News

Somalia opens state-of-the-art abattoir

Export abattoir built by nine Ethiopian Diasporas in Somali State has gone operational. The abattoir, whose capital investment is 172 million Birr, has the capacity to slaughter 2000 cattle per day.

The abattoir was inaugurated by Livestock and Fisheries State Minister, Gebregziabher Gebreyohannes (PhD) and President of Somali State, Abdi Mohammed.

According to Gebregziabher, power lines and roads leading to the facility were constructed by the Somali State at a cost of 6 million Birr. He further noted that USAID extended 40 million Birr support for the project.

Patricia M. Haslach, US Ambassador to Ethiopia, on her part noted that the US Embassy is working to improve the development partnership between Ethiopia and the US.

The abattoir’s plan for the export of high quality meat was reviewed by Dr. Faisel Abdikadir, manager of the abattoir.

According to Fortune the institution creates 200 permanent jobs and 1000 others will benefit from supplying cattle for slaughtering.

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Food Philippines offer healthy and halal-certified food products

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Mai Dubai Bottled Drinking Water wins prestigious recognition

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Mai Dubai Bottled Drinking Water (Mai Dubai LLC) was the only bottled water company nominated as "Best Factory in Dubai...

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Angelo Po introduces revolutionary new cooking line

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Angelo Po, a 100% Italian firm with more than 90 years of history, has introduced ICON 9000, the new cooking line for th...

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Rational brings cooking technology to a new level

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Rational surprised professional chefs across the globe a few months ago with a cooking appliance that senses, recognises...

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Dubai Municipality to launch a new grading system

Industry Reports

By Bilal Al Halabi, Al Halabi Ref. & Kitchen Equipment www.al-halabi.com Dubai Municipality is to launch a new grading...

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Foodstuff Market

By Bilal Al Halabi, Al Halabi Ref. & Kitchen Equipment www.al-halabi.com There’s a hot new trend in Dubai – mobile cat...

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The Art of Finding The Choicest Meat Cuts

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Industry Reports

Kenya’s Blooming Flower Industry

Kenya's economy largely relies on the agriculture sector. Horticulture sub-sector is one of the top foreign exchange earners for the country generating approximately US $ 1 billion annually. The sub-sector contributes roughly 1.25% to the national GDP while flower exports contributes nearly 1% from the flower industry. It has grown in significance to a vibrant flower industry worldwide. The flower industry is also one of the largest employers in the country, providing employment to over 100,000 people directly and an estimated 2 million people indirectly, mostly women. It is estimated that in Kenya, over 500,000 people, including over 100,000 flower farm employees depend on the floriculture industry impacting over 2 million livelihoods. The main production areas in Kenya are around Lake Naivasha, Mt. Kenya, Nairobi, Thika, Kiambu, Athi River, Kitale, Nakuru, Kericho, Nyandarua, Trans Nzoia, Uasin Gishu and Eastern Kenya. The main cut flowers grown in Kenya are roses, carnations, and Alstromeria. Other flowers cultivated include, Gypsophilla, Lilies Eryngiums, arabicum, hypericum, Statice, a range of summer flowers amongst many others. Kenya is the leading exporter of rose cut flowers to the European Union (EU) with a market share of almost 40%. Approximately 50% of exported flowers are sold through the Dutch Auctions, although direct sales are growing. In the United Kingdom, supermarkets are the main outlets. Over 25% of exported flowers are delivered directly to these outlets, providing an opportunity for value addition at source through sleeving, labelling and bouquet production. Kenyan flowers are sold in more than 60 countries. Europe accounts for nearly 70% of Kenya's cut flower exports and coronavirus restrictions had slashed daily orders by half, threatening thousands of jobs in East Africa's richest economy. The biggest buyers of cut flowers are the EU and the US, but the biggest growers and exporters are the Netherlands, Ecuador, Colombia, Kenya and Ethiopia. Roses, carnations and chrysanthemums are the most popular blooms. Kenya’s Blooming Flower Industry The industry continues to attract investors due to solid infrastructure, favourable climate, global-positioning of Kenya and a productive workforce. It comprises large, medium and small scale producers who have attained high management standards and have invested heavily in value addition through adoption of modern technology in production, precision farming and marketing. The farmers utilize technologies some of which includes drip irrigation, fertigation systems, greenhouse ventilation systems, net shading, pre-cooling, cold storage facilities, grading, bouqueting, fertilizer recycling systems to prevent wastage, wetlands for waste water treatment, artificial lighting to increase day length, grading/packaging sheds, and refrigerated trucks. https://www.youtube.com/watch?v=lwuXwN96O-Y On the global front, a growth of 5% is anticipated every year over the next five years. To be a part of this opportunity, Kenya is going to continue investing and expansion in growth rate than previous years. Going forward, the industry will continue benchmarking itself against other producer countries. Information thus gathered will be useful in formulating strategies, to capture prospects of expansion in current and emerging markets. The Kenya Flower Council is a voluntary association of independent growers and exporters of cut-flowers and ornamentals, established in 1996, with the aim of fostering responsible and safe production of cut flowers in Kenya with due consideration of workers welfare and protection of the environment.Against this background the Council has become the focal point for industry representation, promotion, and compliance to pertinent local and international standards deemed necessary to secure, expand and sustain markets.

