FEED THE FUTURE AGRICULTURE POLICY
SUPPORT PROJECT
QUARTERLY REPORT (APRIL – JUNE 2017) FISCAL YEAR 2017, QUARTER 3
July, 2017 This publication was produced for review by the United States Agency for International Development (USAID). It was prepared by Chemonics International Inc.
FEED THE FUTURE AGRICULTURE POLICY
SUPPORT PROJECT
QUARTERLY REPORT (APRIL – JUNE 2017) FISCAL YEAR 2017, QUARTER 3
Contract No. 641-C-14-00001
Cover Photo: Closing ceremony of the training that the Institute for Statistical, Social and Economic Research (ISSER) of the University of Ghana provided to MoFA staff on project planning, policy cycle and policy planning, monitoring and evaluation, and policy analysis, at Legon in May 2017.
The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development (USAID) or the United States Government.
CONTENTS
Executive Summary ...... 1 A. Progress By Component ...... 3 A1. Component 1: Policy Formation and Implementation ...... 3 A2. Component 2: Policy Research ...... 8 A3. Component 3: Policy Advocacy ...... 10 B. Assessment of the Validity and Efficacy of Progress Against the Objectives and Results in FY4 Q3 ...... 14 C. Planned Activities for Next Quarter by Component ...... 16 D. Progress on Gender and Environmental Compliance...... 17 D1. Gender ...... 17 D2. Environmental Compliance ...... 17 E. Monitoring and Evaluation ...... 18 F. Operations and Finance ...... 19 F1. Operations ...... 19 F2. Grants ...... 19 F3. Finance ...... 20 Annex I. Performance Indicator Tracking Table (PITT) – FY4 Q3 Quarterly Report ...... 21 Annex II. Policy Reform Activities and Linkages to Key Results Areas as of FY4 Q3 ...... 25 Annex III. APSP Current Grants Activities ...... 30 Annex IV. Regional and District Coverage Of USAID/Ghana FtF APSP Implementation Activities ...... 31 Annex V. Abstracts of Policy Research Studies ...... 33 Annex VI. Snapshots ...... Annex VII. Situational Analysis of Agriculture Marketing in Ghana ...... ii
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ACRONYMS AAK Abura-Asebu-Kwamankese ACAT Advocacy Capacity Assessment Tool ACDEP Association of Church-based Development Projects ACET African Center for Economic Transformation ADVANCE II Agricultural Development and Value Chain Enhancement Project AGD Attorney General’s Department AE Agriculture Extension AEAs Agriculture Extension Agents AFSTA African Seed Trade Association Africa LEAD Africa Leadership Training & Capacity Building Program AGRA Alliance for a Green Revolution in Africa AgSLM Agriculture Sustainable Land Management APPDF Agriculture Public-Private Dialogue Forum APR Agricultural Sector Progress Report APSP Agriculture Policy Support Project ASWG Agriculture Sector Working Group ATTP Agriculture Technology Transfer Project BUSAC Business Sector Advocacy Challenge CAADP Comprehensive African Agriculture Development Program CCC Collaborative Circle of Chiefs of Party CAPI Computer-Assisted Personal Interviewing CD Chief Director CEO Chief Executive Officer CEPA Center for Policy Analysis CiCOL Civil Society Coalition on Land CLIP Community Life Improvement Project CLMC Community Land Management Committees COP Chief of Party COR Contract Officer’s Representative CORAF/WECAD West and Central African Council for Agricultural `Research and Development CREAT Centre for Research in Efficient Agriculture Technology CRI Crops Research Institute CRIS Centre for Rural Improvement Services CSIR Council for Scientific & Industrial Research CSO Civil Society Organization CSZ Coastal Savannah Zone CTS Commodity Trading System DCS Directorate of Crop Services DP Development Partner DUS Distinctiveness, Uniformity and Stability ECOWAS Economic Community of West African States EG Economic Growth EPDRA Evangelical Presbyterian Development and Relief Agency FAO Food and Agriculture Organization FASDEP II Food and Agriculture Sector Development Policy II FBO Farmer Based Organization FIS Farmer Innovation Systems FMSL Farm Management Services Limited FSTZ Forest Savannah Transition Zone FtF Feed the Future FTFMS Feed the Future Monitoring System FY Fiscal Year
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GAPS Ghana Agriculture Production Surveys GARDJA Ghana Agriculture and Rural Development Journalist Association GASIP Ghana Agriculture Sector Investment Program GIBA Ghana Independent Broadcasters Association GIDA Ghana Irrigation Development Authority GIMPA Ghana Institute for Management and Public Administration GIRSAL Ghana Incentive-based Risk Sharing System for Agricultural Lending GiZ German Development Co-operation GLDB Grains and Legumes Development Board GLM Generalized Linear Model GSID Ghana Seeds Inspection Division GSSP Ghana Strategic Support Program GSZ Guinea Savannah Zone GTLC Ghana Trade and Livelihoods Coalition GoG Government of Ghana GPS Global Positioning System HAG Hunger Alliance of Ghana IATs Improved Agricultural Technologies IFPRI International Food Policy Research Institute IGF Internally Generated Fund IP Implementing Partner ISSER Institute of Statistical Social and Economic Research ISU Iowa State University IT Information Technology JSR Joint Sector Review KEEA Komenda-Elmina-Eguafo-Abirem Municipality KRA Key Result Area LCS Lands Commission Secretariat LOA Length of Activity MAASI Mobilizing for Action Toward Agriculture Sector Improvement M&E Monitoring and Evaluation MAFAP Monitoring and Analyzing Food and Agricultural Policies MDA Ministries, Departments, and Agencies MED Monitoring and Evaluation Directorate MEST Ministry of Environment, Science and Technology METASIP Medium Term Agriculture Sector Investment Plan METSS Monitoring, Evaluation, and Technical Support Services MLGRD Ministry of Local Government and Rural Development MLNR Ministry of Lands and Natural Resources MoAP Market Oriented Agriculture Program MoF Ministry of Finance MoFA Ministry of Food and Agriculture MoTI Ministry of Trade and Industry MTPE Mid-Term Performance Evaluation NAFCO National Food Buffer Stock Company NARI National Agriculture Research Institution NASTAG National Seed Trade Association of Ghana Netright Network for Women’s Rights NGGA Northern Ghana Governance Activity NGO Non-Governmental Organization NSA Non-State Actor NSC National Seed Council NSP National Seed Plan NQPR National Quarantine Pest List OCAT Organizational Capacity Assessment Tool
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OPV Open-Pollinated Variety PAS Presbyterian Agriculture Services PCU Programme Coordination Unit PCM&E Policy Coordination, Monitoring and Evaluation PU Policy Unit PFAG Peasant Farmers Association of Ghana PFJ Planting for Food and Jobs PITT Performance Indicator Tracking Table PMP Performance Management Plan PPBD Policy Planning and Budget Directorate PPP Public-Private Partnerships PPRSD Plant Protection Regulatory Services Directorate MED Monitoring and Evaluation Directorate RADs Regional Agricultural Departments RADU Regional Agriculture Development Unit RFA Request for Applications SADA Savannah Accelerated Development Authority SAKSS Strategic Analysis and Knowledge Support System SARI Savannah Agriculture Research Institute SC Steering Committee SLM Sustainable Land Management SMIFS Seed Market Industry Framework Study SRID Statistics Research and Information Directorate SSTP Scaling Seeds and Technologies Partnership STEPRI Science, Technology and Policy Research Institute STTA Short Term Technical Assistance TOR Terms of Reference TVRC Technical Variety Release Committee UCC University of Cape Coast UDS University for Development Studies US United States USAID United States Agency for International Development UoG University of Ghana USG United States Government UPA Urban and Peri-urban Agriculture VCU Value for Cultivation and Use VPS Virtual Private Server WASP West Africa Seed Program WIAD Women in Agriculture Development Directorate YIAP Youth in Agriculture Project ZOI Zone of Influence
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EXECUTIVE SUMMARY
The USAID/Ghana Feed the Future Agriculture Policy Support Project (APSP) improves the food security enabling environment for private sector investment by increasing the capacity of the Government of Ghana (GoG), the private sector, and civil society organizations to implement evidence- based policy formation and implementation, research and advocacy, as well as perform rigorous monitoring and evaluation of agricultural programs implemented under the Medium Term Agriculture Sector Investment Plan (METASIP).
