‘Our model is tied around meeting Nigerians’ basic needs’

Mayor Farms Limited is an agribusiness committed to providing eggs and chickens to the Lagos and Ogun markets, AHMED ALLI, its chief operating officer, tells OBODO EJIRO about how the business came to be and the lofty goal the organisation has set for itself.

Starting out

Mayor Farms began as a result of the need of the promoters to diversify their business interest. We therefore sought an industry where our impact will be most effective in meeting the critical need of society and we settled for agriculture. That was in mid-2011.

We therefore commenced by visiting many poultry farms from where we were able to observe the positive practices and mistakes being made by those farms. From these observations, we were able to draw up our business plan. I went for a certificate course in poultry management and I was saddled with the responsibility of fully managing the enterprise with support from the Board of Directors.

We acquired 10 acres of land at Elere Village at Obafemi Owode Local Government of Ogun State and constructed a 5,000 capacity pen and purchased point-of-cage(14weeks) from Animal Care Konsult in July 2012. After six months the flock increased by 7,680birds and we acquired additional land.

Expansion

With the support of our investors, we were able to construct a 16,000 capacity brooding facility, constructed two large pens for the 7,680 birds with the support of a commercial bank. With good practices, accurate and up-to-date financial records, good bio-security measures and positive growth, we exited the very expensive commercial bank facility and applied for the Central Bank Commercial Agriculture Credit Scheme (CACS) facility through First City Monument Bank Limited (FCMB), in whom we found a partner and we were availed N80 million term loan fund for expansion of our facilities.

Today, we have over 40 acres of land size (though less than 10acres is presently being utilised), over 34,000 laying birds producing over 900 crates of egg daily, we have over 50 women distributors spread across Lagos and Ogun states whom we deliver eggs to their shops daily with soft credit(interest free) for them. This is being managed by our sister company, Meetneeds Investment Services Limited.

We employ over 40 staff as pen attendants, farm supervisors, sales representatives and others, our staffs are provided free meals daily and well remunerated, and there is a farm house with accommodation for 20staff. Our office complex, egg store and a 200 ton feed store are over 90 percent completed.

Future prospects

Our aspirations are very modest. By the end of 2015, we would have achieved 40,000 laying birds capacity to signal the end of the first phase of our business plan. The second phase will see us move into meat production, where we plan to rear, process and distribute broiler birds.

We want to see Mayor Farms in the next five years being able to contribute to the health and wealth of our people through provision of locally reared, processed and hygienically packaged poultry meat while at the same time empowering other young Nigerians to engage in production of wholesome poultry products that would meet our local demand.

We are really not interested in being the biggest or Number One but we want to provide quality product (eggs and meat) and convenience to our customers, we just want to fill our space.

Government policy

Government policy on the contrary has been favourable to our business such as the Commercial Credit Agriculture Scheme (CACS), which comes at single digit interest rate, zero percent VAT on unprocessed food products such as eggs.

Challenges, solutions

Access to finance has been very challenging and frustrating, especially when you have to borrow from commercial banks who want to lend at rates as high as 32 percent to farmers with short repayment tenor of 1-3 years. Others are lack of understanding of the structure of loans suitable for farmers coupled with impossible conditions precedent to drawdown on loans.

We have been able to manage these challenge by outsourcing our financial management to our sister company, Meetneeds Investment Services Limited. They manage our inventory, production records, distributor invoices, sales, expenses and receivables which they post daily into our software.

They also help with our loan applications, cashflow projections and other documentations needed by the bank, they also advice us in financial negotiations and also source investments for us