Industry Reports

Saudi Arabia embraces European cheese as imports from the EU increase

The European Union’s (EU) imports of European cheese to Saudi Arabia increased to 42,476 tonnes in 2020, an annual increase of 15% on the 36,888 tonnes imported in 2019, according to the latest research from CNIEL, the French Dairy Board. France is the second-largest dairy producer in the EU with 23.8 billion litres produced in 53,800 dairy farms in 2019 and continues to command the attention of Saudi Arabian cheese aficionados with well-known cheese such as Camembert and Brie remaining popular choices for all culinary occasions. Other French cheese varieties increasing in popularity in Saudi Arabian cooking includes blue cheese, like Fourme d’Ambert or Bleu d’Auvergne, slightly salty cheese made of cow’s milk; Comte, which has the highest production volume with approximately 64,000 tonnes annually; and fresh cheese, which is made from whole or skimmed milk and cream and can be used as an appetizer, a snack or creamy desert. Marie-Laure Martin, International Project Manager from CNIEL, said: “Both hotels and consumers in Saudi Arabia are continuing to choose French cheese for their cooking and baking, signalling a real awareness from the Saudi consumer in using only the finest produce that is known for safety, superior quality and traceability. “French dairy farms adhere to a national charter of good cattle breeding practices with 250 analyses per farm per year for milk pricing in accordance with its composition and quality. Also, traceability is provided between the farms and the collection tanker, and then along the entire processing chain right to the end-user to ensure world-class food safety. Technology has made it possible to make our food chains completely transparent – something we know our Saudi consumers welcome.” In 2020, the French Dairy Board launched France, Land of Milk, which was created to highlight the need for sustainable development within the French dairy sector. France Terre de lait covers the entire dairy supply chain by focusing on four key areas of sustainability performance, including economic and social, food safety, food nutrition, and responsible production (animal welfare and the environment). Eight specific goals have been set for 2025 to align French sustainable dairy farming with the goals and targets set out by the UN’s 2030 Agenda. French cheese is also gaining popularity in the wider Gulf Cooperation Council (GCC). Kuwait has seen imports up 9% from 5,328 tonnes in 2019 to 5,788 tonnes in 2020. Despite restrictions on the tourism and hospitality market, the UAE imported 15,710 tonnes in 2020, further underscoring the demand for French cheese in the UAE. “In recent years we’ve become acutely aware of the evolving tastes of Middle East residents and tourists as they gravitate towards high quality and flavourful French dairy products. We are undertaking several campaigns to highlight the unique characteristics of French dairy as this region continues to be an important export market for many leading producers from France,” added Martin.

