Nana Owusu-Achau, the founder of Agro Kings, has made remarkable strides in the agriculture sector in Ghana, specifically with his brand, Nana’s Rice. His journey to building a thriving business, which surpassed $1 million in annual sales last year, is a story of resilience, innovation, and commitment to local agriculture.
Early Life and Career Choices
Born and raised in Ghana, Owusu-Achau pursued a university degree in information systems in the United States. After graduation, he landed a job on Wall Street, a career path many would consider a dream opportunity. However, he chose to return to Ghana, driven by a desire to contribute to his home country and engage in business ventures that aligned with his passion for agriculture.
After returning to Ghana, he initially joined his father’s real estate business and later started his own property firm. Although successful in real estate, Owusu-Achau felt an unfulfilled desire to explore agriculture, which he regarded as a significant potential sector for growth and impact.
Setbacks in Farming Ventures
In 2015, Owusu-Achau decided to venture into farming, beginning with cattle-rearing. His plan involved purchasing livestock from northern Ghana, transporting them south, and fattening them for sale. Unfortunately, this venture faced setbacks when a herdsman lost several cattle under mysterious circumstances. Disheartened but undeterred, he next attempted maize farming, which also proved to be unsuccessful.
Reflecting on these experiences, Owusu-Achau recognized a crucial lesson: he had been practicing what he termed “absentee farming.” His approach meant that while he focused on business in the city, the farming activities were happening in rural areas without his direct involvement. He understood that treating agriculture as a side venture would yield only side profits, not the substantial returns it could generate with dedicated attention and involvement.
Discovering the Rice Opportunity
In 2017, during a visit to a rural property project, Owusu-Achau was handed a sample of locally grown rice by a local chief. After cooking and tasting the rice at home, he was impressed by its quality. This moment sparked an entrepreneurial opportunity in his mind. He decided to support two small-scale farmers by providing them with financing, seeds, and training to produce high-quality rice. The plan involved using some of the rice for personal consumption while selling the surplus, allowing both him and the farmers to share in the profits.
The Journey of Building a Rice Brand
The first harvest was encouraging, but the farmers informed Owusu-Achau that a middleman would sell the rice at the market. Realizing that he could bypass the middleman, he decided to sell the rice himself. He promoted the rice to his WhatsApp contacts and sold out his stock within just two hours. This experience was a pivotal moment; it made him aware that he had stumbled upon a viable business opportunity.
As demand for Nana’s Rice grew, Owusu-Achau expanded his operations and increased his network of farmers from the initial two to 25. During this time, he still focused primarily on his real estate ventures but kept an eye on his burgeoning rice business.
Scaling Production and Acquiring Land
In 2019, Owusu-Achau took a significant step to scale up his operations by acquiring farmland for Agro Kings. The 350-acre property, located in Kasunya, about two hours from central Accra, would become the backbone of his commercial farming operations. The remaining land was leased to over 300 small-scale farmers who supplied their harvests to Agro Kings. The company now collaborates with around 5,000 small-scale farmers, both on and off its property.
To finance the acquisition of farmland and essential equipment like tractors, Owusu-Achau leveraged his real estate earnings and received backing from family and friends. Additionally, Agro Kings was awarded approximately $15,000 from a financial institution to support its initiatives. Recognizing the financial challenges faced by small-scale farmers, Agro Kings acted as a guarantor for their loans, which allowed them to access necessary funding without overwhelming risks. Owusu-Achau monitored the farmers closely, resulting in minimal defaults on loans.
To meet equipment needs without incurring significant upfront costs, he devised an innovative solution: he invited friends to purchase tractors or harvesters and charged Agro Kings a fee each time the equipment was used. This creative financing strategy provided essential machinery access while maintaining financial flexibility.
Building a Retail Footprint
One of the significant challenges faced by Agro Kings was getting Nana’s Rice into retail stores. Initially, many retailers were willing to stock the product only on credit. However, several retailers failed to pay after selling the products. This experience was frustrating, as it led to considerable write-offs of debts that were difficult to recover.
Consequently, the company had to scale back its retail distribution, refocusing on online sales and trusted shops. In May of the current year, Agro Kings achieved a major breakthrough when Nana’s Rice secured a partnership with one of Ghana’s largest consumer goods distributors. This partnership allowed for nationwide distribution of Nana’s Rice, significantly expanding its market presence.
Additionally, Nana’s Rice found a market beyond Ghana, reaching customers in Europe and the US, particularly in stores that cater to African communities. These shopkeepers typically purchase directly from Agro Kings and handle shipping logistics themselves.
The revenue growth for the rice business has been substantial, rising from around $2,500 in 2018 to just over $14,000 in 2019, and exceeding $1 million last year. This remarkable progression underscores the success of Owusu-Achau’s strategic decisions and the growing popularity of Nana’s Rice.
Diversification of Product Line
Recognizing the need for diversification, Agro Kings expanded its product offerings beyond rice. After each rice cropping season, the company would plant soya beans to replenish the soil. This practice left them with surplus soya beans, prompting the launch of a new line of breakfast cereals made from the soya. Additionally, the company introduced a sauce for cooking jollof rice, a beloved West African dish, further diversifying its product range and catering to local tastes.
Navigating Economic Challenges
In recent years, Ghanaian consumers have faced financial pressures due to the country’s economic challenges, marked by high inflation and a depreciating currency. Although inflation eased slightly in August, it remained above the central bank’s target, with the cedi depreciating over 35% against the US dollar in the past year. These factors have directly impacted Agro Kings, particularly in relation to its reliance on imported agricultural inputs.
To manage rising costs, the company has adopted several strategies, including bulk purchasing of inputs and producing some necessities in-house, such as food for the farmers. Agro Kings is also considering converting some of its equipment to electric to mitigate rising electricity costs. Currently, the company utilizes solar energy extensively on the farm, which has significantly helped in reducing operational costs. Moreover, the introduction of electric motorbikes has lessened the company’s reliance on fuel, aligning with its sustainability goals.
Conclusion
Nana Owusu-Achau’s journey with Agro Kings and the Nana’s Rice brand exemplifies the power of entrepreneurship in driving local agricultural development. His experiences, from early setbacks to remarkable success, highlight the importance of resilience, innovation, and community engagement in business. By prioritizing sustainable practices, supporting small-scale farmers, and navigating economic challenges, Owusu-Achau has created a thriving brand that not only contributes to Ghana’s economy but also improves the livelihoods of many local farmers. His story serves as an inspiration for aspiring entrepreneurs in Africa and beyond, illustrating that with determination and a commitment to community, significant success is attainable.
