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  • Session 2: Agriculture & Agri-Business

    A Presentation on Agriculture & Agri-Business Investment Opportunities by

    George G. Wisner Executive Director National Investment Commission Republic of Liberia

  • Rubber Processing & RubberwoodCocoaAquaculture & Marine FishOil PalmHorticultureRice CassavaAgriculture Value Chain Financing

  • Lofa ClusterNimba ClusterMonrovia-Ganta BeltPRRFAARAABomi ClusterSouth East Cluster

  • Long standing history in rubber productionLiberia searching for industrial investors in rubber compounding & production of dry rubber products such as door mats, boots, handles, chairs, pipes, bushels & glovesMany medium size farmers investing in ribbed smoked sheets & rubber crepe63,000t produced in 2013, potential expansion to 325,000tOver 200,000 ha of arable land available: 55% of rubber from small farmersLarge unexploited ECOWAS market for ribbed smoked sheets, crepe & rubber productsLarge unexploited investment opportunity in rubberwood & its products

  • Cocoa sector in Cote DIvoire, Ghana & Nigeria is saturated: Liberia is next frontier for cocoa90% of cocoa bought by informal traders i.e. potential for investors to improve yields & qualityInvestor-friendly regulatory framework for cocoa being developedCocoa yield = 200 kg/ha; potential to increase to 1,000kg/haGlobal demand increasing by 6% per year & is worth $4bn. Market for cocoa butter & powder in Liberia is growing by 4% & 2% p.a..

  • AQUACULTURELiberia looking for first industrial investor in aquaculture, to exploit untapped marketMost renewable internal water resources per capita in AfricaOptimal natural water temperature for aquaculture (27o Celsius)

    Can produce 330,000 mt of inland fish (current production only 2,500 mt)Domestic market unsaturated, particularly up-country plus large regional marketLarge, untapped business opportunity particularly as there is currently no competition. MARINE FISHWith Mt Coffee Dam completed, cheaper to process fish in Liberia vs Nigeria, Senegal, CI. Liberias coastline & continental shelf offers 20,000 sq. km of fishing groundOnly 7,300 mt of marine fish produced locally, while consumption lies at 23,800 mt p.a.Fish landing, storage & processing facilities being built in Robertsport & MonroviaGovt streamlining tax regime & regulations in sector

  • Indigenous home of oil palm; produced 176,000 mt 2013 little of which processedUn-tapped ECOWAS market in oil palm productsPerfect place to invest in the processing of crude palm oil into refined oil for cooking, soaps, cosmetics, food processing, mulch, fertilizer, animal feed & bio-fuel 4 large investors including world leaders Sime Darby & Golden VeroleumGovt & SIDA developing model for outgrower schemes for large concessionsHundreds of small & medium scale farms around country, mostly in rubber beltUSAID running support programme of oil palm by developing market for high variety seedlings among other types of supportOil Palm Profitability, $ per tonnePotential 40% profit

    Chart1

    700

    0

    1100

    1600

    0

    Series 1

    Sheet1

    Series 1

    Crude Oil Palm 1700

    Cost of Refining0

    Factory Gate Refined Oil Palm Price1100

    Retail Price of Refined Oil Palm1600

    Profit0

  • Ideal for investment in inputs, production, aggregation, packaging & processing. Rainfall of 2,391 mm p.a., compared to 1,348 mm in Ghana or 730 mm in Kenya.Large, growing domestic market, access to ECOWAS & sea access to EU & US markets. In 2013 Liberia produced 291,000 mt worth of fruit & vegetables. Imported 14,300 mtDomestic market alone is worth $103 million p.a.Highest potential: tomatoes, pineapples, mangoes, plantain, banana, sweet potatoes and chilli pepper (high Scoville Index)Liberia has direct flight access to Brussels, Casablanca, Abidjan & Nairobi

    Chart1

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    In 2013 ECOWAS horticulture imports equalled $883m, or 1.4m tons

    Series 1

    Rate of Growth of Imports into key ECOWAS Horticulture Markets

    Sheet1

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    ECOWAS16%

    Nigeria30%

    Ghana20%

    Mali19%

    Liberia15%

  • Cassava is an important staple crop in Liberia, can be planted all yearAverage Liberian can consume 5 times more, making Liberia growth economy for cassavaScope for market capture through quality & innovation. Use of quality inputs & agro-chemicals limited = large market for input providers. Potential for cassava value addition such as gari, cassava flour, high quality cassava starches, animal feed, syrup, ethanol, citric acid, sucrose & adhesivesOver 80 m tonnes of cassava is consumed every year in ECOWAS. Market growing by 4% p.a. Of this Liberia accounted for 520,000 tonnes.Cassava & Cassava Starch Market Growth$1.6 bn market$0.1 bn market$0.9 bn market$0.1 bn market

    Chart1

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    0.19

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    Series 1

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    World Cassava Starch15%

    Chinese Cassava Starch Imports19%

    US Cassava Starch20%

    ECOWAS Cassava Market4%

  • Liberia consumes 570,000 tons of rice per year Of this 55% imported giving scope for investors in efficient, high yield farming (Nerica variety) & irrigation to capture market shareGrowth of rice consumption in Liberia: 14.1% p.a. since 2003.Can double yields & triple land harvested: now 230,000 ha but can increase to 600,000 haInvestment opportunities in:Nerica variety farming planted in irrigated or non-irrigated swamplandsFarm inputs and technology, hulling & milling Processing into high value rice, cereal bars, rice crackers & rice starch. Rice bran sold as fish feed or processed by pharmaceutical industry.Rice Profitability, $ per metric tonne

    Chart1

    382

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    Series 1

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    International Price of Rice382

    Cost of Swampland Nerica Rice Production308

    Milled Rice Profit74

    Hulling Profit49

  • Potential for investors to provide financing for agriculture value chainsLiberia has only 1 small agricultural bank - AfrilandGovt & donors (USAID, IFAD, World Bank, SIDA, EU) applying value chain approach to these value chains:Rubber processing, rubberwood, oil palm, cocoa, aquaculture, marine fish, horticulture, rice, cassava, livestockScope for different types of investors:Agriculture finance institutionsDevelopment finance institutionsPhilanthropistsSocial entrepreneursCooperative banksVenture capitalistsPrivate EquityBusiness & Technical Services ProvidersNIC has registry of SME investment opportunities in agriculture: Contact Paye Gbelayan

  • Thank you!

    George G. Wisnerwisnergeorge5@gmail.com

    NIC Focal Person for Agriculture Investment Inquiries:Paye Gbelayan: payesgbelayan@yahoo.com +231 886897995

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