Industry Reports

Food and beverage industry set to grow worldwide

The food and beverage industry is one of the largest manufacturing sectors in terms of jobs and value added in most economies contributing US$77.5 trillion globally in 2017. A forecast overall CAGR of 2.9% over 2017-30 is driven in part by population growth in emerging markets within Asia Pacific and Middle East and North Africa but also by the shift to packaged and convenience foods in these regions. In 2017, total global disposable income accounts for the 65% of total world GDP (US$51 trillion in 2017) while consumer expenditure represents 56% of world GDP. Consumer expenditure on food and beverages is now US$6.6 trillion or 8.5% of world GDP. Asia Pacific is forecast to achieve the fastest growth in GDP, driven by the strong manufacturing and export-led economies of China and India as well as overall growth in private consumption. Growing private consumption in these markets is encouraged by the expansion of global foodservice chains introducing westernised food and beverages as well as the expansion of modern retailing formats and the raised presence of convenience products. GDP growth in Europe is more muted, with mature, saturated markets for food and beverages. Valueadded products are favoured by higher income and older consumers looking for natural ingredients/product formulations that exclude added sugar, salt, preservatives and artificial ingredients. With up to 24% of the population of Europe expected to be over 65 years by 2030, food and beverages in smaller quantities, with natural flavours and clear labelling are expected to be in higher demand. Rising incidences of diabetes, cardiovascular diseases and osteoporosis will drive the growth of functional foods fortified with vitamins and minerals. After the latest recession, and political and economic uncertainty, consumers in many countries have adopted a more cautious approach to spending. Consumers in developing markets tend to be more optimistic than those in developed counties when it comes to spending but many still focus on affordability as the primary purchase decision criteria. Demand for fast food restaurants and processed food in Nigeria is robust, fuelled by a fast-growing young population, rapid urbanisation, increasing affordability and demand for convenience As disposable income rises, consumer expenditure on food and beverages in the Asia Pacific and Middle East and Africa regions will increase from 53% of global expenditure in 2017 to 60% by 2030. Urbanisation and population growth are expected to aid this consumer spend. As a result, packaged foods and beverages are expected to become more accessible, with increased access to international brands and western food types. In developed markets consumers are more inclined towards purchasing added-value products, preferably with natural ingredients, Plant-based and alternative More than half of world GDP now comprises consumer expenditure In 2017, total global disposable income accounts for the 65% of total world GDP (US$51 trillion in 2017) while consumer expenditure represents 56% of world GDP. Consumer expenditure on food and beverages is now US$6.6 trillion or 8.5% of world GDP. Forecast growth in middle-class households is strongest in countries such as Nigeria and Egypt as employment and income opportunities rise in urban areas in these countries. Expenditure on food and beverages also increases at a high rate as these middle-income households emerge. Demand for fast food restaurants and processed food in Nigeria is robust, fuelled by a fast-growing young population, rapid urbanisation, increasing affordability and demand for convenience. In addition, Nigerians are switching from unpackaged, unbranded products to packaged products as the urban population reaches 51% and consumers look for packaged food products that are quick to prepare or ready to consume, such as noodles, dairy products, snacks and bread. In North America, the population aged 60 years and older constitutes the fastest-growing consumer segment in both the USA and Canada. This is expected to drive increased demand for a wide range of agespecific products and services, particularly health-related products. Many people are working longer than previous generations, have higher disposable incomes and have an active, healthy lifestyle. Manufacturers, aware of consumer demand for natural, nutritional and sustainable foods, are reformulating their popular products to increase appeal, achieving market share by acquisition of smaller, successful, niche providers and developing fresher products with natural ingredients and lower levels of processing that suit not just the older generation but also strong health trends throughout the general population. In Western Europe, the free-from trend is now well established and growing. Gluten-, meat- and dairy-free product ranges are increasing in variety, availability and affordability as the price gap between standard and free-from products narrows. Flexitarian, vegetarian and vegan populations are growing, but even among general consumers there are many who believe that gluten- or lactose-free products are good for digestion and that alternative high-protein sources are kinder to the environment as well as better for your health. In the UK, for example, sales of free-from packaged foods grew by 5% in 2016 as sales through supermarkets, hypermarkets and discounters expanded. In Turkey, 75% of all households are now in urban areas. Many adults are in professional employment and there has been a rise in the number of single person households. This has created demand for smaller-sized packs, processed meat and ready meals, with convenience and ease of preparation high on the agenda for busy working adults. Young, urban consumers are interested in new and sophisticated products for in-home consumption, as general political and economic instability has depressed the frequency of eating out. Western-style coffees and health and wellness products, such as fruit/herbal and green tea, are increasingly popular. Economic recession and trade embargos on Russia are heightening price sensitivity. Consumers are trading down with a shift from premium to mid-priced or mid to economy price segments, for example in tea, coffee and hot drinks. Manufacturers are responding by diversifying their product portfolios offering value for money lines at all price points as well as using promotional activity to maintain visibility and brand loyalty. Domestically produced drinks such as Russian kompot juice drinks, kvass non-cola carbonates or sugar-free and vegetable-based soft drinks are widely available and popular.

