CropSafe Agro Service Ltd.

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Text

Maureen Klein is a host of exceptional ability. 

All Investment Summaries

CropSafe Agro Service Ltd.

Cropsafe Agro Services is a social enterprise focused on post-harvest loss management and processing.

Region: West Africa

Sector: Agriculture

LinkedIn: cropsafeagro

Instagram: @cropsafe_agro

Facebook: @cropsafelimited

www.cropsafe.ng

The Challenge

The Minister of State for Agriculture and Rural Development in Nigeria highlighted on August 11, 2022, that the country experiences a staggering loss of $8 billion annually due to post-harvest losses, which are primarily caused by poor infrastructure. These losses lead to compromised food quality, heightened food insecurity, and decreased incomes for millions of smallholder farmers.


The cereal and grains sector is particularly affected, with high post-harvest losses resulting from the use of inefficient traditional methods such as sun drying, which takes between two and three weeks. This extended period of drying increases the risk of contamination by foreign material, both organic and inorganic, leading to spoilage and reduced quality, which in turn makes it difficult for farmers to sell their products at premium prices. Additionally, farm-gate level storage infrastructure is either non-existent or limited, further exacerbating the losses.

The Innovation

Cropsafe has developed a groundbreaking method for drying and preserving grains that prevents infestations during storage for up to three years. Using a heat disinfestation process, Cropsafe's dryers can efficiently dry grains within just seven hours and preserve them for five hours before bagging for storage or transportation. This cutting-edge approach stands in stark contrast to traditional methods that can take up to three weeks for drying and lack adequate protection against infestations.

Investment

Acumen invested in Cropsafe because of the company's potential to make a significant impact in the lives of smallholder farmers by addressing key challenges in the agricultural sector. Cropsafe's focus on post-harvest infrastructure and market access has the potential to transform the lives of thousands of farmers and their families. This aligns with Acumen's mission to address poverty by investing in businesses that create access to basic necessities for smallholders. Cropsafe's innovative approach to addressing post-harvest losses and its experienced management team also made it an attractive investment opportunity for Acumen.

Deal and Operational Metrics

$250,000 SAFE

1 board seat

Anticipated Milestones

The following were set as the strategic plan by the company post investment.

+  Expanding to new locations to engage more smallholder farmers
+  Talent improvement
+  Construction of new dryers
+  Automation of operational processes like accounting, stock management, HR management, logistics, etc.

Impact

Poverty Focus

70% of customers live below the poverty line.

Breadth

The company plans to impact up to 1,200 smallholder farmers by 2025.

Depth

Smallholders that have engaged with the company have so far reported over 25% increase in their income through a reduction of post-harvest losses and a market for their harvested products.

 1 Based on 2020 study of similar intervention: Evidence-Based Community Health Worker Program Addresses Unmet Social Needs and Generates Positive Return of Investment (2020).


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