Inclusive Business Model Review: Endline Report for Coscharis Farms Limited, Nigeria
Strengthening the Rice Value Chain in Southeast Nigeria
Coscharis Farms Limited (Coscharis Farms), a subsidiary of Coscharis Group, commenced farm development activities in mid-2015 in Anambra State, Southeast Nigeria. Coscharis Farms invests in a comprehensive rice value chain encompassing cultivation, milling, storage, and marketing, with a 2,500-hectare farm. It also has a 40,000 MT rice mill and a 25,000 MT silo complex, managed through a 10-year concession from the Federal government. It’s branded product, Coscharis Premium and Gold rice, is sold to individual consumers and corporates.
In 2021, with support from IDH, Coscharis sought to diversify its sourcing strategy and reduce reliance on open market by strengthening its farmer base and sourcing from nearby farmers in Anambra. The program aimed to integrate 750 ingrowers onto Coscharis’ farm and 5,000 outgrower farmers in communities in the East, which is not generally known for paddy growing. The program aimed to provide farmers with training, access to inputs and finance resulting in yield increase from 2 to 3.5 MT/ha, and income growth by 100%, and offtake 42,525 MT paddy by Coscharis throughout the project
Key outcomes
- Out growers’ net income grew from negative incomes to an increase of 227% from 2022 to 2023. Performance of the farmers was influenced by doubling of paddy prices, year-on-year yield increase due to extension/training and access to better inputs
- With the scale of in grower operations in 2023, the company was able to generate revenue from services such as ploughing, harrowing, and irrigation, strengthening the case for the service model which was mainly a cost centre.
- The company was, however, unable to meet the projected volume targets due to challenges in accessing adequate working capital on time, high competition from many mills popping up in the region leading to side-selling and floods that affected some of the farms
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