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Comprehensive Assessment of the Peanut Value Chain for Nutrition Improvement in Ghana

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Comprehensive Assessment of the Peanut Value Chain for Nutrition Improvement in Ghana COMPREHENSIVE ASSESSMENT OF THE PEANUT VALUE CHAIN FOR NUTRITION IMPROVEMENT IN GHANA Final Report, September 2013 William A. Masters* and Shibani Ghosh Friedman School of Nutrition Science and Policy, Tufts University James A. Daniels Center for Agribusiness and Economic Development, University of Georgia Daniel B. Sarpong Department of Agricultural Economics & Agribusiness, University of Ghana * Contact author: Tufts University, 150 Harrison Ave., Boston MA 02111 [email protected], phone +1.617.636.3651, http://sites.tufts.edu/willmasters Acknowledgements: This report was completed by Tufts University under GAIN project #40GH02-IN, with Tufts University subcontracts for contributions from the University of Georgia and the University of Ghana. The authors would like to thank Gautam Ramnath and Bonnie McClafferty at GAIN for very helpful comments on an earlier draft. Page 1 of 102 TABLE OF CONTENTS LIST OF FIGURES ................................................................................................................................................... 3 LIST OF TABLES..................................................................................................................................................... 3 LIST OF ACRONYMS ............................................................................................................................................. 4 EXECUTIVE SUMMARY ....................................................................................................................................... 5 INTRODUCTION: THE NUTRITIONAL VALUE OF PEANUTS IN GHANA ......................................... 7 COMPREHENSIVE ASSESSMENT OF THE PEANUT VALUE CHAIN IN GHANA .......................... 10 1. Agricultural policy and investment priorities ............................................................................... 10 2. Nutritional status of vulnerable groups ........................................................................................... 11 3. Nutrition and health through the peanut value chain ................................................................ 12 Text Box: Recent evidence on mycotoxins, nutrition and health ........................................... 15 4. Peanut production and marketing ..................................................................................................... 16 5. Constraints and opportunities ............................................................................................................. 23 5.1 Peanut production and input use ................................................................................................ 23 5.2 Post-harvest handling, storage, and processing .................................................................... 36 5.3 Aflatoxin levels and control options ........................................................................................... 37 5.4 Consumption and markets ............................................................................................................. 40 5.5 Distribution and processing .......................................................................................................... 44 Text box: The role of aggregators ................................................................................................... 46 6. The regulatory environment ................................................................................................................ 48 6.1 Policies affecting production ......................................................................................................... 48 6.2 Inspections and enforcement ........................................................................................................ 49 6.3 Quality standards for aflatoxin ..................................................................................................... 51 7. Conclusions from the comprehensive assessment ...................................................................... 52 REFERENCES CITED ......................................................................................................................................... 54 ANNEXES ............................................................................................................................................................... 59 1. Peanut farmer profiles and enterprise budgets ........................................................................... 59 2. Summaries of key informant interviews ........................................................................................ 62 3. Other potential partners ........................................................................................................................ 89 4. Ghana Standards Authority Procedure for Certification .......................................................... 91 5. Ghana FDA Guidelines for the Registration of Prepackaged Foods ..................................... 93 Page 2 of 102 LIST OF FIGURES Figure 1: Map of agro-ecological zones ..................................................................................................... 17 Figure 2: Map of peanut production, varieties and administrative regions................................ 18 Figure 3: Flow chart of the peanut value chain ...................................................................................... 21 Figure 4: Flow chart of the formal seed sector ....................................................................................... 27 Figure 5: Map of agro-input sales points .................................................................................................. 34 Figure 6: Map of markets and prices for shelled peanuts, August 2013 ...................................... 42 Figure 7: Flow chart of peanut distribution channels ......................................................................... 44 Figure 8: Map of peanut aggregation and movement .......................................................................... 45 LIST OF TABLES Table 1: Nutrient composition of raw peanuts .......................................................................................... 8 Table 2: Contribution of peanuts to energy and protein per capita in 2009 ................................. 9 Table 3: Peanut production by major region, 2000-2010 .................................................................. 20 Table 4: Production of certified peanut seed, 2001-2011 ................................................................. 26 Table 5: Ghana Standards Board requirements for peanut quality ............................................... 52 Page 3 of 102 LIST OF ACRONYMS AgSSIP Agricultural Services Sub-Sector Investment Project CAADP Comprehensive Africa Agricultural Development Program CERGIS Center for Remote Sensing and Geographic Information Services CIDA Canadian International Development Agency CIDA Canadian International Development Agency CRI Ghana Crops Research Institute CRIG Cocoa Research Institute of Ghana CRSP Collaborative Research Support Program ECASARD Ecumenical Association for Sustainable Agriculture and Rural Development FAO United Nations Food and Agriculture Organization FAOSTAT United Nations Food and Agriculture Organization Statistical Database FASDEP Food and Agricultural Sector Development Policy FBO Farmer Based Organization FDA Food and Drugs Authority of Ghana FRI The Food Research Institute GCAP Ghana Commercial Agriculture Project GDP Gross Domestic Production GFBD Ghana Food and Drugs Board (now Food and Drugs Authority of Ghana) GHC Ghanaian Cedi (approximately 1GHC = 0.5USD as of August 2013) GPRS Growth and Poverty Reduction Strategy GSA Ghana Standards Authority (formerly Ghana Standards Board) ha Hectare (= 2.47 acre) MOFA Ministry of Food and Agriculture mt Metric tons (=2,204.62 pounds) NRGP Northern Rural Growth Project PMIL Peanut and Mycotoxins Innovation Laboratory RELC Research and Extension Linkages Committee SADA Savannah Accelerated Development Authority SARI Savannah Agricultural Research Institute USADF United States African Development Foundation WFP United Nations World Food Program Page 4 of 102 EXECUTIVE SUMMARY This report analyzes the peanut value chain in Ghana, aiming to identify opportunities for new investment and interventions to improve nutrition and livelihoods on a commercial scale. The report aims to: 1. Describe the current peanut value chain from seed to processing, so as to identify improvements needed for the introduction of increasingly nutritious products; 2. Analyze the agricultural policy and public-sector enabling environment around the value chain, including legal and institutional arrangements that could influence the production and distribution of new products; and 3. Report the opinions of key informants along the value chain, including details of farmers’ enterprise budgets as well as potential partners’ subjective perceptions of the constraints and opportunities facing new peanut-based products. Our study is based on an extensive desk review of public-domain materials, followed by fieldwork in Ghana in July and August of 2013. This report provides a comprehensive assessment of the peanut value chain today; identifying specific options and recommendations for how new investments could improve livelihoods, especially for women, and improve nutrition on a large scale in an economically sustainable manner. The introduction to the report summarizes the nutritional contribution of peanuts in Ghana,
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