The Project entails the development of a farm company comprising 150 Ha of nucleus farms for a total of 15,000 Ha of land across Homabay County earmarked for growing edible oil crops. The Project will also use an out-grower scheme on the remainder of 14,850 Ha that involves the community to ensure continuity of production. The project's asking price is $27.534 million. Operationally, the edible oil crop farm company is forecast to be cash-positive by Year 3. The output Based on the agroclimatic conditions, Homabay County offers an excellent opportunity to produce edible oil farm crops, including palm oil, sunflower, peanut, sesame, soybean, and cotton seed. These will help generate a target of 30% of the annual national deficit within three years. The market The edible oil market in Kenya generated approximately US$0.54 billion in revenue in 2023. With the anticipated market growth, revenue is expected to reach US$0.95 billion by 2028. This indicates significant potential for revenue generation within the industry. Kenya currently produces only 80,000 metric tonnes of edible oil annually, while the national demand stands at over 900,000 metric tonnes. This translates to a local production deficit of 91%, highlighting a significant reliance on imports. With a deficit of 820,000 metric tonnes annually, Homabay County envisions reducing the deficit by 30%, bridging the import gap by supplying raw materials/ oil crops to processors. The target edible oil production from Homabay County is to peak at 246,000 metric tonnes in the medium term (3-year period). The expectation is to have the county production match the current national output in the 4th year. The competition Given the vast deficit occasioned by national supply and demand, Homabay County doesn't foresee competition that may impact the business in the short and medium term. Investment Proposal The Kenyan edible oil industry holds immense potential for growth and development. The industry can contribute significantly to the country's food security, economic development, and farmer livelihood by addressing key challenges and capitalizing on emerging opportunities. The Project aims to establish a complete edible oil value chain from primary production to a state-of-the-art edible oil processing plant that utilizes locally grown oilseed crops, creating a sustainable and profitable venture while contributing to national food security. This Project proposes revitalizing oil seed farming and eventually establishing a modern edible oil processing plant with an initial capacity of 85,000 metric tonnes per year. The facility will utilize locally grown oilseed crops, prioritizing palm oil sunflower, soybean, rapeseed, peanut, cottonseed, and sesame, creating a stable market for farmers and boosting agricultural income. The plant will be equipped with advanced technology for efficient processing, maximizing oil yield, and minimizing waste. Value Proposition Investing in edible oil production in Homabay County presents a compelling value proposition with significant economic, social, and environmental benefits. By addressing the current production gap, the industry can contribute to national food security, economic development, and environmental sustainability, creating a win-win situation for all stakeholders. Economic Import Substitution: Reduce reliance on imported edible oils, saving foreign exchange and stabilizing prices. Job Creation: Generate employment opportunities in farming, processing, and related sectors. Rural Development: Boost agricultural income and contribute to rural economic growth. Manufacturing Growth: Expand the food processing industry and diversify the economy of the County and the country. Increased Tax Revenue and rates: Contribution to national and County government revenue growth through taxes and rates. Social Impact Improved Food Security: Increased domestic production ensures sufficient availability of affordable cooking oil. Enhanced Nutrition: Promote consumption of healthy oils and address nutritional deficiencies. Empowerment of Smallholder Farmers: Provide a stable market for oilseed crops and improve livelihoods. Poverty Reduction: Generate income and contribute to poverty alleviation in rural areas. Sustainable Farming Practices: Encourage sustainable agricultural practices and environmental conservation. Financial Projections The Project is expected to generate significant revenue and achieve a profitable return on investment within three years. Detailed financial projections will be provided upon request, including capital expenditure, operational costs, and projected revenue streams.

Agriculture

Agriculture

Equity Investment

27534000

USD

Sites identified

Mobilise Farmers to give Land

Homabay County