Ivorian cereals processors have high potential, but lack necessary capital to grow

Kokou Zotoglo, the Hub’s Cereal Value Chain Specialist, traveled to Côte d’Ivoire in early November to continue his assessment of the capability of lead cereals processing firms in Senegal, Mali, and Côte d’Ivoire to source grains from cereals wholesalers in both the country and region. By traveling to these countries, Zotoglo aimed to promote commercial relationships between cereal wholesalers and processors.

In Côte d’Ivoire, Zotoglo found that, while cereals processors had the potential for growth, they often lacked the capital to make this happen. Two of the cereals processors he met with, Group DOMAK and Company PKL, reinforced this finding: they have the potential to process and sell more grain, but lack the necessary capital for expansion.

Even though many West African countries produce large quantities of cereals, many processors in Côte d’Ivoire—mainly breweries—import raw materials from outside the region. Group DOMAK and Company PKL are exceptions, as they are a reliable source of raw cereals in the region.

Group DOMAK purchases grain, and then cleans, dries and stores it for sale to breweries and institutional buyers. The company also produces animal feed. Company PKL processes cereals for human consumption; the company generally hires workers to clean the grain manually. Seeing there were natural areas of collaboration, Zotoglo introduced Company PKL to Group DOMAK. At the meeting, executives at Group DOMAK offered the company’s facilities to Company PKL to clean, dry, and store their grains. Company PKL also agreed to source directly, at market prices, from Group DOMAK. Both companies sell their processed grain in Côte d’Ivoire and other West African countries.

“These companies are two of the few reliable sources of processed cereals in Côte d’Ivoire” said Zotoglo. “The Hub’s finance and investment experts will follow up with Group DOMAK and Company PKL to help them access loans that will expand their operations,” he continued. With better access to finance, Zotoglo expects these companies to continue providing a source of quality cereals and increase the number of companies who source their cereals from West Africa.

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