Finance
Minister Seth Terkper said on Tuesday the troubled Ayensu Starch Factory has
resumed commercial production of cassava starch.
The
nation’s starch producer is running effectively and has so far produced 35,000
tonnes of cassava starch after a successful test production, said Mr. Terkper in
his 2013 budget statement.
The
factory, located at Bawjiase in the Central Region, ceased operations for the
second time in December 2011 due to operational and financial challenges -- which
were largely attributed to inadequate power supply to sustain production and
meet supply targets.
It
was also aimed at exporting starch to the international market and adding value
to cassava.
In 2006, the factory stopped operations due to technical difficulties and
the inability of peasant farmers engaged by the company to supply sufficient
cassava to production capacity. Ayensu resumed operations in 2010.The factory, which was projected to operate at 70 percent of its installed capacity, has been operating at 20 percent since September 2006 due to the unavailability of raw materials.
To address the lack of sufficient raw materials to feed the factory, the management of Ayensu acquired 2,000 acres of land to cultivate cassava on a large scale with the hope of processing about 22,000 tonnes of cassava annually.
Many companies operating in the West African region had expressed their preparedness to import cassava starch from within, as that would ensure enormous cost-savings for them.
In 2010 attempts were made to revamp the factory. While it was successful, Ayensu could not produce up to full capacity and therefore there was no export.
Another obstacle to the operations of the company is inappropriate packaging for export to the international market.
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