Ayensu resumes starch production after workers call off strike

The Ayensu Starch Factory at Bawjiase in the Central region has resumed production after weeks of dormancy due to a sit-down strike by some 40 workers who were demanding an upward review in salaries.

The agitated staff called off the strike following the intervention of Deputy Trade Minister, Murtalla Mohammed.

Production Supervisor, Vincent Addae told STARR BUSINESS in an interview with Europa Taylor that apart from the Deputy Minister, the District Chief Executive, traditional leaders of the area, as well as various farmer associations, particularly cassava farmers, have all impressed upon them to return to work while the Government resolves their concerns.

The workers had complained that their salary – which they claimed was less than Ghc200 – had not seen any upward review for the past three years.

Ayensu was inaugurated in February 2004 under the Presidential Special Initiative (PSI) on cassava to create a market for cassava growers, develop cassava into starch and allied products, and create job avenues for the youth.

The PSI initiative was meant to promote the agro-food industry. It also aimed at exporting starch to the international market and adding value to cassava.

"Redhill" in South Africa had just been finished as the first modern cassava starch factory in Africa at the time, and PSI decided to follow up on that success and introduced the same technology in Ghana.

The initiative was backed by Government, farmers, local banks and others. In 2006, the factory stopped operations due to technical difficulties and the inability of peasant farmers engaged by the company to supply sufficient cassava. It resumed operations in 2010.

Again it ceased operations temporarily for the second time in December 2011 due to operational and financial challenges – which were largely attributed to inadequate power supply to sustain production and meet supply targets.

The factory, which was projected to operate at 70 percent of its installed capacity, has been operating at 20 percent, since September 2006 due to the unavailability of raw materials.

To address the lack of sufficient raw materials to feed the factory, the management of Ayensu acquired 2,000 acres of land to cultivate cassava on a large scale with the hope of processing about 22,000 tonnes of cassava annually.

Many companies operating in the West African region had expressed their preparedness to import cassava starch from within, as that would ensure enormous cost-savings for them.

In 2010 attempts were made to revamp the factory. While it was successful, Ayensu could not produce up to full capacity and, therefore, there was no export.

Another obstacle to the operations of the company is inappropriate packaging for export to the international market.

The Government announced in March this year that it intended partnering Guinness Ghana Breweries Limited (GGBL) to revamp the factory.