AB Farms – From Fear to Fame

Profile

Mr Abraham Agbesi, Managing Director of AB Farms, is an unassuming yet savvy entrepreneur whose company is specialized in the production and export of fruits and vegetables. Having worked as a sales person in a company that produced and exported fruits and vegetables, he later formed his own company in 2012. He realized he had gathered enough experience, and had become convinced the time was ripe to launch out on his own. Urged on by Mr SN Tackie, one time President of the Ghana Association of Vegetable Exporters (GAVEX), they visited GhanaVeg to discuss his company’s project idea. But within two years, the sector wherein he had invested his capital was hit by an export ban from the European Union. In his own words, “our business had almost collapsed until GhanaVeg came on the scene”.

Project Initiation

He walked behind Mr Tackie, almost tip-toeing, into the GhanaVeg office – an office painted in spotless white, quite different from those of the farmhouse to which he had grown accustomed.  He was a farmer, and had little time for the niceties of modern office complexes. Yet the green carpet in the office appeared to have offered him a familiar ground, a greenery that bore some semblance to his own farm, so he could feel at home. Mr Tackie threw in the first customary introductory remarks, providing a strong recommendation to AB Farms. And his verdict would eventually be proven right: “this gentleman is very hardworking. Give his company a chance and he will deliver”.

So GhanaVeg took the bait, and as was done to all potential partners, the proposed project idea of AB Farms was thoroughly discussed. Thereafter, the grant scheme was explained to him. He first needed to submit a concept note, and once approved, he was directed to work with a consultant to develop that into full project proposal. He would have to co-fund his project if it got a final approval for funding, he was informed. Mr Agbesi went through all the processes and submitted a project proposal that eventually was approved by an independent grant selection committee. Upon a first tranche disbursement to his young company, his project was underway in no time.

AB Farms prepared eighty acres of land, where he cultivated export okra, beans and tinda. Rigor, dedication and hard work characterized the implementation of his project. Soon, he was already drawing attention from colleague exporters and nearby farmers. Then the ban hit. No company was going to be allowed to Export to the EU until strict measures were put in place to ensure product safety. The EU had made recommendations that required farmers to roll out a number of field trials. These trials would be used to simulate scenarios to prove no further contamination of produce occurred. AB Farms provided the fields that became model farms to roll out such series of measures culminating in the eventual lifting of the ban, and the subsequent resumption of exports to the EU. The ban was lifted on December 31, 2017. On January 10^th, 2018, AB Farms became the first company that exported to the EU after the ban had been lifted! Already, the company has since exported over 520 tons of various vegetables to the EU without a single incidence of interception. This is among the numerous achievements the company has recorded over the period.

Achievements

The support of GhanaVeg to this young company has not been in vain. There have been clear tangibles the company has so far achieved. These include:

• AB Farm has greatly improved on its management processes, in terms of production planning and export scheduling. In their own words, “too many of AB Farm’s previous management decisions were ad-hoc at best; the skills and experience built while embarking on this project have now made AB Farms more efficient”.
• While thinking long-term for business sustainability, AB Farms has developed the culture where every production cycle is regarded as a ‘project’ with clear milestone and deliverables from start to finish. This is a culture that developed out of the GhanaVeg project implemented by the company.
• AB Farms has undergone the full training regimen and is currently a certified Ghana Green Label producer. Additionally the company is on course to attaining GlobalGap certification. These certifications mean the company applies good agricultural practices in its production activities and exercises a high degree of environmental governance within his production areas.
• It has improved its combined vegetable yield from 0.87 tons / ha to 3.2 tons per hectare over the two-year period. This is still a modest gain, and the company looks to upping the tonnage in subsequent production cycles.
• The company has developed additional infrastructure including a fully-furnished office space, production sites fitted with irrigation systems, and a packhouse that ensures shipments are handled in a clean and safe space, for consumption.
• The company now offers employment to at least 35 women – most of them nursing mothers with school-going children. The impact clearly redounds into the future, through the school children supported by their parents’ income.
• The reputational advantage built within the exporter association, with development partners, and with external customers in the export market has been huge. AB Farms is often consulted for contract-farming arrangements where he produces selected vegetables for interested farmers.

The partnership with AB Farms sets a good example on how development cooperation can yield results. That a partnership with a dedicated private sector entity can achieve development objectives. The future can only be bright for this young company.

Writer

Mr. Hanson Arthur
Fund Manager
HortiFresh