News

Changing lives through sesame seed : Zimbabwe

A local Zimbabwe firm, Nyatande Agriculture has changed the livelihoods of the country’s poorest farmers by providing a reliable ecosystem around sesame seed. The small seed has become big dollars for the countrys impoverished farmers who find the drought resistant crop easy to grow. In a program pioneered by Nyatande Agriculture, seed bought from the growers at producer viable prices is shipped to export markets creating a reliable market for the growers. “Nyatande Agriculture has saved us from exploitation from Mozambican buyers who used to buy our product for very low prices” said Angeline Nyabudu a subsistence sesame seed grower. She went on to show us the unharvested portion of her fields that she was in the process of harvesting for market. She went on to add, “in the next season I am going to increase my hectrage because Nyatande Agriculture has given us the confidence to grow larger volumes and I urge stakeholders to support Nyatande Agriculture as they have positively impacted our lives through sesame seed.” Asked for comment the Managing Director of Nyatande Agriculture, Mr Ronald Murowe, expressed gratitude to the sesame seed growers who had trusted them with their produce and he thanked the growers for their overwhelming show of support and enthusiasm to work with a local company in sesame seed marketing. “We have the opportunity to grow the national production of sesame seed in Zimbabwe to over 100,000 tonnes per year. With the support of local and international financial institutions like the African Development Bank AfDB, we will create a viable value chain that will benefit millions of the poorest citizens in the country,” Mr Murowe lamented. Zimbabwe's annual marketing of sesame seed has in the past been left to buyers from across its borders. Internationally sesame seed contributed $3 billion dollars to international trade in 2022, with Zimbabwe only officially realizing a paltry contribution of $85,000 on its official GDP figures. The Advent of Nyatande Agriculture will see the country realizing stronger revenues from this little known cash crop that is a staple in Asian markets. As Africa continues its fight with climate change, drought resistant sesame seed is set to create new revenue streams for African countries. As players such as Nyatande Agriculture realise growth by empowering small scale growers, it becomes paramount for African banking institutions and governments to put their force behind the success of these innovative emerging business models. The government of Zimbabwe has already shown its support for Nyatande Agriculture by approving legislation that allows Nyatande Agriculture to implement a 100,000 participant outgrower scheme in the 2023/24 cropping season.

