Some farmers in Ado-Awaye have alleged the Chief Executive Officer of the cassava-processing Company, Psaltry International of exploitation and lack of transparency in business transactions.
The leading African cassava processing industry is located in Ado-Awaye, Iseyin Local Government of Oyo State.
The farmers who spoke to ODUDUWA NEWS in a media chat with our Correspondent hinged their decision to stop supplying cassava feedstocks to Psaltry on the incessant delayed payment and lack of transparency in business transactions after they have delivered feedstocks to the factory which according to them hindered them from timely reinvestment of their proceeds.
Meanwhile, in a press statement made available today to Oduduwa News by the Special Adviser on Special Duties to the Chief Executive Officer of Psaltry, Madam Yemisi Iranloye, Mr. Opeyemi Bolanle, he debunked the allegation and attributed the report to the handiwork of mischief makers.
The company said this in reaction to a media report criticizing it for delayed payment to farmers, adding that nothing of such happened, as there has been a payment plan according to a memorandum of understanding that has been used for years.
Addressing the accusations of payment defaults and lack of transparency in the weighing system by the publication, the company stated that such claims were far from the truth, stating that Psaltry purchased over ₦1 billion worth of cassava annually from three main segments of suppliers.
“Psaltry is reacting to a so called “exclusive” news story from a blog alleging that Oke-Ogun cassava farmers would no longer sell cassava to the company due to, “delayed payments, lack of transparency in weighing system and no traceable benefits for both community and its indigenes.
“This is clearly the work of mischief makers, our priority has always been to contribute meaningfully to the communities where we operate, we believe that sustainable agriculture and responsible business go hand-in-hand, and our 15-year journey reflects that commitment.
“First, we procure cassava from our out-grower farmers whom we pre-fund, secondly, we source cassava from traders, we pre-fund to reach deep, remote areas where it would be difficult for farmers to bring their produce to us, ensuring that no farmer is left out of our supply chain, thirdly, we work with traders that we have previously trained, who now supply us cassava independently.
“I am happy to inform you that over 600million cassava stems, herbicides as well as Agric loans were made available to these out-growers.”
He noted that each of the arrangements involved a business transaction with mutual obligations, where both parties have an understanding regarding payments and commitments.
To foster greater transparency, Psaltry has also committed to publishing regular impact reports, which will highlight ongoing community initiatives and key contributions to the local agribusiness ecosystem. Through these reports, Psaltry will maintain open lines of communication with stakeholders and continue to champion shared growth and sustainability.