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\hypersetup{pdftitle={Fufu Flour Processing in Ghana: What Costs, Returns and Institutional Support Are Expected to Encourage Entrepreneurs?},pdfauthor={Irene Susana Egyir, Bismark Agyei Yeboah},pdfsubject={Tropentag 2010: Abstract},pdfkeywords={Agro-processing, capacity building, capital, consumer convenience, innovation, policy, profitability, young entrepreneurs},pdfpagemode=None,colorlinks=true}
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\parbox[b]{13.4cm}{\centering \large{\textbf{Tropentag, September 14-16, 2010, Zurich}}\\[1ex] \Large{``World Food System  ---\\A Contribution from Europe''\\[2ex]}}
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\Large{\textbf{Fufu Flour Processing in Ghana: What Costs, Returns and Institutional Support Are Expected to Encourage Entrepreneurs?\footnote{\textbf{Contact Address:} Bismark Agyei Yeboah, University of Bonn, Faculty of Agriculture, Hirschberger Str. 64 Zi 40018, 53119~Bonn, Germany, \mbox{e-mail}: \email{kwesi.agyei@yahoo.com}}\\[0.8ex]}}
\normalsize{\textsc{Irene Susana Egyir$^{1}$, Bismark Agyei Yeboah$^{2}$}}
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\begin{itemize*}
\item[]{\small{\textit{$^{1}$University of Ghana, Department of Agricultural Economics and Agribusiness, Ghana}}}
\item[]{\small{\textit{$^{2}$University of Bonn, Faculty of Agriculture, Germany}}}
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\index[author]{Egyir, Irene Susana}
\index[author]{Yeboah, Bismark Agyei}
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\textbf{Abstract}
\begin{abstract}
\normalsize{
The introduction of fufu flour is an innovative business venture that young entrepreneurs should explore. However, the level of costs and returns and institutional support to sustain the industry are not well understood. This study was conducted to determine the profitability of fufu flour and the institutional framework that support its production to encourage young entrepreneurs. The criteria of Net Present Value (NPV), Internal Rate of Return (IRR), and Benefit Cost Ratio (BCR) were used for the investment analysis at 20, 15 and 10 percent discount rates. The results show that the IRR was 57 percent, NPVs and BCRs were positive for the sensitivity to cost and quantity increases. According to the results, it can be concluded that fufu flour processing can be an important economically feasible income generating enterprise for young entrepreneurs to invest in. There is a new FASDEP that give a special place to plantain processing in Ghana. Financial institutions are being called upon to develop financial products that encourage agro processing firms to expand their scale of production.  New financial products that encourage new entrepreneurs (particularly young partners) to access funds of up to GH¢50,000.00 would be needed to start a new business. The Ministry of Food and Agriculture and Ministry of Trade and Industry would be needed to step up its youth participation programmes by training young graduates of agriculture and agribusiness in diverse agrifood business such as fufu powder processing. In addition, a sensitisation programme that draws the attention of consumers on the convenience of adding fufu flour to the household basket would be necessary. The final conclusion is that young entrepreneurs can venture and succeed in the production of fufu flour.}

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\noindent \textbf{Keywords:} Agro"=processing, capacity building, capital, consumer convenience, innovation, policy, profitability, young entrepreneurs
\index[key]{Agro"=processing}
\index[key]{Capacity building}
\index[key]{Capital}
\index[key]{Consumer convenience}
\index[key]{Innovation}
\index[key]{Policy}
\index[key]{Profitability}
\index[key]{Young entrepreneurs}
\end{document}