News

Cannabis Cultivation in Zimbabwe Attracts Investments

Zimbabwe has legalised cannabis cultivation and has withdrawn laws requiring sole state ownership for cannabis farming in an effort to encourage investment in cannabis cultivation for industrial and medicinal uses. Demand for cannabis is projected to grow worldwide while tobacco output is expected to decline 15% by 2030, according to Meanwell Gudu, the CEO of Zimbabwe’s Tobacco Industry and Marketing Board. “One of the alternative crops we are looking at is industrial hemp,” he said. “We want to be part of the entire industrial hemp chain.” Tobacco earned Zimbabwe $819 million in revenue in 2021. Farming cannabis for medical use in Zimbabwe was first legalised in 2018. The board has 145,000 registered tobacco growers, who started selling 2022’s crop at international auctions recently. According to recent government initiatives, farmers in Zimbabwe will be encouraged to plant cannabis so that a quarter of their income comes from the plant by 2025. Sales of cannabis worldwide is forecast to reach $1.25 billion this year. Cannabis Exports from Zimbabwe Zimbabwe exported 30 tonnes of industrial hemp to Switzerland in 2022, its first foray into the European market, said Zorodzai Maroveke, the founder of the Zimbabwe Industrial Hemp Trust. The group is partnering with the tobacco board to facilitate the “smooth transition” to cannabis for commercial purposes. As of now, the government of Zimbabwe has licensed 57 foreign and local entities to grow medicinal cannabis in the country according to a recent statement by the Zimbabwe Investment and Development Agency. As a result, production has already begun at some of the licensed farms which are spread across the country. Cannabis, also called mbanje in Zimbabwe, is no unknown word to people today. It has many health benefits like fighting cancer, and 22 countries around the world legalised it for medicinal use. South Africa, Malawi, Zambia, and Lesotho have also legalised medicinal cannabis.

Company Profiles

YugOpt: Wholesaler of FMCG, Grocery Items, Canned Food in Russia

YugOpt is based in Russia and is a renowned stockist, wholesaler, exporter as well as retailer of global FMCG brands as well as FMCG products of Russian origin. With 24 years of experience in the FMCG line, we supply a wide range of internationally renowned brands like: Nescafe (And other Nestle products) Red Bull Heinz Skittles Pringles Nestle Gillete Proctor & Gamble Heineken Kit Kat Ariel Tide Mars Coca Cola Nesquick Twix Tchibo Orbit Unilever Ferrero Lipton Alkozay Starbucks… to name a few. YugOpt procures its products directly from manufacturers as it is the Authorised Distributors for many leading multinational brands in Russia. Over the last 10 years, we have been exporting huge quantities of high quality FMCG products to many countries such as United Arab Emirates, Israel, India, Saudi Arabia, Egypt, Turkey, Australia, Malaysia, Singapore, Uzbekistan, Kazakhstan, Armenia etc. YugOpt: Leading Distributor of Consumer in Russia YugOpt is one of the largest trading companies in Southern Russia engaged in importation, sale and distribution of consumer goods through all trade channels – local and international. The comprehensive range of products offered by YugOpt includes foodstuffs, alcoholic beverages, mass market consumer goods we well as supermarket equipment and gadgets. Today YugOpt is recognised as one of the leading suppliers of a wide range of products in Russia and is trusted by the largest multinational companies in the world to handle their brands in the Russian market. The company has been the agent of many multinational brands in Russia for many years. YugOpt has been supplying goods to to local retail and wholesale chains in Russia as well as to our international buyers. YugOpt has its own branches across Russia in Sochi, Armavir, Krasnodar, Maykop, Novorossiysk, Rostov-on-don, Simferopol and Staroderevyankovskaya. Currently, the company works with over 13,500 partners across the world. As one of the largest stockists in Russia of multinational brands of world renowned products, YugOpt offers its clients competitive prices as well as fast deliveries directly from its state-of-the-art warehouses in Russia. YugOpt has dedicated Distribution Centres and Warehouses equipped with the latest technologies and systems combined with excellent logistics procedures that deliver the best service for warehousing and distribution. Golden Harvest: Popular Brand of Russian FMCG Products We also produce the high quality FMGC products under our own brand ‘Golden Harvest’ that is exported to various countries around the world. Under the Golden Harvest brand we produce a wide variety of FMCG products like: Tomato paste Jams Canned mushrooms Sweet corn Meat Fish Potato Chips Macaroni Pasta… to name a few. ‘Golden Harvest’ range products can be supplied on private labeling also. We are looking for agents and distributors in Africa for our Golden Harvest brand of products in key African markets.