During Quarter 3 of Year 4, the project achieved the following major accomplishments:
• APSP coordinated and led the effort to develop a presentation on “Enhancing Availability, Delivery and Use of Improved Seeds in Ghana” at the 2017 Joint Sector Review (JSR) with inputs from the Ministry of Food and Agriculture (MoFA), the Feed the Future Agriculture Technology Transfer (ATT) project, USAID/West Africa Seed Program (WASP), USAID/Ghana Strategic Support Program/IFPRI (GSSP), and AGRA’s Scaling Seeds and other Technological Partnerships (SSTP) project. The APSP-led seed presentation proposed actionable policy recommendations to help unlock the potential of the seed industry in Ghana. The 2017 JSR was attended by MoFA’s top management, development partners, and over 90 public and private sector stakeholders, ensuring that the set of recommendations stemming from the presentation had a relevant audience. MoFA ministers and development partners participated in a business meeting following the JSR to discuss and reach agreement on the implementation of policy recommendations proposed at the JSR. They will discuss details of implementation at the next meetings of the Agriculture Sector Working Group (ASWG). • APSP completed drafting a revised Irrigation Policy which has been vetted by MoFA. Once approved by the Cabinet, the new policy will promote public-private partnerships (PPP) and attract increased investments into irrigation infrastructure delivery; improve access to use of irrigation water for year- round production; reduce risks associated with unreliable weather conditions as part of efforts to modernize agriculture; and ensure sustainable agricultural growth and development. The new policy will complement government implementation of its new “one-village one-dam” policy, under which the GoG intends to improve access to irrigation through provision of irrigation facilities for farming communities across the country. • APSP through the Institute for Statistical, Social and Economic Research (ISSER) of the University of Ghana, trained 19 MoFA staff on project planning, policy cycle and policy planning, monitoring and evaluation, and policy analysis. As part of the graduation requirements, trainees developed policy briefs based on their training and presented them at a closing ceremony. The policy briefs illustrated how valuable the training has been for enhancing the policy analysis capacity of MoFA staff, particularly the staff from the Policy Unit (PU), and reflected the participants’ comprehensive understanding of important policy issues. The training and its follow-up coaching (to include weekly visits by ISSER staff to work with the PU on examining policy issues, undertaking desk research, developing policy briefs, etc.) will enhance the overall capacity of the MoFA Policy Unit to undertake in-depth sector policy analysis on a regular basis, provide advice for MoFA principals, encourage evidence-based policy decision making with the potential to address private sector constraints, and help attract increased investments into agriculture. • APSP has institutionalized monthly brown bag sessions to engage public and private agriculture stakeholders in focused discussions on priority topics and to examine issues and policies as they emerge from project interventions. The brown bags will enhance consultation between these stakeholders and promote evidence-based policy decision making, improving the sector policy process and the enabling business environment. The two brown bags implemented in FY4 Q3 covered: 1) “MoFA’s Flagship Planting for Food and Jobs (PFJ) Program: Stimulus for Agriculture Growth and Development.” At this brownbag, participants discussed and analyzed how implementation of MoFA’s farmer-based organization (FBO) strategy could complement and support the successful implementation of the PFJ in the medium to long term; and 2) a “Presentation of Research Findings and Recommendations for MoFA Directors” to share preliminary findings and recommendations from the research studies under development by project grantees. Both brown bags
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provided insightful comments and recommendations to MoFA’s leading policy adviser, who oversees coordinating the implementation of the PFJ, and to other Directors to enhance implementation of the PFJ. APSP will present this policy research and their recommendations to MoFA’s leadership at APSP’s 2017 Agriculture Policy Research Summit in August 2017. • The project received seven final policy research reports through project grantees that will contribute to evidence-based policymaking. APSP will present the research papers to MoFA’s leadership and relevant agriculture sector stakeholders and development partners at APSP’s 2017 Agriculture Policy Research Summit to take place in August 2017. • APSP, in collaboration with the Feed the Future ADVANCE II Project, trained 90 executive members of FBOs from 30 farmer groups from 12 districts in the Northern Region. The training improved the capacity of the FBO executives to identify advocacy priorities in their farming business so that they are better able to engage policy makers at the regional and district levels. Some major issues identified for advocacy included: 1) environmental degradation through bush burning; 2) destruction of farmers’ crops through uncontrolled grazing of farmlands; and 3) the absence of quality seeds (i.e. maize, groundnuts, and rice) for planting. APSP, ADVANCE II, and the Northern Ghana Governance Activity (NGGA) will continue following up on these policy advocacy efforts to ensure their implementation. The NGGA has plans to support selected municipalities in the implementation of these policy advocacy issues. • NASTAG won a bid to supply 1,640MT of open-pollinated variety (OPV) maize seeds to farmers in the Southern Zone under MoFA’s “Planting for Food and Jobs” program in April 2017. By the end of the contract delivery period in May 2017, NASTAG had supplied a total of 640MT of OPV maize seeds to the farmers in the program, equal to 53% of the contractually agreed volume. NASTAG is awaiting payment from MoFA on the delivered seeds before continuing with delivering the contracted volume. The participation of NASTAG in a major governmental program such as the PFJ initiative sets the tone for achieving the objectives of its strategic plan, including contributing to the availability of improved seeds to farmers.
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A. PROGRESS BY COMPONENT A1. Component 1: Policy Formation and Implementation
Component 1 is aimed at improving Ghana’s agriculture sector policy process for evidence-based decision making related to food security.
A1a. Progress to date per agreed-upon work plan
KRA 1.1. Improved Capacity for Policy Analysis and Evaluation by Core METASIP-Institutions by Standing up the Strategic Analysis and Knowledge Support Systems (SAKSS) Node to Enhance Capacity in Policy Analysis and Evaluation.
Assist in Organizing METASIP/SAKSS Quarterly Meetings [Indicators 2 and 5]. After APSP successfully re-activated quarterly meetings of METASIP and SAKSS in FY4 Q1 and Q2, their activities stalled again in FY4 Q3 because MoFA’s staff was tasked with launching the government’s Intermediate Result 1 flagship agriculture policy program, Planting for FY4 Q3 Key Achievements
Food and Jobs (PFJ). Based on APSP discussions • Supported development of 2016 Agriculture with MoFA, the 2017 Joint Sector Review (JSR) took Sector Performance Review (APR) time to discuss the importance of the • Coordinated seed sector presentation for the JSR, providing important recommendations to METASIP/SAKSS. Consequently, in FY4 Q4, unlock seed industry potential APSP, SAKSS Coordinators, and the METASIP • Completed NAFCO assessment and submitted Chair will agree on a course of action to ensure that final draft report to USAID • Draft Land Bill with Cabinet for approval their members meet regularly and that their technical • Presented initial findings and recommendations of and policy discussions are timely and relevant for METASIP I and II at 2017 JSR MoFA’s management. APSP’s support to the • Completed revised Irrigation Policy and received MoFA approval/acceptance METASIP Steering Committee and SAKKS Nodes • Trained 19 MoFA staff in project planning, policy through support for meetings, funding of research cycle and policy planning, M&E, and policy proposals, training of members on the policy cycle, analysis • Commissioned seed market industry framework etc. are all enhancing METASIP and SAKSS’s analysis technical relevance. We expect that this will catch the • Conducted post-quality management training attention of MoFA’s management and thereby ensure evaluation and mentored eight seed companies in Northern Ghana. their continued functionality after the project ends. • Launched monthly brown bag policy dialogue Moreover, these structures are part of the African forums and organized two sessions so far Union’s Comprehensive African Agricultural Development Plan (CAADP), of which Ghana is a strong supporter and therefore, has committed to sustain their operations and functionality.
Implement Action Plans for METASIP/SAKSS [Indicators 2 and 5]. In FY4 Q3, the SAKSS Nodes 1 and 4 had planned to finalize the terms of reference (TOR) for two priority policy research studies, including one on high post-harvest losses and a second on sustainable land management. In FY4 Q4, APSP will provide technical inputs to finalize the TORs and will include them as part of APSP’s next round of policy research proposals up for commissioning.
KRA 1.2. Enhance Implementation of Improved Policies, Regulations and Administrative Procedures as Outlined by GOG-endorsed Policy Documents and Agreements between GoG, Donors, and Private Sector.
In FY4 Q3, APSP participated in meetings of the Agriculture Sector Working Group (ASWG) and its related subgroups: the Policy Coordination, Monitoring and Evaluation subgroup and the Operations Coordination subgroup. These meetings allowed development partners and civil society organizations (CSOs) to make recommendations to MoFA, especially to address the implementation challenges of the GoG’s flagship PFJ program. The recommendations included: • Supply and distribute seeds and fertilizers through the private sector. • Limit the levels of subsidy rates, especially of fertilizers, which have already been scaled down per the 2016 Fertilizer Subsidy Program.
