This page will give you some opportunity to invest in some of our dreams.
Grandeur Africa Limited contracts farmers in different locations in Kenya to farm barley seeds for hydroponic fodder use.
The average barley seeds quantity sold in our Kasarani Store is 18,000kgs per month.
The demand for barley seeds is increasing as East African Countries also seek for the produce. Such countries include Ethiopia, Somalia, Uganda, Tanzania, Rwanda and Burundi.
East Africa experiences drought every five years and the demand per month rises over the 18 Tonnes per month.
For this reason and the fact that more farmers are adopting hydroponic fodder as a protein supplement for their livestock, we are seeking for farmers who can invest with us in barley seeds production.
Below are the numbers for producing barley in one acre of land:
|date||Current cost||Worst case scenario|
|2nd harrow (OPTIONAL)||June||0.00||1,500.00|
|Planting||2nd wk of june||1,500.00|
|Herbicide (OPTIONAL)||1st wk ofJuly||0.00||2,000.00|
|Insecticide||1st wk of July||1,500.00|
|Fungicide/Frost Protectant||1st wk of July||2,500.00|
|Foliar||3nd wk of August||1,500.00|
|second insecticide and fungicide||3rd wk of August||0.00||2,000.00|
|Harvesting||end of Oct||2,000.00|
The table above just gives the cost estimate of doing one acre which will later produce 1,800kgs of seeds. Cost of production for every 1 kg of seeds is Kshs 14-17.
It therefore means that to produce 18,000kgs, we would need 10acres of land to produce enough seeds for a month.
But remember the barley will only be harvested after 4 months. There are also another 3months of waiting for the barley seed dormancy to be broken. One should not assume that soaking freshly harvested and dried barley in water will break the seed dormancy.
It therefore means that to produce barley, one must take into account the 7months.
For us to sell without any shortage, we need at least 120acres of land to cover us for 12 good months.
We have just scratched the surface on this but there’s more. We call them Post-Harvest Costs.
We will need to sun dry the seeds to a moisture content of 13% after harvesting to avoid seed spoilage by growth of moulds and fungi.This will cost us Kshs 5 per kilogram of seeds.
Before storage, we shall take the seeds through a blower to get all chaff out of the seeds. No customer wants you to sell chaff to them. To get the chaff out, we are charged Kshs 2 per kilogram of seeds.
Then we will store the seeds for 3months in a silo which attracts some storage fee of Kshs 2 per kilogram of seeds.
Transport of the seeds from the farms to the silos and from the silos to our store costs us Kshs 5 per kilogram of seeds.
Total production costs so far should be between Kshs 28 and Kshs 31.
The above costs are exclusive of management and miscellaneous costs.
We later sell the seeds at Kshs 45 per kg. The difference of Kshs 14 per kg should be our profit and might make you think we are minting a tidy sum out of it.
Unfortunately, this is not the case.
That’s why we need investors.
To be honest, we are currently not able to produce our demand of 18Tonnes per month.
Therefore we fall prey to brokers who hoard the seeds and inflate prices leaving us with a profit of Kshs 3 or Kshs4 per kg.
The reason we are looking for investors is not so that we may make more profits. We can share the profits by signing a good Memorandum of Understanding. The main reason is that we need to avail the seeds to the farmers cost effectively at locations closer to them.
Availability of the seeds is the solution we are chasing here!!!
2. Set Up of A Demonstration Farm at Kajiado County in Kenya or Abuja/Lagos in Nigeria and other African Countries
The Demo farm will serve as an Educational and Training Facility for both Hydroponic and Aquaponics Techniques.
We would be excited to have a demo farm in every of the 54 countries of Africa. These Demo farms should have both Livestock and Crops and would show the different systems used in both Hydroponics and Aquaponics.
So far we can attest to having some demo farms in Kenya, Uganda, Tanzania, Zimbabwe and Nigeria.
We are also open to transform existing farms into demo farms.
We are willing to partner with individuals, schools, colleges, private companies, NGOs, financial institutions, governments etc.