Industry Reports

Saudi Arabia embraces European cheese as imports from the EU increase

Industry Reports

Transforming Africa's Cocoa Industry

Cocoa is essential to the livelihoods of up to 50 million people around the world, including around five million smallholder farmers. West Africa, mainly Ghana and Ivory Coast, produces about 70% of the world’s cocoa on 1.5 million farms, with the majority of the crop coming from small farms (3-5 hectares of land). Recent studies criticising the global chocolate industry for exploitative practices have concerned ethical consumers. Cocoa farmers only earn about 6% of the chocolate industry’s total revenues. Leading chocolate companies have since 2001 made pledges to end widespread abusive labour practices, but continue to fall short. In Ghana, local firm Federated Commodities has shown it is only by improving the cocoa supply chain, with experienced local oversight, that ethical, sustainable and profitable cocoa and chocolate industries can exist. CEO Hajia Maria Adamu-Zibo is ready to form international partnerships to take the Ghanian cocoa sector forwards. Cocoa farmers only earn about 6% of the chocolate industry’s total revenues Cocoa farmers work very hard, often under strenuous conditions, yet don’t earn enough to cover their basic needs. Although the worldwide chocolate market is valued at USD 103 billion, on average, farmers earn only about 6% of the chocolate industry’s total revenues. Many cocoa farming communities in West Africa lack access to education, potable water, and basic social amenities. Cocoa is essential to the livelihoods of up to 50 million people around the world, including around five million smallholder farmers Furthermore, labour practices on cocoa farms are problematic. In a bid to reduce production costs, farmers are inclined towards child labour. An estimated 1.56 million children work on cocoa farms in Ghana and Ivory Coast. About 43% of children aged 5-17 in these two countries are engaged in hazardous work, including exposure to agrochemicals without protective equipment, the use of dangerous tools and working at night. Despite years of pledges from chocolate manufacturers to end abusive employment practices in their supply chains, there has been a 14% increase in the number of children working in cocoa farms over the past 10 years, accompanied by a 62% rise in production. Child Labour in the Cocoa Industry The Director of Impact at the Fairtrade Foundation (www.Fairtrade.org.uk), Louisa Cox, cited in a Guardian article suggested that ‘long-term finance, training and technical services, and helping farmers diversify beyond cocoa’ is needed to help address child labour in the cocoa industry. These are all measures that Federated Commodities (FedCo) – an indigenous licensed buying company (LBC) founded in 1996 in Ghana – has a sustained track record of taking. “As an affiliate company of Global Haulage, FedCo engages in the supply of traceable and certified cocoa beans to help promote sustainability in cocoa production through community development and capacity building of farmers. Under this programme, farmers are trained on adult literacy and good agricultural, business and social practices, which empowers them economically,” says Hajia Maria Adamu-Zibo, the Managing Director of Federated Commodities, in an interview with AfricaLive.net. “The wellbeing of the farmer is of high priority to us. We strive to have a relationship beyond just transactions with the over 50,000 farmers who make up our supply base. We were amongst the first indigenous privately owned firms to go into sustainability. FedCo has achieved several milestones since then. We have 300 employees, 1,700 purchasing clerks, a larger fleet of vehicles, as well as an affiliate company that does not only cocoa haulage but also other endeavours related to the industry.” “We have also touched the lives of countless farmers and communities across Ghana through social interventions. The FedCo Cocoa Farmers Association consisting of about 15,000 farmers provides social benefits, including funeral benefits, and loan facilities to set up farms, to buy agricultural inputs, and to send their children to school. A total of 3,000 farmers have benefited from various forms of financial support in excess of USD 500,000 towards their farming activities. Together with our partners, FedCo has since 2012 supplied over 44,000MT of sustainable cocoa beans and invested about USD 7 million in sustainability, through training, cash premium payments, and various projects.” “Access to financing has always been a problem for the farmers. Farmers’ lives are improved when we facilitate access to inputs and credit facilities so that they effectively carry out their pre-and post-harvest work. We are big on helping farmers by assisting them add value their livelihoods. Going forward, we intend to help more farmers improve their living income by helping them get sustainability programs that will see them get paid more.” On diversification beyond cocoa, Hajia