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• Conduct the marketing of PFJ commodities through private outfits. • Harness the experiences of ADVANCE II’s nucleus farmers as potential actors for implementing the PFJ’s marketing component. • Support the provision of agriculture extension services through FBOs and other organizations from the private sector to avoid expanding the public payroll by hiring hundreds of public sector agriculture extension agents. • Increase the presence of CSOs, FBOs, and private sector representatives at the PFJ District Commissions • Use existing data collection mechanisms, including the Statistics, Research and Information Directorate’s CAPI system (SRID) and others, to register farmers interested in participating in the PFJ program.
Support to MoFA Monitoring and Evaluation Directorate (MED) [Indicators 4, 5 and 12]. APSP engaged with MED in FY4 Q3 and supported the process to develop the 2016 Agricultural Sector Progress Report (APR). The project provided technical and logistical assistance for the review and finalization of the APR, making inputs into the document and facilitating its printing. A deputy director from MoFA’s MED presented a summary of the 2016 APR at the 2017 joint sector review (JSR) meeting in June, 2017. As agreed with the ministry, in FY3 Q4, APSP will commission a study to identify measurable indicators as part of future versions of the APR to enable MoFA to track sector performance more efficiently and effectively, improve monitoring and evaluation, and thereby contribute to better sector planning and budgeting for sustainable agriculture growth and development.
Support to 2017 JSR planning and implementation [Indicator 4]. In FY4 Q3, APSP made substantial contributions towards the planning and execution of MoFA’s 2017 JSR held on June 29 and 30, 2017. APSP participated in all of the planning meetings and made suggestions on the content of the discussions. APSP also coordinated and led a presentation on “Enhancing Availability, Delivery and Use of Improved Seeds in Ghana” at the JSR with inputs from MoFA, the Feed the Future Agriculture Technology Transfer (ATT) project, USAID/West Africa Seed Program (WASP), GSSP/IFPRI, and AGRA’s Scaling Seeds and other Technological Partnerships (SSTP) project. The 2017 JSR was attended by the Hon. Minister of Food and Agriculture, MoFA Deputy Ministers and Chief Director, development partners, and over 90 public and private sector stakeholders ensuring that the set of recommendations stemming from the presentations had a relevant audience. Below is a list of some of the recommendations presented at the JSR:
Laws and Regulatory Functioning of Seed Production and Supply Certified Seed Demand Framework Institutions Approve Ghana’s Ministers of Finance NARIs, universities, and NASTAG, MoFA/NSC should develop and Harmonized Seed and Food and led by National Seed Council (NSC) implement communication Regulations Agriculture must must embark on a national strategy to demonstrate and immediately. ensure establishment communication campaign to engage educate farmers on the and operationalization seed industry stakeholders on performance of new seed of the National Seed technical characteristics and varieties. Fund. performance of released seed varieties to speed up adoption of new seed varieties. MoFA should review NSC must meet and NARIs and Universities should Implement a voucher program and adjust National comply with their establish functional and effective to promote among farmers the Seed Plan with mandate spelt out in strategic business units to promote use of improved seeds (targeted implementation Act 803 (policy and market results of their research to promote adoption of new strategy. guidance and approval on breeder seeds and seek proven varieties, limited to PFJ of seed operating opportunities. crops and as part of a package systems). that includes soil fertility and supplemental irrigation). MoFA to seek Technical Variety NARIs should implement their Market demand should be parliamentary approval Release and licensing program with seed identified based on that allows GSID to use Certification Committee producers to multiply breeder seed quantification of the market size its total internally (TVRCC) should meet into foundation seed (NARIs need as recommended by preliminary generated funds (IGF) to comply with its to complete and approve their findings of the Seed Market to help improve seed mandate as specified respective licensing policies. Industry Framework and certification services. in Act 803. Strategy (SMIFS) being developed by APSP.
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Establish a PPP NASTAG to strengthen Seed producers need to continue PPRSD/GSID must ramp up its between GLDB and its role as the private ramping up their quality certification process with better NASTAG for the sector championing management systems for trained and equipped management of the seed sector related production of high quality seeds. inspectors. Board’s seed policy and processing development issues. infrastructure. NARIs to secure NASTAG must approve Implement the GSID accreditation MoFA to develop and make funding for breeding and implement manual to help expand certification available exit strategy in its seed programs and provision immediately its capabilities through accrediting subsidy program to provide of breeder seeds, Strategic Plan. private certification providers. guidance for its beneficiaries. including licensing and production contracts. Immediately enact and Use PFJ as a Seed certification process to Based on CRI’s successful enforce the Plant mechanism to hasten transition into mixed system with public-private partnerships for Breeders Rights Bill. and strengthen the both public and private inspectors. foundation seed production relationship. experience, the NSC must encourage and help expand the initiative. NSC to be more active NASTAG and GSID must identify Royalties from licensing and coordinate and establish the database on seed agreements must complement activities of sector sector-related information required government budgetary funding. players, including for their informational and inviting them for monitoring needs. technical discussions at council meetings.
Due to the presence of important agriculture sector actors, implementation of recommendations related to the seed sector will fast-track Ghana’s efforts at increasing supply, demand, and use of improved and affordable agricultural technologies (certified seed and fertilizer), help trigger agriculture modernization and growth, increase incomes of agriculture sector players, ensure both national and household food security, and contribute immensely to overall national development.
Assessment of the National Food Buffer Stock Company (NAFCO) [Indicators 4 and 8]. In FY4 Q3, APSP submitted a final report to USAID and MoFA for review and comments. APSP is waiting for instructions from USAID on the next steps. The adoption of report recommendations will provide lessons for the government and, if implemented, avoid continuing use of NAFCO and the publicly- owned Grains and Legumes Development Board to implement the PFJ’s marketing component.
Support to land reform initiatives [Indicators 4 and 5]. The final draft of the Land Bill, supported by APSP and the World Bank over the last year, was submitted to the Cabinet in June, 2017 for its approval and onward submission to Parliament for consideration and passage. APSP will continue to follow up on the bill during FY4 Q4 until it is passed. The passage of the bill and its implementation will help create an enabling environment required for increased private sector investments in agriculture, improve land management, promote security of land for long-term agriculture growth and development, and ensure sustainable national food security.
Support for GoG Investment Plan [Indicator 4]. In FY4 Q3, APSP and the Food and Agriculture Organization’s (FAO) Monitoring and Analyzing Food and Agriculture Policies Program (MAFAP) initiated an assignment to assess METASIP I and II to guide the development of METASIP III. APSP and FAO’s consultants working on the assessment made a presentation at the 2017 JSR on the initial findings and recommendations of the assessment. The presentation identified a few challenges in the design and implementation of METASIP I and II. These include lack of coherence in aligning government and donors’ projects and programs; lack of coordination mechanisms in the development of complimentary projects; and a high number of parallel projects and programs which make impact assessment difficult. METASIP III will address these shortfalls to improve agriculture sector programing, project planning, and implementation; enhance sector coordination; guide investments into priority projects with potential for high impact and growth, to ensure a systematic and sustainable agricultural development.
KRA 1.3. Improve Policies that Enable the Private Sector to Develop, Commercialize and Use Improved Agriculture Inputs to Increase Smallholder Productivity and Incomes.
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Development of an Agricultural Marketing Policy [Indicators 4, 8, 11 and 14]. In FY4 Q3, MoFA and MoTI approved the final report of the study on “Situational Analysis of Agriculture Marketing in Ghana” and APSP is submitting it to USAID in this quarterly report. APSP, FAO, and MoFA have identified and recruited a foreign expert and a local counterpart for the development of the first National Agriculture Marketing Policy. APSP expects to commission the assignment in FY4 Q4, once the consultants receive the Minister’s clearance. Agriculture marketing in Ghana remains a challenge to agriculture development and the policy, when completed and implemented, will help address poor quality standards, absence of grading, lack of standard measures, and lack of market information services, and thereby encourage private sector stakeholders to increase their investments in agriculture and contribute to economic growth.
Develop New Irrigation Policy [Indicators 2, 4, 5, 11, 12 and 14]. APSP in FY4 Q2 reviewed Ghana’s current public sector-led irrigation policy and drafted a revised policy in support of a more private sector-friendly National Irrigation Policy. In FY4 Q3, APSP and MoFA received and approved the revised policy. APSP and MoFA’s Ghana Irrigation Development Authority (GIDA) will implement a brown bag session in FY4 Q4 to discuss the implementation mechanisms of the new policy before its submission for Cabinet approval. The new policy will promote public-private partnerships and attract increased investments into irrigation infrastructure delivery; improve access to irrigation water for year- round production; reduce risks associated with unreliable weather conditions as part of efforts to modernize agriculture, and help ensure sustainable agriculture growth and development. The new policy will further complement government implementation of its new “one-village one-dam” policy, under which the GoG intends to improve access to irrigation through provision of irrigation facilities for farming communities across the country.
