The Project Owner of poultry processing company Buntaa Farms, Kwame Gyan, believes the needed liquidity support of close to US$8m could boost growth and enable them meet demand locally and globally in the agro processing sector.
According to Mr. Gyan, an urgent funding is needed to complete and commission the project.
Speaking to the press after leading the Trade and Industry Minister, Alan Kyerematen, to inspect the facility at Kwabeng in Atiwa West District of the Eastern Region on Saturday, Mr. Gyan said “So far what we have done here is coming from our own private resources, we have applied to the Ghana Exim Bank to support us, they have come here to review the situation on the ground and we are waiting for them to come and say something positive to us.
We are looking at about US$8m, we have not looked at other financing options because of the interest rate. We have put in a lot of money and what we have put in is more than what we are asking Exim Bank to give us.”
Already, the management of the company has revealed that a term loan of GHs4.95m to finance capital expenditure, namely electrical cables from Tropical Cables and Conductors Limited (Ghana), partial funding for a feed mill from Buschhoff GMBH (Germany), Water pumps from Grundfos Limited (Germany), as well as a working capital loan of GHs79.7m with a moratorium period of 18months to provide adequate cover for the first twelve (12) months of operations.
In spite of the call for financial support, Mr.Gyan indicated that the company benefited from a waiver of duty by registering under One District One Factory(1D1F) on all the equipment, stressing that they only paid for the handling charges, and if not for the exemptions on duties, their budget would have been crippled.
Also, the company will be exempted from income tax for the next five years when they start yielding income.
On the plans for the company, he stated “our plan is that once this facility is completed egg import [we have first class European technology so you would not have a reason to have any issues with the quality of the eggs that would be produced here and when we get to the broiler side, our plan is to produce at the start; 4.2 million broilers a year and upgrade to 8.4 million in about three years.
The national import is about 30million birds a year, so if we can do 8.4million in the next three years, it means we have almost done one-third of the import. It will make a serious impact on the economy. We would try to reduce the foreign exchange component of our operations to make our prices competitive.” Buntaa Farms is a Ghanaian-owned company located
Buntaa Farms is a Ghanaian-owned company located at Kwabeng in Atiwa West District of the Eastern Region and seeks to undertake business in the areas of farming, sale of agricultural equipment, agro processing, export of agro products and poultry farming.
The company was registered in 2019 and accepted under Government’s flagship industrialization programme, One District One Factory in May 2021. Buntaa Farms has adopted an advanced technological infrastructure positioning itself to be a disruptive poultry farm business, issuing better feed, lighting, and temperature regulation systems to reimaging poultry in Ghana.
The project comprises of a layer component and a broiler, which are being delivered in three phases.