Adamu-Zibo says, “We have diversified into the cashew market which gives us a great alternative during the lean period of the cocoa season. Part of our community engagement drive is getting into farm service agreements with individual farmers. Deals like that will see us take care of their yield in exchange for the commodity after harvest. Diversification helps farmers earn more because they are not banking their livelihoods on just one crop. Processing is part of our long term plan as well.” Empowering Farmers in Africa Federated Commodities has big dreams for farmers in Ghana. “We go beyond just buying. We really try to do more for the farmers and communities,” says Hajia Adamu-Zibo. The LBC believes that partnering with academic institutions to impart technical skills holds promise for improving farmers’ lives and the cocoa industry. “We have put in place programmes to help improve the quality of life of our farmers. For instance, we have worked with local educational authorities to build schools that will help give youth relevant skills to work in the industry. So far, we have constructed seven schools and intend to build more,” she says. “Training programmes for farmers are also part of our agenda so that they can learn how to diversify crops and make use of crop by-products. We are also teaching them financial literacy skills to empower them to better manage their finances. Since October 2018, about 2,032 farmers have enrolled in FedCo’s Village Savings and Loan Programme, run in partnership with Solidaridad West Africa, which is enabling farmers to save for their futures and fund their ventures. We have had interactions with the Kumasi Technical School about the possibility of their students making tools that can help farmers break the cocoa. Discussions are also ongoing on how we can mechanise more processes.” With more partnerships and funding, Federated Commodities aims to be able to do more, for more communities. “Our activities have really enhanced communities. We have also built libraries, computer centres, community halls and over 100 boreholes. It makes me so happy to see FedCo’s impact in the lives of farmers and in communities, and how appreciative they are,” says Hajia Adamu-Zibo. Case Studies Valrhona Working with Valrhona to improve educational facilities in Ghana’s Western Region. FedCo has a long-term agreement with Valrhona, a French premium chocolate manufacturer that sources and transforms the finest cocoa to make high-quality chocolate. The agreement allows Valrhona to source cocoa directly from 1001 producers in eight communities in Ghana’s Western region. Community leaders stressed the importance of improving educational facilities. A subsequent assessment of schools revealed 30% of students were learning in unsafe conditions, while a third of children were out of school. In 2017, Valrhona launched a five-year project to improve access to education and learning conditions for the communities’ 4882 children. https://www.youtube.com/watch?v=L8de58PVmtE FedCo-sponsored Asamankese Cocoa Pilot Project Cocoa farming is the economic base of Asamankese town, in Ghana’s Eastern Region, but the farmers have struggled with skilled labour and agricultural inputs—which has contributed to limited yields and little to no profit. FedCo has been working with farmers in Asamankese to improve production and yield by providing skilled labour and inputs such as fertilizer. However, the project is currently on hold due to funding challenges. Hajia believes that this project has lots of potential and that many more similar ones can be done; “in spite of these initial challenges we are determined to pursue this and similar projects because we believe that they offer significant benefit to our farmers”. FedCo is open to new partnerships that will allow the project to recommence. https://www.youtube.com/watch?v=hWtxL77J5xs Revamping West Africa’s Cocoa Industry As one of the top foreign exchange earners for Ghana, cocoa is central to the country’s economic development. The ‘cash crop’ has sustained lives over generations and successive governments have explored interventions to revamp the sector. Interventions taken by the Ghana Cocoa Board (Cocobod) under President Nana Akufo-Addo’s administration, have since 2017 included increasing volumes of cocoa production through improved agronomic practices and increasing producer prices. In September 2020, the government announced a 28% increase in the guaranteed producer price it pays to farmers for the 2020/21 growing season. The price rise is due to the implementation of a price floor of USD 2,600 per tonne and a living income differential of USD 400 per tonne, to put more money into the hands of farmers. Ivory Coast is taking similar steps. “Indeed, cocoa has been an important commodity for our country. Cocoa is not just a cash crop for us; it has also become part of our politics. The cocoa sector feeds about 800,000 people in the country and issues that affect the industry can be quite emotive. Unfortunately, our