Strengthen the Policy Unit (PU) in MoFA [Indicators 2, 4, 5 and 14]. APSP stepped up its capacity building activities for the MoFA Policy Unit in FY4 Q3 with implementation of a customized three- phase training program for 19 staff of the Policy Unit and related directorates by ISSER of the University of Ghana. The training covered three modules: 1) project planning, policy cycle, and policy planning; 2) monitoring and evaluation; and 3) policy analysis. Trainees developed policy briefs as part of their training and presented them at a closing ceremony held at the end of the program on May 24, 2017. The policy briefs illustrated how valuable the training has been for enhancing the policy analysis capacity of MoFA staff and reflected the participants’ comprehensive understanding of the policy issues at hand and of the consequences/impacts resulting from a given course of action/non-action. In FY4 Q4, APSP and ISSER will agree on a framework for continuing to support MoFA, this time providing hands-on coaching for its Policy Unit staff. The training and follow up coaching will enhance overall capacity of the MoFA Policy Unit to undertake needed in-depth sector policy analysis on a regular basis, develop policy briefs to provide advice for MoFA principals, encourage evidence-based policy decision making with potential to address constraints to private sector investment in agriculture and to attract increased investments.
Support for implementation of MoFA’s Seed Plan and Seed Law. [Indicators 2, 4, 5, 13 and 14.] APSP continued to build the capacity of private sector seed producers and initiated a seed sector survey in FY4 Q3, with the objective to provide required inputs to develop a seed sector growth strategy to support implementation of the Plant and Fertilizers Act 2010 (Act 803) and the National Seed Plan.
• Seed market industry framework and strategy (SMIFS) [Indicators 2, 4, 5, 13 and 14]. In FY4 Q3, APSP commenced a broad seed industry analysis and framework. As part of the study, an APSP expert solicited opinions of 15 key value chain actors in the seed sector across Ghana. APSP will complete the industry analysis in FY4. A growth strategy will fast-track the project objective to improve policies that will enable the private sector to develop, commercialize, and use improved agriculture inputs to increase smallholder productivity and incomes and enhance implementation of improved GoG policies, regulations, and administrative procedures. • Post-quality management training for seed producers [Indicators 2, 4, 5, 13 and 14]. In FY4 Q3, APSP provided post-quality management training evaluation and mentoring visits to eight NASTAG
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members who participated in the seed quality management training in FY4 Q2. Details of the training are provided in Component 3 below.
Organization of brown bag sessions [Indicator 4]. In FY4 Q3, APSP institutionalized monthly brown bag sessions to engage public and private agriculture stakeholders in focused discussions on priority topics and to examine issues and policies as they emerge from project interventions. The brown bags will enhance consultation between these stakeholders and deepen policy dialogue by discussing, understanding, and resolving constraints on the private sector to promote evidence-based policy decision making, thus improving the overall sector policy process and the enabling business environment. The brown bag sessions are limited to 20 to 30 participants to foster participation and open and frank discussions and events are not open to the public or to the media. In FY4 Q3, APSP implemented the following two brown bag sessions:
• “MoFA’s Planting for Food and Jobs (PFJ): Stimulus for Agriculture Growth and Development.” The objective of the session was to provide a platform to discuss, analyze, and explore how implementation of MoFA’s FBO strategy, which APSP helped to develop, could complement and support the successful implementation of the PFJ in the mid- to long-term. • “Presentation of Research Findings and Recommendations for MoFA Directors.” Details are provided in Component 2 below.
KRA 1.4. Improved Execution of METASIP Programs
Support METASIP Activities [Indicators 2, 4, and 5]. The METASIP Steering Committee (SC) decided in FY4 Q2 to prepare a position paper on policy initiatives to attract youth into Ghana’s agriculture sector. In FY4 Q3 APSP will provide technical and financial assistance to facilitate the preparation and submission of this paper.
Improve Agriculture Sector Data Collection, Analysis, Management, and Reporting [Indicators 2, 5 and 14]. In FY4 Q3, APSP held a session with MoFA’s Statistics Research and Information Directorate (SRID) and the subcontractor FARMERLINE to mark the completion of the assignment to develop and deploy SRID’s Computer-Assisted Personal Interviewing (CAPI) system. The use of CAPI has dramatically improved SRID’s capacity to collect, analyze and manage agriculture data, thereby improving the policymaking process. APSP recommended that SRID’s CAPI should be used to collect data to evaluate the GoG’s PFJ initiative and to survey and register all FBOs in the districts. APSP will organize a presentation on the CAPI system to an audience comprising MoFA senior management, USAID, and other selected stakeholders in a brown bag session during the next quarter.
A1b. Identification of specific problems and delays, and recommendations for corrective action
Established Reasons for not Meeting Specific Problem Quarterly Corrective Action Established Target/Milestone Target/Milestone No meeting of Targeted to meet MoFA staff coordinating the MoFA’s management has acknowledged METASIP/SAKSS at least once in meetings had been busy the importance of the platforms and has FY4Q3. working on implementation of indicated their interest to sustain them. government new PFJ policy APSP in FY4 Q4 will offer its expertise to program. MoFA in this regard. Land Bill not passed The draft Land Bill Draft Bill was sent to Cabinet in In FY4 Q4, the project will continue into law. was planned to be June, 2017 for its approval and supporting advocacy efforts to get the Land passed into Law subsequent forwarding to Bill passed, this time working through a in FY4 Q1 Parliament. grantee. Evaluation of METASIP Targeted to be Recruitment of FAO consultants Field work was finally completed in June, I and II delayed. undertaken in FY4 for the field work delayed due to 2017 and the assignment is expected to be Q1. procedural reasons. completed in FY4 Q4. Development of the Planned for Minister of MoFA has not yet APSP is closely following up on this National Agriculture completion in FY4 cleared the experts that APSP clearance with PPDB Director Marketing Policy Q3. and FAO suggested to delayed. undertake the assignment.
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A1c. Outcomes of high level meetings
Meeting Outcome Participated in an AGRA workshop aimed at Among others who made contributions, APSP’s salient providing inputs for an improved input subsidy recommendations were as follows: program in Ghana • Government should commit some subsidy money to support insurance to lessen agricultural risks, and • Program M&E must have private sector participation to enhance transparency and efficiency.
Participated in AGRA/GSSP-IFPRI/CSIR panel • Participants agreed that several seed varieties had been released discussions on seed at STEPRI. by research organizations, but they are yet to be adopted. Therefore, there is a need to mount educational communication programs to educate sector players to promote adoption. • Hon. Minister of Food and Agriculture promised to have the National Seed Council inaugurated within 10 days so the Council could approve outstanding policies/regulations/manuals that promote enabling environment for private sector investments. APSP met with ISSER to discuss a mentoring ISSER will submit relevant proposal to APSP for a contract variation to program for MoFA policy unit staff. the existing contract to enable the commencement of the mentoring program.
Met with Director of PPBD to discuss and agree on • Brown bag on research studies organized on Thursday, 15th June, priority activities: (a) a brown bag on the PFJ, the 2017. agriculture policy research forum, and the • Preparatory works towards organizing the Research Forum currently mentoring program for the Policy Unit by ISSER, on-going. and (c) a research forum in August 2017 on the on- • Mentoring program is expected to commence in FY4 Q4 going research studies Participated in meeting of the Land Bill Drafting Draft Bill finalized and forwarded to Cabinet in June, 2017 for its Committee organized by the Ministry of Lands and approval. Natural Resources (MLNR) in April 2017 to discuss and finalize Draft Land Bill. APSP held a meeting of the CCC on June 14, CCC has offered the mission help in designing the second phase of the 2017, to discuss send-off for USAID Mission Feed the Future (FtF) Initiative for Ghana. In addition, CCC will suggest Director and other matters. to the mission to make additional efforts to support the GoG in fighting the Fall Army Worm (FAW), even if it implies redirecting resources from the current FtF projects.
A2. Component 2: Policy Research
APSP Component 2 focuses on policy research, and is aimed at increasing the availability of rigorous policy analysis capacity for evidence-based policymaking.
A2a. Progress to date per agreed-upon work plan.
KRA 2.1 Enhance high quality policy research capacity APSP’s policy research component will increase the availability of rigorous policy analysis capacity for evidence-based policymaking, and increase capacity of research institutions for agriculture policy research to complement the Policy Formation and Implementation component of the project.
