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Sustainable Agro Ltd

Agribusiness

Startup , Ghana, Distribution, Retail, Wholesale, Farming,

  • Business Overview

    Sustainable Agro Limited is an agribusiness registered with the Registrar General’s Department as a Limited Liability, which changed from a sole proprietorship in 2015. The registered business office is H/No M1006/3, Madina – Accra. The farms are located in Asutuare, Eastern region, Avalavi, Golokwati and Hohoe all in the Volta region. The business concentrates on rice crop production, processing, packaging and supply of agriculture mechanization services to rice farmers.
    Sustainable Agro Limited has identified three distinct customer segments based on social class and health choices. The customer segments are health conscious persons, middle class earners to upper class earners and upper class of the lower belt earners to middle class earners. DUQ Long Grain Perfume Rice is targeted at the middle class to upper class customers. Non-branded second and third grade rice is targeted at upper class of the lower belt earners to middle class earners who have a lower purchasing power but few customers such as schools amongst this category buy in larger volumes. Brown rice and parboiled rice is targeted at health conscious customers.Sustainable Agro has identified three keys that will be instrumental in their success. The first key will be the never-ending pursuit for the company to produce and process high quality and nutritious products that will appeal to our customer segments. The second key is the recognition and implementation of the philosophy that 100% customer satisfaction is required to ensure a profitable business. The third key is the attainment of both local and international certifications from recognized certifying bodies that guarantees our customers food safety.

Product Gallery

Founders

  • fundacity user

    abena abedi

    Project coordinator

  • fundacity user

    Princess Mary Adjei

    Marketing and Administrator

    Unconfirmed
  • Product development stage

    Full Product Ready

Business

  • Business Description

    Sustainable Agro Limited is a Ghanaian based agribusiness company that grows a variety of rice crop and supplies agriculture mechanization services to rice farmers. It has been in existence for more than one year now. As of April 2015, Sustainable Agro changed from Sole Proprietorship to a Limited Liability Company. The business started as a Sole proprietorship in 2012 under the name Sustainable Agro-Based Projects. The shareholders are Abena Mamle Abedi and Princess Mary Adjei.
    Sustainable Agro-Based Projects had been in operation for 3 years initially on a non-profiting business rather than a profit making business. It operations started when rice farmers made a fervent call on individual data collection personnel who were collecting rice farmers’ data for an American based NGO (ACDI/VOCA) in Ghana. Acknowledging the scarcity of agriculture machineries in many districts visited in the Volta region, Sustainable Agro decided to supply farmers in Hohoe districts with rice threshing services since rice farming was predominant in the area.
    Currently Sustainable Agro Limited gives a sixty percent credit package to rice farmers by providing machinery services and rice agronomic inputs at WETA Irrigation Scheme in the Volta region, Kpong Irrigation Scheme in the Eastern region and other rain-fed areas like Golokwati and Hohoe also in the Volta region. The company provides ready access to market for these farmers by purchasing the paddy rice they produce at current standard market prices
    Company Strategy
    Our utmost strategy is to carefully nurture strategic alliances and partnerships with investors, persons or groups with requisite skills, natural and capital resources for a mutually beneficial advantage that translates into fostering strong value chains and networks globally.
    The Product
    Currently, Sustainable Agro Limited together with it rice out grower groups grow and sell two aromatic rice varieties called Ex-biker and Jasmine 85. It also markets and sells brown rice and parboiled rice in non-branded sacks. These aromatic varieties marketed and sold by the company are in high demand on the Ghanaian market because it has a sweet natural smell and tastes extremely good as the imported ones. As a result of grains not being polished, Sustainable Agro Limited’s aromatic varieties of rice have high nutritional content compared to polished imported rice. The brown rice has higher nutritional value than parboiled rice and the two variants of white rice. Brown rice is very good for health conscious persons like diabetic and hypertensive patients.
    Irrespective of the rice variety marketed and sold by Sustainable Agro Limited, the paddy rice is well milled, cleaned, sorted and graded.

    DUQ Long Grain Perfume Rice
    This is the first graded branded rice out of the three grades of Sustainable Agro Limited’s rice grains. It is in high demand on the Ghanaian market because the grains are long and is 100% long grain. This is synonymous to the imported rice. This long grain rice is more nutritious than other competing rice on the rice market because it is partially polished thereby leaving lots of natural nutrients in the grains. It has a natural sweet smell unlike artificial scent induced into imported rice from other countries. This rice cooks in a relatively shorter time and has a good texture as well as a good taste.
    DUQ has been on the market since November 2015 when Sustainable Agro Limited had successfully designed and printed the sacks in consultation with Food and Drugs Authority packaging guidelines. DUQ means “Fresher Tastes” and “Good Nutrition”.

