As a global commodities conglomerate, Amama Foods is actively involved in a number of agro-commodities across the full spectrum of the commodity value chain. Essentially, Amama Foods operates from the perspective of creating expertise in a certain commodity class and then building the revenue stream by moving across the value chain to maximize efficiency from origination to distribution of that commodity. As part of our approach, we intend to capture the demand and supply stream of commodities by developing a strong base of sourcing and distribution, diversifying risk by maintaining steady back-to-back commodity flows, and managing the commodity risk further by hedging the commodity through commodity exchange instruments wherever possible.

The Agri flow business model used by Amama Foods is based on what we call the Agri flow cycle – a process that covers the sourcing process from farm to mandi to secondary processing, packing and distribution. In our view, achieving a model that integrates all aspects of the production process – from the farm to the home – is of immense value. As commodities continue to evolve, services will be more and more separated in the current commodities environment as some players will provide warehousing and financing, while others will offer sourcing and/or distribution – resulting in an increase of costs and processes as the fragmentation increases. Our approach in this space is geared towards diversifying across the commodities baskets and intensifying our presence across the value chain, as we strive to be our client’s ‘one-stop shop’ in the end, allowing them to avoid multiple sources of supply.