Monitor Research Grants [Indicators 8 and 9]. In the quarter under review, APSP received a total of seven final research reports from four research institutions as below. In addition, the project received two other draft reports on SAKSS Nodes 2 and 4.
# Research Institution Title of Research study submitted Crop Research • Market Standardization, Grading, and Pricing in the Maize Market in Ghana: The Case 1. Institute (CRI) of Ejura-Sekyeredumase Municipality.” • “Assessment of the Preparedness of National Research Institutes and Universities for 2. Distinctiveness, Uniformity, And Stability (DUS) and Value for Cultivation and Use (VCU) Testing under the Newly Proposed Crop Varietal Release and Registration System,” University for • “Assessing the Role and Effectiveness of Mobile Phone Technology on Agricultural 3. Development Studies Extension Services Delivery in Northern Ghana: The Case of Tolon District.”
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Faculty of • “Productivity, Heterogeneity, and Gender Dichotomy of Rice Production in Ghana: Policy 4. Agribusiness and Implications for Farmer and Agricultural Technology Innovations.” Communication • “Analyses of Value Chain Approach by Association of Church-Based Development 5. Sciences Projects/ Presbyterian Agriculture Services (ACDEP/PAS) for Development.” University of Cape “Impacts of Food Security Interventions in the USAID Zone of Influence: A Systematic Coast Review” 6. College of Agriculture School of Agriculture & Natural Sciences Science, Technology, “Quantitative and Qualitative Study of Gender Responsive Agricultural Extension for 7. and Policy Research Improved Agricultural Productivity in Northern Ghana,” Institute (STEPRI)
In the quarter, APSP held a brown bag session with researchers and MoFA to share preliminary findings and recommendations from the research studies. The meeting was attended by MoFA Directors and Deputy Directors who asked pertinent questions and made useful inputs for the researchers to consider and to improve on their findings and recommendations. The Director of the GSSP/IFPRI also attended the brown bag and suggested the researchers to limit their recommendations to a few actionable areas and recommended that all the research papers should be peer reviewed by a third party. APSP is implementing GSSP/IFPRI’s Intermediate Result 2 recommendations. During this consultative meeting, the project FY4 Q3 achievements discussed with the researchers and MoFA details on APSP’s • Project held a high-level upcoming Agriculture Policy Research Summit that will take meeting between researchers place in August. The proposed research summit will include and policy makers to share preliminary findings of policy participants from academia, universities and research institutions, research studies development partners, and GOG policy makers. It will offer an • The project received seven final opportunity for the researchers and academics to meet with policy policy research reports that will contribute to evidence-based decision-makers to promote evidence-based policy formulation policymaking and reforms. Annex V provides abstracts/executive summaries of • The project also received two the research and policy studies that have been completed. other draft reports and final reports will be completed by in FY4 Q4 Peer Review of Research Studies. To improve the quality of research studies, APSP subcontractor Iowa State University (ISU) will help review the portfolio of research studies that have been submitted by four research institutions. This is in addition to peer reviews by the faculties that have submitted these studies themselves and to the extensive examination conducted by APSP’s team. This review by ISU is in progress and will be completed before the agriculture policy research summit in August 2017.
Other research/policy initiatives [Indicators 8 and 9]. APSP completed and submitted to USAID and to MoFA for their study and comments an assessment on “NAFCO: Assessing policy on price market interventions and establishment of food buffer stocks.” (Please see Section A1 above.)
Building capacity for research among research institutions [Indicator 9]. In Q3, APSP received detailed requests for support from the four research institutions that APSP is partnering with. APSP’s approach to capacity building has been both institutional and human. Some indicated, for example, that they have limited ICT hardware and software and that they are not able to carry out meta-analysis in their studies due to lack of the required software. APSP has therefore packaged the requests into four categories: 1) ICT hardware equipment, laptops, photocopier, scanner, printer, and PDAs for field data collection; 2) analytical and modeling software, such as multiple multiple-user software, namely InVivo, Nlogit, GeStat, and STATA; 3) training in modelling and analytical software for researchers; and 4) subscription to agricultural policy journals including e-books and EndNote reference manager. APSP will procure this equipment in Q4 to assist the research institutions to improve their capacities for research. APSP also hired a consultant in the quarter to produce a compendium of policy briefs, an initiative that responds to the MTPE, from the research studies that have been completed for policy makers, and develop the manuscripts for publication.
A2b. Identification of specific problems and delays, and recommendations for corrective action
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Reasons for not Established Specific meeting Quarterly Corrective Action Problem Established Target/Milestone Target / Milestone APSP did not APSP has completed There was a delay in • APSP accelerated the process and reviewing and achieve target of only four research FY3 in evaluating the commenting on the draft research reports. As of FY4 number of high- reports against a proposals, and a delay Q3, eight final reports and two draft reports had been quality research current target of 20. To in carrying out a pre- submitted to the APSP. papers date three of these award financial and • APSP plans to present the studies at a policy research have been published capacity assessment of forum in August 2017 to disseminate knowledge and the institutions for grant discuss adoption of research recommendations. The awards researchers have submitted abstracts of their studies to APSP. • APSP plans to provide additional small grants for policy research starting in FY4 Q4 to enable the project to reach its target of 20 high-quality research reports published APSP has not Improve areas of Delays in institutions • Specific requests for capacity building have been fully policy research responding to provide received from four institutions. APSP will respond to implemented capacity in selected specific requests for these requests in FY4 Q4 institutional research organizations capacity building • The baseline value for research capacity has been capacity building and units by 80% revalued to reflect the score of only the four institutions to improve that are benefiting from APSP support. capacity for policy research in selected institutions
A2b. Outcomes of high level meetings
Activity/Meetings Outcome
APSP held extensive discussions with the • Researchers understand that they should submit high-quality researchers from UCC, UDS, STEPRI, and CRI to papers. review their work and have a common • Researchers understand that their papers should be peer-reviewed understanding on the quality of their research by their faculty members output • From the brown-bag sessions, there was feedback and inputs made by MOFA officials to the researchers to enable them improve on the final reports
A3. Component 3: Policy Advocacy Component 3 is focused on building the capacity of civil society, private organizations, and the media to develop and implement policy advocacy activities and amplify their voice in the agriculture policy process. A3a. Progress to date per agreed-upon work plan.
KRA 3.1 Improve engagement of the private sector in food security policy reforms and implementation. Support to Public Private Dialogues [Indicators 6, 7, 11, 12, 13 and 14]. Based on APSP’s priorities, in FY4 Q2 and Q3, APSP approved grant applications from two CSOs, the Network for Women’s Rights (NETRIGHT) Ghana and Hunger Alliance of Ghana (HAG), after evaluating proposals from five CSOs. The preliminary findings of the mid-term review of APSP indicated that the project was lagging in meeting project performance indicator #3, which focuses on increasing the number of CSOs in Ghana that have demonstrated knowledge of sources and use of gender disaggregated data in agriculture policy advocacy. In a quest to increase performance in this aspect, in FY4 Q4 APSP will provide a grant to NETRIGHT, a gender based CSO that APSP trained in FY4 Q2 in gender statistics, to provide training to its network members on the use of gender disaggregated statistics for gender policy advocacy.
