Trading and Milling
There is currently not enough storage capacity for agricultural commodities in Sub-Saharan Africa. Post-harvest losses affect around 20% of production – tenfold higher than in developed markets – and improper handling is the cause of most losses.
Milling is a crucial step for many agricultural commodities. Wheat and corn are milled into flour, which is used for bread making and meal preparation. Currently, the domestic milling sectors in many Sub-Saharan countries are fragmented, and consist of many small businesses. This makes it difficult to unlock production efficiencies. Amatheon sees profitable opportunities in the business of trading and milling, and will focus on expanding into this sector.
Amatheon’s goal is to establish local storage capacities to bundle volume, and will invest in state-of the-art milling facilities to remove current market deficiencies and create synergies. Skilled crop trading will leverage seasonal and regional price differences to maximise profit. Smallholding farmers will also benefit from easier collection, cleaning, and handling of their harvest, as well as better market access.