  • Problem definition

    Adding value to Locally produced rice, job creation, community empowerment, women development and empowerment, wealth creation

  • Solution

    Healthy And Nutritious Rice Products – Sustainable Agro Limited does partial polishing of its rice grains during processing and this leaves lots of natural nutrients. For instance, research has proven that locally produced rice is very rich in protein and micronutrient (Diako et al, Department of Nutrition and Food Science, Cooking Characteristics and Variations in Nutrient Content of Some New Scented Rice Varieties In Ghana). The micronutrient Zinc helps in the growth of young children and it also very important in the absorption of other micronutrients and lessens the incidence of diarrhea occurrence.
    Natural Sweet Smell – Currently Ghanaians are addicted to ‘perfume rice’. Sustainable Agro grows two aromatic varieties called Exbaiker and Jasmine 85 that have a natural sweet smell. This attribute of our products attract a large segment of customers particularly because the sweet smell is natural unlike our competitors’ that imports rice that have added unnatural scents.
    Fresh In Stock – Sustainable Agro Limited produces rice that are freshly harvested from the farm and processed after 3 months for the market unlike competitors’ rice that have been in store for more than 3 years. Sustainable Agro will maintain this attributes by producing enough rice consistently to meet market demand and at the same time prevent too many surpluses stored in warehouse for a longer period.
    Women Empowerment - Sustainable Agro makes it a point to have more than 80% of its outgrower farmers as women. Its supporting staff is also mostly women.The company provides ready access to market for these farmers by purchasing the paddy rice they produce at current standard market prices

  • Target users

    DUQ rice - Middle to upper income earners
    Brown Rice - Health conscious customers
    Parboiled Rice -Health conscious customers
    Broken Rice - Restaurants, Schools, Catering companies, animal feed producers
    2nd Grade - lower to middle - lower income earners
    Grits - animal feed producers, cereals beverages producers

  • Value proposition

    Healthy And Nutritious Rice Products
    Consistency and sustainability
    Natural Sweet Smell
    Freshness of Rice.

  • Market Size

    Per capita consumption of rice in Ghana increased from 17.5kg per annum between 1999 and 2001 to 22.6kg per annum between 2002 and 2004. By 2011, it had reached 38kg per annum and projected to reach 62kg per annum by 2015. This increase has transformed rice into Ghana’s most important cereal food crop after maize [Asare (2000), WARDA (2007) & Ghana Ministry of Food and Agriculture’s National Rice Development Strategy (2011)]. Rice consumption will soon catch up with our traditional staple foods considering the current fast paced life of the average Ghanaian now. The increasing number of fast – food restaurants and vendors in major cities has increased demand for rice. In some households in Ghana, consumption of rice within a week is as high as ten times out of three square meals. The ease with which rice can be cooked recently cannot be overemphasized. The sophisticated gadgets like rice cookers commonly found on our markets will contribute to the shift from old staple foods to rice thereby increasing demand for rice in the near future. It will not be surprising at all if Ghanaians begin consuming packaged precooked rice which will only take a consumer to pour into a microwave bowl, heat for just 3 minutes and consume.
    The rice balance sheet for 2009/2010 according to MoFA showed that local production of rice was 34.7% whiles rice imports provided the remaining 65.3% to feed Ghanaians. Currently the self-sufficiency ratio of rice in Ghana is about 56% with a deficit of 44% (Ghana News Agency, 2015). The significant growth in the rice sector over the past five years can be attributed to significant consumption of locally produced rice, investors and farmers collaborative efforts, access to mechanization services, quite some significant development of government irrigation schemes, relatively high import tariff on rice, reduction in rice import bill and a few more. Most importantly, the availability of an established market throughout the year has brought the boom in local rice production.
    Despite an increase in the consumption of local rice, the Ghana rice market is increasingly dominated by high priced premium rice that is mostly imported. Premium rice captures 24% of national rice consumption and grew at a compound annual growth rate of 40% from 2006 to 2011 due to rising urbanization and income. Ghanaian consumers are willing to pay a 113% price premium for imported rice in comparison to local rice. This premium rice consumption is mainly served by imports (with 85% of supply), and distribution is consolidated amongst a few players like Finatrade and OLAM) with 60% market share. While Finatrade and OLAM lead the sale of premium imported rice in Ghana, it’s worthy to note that local rice industry provides about 15% of premium rice (perfumed and less than 5% broken) to these companies as at 2011. These companies bagged locally produced rice under their brand name and sold them on the Ghana market (Bill and Melinda Gate Foundation, Developing the rice industry in Ghana, Ghana assessment July 2012). This analysis shows that if more attention is paid to the local rice industry, it can produce and package more premium rice for the Ghana market. Finatrade is almost out of business and this leaves a big gap in the rice industry for both importers and local rice producers.
    Clearly, more Ghanaians are eating their own locally produced rice sold under international brands. This is a clear indication that rice production could be a viable and lucrative venture if properly packaged, thus the push by Sustainable Agro Limited to undertake this project.
    In Ghana there are about seven main local rice companies in the rice industry with many smaller producers, processors and marketers. Four out of the seven companies including Sustainable Agro have branded sacks and are selling under their brand names in direct competition with the foreign brands. Of the four companies, only Sustainable Agro is selling Long grain premium (perfumed and 100% long grain) rice in its DUQ sacks. This gives us an edge over all the three other brands and the other six rice companies that produce in Ghana. DUQ is therefore in the league of known top brands such as Lele, Gino and Sultana among others.
    Some researchers such as Musa Et Al (2011) and Kassali et al (2010) show that income and employment status has a direct relationship on the choice of rice people will purchase. The lower an individual’s income the lower the individual’s purchasing power. In this regard sustainable Agro will in the immediate future produce healthy but affordable rice to carter for this segment of customer and consumer by branding its second grade rice, “Sankofa”.