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The training is expected to equip the CSOs with the requisite skills and Intermediate Result 3 FY4 Q3 achievements knowledge in the use of both local and international data sources to strengthen gender policy advocacy. In addition, NETRIGHT will • NASTAG has successfully strengthen the gender mainstreaming capacity of CSOs through started working as a contractor to MoFA to deliver OPV maize dissemination of MoFA’s gender and agriculture development strategy, seeds for the “Planting for and advocate for the passage of the APSP-supported draft land bill into Foods and Jobs program”. law. • APSP conducted post-training monitoring, evaluation, and mentoring visits and supported Likewise, in FY4 Q4 APSP will award a grant to another CSOs, Hunger the development of quality management manuals for seed Alliance of Ghana (HAG) to implement activities to strengthen private enterprises in northern Ghana, sector ownership and participation in MoFA’s current flagship for members of NASTAG. programs, especially the PFJ. HAG will organize national dialogue • APSP in collaboration with the ADVANCE II Project trained 90 forums and roundtable discussions to identify constraints to private FBO executive members (12 sector investment in agriculture and advocate for reforms that will propel females sand 78 males) from private sector ownership and participation in agriculture policy-making 30 Farmer Groups from 12 districts in the Northern Region and government agriculture improvement initiatives. on Ghana’s agriculture policy process, FBO networking, and basic advocacy skills. Strengthening NSAs Participation through Small Grants Fund [Indicators 6 and 11]. In FY4 Q3, APSP continued monitoring implementation activities of three active policy advocacy grantees: CREAT, FMSL, and NASTAG. NASTAG’s updates are provided in Section 3.2. Below is Summary of CREAT and FMSL’s activities as of FY4 Q3:
Grantee Activity Expected Impacts
Centre for The grant is focused on research to assess Ghana’s These studies are expected to accomplish the Research in Agriculture Sustainable Land Management (SLM) following: Efficient strategy in five municipal assemblies in the Volta • Improve the capacity of the researched districts to Agriculture region. In FY4 Q3, APSP extended the grant prioritize sustainable land management (SLM) Technology agreement with CREAT to August in FY4 Q4 to allow technologies in their agricultural development (CREAT) the grantee to undertake the following activities. plans. • Presentation of one of the research papers at the • Lead to smallholder farmers adopting the (SLM) national agriculture policy research summit slated technologies for increased productivity and for FY4 Q4. incomes. • Consolidate and document the entire project • Provide additional knowledge to policy makers and findings for dissemination to project stakeholders stakeholders to inform the review of the national • Allow enough time for APSP technical team to strategy and plan for sustainable land management review and finalize the project manuscripts in Ghana. • Publish the manuscript • Encourage policy makers at the district and national levels to invest in sustainable land management technologies for increased productivity and income for farmers. FMSL (Rite The grantee used radio to advocate for increased The Video documentary is expected to: 90.1 FM) resource allocations to the Department of Agriculture • Draw policymakers’ attention to the need to place in six districts in the Eastern Region through the agriculture at the center of local economic Mobilizing for Action Toward Agriculture Sector development through increased human and Improvement (MAASI) project. In FY4 Q3, FMSL budgetary allocations for agriculture development finalized the production of its video documentary and growth in the districts. which is aimed at highlighting the achievements of • Encourage the district authorities to develop the MAASI project. The achievements included: policies that create the enabling environment for • The establishment of agriculture subcommittees private sector investment in agriculture in all the six districts to facilitate addressing the • Stimulate district authorities to resource the concerns of farmers. departments of agriculture and district assembly • Heightening of agriculture as the key driver of structures such as the agriculture sub-committees local economic development in the six districts, to increase agriculture investments in the districts. • Increase budgetary allocation to the agricultural • Attract private sector attention and confidence thus sector in the 2017 annual composite budget. increasing private sector investment in agriculture • Developed a policy brief for public dissemination. in the districts.
Follow-up on Recommendation from Public-Private Dialogues [Indicators 11 and 12]. In FY4 Q3, APSP and the USAID Northern Ghana Governance Activity (NGGA) project collaborated to monitor the implementation of recommendations from the policy dialogue forums APSP organized in eight
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districts in the Northern and Upper West Regions in 2014 and 2015. The recommendationsd include the establishment of district agriculture sub-committees, development of specific by-laws on environmental and forestry management, and implementation of district-level development plans. Implementation of these recommendations will strengthen the value of public private dialogues at the local governance level, raise private sector confidence in the public sector, and improve the business- enabling environment for private sector investments in agriculture. Major findings of the follow-up visits are as follows:
• Mion and Savelugu districts in the Northern Region established agriculture sub-committees as agreed at the dialogue sessions in 2014 and 2015. • Savelugu district has an agriculture investment plan prepared with assistance from ADVANCE II in fulfillment of the recommendation made at the district dialogue session in 2015. • Savelugu district facilitated the provision of land for farming to women farmers in three communities. • Six other districts in these regions could not establish sub-committees as agreed at the dialogue sessions in 2014 and 2015 due to lack of commitment and political will to implement the agreed recommendations by district officials. • During the monitoring visits, district officials informed APSP of their renewed commitment to implement the recommendations. The reason for the change is attributed to the importance the current government of Ghana attaches to agriculture with its flagship programs.
In FY4 Q4, APSP will continue with the collaboration with NGGA to advocate for the establishment of the agriculture sub-committees in all the districts in the three regions in the north of Ghana. The establishment of the agriculture sub-committees will strengthen agriculture governance at the district level, enhance the capacity of members to debate policy issues on the floor of the assemblies, advocate more effectively for the interest of their constituencies who are mostly peasant farmers, and ultimately promote private sector investment in agriculture.
Production of APSP quarterly newsletter [Indicator 6]. In FY4 Q3, APSP circulated its first newsletter, the Agripolicy Quarterly to USAID and project partners and beneficiaries including MOFA, CSOs, FtF projects, and individual beneficiary trainees. The newsletter improved the project’s visibility, informed the public about project activities and impacts, and provided more information on policy reforms that are expected to attract private sector investments into Ghana’s agriculture. In FY4 Q4, APSP will collect more information on key project activities and impact for publication in its second edition of the Agripolicy Quarterly for distribution to its stakeholders.
KRA 3.2 Improve the Capacity of the Private Sector to Advocate for Pro-Business Agriculture Sector Reforms in Ghana. Provision of Unsolicited Grant to National “Umbrella” Organization to Represent Seed Value Chain Actors: [2, 4, 5, 6, 10, 11, 12, 13 and 14]. In FY4 Q3, APSP continued building the capacity of NASTAG. NASTAG undertook a number activities to enhance its capacity and develop the seed sector as follows:
Activity Outcomes Current Impacts and/or Expected Impact Supplied Seeds NASTAG won a bid to supply • The participation of NASTAG in a major governmental for 1,640MT of open-pollinated variety program such as PFJ set the tone for achieving the objectives implementation of (OPV) Maize seeds to farmers in of its strategic plan, among them contributing to the MoFA’s “Planting Southern Zone under the availability of improved seeds to farmers. for Food and Jobs Government of Ghana (GOG)’s • NASTAG’s participation in PFJ affords it the opportunity to (PFJ)” program “Planting for Food and Jobs” program increase its visibility as the leading private sector organization in April 2017. By the end of the in Ghana’s seed sector. contract delivery period in May 2017, • NASTAG’s participation in PFJ has created a market NASTAG had supplied a total of opportunity for local seed producers and highlights what a 640MT of maize seeds to farmers; strengthened NASTAG could continue to accomplish for the that is, 53% of the contractually benefit of its members’ business. agreed volume. • NASTAG’s experiences in PFJ will further motivate members to continue supplying improved quality seeds for farmers.
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Activity Outcomes Current Impacts and/or Expected Impact NASTAG is APSP and ATT held meetings with • Synergies are developed between FtF projects to avoid working with NASTAG in May 2017 and came out duplication of efforts and harness resources and efforts to APSP and ATT to with a matrix that defined their areas transform Ghana’s seed industry. better implement of collaboration to support NASTAG’s • A vibrant and developed private sector of Ghana capable of its strategic plan strategic plan meeting the quality seed needs of farmers. NASTAG APSP conducted post-training • The seed enterprises have started implementing quality members in evaluation and mentoring visits to standards using process management tools with Northern Region eight NASTAG members’ private comprehensive administrative and operational procedures received business seed enterprise in Northern Ghana in clearly spelt out in the quality manuals. development May/June 2017 and reviewed their • The capacity of seed enterprises has been enhanced to support from Quality Management Manuals, actively participate in the development of seed value chains APSP to ramp up facilities and equipment. and ensure the production and commercialization of improved production of quality seeds accessible to farmers in Ghana and the West quality seed Africa sub-region. NASTAG and APSP and NASTAG partnered in an • Lessons learned and experiences are expected to help APSP participated exhibition booth as part of the side strengthen the activities of NASTAG, APSP, and partners in in West Africa event, showcasing information on developing the seed industry in Ghana. Seed Program activities supporting the Ghanaian • NASTAG’s participation in the event has increased its (WASP) learning seed sector. NASTAG exposed to visibility as a champion seed sector organization in Ghana. event organized best practices, particularly the by business model approach for private CORAF/WECAD) sector development and to in Accra-Ghana experiences from Nigeria and Mali in seed demand forecasting. NASTAG NASTAG executives and secretariat The study is expected to: assistance to staff held meetings with the SMIFS • Develop a seed sector growth strategy that results in sector APSP for the consultant and facilitated data on reforms and increases production and marketing of improved development of seed production. Between May and quality seed for farmers through increased private sector the on-going June, 2017 the consultant investments. Seed Market interviewed 15 key seed sector • Improve policies that will enable the private seed sector to Industry stakeholders across Ghana in develop, commercialize, and market improved seeds to Framework and coordination with NASTAG. increase smallholder productivity and incomes. Strategy Study • Provide a holistic understanding of the seed trade industry in (SMIFS). Ghana and recommend the best market model to accomplish proper seed utilization to maximize crop yields and land use. • Develop base models for the different kinds of companies competing in the market to grow the seed industry in Ghana. NASTAG NASTAG in collaboration with the The workshop and the presentations on NASTAG’s role as organized Central Regional Office of MoFA and championing the seed sector in Ghana, the role of the private sensitization the Peasant Farmers Association of sector for the development of the industry and on the National workshops on Ghana (PFAG) held a sensitization Seed Plan: national seed workshop on the national seed policy • Strengthened the private seed sector’s position to develop policy for seed and its implementation plan for 62 quality seeds to meet the increasing demand for seeds from sector public and private sector PFJ and other government agriculture programs. stakeholders in stakeholders at Cape Coast on June • Created awareness on new varieties developed and their the Central and 27, 2017. implications for agriculture productivity and food security in Western Regions the country.
