Entrepreneur builds organization by turning cocoa waste into organic fertiliser
Akwasi Osei-Bobie Ansah
As a result of observation capabilities and an innate desire in knowledge the science guiding matters, Ghanaian entrepreneur Akwasi Osei-Bobie Ansah found the setting up blocks for a financially rewarding organization thought.
“I read farmers chatting about declining yields, even with extreme use of inorganic fertilisers. As I experienced a science background, I figured the soil may possibly be acidic so irrespective of the total of inorganic fertiliser employed, they would not get the preferred results and it would even more deteriorate the soil,” Ansah says.
Ansah experienced acquired a training diploma immediately after school but was usually extra interested in agriculture. Back house in the village wherever his moms and dads experienced their fields, he experienced observed better crop yields in spots in which cocoa shells had been left to decompose. He realised that this squander merchandise from Ghana’s greatest export item could be channelled into building an natural and organic compost or fertiliser.
In 2009, when working at the Countrywide Board for Small Scale Industries (a federal government agency in Ghana) as part of his national company, he pitched this idea at a World Financial institution levels of competition hunting at impressive strategies to handle waste.
Ansah had also investigated other elements, along with the cocoa shells, that could be utilised to formulate an natural and organic fertiliser to improve the soil and supply nutrients for the plants. All of the supplies applied in his final formulation have been sourced regionally, as they nevertheless are currently.
By the time the competition winners ended up introduced in 2011, and Ansah positioned third, his merchandise was by now remaining offered in the sector.
Now, Farmers Hope products – the unique organic and natural fertiliser (named Asaase Nofosuo) and an natural and organic pesticide and fungicide – is marketed in both of those Ghana and Burkina Faso. The firm also has a liquid fertiliser currently on trial for certification.
Obtaining finance
In the beginning, Ansah was the company’s only worker and he manufactured the fertiliser manually. His initially main supplier of cocoa shells was ADM Cocoa, a firm later on acquired by Olam.
Two several years just after making his initially bag of fertiliser, however, Ansah acknowledged he would have to turn into additional intense in his promoting. He reached out to a person of the even larger companies that delivered agricultural input products and solutions to farmers.
He secured a conference with the company’s government crew and introduced his samples.
“I explained I could develop the really greatest fertiliser for them. Even so, the CEO appeared at the product and said it was no great and that I should go.”
As he was leaving, Ansah emptied his sample into the company’s plant pots and beds.
“A 7 days later, they started out observing the effects in the vegetation and just after the protection guard explained to them it was thanks to my product or service, I gained an order for 200,000 bags.”
At his capability of 10 luggage a day, Ansah understood he’d in no way be in a position to fulfil the purchase but boldly agreed. Armed with a agreement and a little upfront payment of $1,000, he approached the Agricultural Advancement Financial institution in Ghana. The financial institution offered a bank loan to procure the expected devices to force up production volumes.
Although the contract deadline was continue to too bold, Ansah did control to supply ample high-quality products by the agreed time for the client to let an extension of the delivery of the entire order.
In that exact same calendar year, Farmers Hope hosted an official launch of its product and, by December 2012, the business held its to start with assembly with Advancement Mosaic, a USAID FinGAP Business enterprise Advisory Support provider. Advancement Mosaic served Farmers Hope streamline its business enterprise and facilitated funding from Acumen Fund West Africa to further more scale up creation in 2016.
A bag of Farmers Hope’s Asaase Nofosuo fertiliser.
Acumen disbursed around $500,000 to Farmers Hope to procure products. Ansah points out getting the ideal devices from present suppliers was tricky as his method differed from that of other organic fertiliser producers.
The moment he gained the equipment, it took a further more 3 decades to great-tune the machines to match his one of a kind manufacturing course of action.
“I was not about to transform my procedure to healthy the machines. The good news is, we now have nearby engineers who fully grasp what we want and can deliver the machines,” he says.
The distribution battle
A single of the classes Ansah has learnt is to discover reliable distributors.
Some distributors would get payment from the farmers, but would not pay out Farmers Hope. He experimented with to recoup some of the income by means of the courts but experienced to make the hard final decision to sever ties with unique distributors, even main players in the current market.
“It did have an impact on our income but we are greater off performing with distributors who pay out on time. We now get calls straight from farmers who can not come across our item mainly because we refused to supply those distributors who do not pay back us. The farmers have begun to team by themselves to place orders immediately,” claims Ansah.
When Farmers Hope does come across a reliable distributor, the effects speak for them selves, provides Ansah. The firm has a regular consignment of about 100,000 baggage to Burkina Faso as a result of one this sort of distributor spouse.
Enlargement strategies
Farmers Hope has acquired queries from other nations – specifically Côte d’Ivoire, Togo and Benin – but prior to contracts can be set in position, Ansah desires to increase the manufacturing capability at the new manufacturing unit premises in Kumasi.
The corporation has currently created section-payment on the land and cleared it development should begin by the finish of January 2021. Farmers Hope will not take any new orders right up until the facility is complete as it has experienced to vacate its earlier rented premises. “We have more than enough inventory to very last right up until the second quarter of this 12 months.”
Ansah desires to equip the new factory with a few locally produced equipment, each individual capable of generating 400 luggage of fertiliser an hour. This equates to 6,600 per day, a significant boost from the latest 600 per working day.
Acknowledging that from time to time the promised ability does not materialise, Ansah states even 200 bags for every hour further would be an enhancement.
Farmers Hope is awaiting final certification from the Ghana Cocoa Board (Cocobod) as an authorized product or service. When this is acquired, the enterprise can source Cocobod immediately to distribute to cocoa producers in the nation.
While this would be a big market place for Farmers Hope, Ansah is careful and will carefully take into account the volumes essential by Cocobod prior to committing.
“We will not hurry into contracts as we have to be 100% certain we can source we can’t are unsuccessful them.”
Ansah would also like to devote in broadcast advertising and marketing in the coming 12 months, owning viewed that a existence on radio and tv supports brand name acceptance by the country’s farmers.
Farmers Hope is continue to negotiating funding for the completion of the manufacturing facility and this prepared promoting generate. It is hopeful the Cocobod certification will be the determining factor for a potential funder that has proven fascination.
Farmers Hope CEO call information
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