Investor Presentaiton
JICA
Rice Processing
Rice processing machinery in Côte d'Ivoire: Executive Summary
Overview of rice processing sector and key players
Processing is dominated by mini-processors (less than 2 tons per hour units). Industrial processing is at ~2%, presenting a strong upside potential
Industrial processors typically operate at -30% capacity due to limited production of raw materials and cyclical nature of production
Processing machinery market is highly fragmented with several small Chinese and Indian brands active
International players including Satake, Bühler, Avlan Blanch and Riela all offer end-to-end crop processing machinery including rice milling
Government actions and potential opportunity for Japanese players
Cl government and machinery players both stand to benefit from an increase in industrial processing capacity
Government: High prevalence of mini-processors creates an obstacle to the ambitious targets for production growth
Machinery players: Increase in industrial processing would create additional opportunities for machine providers
As part of its effort to promote industrial processing, the government secured thirty (30) industrial units, funded by EXIM Bank of India
15 units have been installed (of which 5 are in operation), but local expert state that funding issues are preventing the installation of remaining units
Few processors have purchased units from the government under this scheme: SOCOMCI, GAN-LOGIS, and Oriane Industries are confirmed buyers
To be confirmed: According to local expert, Sania (subsidiary of agribusiness leader SIFCA) is preparing to invest in industrial rice processing plant
Challenges in the market and potential support by Development Partners including JICA
Pole leader model could be key to develop industrial processing
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Pole Leaders are responsible for increasing rice production and ensure processing, as well as building mechanization centers (working with PMEAs)
They can be a key player in the decision-making process for machinery purchase
Despite its potential, the implementation of the Pole leader model has not delivered the expected results
Failure to deliver results driven by lack of financing model, lack of criteria for the selection of Pole Leaders, absence of performance metrics and of a clear
distribution of roles between the government and pole leaders
The model is currently under review by the government to determine how to structure it moving forward
Development partners like JICA can support in a few areas
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Help clarify and pressure-test the role of different stakeholders involved in the financing and execution of the model
Capacity building for ADERIZ, the government implementation agency
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