KRA 3.3. Provide Civil Society Support for the Policy Efforts of the Other Ghana Feed the Future Projects
Collaborate with Other USAID Ghana FtF Projects and Other Development Partners [Indicators 2, 7, 11, 13 and 14]. In FY4 Q3, APSP collaborated with the USAID ADVANCE II Project to train 90 FBO executive members (12 females sand 78 males) from 30 Farmer Groups from 12 districts in the Northern Region. The training was aimed at improving the capacity of the FBO executives to identify advocacy issues in their farming businesses to be able to engage policy makers at the regional and district levels to bring about policy reforms that will promote private sector investment in agriculture. The training strengthened the capacity of the FBOs to initiate policy dialogues with policy makers at the local governance level and promote increased FBO participation in the policy making process. Some of the major issues identified for advocacy include: 1) environmental degradation through bush burning; 2) destruction of farmers’ crops through uncontrolled grazing of farmlands; and 3) absence of quality maize, groundnut, and rice seeds for planting.
In FY4 Q4, APSP will collaborate with the ADVANCE II Project to train 25 FBOs in policy advocacy in the Upper East Region which is aimed at strengthening their capacity to undertake policy dialogues with policy makers at the local governance level and promote their participation in the policy
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development process. In FY 4 Q4, APSP and the ADVANCE II Project will continue with their collaboration by carrying out post-training monitoring and evaluation of the 30 FBOs trained in FY4 Q3 in the 12 districts in the Northern Region. The monitoring will help assess the performance of the FBOs in the policy making and advocacy processes in the districts.
A2b. Outcomes of high level meetings
Activity/Meetings Outcome
Met with GiZ-Market Oriented Agriculture Program • APSP in collaboration with GIZ-MOAP will organize and implement (MOAP) to jointly organize district policy dialogue three policy dialogue forums to take place in the final stages of forums and facilitate the formation of agriculture FY4Q4. sub-committees in the Upper West and Northern • APSP is expanding its collaborative approach on this activity to other Regions. development partners, who by working together with us, are valuing the nature and relevance of the dialogues. • Through these dialogues, APSP and GiZ-MoAP will facilitate the formation of agriculture sub-committees in three districts in Upper West Region.
A3b. Identification of Specific Problems and Recommendations for Corrective Action and Reasons Why Established Targets Not Met
Reasons for not meeting Established Quarterly Specific Problem Established Corrective Action Target/Milestone Target/Milestone Support to Public- Technical and financial support APSP requested NETRIGHT and APSP has reviewed and Private dialogues provided to two CSOs to champion HAG to revise their proposals to approved the grant was the organization of public-private include key priority issues, especially applications and will award not accomplished dialogue forums and provide to focus on some of the grants to HAG and education to CSOs on gender and recommendations stemming from NETRIGHT next quarter. agriculture development strategy. APSP’s Mid-Term Project Evaluation. Delay in training of Undertake joint training of three NGGA replaced this activity with a APSP and NGGA will identify Regional Women’s regional women platforms in the more urgent one that is the other areas of collaboration Platforms in the three regions of the north in policy development of district assemblies’ in FY4 Q4 and its execution three regions of advocacy. medium term development plans before the end of the quarter. north of Ghana which were time bound.
B. Assessment of the validity and efficacy of progress against the objectives and results in FY4 Q3
Indicator Efficacy of Progress FY4 Q3 Activities to Achieve Indicator Results
#1: Score, in percentage, of combined In FY4 Q3, the APSP Policy Advocacy Team followed up with organizations to assess their improvements in key areas of organizational capacity organizational capacities. APSP received feedback from 4 CSOs which completed the OCAT, bringing the among direct and indirect number of CSOs responding to this assessment to 33. When APSP aggregates the scores for all 33 CSOs implementing partners the average score in advocacy capacity is 80% which puts us on track to meet our target.
#2: Number of individuals receiving • ISSER trained 19 Staff of MoFA from the Policy Unit and other directorates in project planning; policy cycle USG ST training assistance and policy planning; monitoring and evaluation (M&E); and policy analysis. • 90 executive members from 30 FBOs trained in policy advocacy by the end April 2017 • 62 public and private sector individuals (52 males and 10 females) trained on the Ghana seed policy and its implementation plan, and the role of private sector in seed sector reforms on June 27, 2017
#3 Number of organizations • As part of activities to achieve the target for this indicator, APSP identified NETRIGHT to build the demonstrating knowledge of sources capacities of 20 CSOs in the sources and use of gender disaggregated data for policy advocacy. and use of gender disaggregated data • Under a grant agreement, NETRIGHT will continue mentoring and training selected CSOs identified in FY4 on agriculture for gender policy Q3. APSP will administer a first assessment using the ACAT in FY4 Q4. advocacy
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#4: Number of agricultural enabling • In June 2017, the MLNR submitted the Land Bill for Cabinet approval, before it is forwarded to Parliament. environment policies, regulations, • APSP completed the NAFCO assessment and submitted it to USAID and shared it with MoFA. Waiting for administrative procedures USAID on next steps. • APSP completed the development of a private sector-friendly Irrigation Policy for Ghana. • APSP expects that the Evaluation of METASIP I and II on-going will be completed in FY4Q4. • “Situational Analysis of Agriculture Marketing” completed and approved by MoFA and MOTI. Report submitted to USAID along with this QPR. • Harmonized seed regulations forwarded to Parliament for passage
#5: Number of government units • Project provided technical assistance to MoFA MED in finalizing 2016 APR. receiving USG ST training support • APSP provide staff of MoFA Policy Unit with working tools/equipment to strengthen their analytical skills.
#6 Number of agriculture policy In FY4Q3, APSP and media houses produced and published, respectively, 8 pieces of communication communications, developed and /or material for stakeholder consumption as follows: written for stakeholder consumption APSP: • Video Documentary on USAID’s support to create awareness on the Plants and Fertilizer Act 2010 (803) has been approved Media Houses: • USAID enriches MoFA staff Capacities in Agricultural Projects and Policy Research- www.agricinghana.com, 25/05/2017 • USAID strengthens the capacities of MoFA staff- Business and Financial Times, 25/05/2017 • USAID strengthens the capacities of MoFA staff- Asempa News, 25/05/2017 • MoFA staff trained in Policy Briefs-- Business and Financial Times, 25/05/2017 • USAID strengthens the Capacities of MoFA staff-Modern Ghana, 24/05/2017 • Comprehensive agriculture marketing policy needed-Business and Financial Times,26/05/2017 • USAID strengthens the Capacities of MoFA staff- GhanaWeb, 25/05/2017
#7 Number of activity-supported • In FY4Q3 APSP collaborated with NGGA in following-up on implementation of recommendation of public- policy advocacy campaigns that focus private advocacy dialogues in 8 districts in Northern and UWR on the separate needs of men and women small holder farmers
#8: Number of high quality research • APSP has disseminated to MoFA management the initial findings and recommendations of eight high- reports published quality research studies to receive their feedback and incorporate inputs into the final research documents for publication • APSP to implement a national forum on agriculture policy research to share the studies in August, FY4 Q4.
