHC 750.00
GHC 1,250.00
25
YEAR 1 TC (GHs)
GHC 1,750.00
GHC 1,250.00
GHC 1,125.00
GHC 2,250.00
GHC 625.00
GHC 625.00
GHC 7,500.00
GHC 1,375.00
GHC 875.00
GHC 17,375.00
GHC 750.00
GHC 1,250.00
GHC 875.00
GHC 1,375.00
GHC 4,250.00
GHC 13,750.00
GHC 8,750.00
GHC 375.00
GHC 125.00
GHC 100.00
GHC 1,625.00
GHC 750.00
GHC 750.00
GHC 31,250.00
GHC 65,975.00
GHC
87,600.00
GRANT TOTAL
Year two and three investment cost is projected by each preceding year’s cost
Year one
GHC 87,000.00
Year two (les 20%of YR1)
GHC 70,225.00
Year three (plus 15% of YR2)
GHC 80,758.75
5.3 Investment cost for livestock (Sheep & goat) in the first year
ITEM
Structure 4 Animals
QNTY / FREQ
14
UNIT PRICE
YEAR ONE
wood 4X2
Wood 4X4
wood 2x8
roofing sheets (packs)
nails 4 inches (boxes)
nails 3 inches(boxes)
nails 2.5inches
cement (bags)
binding wire
fense wire
nets for fense
labor
20
20
25
2
1
2
2
10
25
30
25
1
GHC 15.00
GHC 17.00
GHC 17.00
GHC 195.00
GHC 35.00
GHC 25.00
GHC 25.00
GHC 20.00
GHC 15.00
GHC 20.00
GHC 45.00
GHC 450.00
SUB-TOTAL
GHC 300.00
GHC 340.00
GHC 425.00
GHC 390.00
GHC 35.00
GHC 50.00
GHC 50.00
GHC 200.00
GHC 375.00
GHC 600.00
GHC 1,125.00
GHC 450.00
GHC 4,340.00
Animals
Sheep
Goat
20
20
GHC 75.00
GHC 60.00
GHC 1,500.00
GHC 1,200.00
Transport cost
40
GHC 5.00
GHC 200.00
SUB-TOTAL
GHC 2,900.00
GHC 60.00
GHC 3,000.00
GHC 3,000.00
Feeding
feeds (bags-maize, etc)
50
SUB-TOTAL
Treatment & disease
ctrl
vacination and vacines
vertinary cost
Drugs
equip'ts
husbandry care
labor
4
4
4
2
1
GHC 65.00
GHC 25.00
GHC 50.00
GHC 75.00
GHC 50.00
GHC 150.00
SUB-TOTAL
other costs
Management cost
maintenance of facilities
security & pest ctrl
miscellaneous
SUB-TOTAL
GHC 350.00
GHC 250.00
GHC 350.00
GHC 750.00
GHC 1,700.00
GRANT TOTAL
GHC 12,850.00
GHC 350.00
GHC 250.00
GHC 350.00
GHC 750.00
15
GHC 260.00
GHC 100.00
GHC 200.00
GHC 150.00
GHC 50.00
GHC 150.00
GHC 910.00
5.4 Investment cost for livestock (Sheep & goat) in year two & three
ITEM
YEARTWO
Feeding
Feeds
Sub-total
Treatment & Disease
control
Vaccination/vaccines
Vertinary
Drugs
Equipments
Husbandry care
Labor
Sub-total
Other costs
Management cost
Maintenance of facilities
Security & pest ctrl
Miscellaneous
Sub-total
YEAR THREE
GHC 3,500.00
GHC
3,500.00
GHC 4,000.00
GHC 4,000.00
GHC 300.00
GHC 150.00
GHC 250.00
GHC 200.00
GHC 100.00
GHC 200.00
GHC
1,200.00
GHC 400.00
GHC 200.00
GHC 300.00
GHC 300.00
GHC 150.00
GHC 300.00
GHC 1,650.00
GHC 450.00
GHC 300.00
GHC 400.00
GHC 750.00
GHC
1,900.00
GHC 2,100.00
GHC
6,600.00
GHC 7,750.00
Grant Total
GHC 500.00
GHC 350.00
GHC 450.00
GHC 800.00
5.5 Aggregate Investment costs for mango, cashew and livestock
PRODUCT
AGGREGATE
COST
GHC238,583.75
YEAR 1
YEAR 2
YEAR 3
Mango
GHC 87,600.00
GHC 70,225.00
GHC 80,758.75
Cashew
GHC 87,600.00
GHC 70,225.00
GHC 80,758.75
GHC238,583.75
Livestock
GHC 12,850.00
GHC 6,600.00
TOTAL
AGGREGATE GHC
GHC 147,050.00
COST
188,050.00
GHC 7,750.00
GHC 27,200.00
16
GHC 169,267.50
GHC 504,367.5
6.0 RISK ANALYSIS
6.1 SWOT Analysis
The risks involved in the Agricultural sector in terms of plantation and animal rearing
is very low. Plantations such as mango and cashew require adequate management
in terms of fire control, bush clearing, and spraying. Plantation and animal rearing
are few sectors that present brighter opportunities for job creation; improve agric
productivity; and protection of the environment which leads to minimize climate
change. Below is the analysis of opportunities and risks for the plantation and animal
sectors.
Weaknesses:
Strengths:
1. Availability of land
1. Low capital
2. Livestock breeds faster
2. Lands not yet registered
3. Resistant to diseases
3. Low market price
4. Local markets available
5. Good educational level of
management
SWOT
ANALYSIS
Opportunities:
Threats:
1. Good climate and environmental
conditions
1. Outbreak of diseases
2. Existence of MOFA to offer advice
2. Poor climatic conditions
3. Existence of International markets
4. Launch of Govt's YES Fund
6.2 Strategies for managing the risks
i.
Regular maintenance of farm facilities
ii.
Clearing of bushes
iii.
Application of best farming practices
iv.
Application of MOFA approved chemicals
v.
Quarantining of sick animals
vi.
Daily monitoring of disease variables and treatment if any
vii.
Regular pests and vectors control
17