  • Business model

    Sustainable Agro generates revenue through sale of its rice productions and machinery services to farmers outside its out grower schemes

  • Competitors

    Current competition for our rice product lines include: Aduanehene, Champion rice, and Copa, Organic Brown Rice by aka foods

  • Competitive advantage

    Healthy And Nutritious Rice Products – Sustainable Agro Limited does partial polishing of its rice grains during processing and this leaves lots of natural nutrients. For instance, research has proven that locally produced rice is very rich in protein and micronutrient (Diako et al, Department of Nutrition and Food Science, Cooking Characteristics and Variations in Nutrient Content of Some New Scented Rice Varieties In Ghana). The micronutrient Zinc helps in the growth of young children and it also very important in the absorption of other micronutrients and lessens the incidence of diarrhea occurrence.
    Natural Sweet Smell – Currently Ghanaians are addicted to ‘perfume rice’. Sustainable Agro grows two aromatic varieties called Exbaiker and Jasmine 85 that have a natural sweet smell. This attribute of our products attract a large segment of customers particularly because the sweet smell is natural unlike our competitors’ that imports rice that have added unnatural scents.
    Fresh In Stock – Sustainable Agro Limited produces rice that are freshly harvested from the farm and processed after 3 months for the market unlike competitors’ rice that have been in store for more than 3 years. Sustainable Agro will maintain this attributes by producing enough rice consistently to meet market demand and at the same time prevent too many surpluses stored in warehouse for a longer period.

  • Pitch Deck

    Current Investment Need
    With the steady increase in demand for DUQ rice and other products of Sustainable Agro Ltd, there is the need to increase the number of hectors the company is currently cultivating. Sustainable Agro in the recent last major season cultivated an estimated 130 hectares of rice farm. this was done with its out grower group.
    for this years major and minor season, the company intends to add an addition 100 hectors. this will translate into 230 hectors major season and 230 hectors minor season.
    The invest sought is for the procurement of inputs to supply our out grower groups. A total invest of GHS 250,000.00 will be needed for each farming season. the ratio of cost sharing is 60% sustainable Agro Ltd; 40% out grower group.

Team

  • fundacity user

    David Agyapong

    Auditor

    Unconfirmed
  • fundacity user

    Princess Mary Adjei

    Marketing and Administrator

    Unconfirmed
  • fundacity user

    Abena Abedi

    Project cordinator

    Unconfirmed
  • fundacity user

    Tahiru Adams

    Accountant

    Unconfirmed

Advisors

  • fundacity user

    Philip Liverpool

    Advisor

    Unconfirmed

Mentors

  • fundacity user

    Philip Liverpool

    Unconfirmed

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