Invest in cocoa, people told

By GYNNIE KERO
YANGORU-SAUSSIA MP Richard Maru has encourage the public to invest in a cocoa project in East Sepik through purchasing shares for K1,000.
Speaking at the signing of a memorandum of agreement between the Yangoru-Saussia Development authority, Kumul Agriculture Limited (KAL) and Innovative Agro-Industry Ltd (IAI) in Port Moresby yesterday, Maru said the deal was to develop a cocoa buying and exporting business in the district for high quality premium organic cocoa.
According to a study undertaken by the authority, there were 6,994 cocoa farmers who used 1,398 fermentaries.
In 2018, they produced 2,595 metric tonnes which generated about K15.5 million.
Kumul Agriculture Ltd is a subsidiary of Kumul Consolidated Holdings which invested K19.7 million in the Sepik Plain project two years ago.
The three entities were shareholders and would have equal shares in a joint venture company called Ninere Agro Industries Ltd.
Maru said the company would be the business arm of the project.
At the signing yesterday, all parties recorded their intentions, aims and objectives in relation to the project and the joint venture and set out the intended commercial terms for the establishment, the funding and operation of the project.
They agreed that the initial total project equity/investment capital would be K1.5 million.
Maru said the authority agreed to contribute K500,000 and a warehouse in the district for the term of the project.
Both KAL and IAI have been invited by the authority to contribute K500,000 each to the project.
Additional investors, including local cocoa growers from the district will be invited to buy shares and invest in the business. This investment came followed the Sepik AIC, a strategic joint venture between KAL, IAI, East Sepik government, the authority and others at a total capital investment of K28.6 million.
The Sepik AIC is a pioneering agriculture industry in Sepik Plains whose initial activities will be based on grain production and stock feed processing, poultry production and modern cocoa processing.
The Sepik AIC is operational and its first products – eggs – are intended to hit the shelves later this month.
Later in the year, the Sepik AIC will process broilers for chicken meat and produce its on stock feed.
The broilers sector of the project includes a wide scale out-grower model that incorporates SME finance, provision of input such a day old chicks (DOCs), stock feed and market access whereby the project buys the adult chickens from the farmers, completes the downstream process and sells to markets.
KCH managing director Isikeli Taureka said the agro business developments has already started paying dividends not only in financial terms but in real positive changes in the lives of people.