Ayensu starch factory resumes production

Finance Minister Seth Terkper on Tuesday said, the troubled Ayensu Starch Factory has resumed commercial production of cassava starch.

The nation’s starch producer is running effectively and has so far produced 35,000 tonnes of cassava starch after a successful test production, said Mr. Terkper in his 2013 budget statement.

The factory, located at Bawjiase in the Central Region, ceased operations 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 was inaugurated in February 2004 under the Presidential Special Initiative (PSI) on cassava. It was established to create a market for cassava growers, develop cassava into starch and allied products, and create job avenues for the youth.

It was also aimed at exporting starch to the international market and adding value to cassava. In 2006, the factory stopped operations due to technical difficulties and the inability of peasant farmers engaged by the company to supply sufficient cassava to production capacity. Ayensu resumed operations in 2010.

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.