1D1F CUF: FBOs to receive dividends, enhance value addition - Trade Minister

Minister of Trade and Industry, Alan Kyerematen, is optimistic that the implementation of a model under government’s One-District-One Factory initiative will improve the agricultural value chain, particularly for Farmer-Based Organisations. The model which is known as the 1D1F Common User Facility (CUF) entails a farmer-owned agro-industrial processing facility established with seed funding provided by government and its partners. Trade Minister, Alan Kyerematen, speaking in an interview with GhanaWeb Business in the Ashanti region said the model comes under the Ministry of Trade and Industry (MOTI) under the Rural Enterprises Programme (REP). “We looked at this model where a group of farmers can organise themselves into Farmer Based Organisations (FBOs) and instead of helping just one investor or individual to establish a 1D1F factory and then government directly supports the farmer groups to own the processing plant to add value their farm produce,” he told GhanaWeb Business. “In this particular district of Nsuta Kwagye in the Ashanti region, we have identified that there is no 1D1F factory here, but the common food commodity coming from this area is maize and the farmers are willing to make more income from the commodity through processing or adding value," the minister added. He continued, "...So, our resolve is to bring them together and put some funds to add up their capital and get the support of the African Development Bank to establish this facility which is replicated in the other four regions of the country”. Alan Kyerematen pointed out that the new model under the 1D1F CUF seeks to ensure that farmers can earn more income from their products as well as dividends from the factory since they have become owners of the facility. Meanwhile, some 600 farmers in the Nsuta Kwagye area have become the first beneficiaries to receive support from government under the 1D1F CUF model following the construction of a factory for the processing of maize. The factory, which can process 4-5 tonnes of dry maize, and five tonnes of maize grits per day respectively, was established with support from the African Development Bank. Government is expected to replicate a similar model across key districts within the region and the country. MA/FNOQ