Psaltry International Company Limited recently inaugurated the first cassava-based sorbitol factory in Nigeria and Africa at Alayide village in Iseyin Local Government Area of Oyo State. Founder and Chief Executive Officer of the company, Mrs Oluyemisi Iranloye, tells NURUDEEN ALIMI, on the sidelines of the inauguration ceremony of the company, how the birth of the factory will turn around the fortunes of farmers and reduce the importation of sorbitol into Nigeria:
CONGRATULATIONS on the successful completion of this project. Can you let us into what propelled the establishment of this factory?
I would say the passion to alleviate poverty from the lives of rural farmers. You can see that this is a 100 per cent rural-based project. And I wanted to provide livelihood for farmers as much as possible so I created a business that is inclusive and one that could put farmers in the centre stage of the business. So, it is actually the passion to see farmers smile.
Why are you so much interested in farmers’ welfare, are you a farmer’s daughter and what is your background before venturing into this business?
I am not a farmer’s daughter. Let me just say I just have the desire to help farmers. And as for my background, I am actually a biochemist. I studied biochemistry first and second degree, so that is why I am doing something related to science.
When I was working as the Chief Operating Officer at Ekha Agro Processing Ltd, I saw the travail of farmers who supplied us raw materials. Many of them had to travel 400km to deliver their produce without any guarantee that the produce would be accepted because their cassava was often below the acceptable standard. That birthed in me the desire to help farmers and change their story for the better.
What exactly does Psaltry do?
Psaltry is into the production of full grain starch, high quality cassava flour and now we are doing sorbitol which is first in Nigeria, even in Africa and second in the World. So, over 10,000 farmers are being empowered in this environment. We give them herbicide, training, fertiliser and we in turn buy the product they produce from them and they are paid. This way, we are encouraging a lot of women farmers because we believe that when women are empowered, their lives will get better. So, these are the things we do. But basically, the whole essence is to create a business while helping local farmers.
How did you start the business?
I started in 2007 when I bought 1000 hectares of land n Aiyede village. The whole place was a forest without any basic amenity at the time. It took me three years to pay for the land. I cultivated yam and cassava on the land at the time.
In January 2012, we started a starch factory; it was funded by the Central Bank of Nigeria (CBN). From the funds provided by the CBN, we invested immensely in enhancing the quality of the farmers’ agricultural produce. We also replaced the farmers’ stems for free with the ones we bought from IITA in order to improve the quality of their produce.
As a result of increased demand, we built another starch factory which was completed in 2015. The second starch factory increased our production line from 20 tons per day to 40 tons.
At a point Unilever told us about the challenge faced by manufacturing companies with importing sorbitol from other countries. We took up the challenge and started looking for ways to build our indigenous cassava-based sorbitol factory. So, here we are today.
What is sorbitol used for?
It is used for oral care. I mean all toothpastes must have sorbitol and you can imagine how many we are in Nigeria. We brush our mouth always. It does not matter which class of toothpaste you use, sorbitol is in it. Look at the whole of Africa and sorbitol is being imported to Africa. You can imagine the number of people that can get a living from the production of that product. It is 95 per cent content of your oral care, it is also used for the production of baby syrup, Vitamin C and chloroquine. Sorbitol is also used for exotic drink because it is not sugar so it does not make you grow fat, it does not give you pot belly. Diabetic patients can take it, it is used in different food, pharmaceuticals and oral care.
Going forward, what are your expectations?
For Psaltry, we want to actually be the biggest pacesetter company, showing the way on what cassava can be used for in the world. Cassava can also be used for everything you use corn for and yet corn is used for over 1,000 different products.
What is the capacity of this factory and how many people are employed?
The plant will do about 70,000 metric tonnes in a year. The total number of staff employed here is about 500, but total number of employment in terms of farmers and suppliers because they are almost like in your employment is about 10,000.
Are you considering exporting the product anytime soon?
I am not even looking at exporting right now because we have not even really touched our base which is Nigeria, so we will not be fair to start exportation when you have contract with companies like Unilever and the rest of them that we are still struggling to satisfy.
How would the birth of sorbitol factory affect the Nigerian economy?
This is supposed to reduce our forex being paid out for sorbitol importation into Nigeria. That means apart from creating employment opportunities for thousands of Nigerians, this factory will boost the Nigerian economy because it will reduce the pressure on our domestic currency and boost the value of our naira. The reason is that those who used to apply for forex to import sorbitol will no long need to do that and the forex that would have been used for that would be saved.
What is your assessment of the security situation in this community where this huge investment is domiciled?
Well, I will say that the community has been our police. When you are doing something for the community, the community naturally becomes your first line of security. It has been turbulent around here but it would interest you to know that we have never recorded a single case of kidnap of anybody here. It is to the glory of God and thanks to the people of the community that has provided us security.
Do you have a special arrangement with local security in the community?
Yes, we work strongly with the police, Amotekun and men of the Nigeria Security and Civil Defence Corps (NSCDC) special unit created for the protection of farmers in rural areas codenamed Agro-rangers. They have been super wonderful and we also support them when necessary.
Apart from empowering farmers in the neighbourhood, have you also employed indigenes of the community?
Sure, 50 per cent or more of our staff are indigenes. We have 40 per cent of them living on the premises and 60 per cent living in town that is about 3 kilometres away from here. We have a staff bus which conveys them to and fro.
Talking about funding for this project, how easy was it for you to raise money?
We got funding from the Central Bank of Nigeria (CBN) through First City Monument Bank (FCMB). I must really appreciate the CBN for the support given to us to make the construction of the factory possible. FCMB has been quite helpful too.
Do you generate your own power?
We get our own power supply directly from Iseyin, we are on 32 KV. We took a loan to get that done and we are repaying over a period of five years.
Does that mean you have electricity supply 24/7?
No, we get about 60 per cent power supply from the electricity distribution company and we do 40 per cent on power generator.
How are you coping with the high cost of diesel?
It is quite expensive but what else can we do but cope? So, we are making the best of a bad situation by coping with it. The joy of it all is seeing the factory roaring to life and making a difference in the lives of people.
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