industry has suffered a dip in production in recent times occasioned by climatic changes as well as factors such as disease. The impact of the measures the government has put in place will start being felt in a few years, with the expected rise in volumes of production,” says Hajia Adamu-Zibo. “Adding value to our cocoa is also part of our national strategy. Value addition will help increase the value of our product, boost our standing in the global cocoa industry, and lead to job creation.” “The government is focusing on increasing production while also encouraging diversification in the overall agriculture sector to improve the sector and boost our national revenue. Cocoa and cashew processing will help add value and put even more people to work. It will also help more companies like us benefit from the industrialisation drive of the Ghanaian economy. Other commodities the government is looking at include coconut and rice production, to ensure the agricultural industry reduces its reliance on cocoa. This will give Cocobod room to better strategise and add value to cocoa.” “In the future, cocoa will not be the dominant crop in Ghana if our diversification plans come to fruition. Cocoa will still be an important and relevant crop but it won’t be as prominent as it is now.” Partnership: The Path To International Growth With the African Continental Free Trade Area (AfCFTA) agreement set to commence in January 2021, Hajia Adamu-Zibo believes that Ghana stands to gain greatly as long as the country improves its skill base and makes production funding more accessible. “We are well endowed with natural resources and qualified hardworking personnel. The relevant bodies are doing their best, but we are still not as sophisticated as we need to be for the international market. The majority of items we import can be produced locally, but we lack the finesse required to make our products more attractive. A lack of focus on perfecting our products opens the door to a high import rate. Our country must improve its skill base,” she says. “The other obstacle in the way of our production capacity is funding. The cost of funding in Ghana is very high compared to other countries. If the interest rates eat so much into your margins, then you can barely run a profitable venture. If we work on the rate and make funds more accessible, we will create room for more innovation and production in our country.” Federated Commodities is exploring global partnerships to tap more into the global cocoa industry. “We are looking to seal important contacts in Europe and America as we seek sustainability partnerships that will be of mutual benefit. In Africa, we are looking at maybe getting partners in Cote D’Ivoire as well as South Africa because these are two strong cocoa markets. We possess the knowledge as far as cocoa is concerned and an ideal partner would be someone who has the technical expertise to process on a large scale,” says Hajia Adamu-Zibo. “Ghana can be the hub when it comes to business in all spheres if we adjust our tariffs. That way, we will favourably compete with Togo and Cote D’Ivoire. Maybe we also need to diversify our languages and get proficient in French. Ghana is surrounded by francophone countries and that should push us to learn French to properly transact.” Skills Development: Optimising for Greater Heights As Ghana seeks to grow its economy and compete more on a global scale, Hajiya Adamu-Zibo calls on the government to, “place more emphasis on skill development.” “We must cultivate a culture of perfectionism so that we develop the right disciplines and products that serve our people and beyond. If we have the right skills, we will have the right mindsets and ultimately the right products. Of course, we have to tackle issues of cost and infrastructure but I believe skills should be our priority,” she says. On Federated Commodities’ ambitions to make greater contributions to the global sustainable cocoa industry, as well as Ghana’s agricultural sector, Hajia Adamu-Zibo, says, “There are a lot of challenges in the cocoa industry, and the competition is very keen, yet we have a loyal customer base. I believe Federated Commodities must be doing something right and that is why our farmers are happy with us.” “We need good partnerships to help our farmers so that we can keep them motivated. We are looking at skill development, education sponsorships, loans and savings programmes and host of other programmes. Our consistency has made us very trustworthy and reliable in a very competitive environment. In a decade, I foresee a company full of diversified professionals that can thrive in many fields and make this company a huge name in Ghana and beyond.”

Exhibitions & Events

West Africa Food & Beverage Exhibition Accra (WAFBE)

Accra, Ghana

Dedicated B2B trade exhibition for FMCG importers, supermarket chains, cold-chain logistics providers, and international food & drink exporters target...

Exhibitions & Events

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