Inclusive Business Analysis: Rujo Agri-Trade Limited (Agri-Trade)

Promoting sustainable production and marketing of rice in Ghana 

Founded in 2014 in Tamale, Northern Ghana, Rujo Agric Trade Company Ltd (Agri-Trade)  is a commercial agribusiness focused on rice, soybean, maize, and recently sorghum.

The company sources paddy rice from ingrowers on its farmland and community farmers (outgrowers). Its main clients are local off takers, school feeding programs, and international traders.

Agri-Trade also markets long-grain rice under its subsidiary Maraba Foods. Currently, Agri-Trade outsources milling but plans to complete its own mill by the end of 2024. The company provides services such as seeds, fertilizers, and mechanized harvesting to farmers, with payment collected in-kind (produce). 

Project Goals and Impact: 

Supported by the IDH Grains4Growth and FarmFit programs, Agri-Trade’s goals were to expand operational capacity, improve productivity, reduce post-harvest losses, and diversify into rice processing. 

IDH partnered with Agri-Trade in 2022 to fund the project over a three-year period. In the initial phase of the project, a baseline inclusive business model (formerly service delivery model) analysis was conducted.

At the close of the project, this business model review (endline analysis) was conducted to reflect on contextual and design drivers that influenced Agri-Trade’s performance over the project period.

Key results include:

• Farmer net income: Overall, the net income of the rainfed outgrower paddy farmers grew by 86% between 2021 and 2023 driven by higher yields attributed partly to services provided by Agri-Trade and higher farmgate prices
• Sourcing: The company grew the number of farmers served and sourced from by 72% to 2,575 while the volumes sourced from the farmers grew by more than 240%
• Operations: The company established a 1,000Mt warehouse and is currently setting up its rice mill. It also expanded its mechanised harvesting capacity to serve more farmers
• Partnerships: Agri-Trade expanded its partnership base with input providers and financiers for working capital
• Key Innovations: community-based seed multiplication by women groups and the use of organic fertilizers were two key innovations implemented during the project. They were highly successful by reducing input costs significantly and keeping yields stable. Moreover, it reduced working capital needs and dependency on import products with volatile prices