Ayensu starch factory says it is battling to break even

Bawjuase(C/R), July 28, GNA - The Management of the Ayensu Starch Company on Monday said though the company was battling to break even due to high production cost it was instituting measures to increase the farmers' cassava price per ton. It said the 150,000 cedis per ton of cassava was not the best but the Company arrived at it taking into consideration the world market price of a ton of starch which stands at 200 dollars.

Mr Osei Owusu-Agyemang, National Coordinator of the President's Special Initiative (PSI) on Cassava, told the GNA on Monday that management was working hard to cut cost and looking at ways to generate extra revenue from the waste products of cassava. He said this additional revenue would be transferred to the farmers in the form of higher prices per ton and also to increase incentive packages for the farmers in terms of loans and provision of cassava sticks and extension services.

The farmers, Mr Owusu-Agyemang said, needed to recognize that they held shares in the company. "Since this is a new thing problems are bound to come but we all should understand and find ways of solving them for the common good of all. ''This is why we are now concentrating on building capacity of staff and especially, the farmers association for better negotiations in the future.'' Mr Owusu-Agyemang disputed the claim that the farmers were promised 500,000 cedis for a ton from the onset and challenged them to provide the names of those who made the promise.

Mr Owusu-Agyemang described as ridiculous and shocking the strike threat by some farmers in the Papse and Bawjuase if the price were not increased. ''The crops of these farmers have not even been harvested and most of them do not even know the quantity that constitutes a ton.''

Mr Joe J. Afuakwa, Operations Manager, said most of the farmers, especially those from the places where the strike threat were coming from, produced far below the expected eight tons per acre and the cassava was of poor quality due to poor farm management practices. Mr Afuakwa said what government and the Management did, therefore, was to cater for at least 80 per cent of the cost through the provision of soft loans, cassava sticks, free extension services and other incentives in order for the farmers to increase their yields. He said the company was working hard to get better price at the world market and ''when it comes there will be bonuses for the farmers. The current price of 150,000 cedis is the best we can offer.'' The world market demand for starch is about two million tons and the company's capacity is about 20,000 tons per year.