Onion tea producer struggles to meet demand

AgrohealthFarm Complex (AFC), a natural food supplement company, is struggling to meet the high local demand.

Although the company has the capacity to produce 40,000 kilos of spring onions to produce onion tea, only 10,000 kilos of supplies are being produced and trucked from Asuboyi in the Eastern Region for distribution in Accra.

Operating at full capacity means the company can produce 400,000 packs of onion tea, green onion powder and onion soup powder products per month, to fetch GHC4million, but it is unable to do so due to challenges with raw materials.

The Chief Executive Officer of AFC, Mr Edmund Osei Kissi, said with an annual turnover of about half a million Ghana cedis, if he was able to attract the right investment and employ new technologies he could go far.

“For now I can’t meet demand thus the need for collaboration. The project is a multibillion one and if given the needed support and attention I am sure it can generate foreign exchange for the country and in terms of employment creation, thousands of people can be involved looking at the value chain, cultivation, processing and distribution,” he said.

In the short term, he said his focus was on expanding the cultivation of spring onions, the major raw material for production.

“For now I am doing everything by myself from cultivation to processing at the same time and which is a very big task so I am thinking of sub-contracting cultivation of most of these leafy vegetables to some commercial farmers and indigenous small-scale farmers particularly around the community where I operate,” he said. 

AFC

It is an agribusiness engaged in the cultivation of leafy vegetables and processing these into healthy natural food supplements since 2009.

The products are made up of 90 per cent of spring onions and other leafy spices such as aleefo, ademe, nunum and bitter leaf.

With a little background in agriculture Mr Kissi said he was naturally inclined to agriculture especially the cultivation of vegetables.

From a backyard garden of spring onions, it caught the attention of the Ministry of Food and Agriculture (MOFA), which supported him to relocate to the Irrigation Development Centre at Ashaiman where he was offered a big tract of land to begin commercial farming.

This motivated him to start some processing trials with the Food Research Institute (FRI) and occasionally with the Department of Nutrition and Food Science at the University of Ghana, Legon.

The farm is currently located on a 35 acre farmland with 15 acres under cultivation at Asuboyi in the Eastern Region.

Market potential                             

Like any innovation, he said, it was initially difficult to get patrons but with determination and vigorous marketing, people have come to realise the nutritional benefits of the onion tea, green onion powder and onion soup powder.

“I go the extra mile to provide vital information through leaflets to consumers on why they need the products and the benefits. People are now beginning to understand the need to add greens to their food, he said.

He also takes advantage of local and international trade fairs and seminars to expose his products beyond Ghana.  

“I have so far been to Spain, the United Kingdom and United States of America and almost everywhere I visit I have an advantage as my products are seen as unique and innovative to them. There is an opportunity for joint ventures and partnership with most of the international organisations and so I am putting things right to solicit support,” he said. 

Challenge

Access to credit remains a major challenge for most businesses, and AFC is no exception. Mr Kissi said although he has participated in Farmers Day several times, he has not accessed any form of credit. 

“Ever since I started this business, I have not had any access to credit. I am being encouraged to try the EDAIF because my product has a lot of potential both locally and internationally,” he said.

He added, “I am currently looking for private investors. I am in talks with few corporate organisations in Ghana and other foreign companies too to be able to get some sort of financial support.”

Driving success factors

Despite all the challenges his company was facing, he said recognition from the Ministry of Food and Agriculture was enough to motivate him to work harder.

“If I look at where I have come from and where I am currently, I think the future is bright. I was happy to have been recognised by the Ministry of Agriculture. I am also proud that I have trained about 1,000 people who are among those promoting spring onion cultivation in the country,” he said.

He also said he was proud to be the pioneer of onion tea and onion powder in the country and he was optimistic that his products would be a niche and a lot of people would patronise it. Cultivating the product, he said, was not difficult, with the aid of technology.

 “It is not difficult to cultivate through technology, I was able to cultivate spring onions in two months. The moment I harvest then I am planting; it can be planted all year round. At a point I was the sole supplier of spring onion to Papaye fast foods and I was also supplying to about 10 different market locations and others who used to come and buy from time to time,” Mr Kissi explained. 

Personal profile

Mr Edmund Osei Kissi is a recognised entrepreneur and is married with four children. He currently employs about 15 people. Aside from being recognised on the local scene, he has links with other non–governmental organisations (NGOs) that are agriculture inclined to promote his products. GB             

“For now I can’t meet demand thus the need for collaboration. The project is a multibillion one and if given the needed support and attention I am sure it can generate foreign exchange for the country and in terms of employment creation, thousands of people can be involved looking at the value chain, cultivation, processing and distribution.” 

KEYNOTE

-Research indicated that any derivative from onion has the potential to provide antiviral and antibacterial properties.

-Onion tea can guide you against diseases and clears incidents of cold, fever and malaria.

Caption: The Chief Executive Officer of AFC, Mr Edmund Osei Kissi

Way forward

Access to credit remains a major challenge for most businesses, and AFC is no exception. Mr Kissi said although he has participated in Farmers Day several times, he has not accessed any form of credit. 

“Ever since I started this business, I have not had any access to credit. I am being encouraged to try the EDAIF because my product has a lot of potential both locally and internationally,” he said.

He added, “I am currently looking for private investors. I am in talks with few corporate organisations in Ghana and other foreign companies too to be able to get some sort of financial support.”