#9: Score, in percentage, of improved • Following a recommendation from a Mid-Term Performance Evaluation, APSP has recalculated the areas of policy research capacity in baseline Score covering four research institutions. The project is undertaking the following activities for the assisted research organizations and attainment of the indicator target: units. • A list of requirements and costs for assistance to improve capacity for policy research in four selected institutions completed • Abstracts, presentations, and policy briefs received from research institutions • Iowa State University is undertaking peer review of all research papers, to be completed before the research summit. • A forum will be implement in the next quarter to disseminate and share recommendations from research findings
#10 Score, in percent, of the capacity In FY4Q3, 4 more CSOs completed the ACAT. This brings the number of CSOs responding to this of the private sector to advocate for assessment to 33. The average score remained at 73%. pro-business agriculture sector reforms in Ghana
#11 Number of public-private • NASTAG leadership held dialogues/meetings with MOFA to present its bid, negotiates and signs contract advocacy dialogues focused on policy agreement to supply 1,200MT OPV Maize Seed to the farmers under the “Planting for Food and Jobs” that supports private sector program in Southern Zone. investment • NASTAG held a sensitization meeting on the national seed policy and its implementation plan for 62 public and private sector stakeholders in the Western and Central Regions • APSP conducted a brown bag session on PFJ and its linkage to MoFA’s FBO strategy and attended by both public sector official and private sector representatives
#12: Percentage of recommendations • SRID accepted to implement recommendations from APSP’s assessment to help improve agriculture data agreed upon during public/private collection methodologies dialogues that are implemented • MoFA will commence implementation of the new FBO Development Strategy in FY4Q4 • In FY4Q3 APSP followed up on implementation of recommendations of public-private advocacy dialogues in 8 districts in Northern and UWR and so far, two districts in the Northern Region, (Mion and Savelugu), are implementing the recommendation to form agriculture sub-committees in their assemblies
#13: Number of food security private APSP completed a post-quality management training evaluation and coaching visits for 5 private seed enterprises, CSOs, FBOs, producers in the Northern regions. agribusiness associations receiving USG assistance
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#14: Number of Local Entities • In the quarter, APSP undertook visits for post seed-quality management training evaluation and coaching receiving performance improvement to 5 private seed producers in the Northern regions. assistance (disaggregated by type of • APSP undertook follow-up visits to GoG units, including District Assemblies, to assess impacts of entity – government, CSO, private assistance provided by the project to these units and to evaluate implementation of recommendations from sector) district level policy dialogues.
C. PLANNED ACTIVITIES FOR NEXT QUARTER BY COMPONENT
Component 1: Policy Formation and Implementation Type of Activity Work Plan Activity Milestone for Next Quarter
High-Level Meetings • Meet with MoFA Minister of State and other members of MoFA’s • Forum on on-going policy research organized and leadership to discuss MoFA’s participation in Research Forum and findings and recommendations disseminated. discuss overall project activities as these relate to MoFA. • A national forum to seek consensus on • Meet with SRID to discuss the planned forum on agriculture data agriculture data organized. • Meet with officials of MLNR to continue to push for submission of Draft • Land Bill is approved by Cabinet and forwarded to Land Bill for Parliamentary passage. Parliament for its passage. • Meet with MoFA PPBD to agree on framework for implementing coaching • Capacity of MoFA policy unit further built to for policy unit staff. undertake critical policy analysis.
Technical Assistance • Support quarter meetings of METASIP SC and SAKSS Nodes and make • SAKSS/METASIP SC continue their meetings in & Trainings, technical inputs into the discussions. FY4 Q4. • Commission short-term technical assistance (STTA) to help MoFA’s to • APR quality improved to better track sector improve structure and contents of the APR. performance. • Support and participate in meetings of ASWG and its two sub-groups • Findings and recommendations from NAFCO • Receive USAID directives on NAFCO report and take appropriate action. assessment disseminated and adopted by MoFA. • Jointly organize stakeholder consultations with FAO MAFAP on findings • Findings and recommendations from METASIP and recommendations of the METASIP I and II assessment and engage assessment accepted and incorporated into with MoFA to incorporate recommendations into development of METASIP III. METASIP III. • A National Agriculture Marketing Policy • Commission and complete development of the National Agriculture completed and handed over to Government. Marketing Policy. • Revised Irrigation Policy accepted and passed by • Jointly hold “brown bag” session on Irrigation Policy with MoFA and push Cabinet. for its submission for Cabinet approval. • Current situation of agriculture data known and • Organize a forum of stakeholders to discuss current situation of strategy agreed upon to improve it. agricultural data and the way forward. • Capacity of MoFA policy unit in agriculture policy • Commence coaching exercise, through ISSER and ISU, for MoFA policy analysis enhanced. unit staff. • A national seed sector growth strategy developed • Complete seed industry analysis and framework study and the seed and submitted to USAID for consideration and sector growth strategy and implementation plan. further actions. • Continue visiting seed producers for follow-ups on quality management • Capacity of private seed producers enhanced and training and mentoring. their operations improved. • Continue to liaise with MoFA and provide logistical support to convene • Harmonized Seed Regulations approved by Parliamentary Select Committees meeting to consider the Seed Parliament. Regulations and forward for Parliamentary passage. • Draft Land Bill submitted for Parliamentary • Work with officials of MLNR and provide logistical support to convene passage. Parliamentary Select Committees meeting to consider the draft Land Bill Grants & • Tender and contract leading research institution to undertake short-term • Further policy research studies under Subcontracts policy research and analysis and disseminate results among policy development to enhance evidence-based policy makers and other sector players. making Collaboration • Collaborate with ATT and AGRA’s SSTP in supporting implementation of • Enhanced support for implementation of Act 803 Act 803 and government “PFJ” program. and NSP. • Collaborate with FAO MAFAP to complete the Evaluation of METASIP I • Evaluation of METASIP I &II completed and and II. results incorporated into development of METASIP III
Component 2: Policy Research Type of Activity Work Plan Activity Milestone for Next Quarter
High-Level Meetings Hold an Agriculture Policy Research Summit to • 12 High quality research studies, special studies, dissertations and disseminate findings and recommendations from manuscripts completed for publication. research studies • Implement forum to disseminate and share knowledge on research findings Technical Assistance Hire consultants to develop a compendium of policy Policy briefs and other communication materials produces by the STTA & Trainings briefs and other communication materials from project consultant. sponsored policy studies continue their work.
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Grants & Cost requests from four research institutions and ICT equipment procured and delivered to improve capacity for policy Subcontracts procure equipment to assist to improve research research in four selected institutions completed capacity Collaboration Collaborate with MOFA & GSSP/IFPRI, to improve on Policy Research studies, and manuscripts completed for publishing the quality and final product of research for publications
Component 3: Policy Advocacy Type of Activity Work Plan Activity Milestone for Next Quarter High-Level Launch event of the seed sector umbrella • NASTAG with substantive Executive Board officially elected and out- Meetings organization, NASTAG doored to the general public, continues to pursue its agenda as the major seed industry advocator for modernization of seed industry. Technical • Monitor Activities of two CSOs undertaking policy • Grant activities of 2 Champion CSOs monitored and reports submitted Assistance & advocacy activities and gender policy advocacy. by end of September 2017. Trainings • Collaborate with ADVANCE II Project to build the • Monitoring visits paid to NASTAG & grantee CSOs’ dialogue forums and advocacy capacity of 25 FBOs in the Upper East reports ready on each visit. Region • Second newsletter produced and distributed by close of September 2017 • Monitor implementation of grant activities of • Executive members of 25 FBOs from Upper East Region trained on NASTAG and NETRIGHT- Ghana implementation of policy advocacy by close of FY4 public private dialogues on agriculture policy • Collect articles to produce newsletter and distribute newsletter. • Provide technical support to 2 champion CSOs to organize public private dialogues, public education Grants & Provide grant to 2 champion CSOs to organize public Grant awarded to NETRIGHT-Ghana and HAG Subcontracts private dialogues, public education Collaboration • Collaborate with NGGA on recommendation to • Joint monitoring visit paid to districts in the three northern regions by establish agriculture sub-committees in 26 districts close of September 2017 under its influence in the three regions in Northern • APSP & ADVANCE II Project jointly train 75 Executive members of 25 Ghana. FBOs in policy advocacy by close of September 2017 • Collaborate with ADVANCE II to implement policy • Follow-up visit paid to 30 FBOs trained in policy advocacy in 12 districts advocacy training for 25 Farmer based organizations in Northern Region in Upper East Region and to follow-up on post • APSP along with other projects and CSOs to continue supporting training performance of 30 FBOs trained in 12 implementation of NASTAG’s Strategic Plan, policy advocacy and districts in Northern Region education the seed law (Act 803, 2010), seed policy, seed plan and seed • Collaborate with ATT, Peasant Farmers Association regulations. (PFAG) and AGRA’s SSTP to support implementation of NASTAG’s strategic plan.
D. PROGRESS ON GENDER AND ENVIRONMENTAL COMPLIANCE D1. Gender Training on Gender Statistics. In FY4 Q3, the project identified and discussed with a potential grantee the activities to be undertaken to meet APSP’s gender indicator target of training 10 CSOs in the use of gender disaggregated data for agriculture policy advocacy. In FY4 Q4, the grantee will:
• Start follow-up to 20 civil society organizations that APSP trained in FY4 Q2 to continue capacity building on the use of reliable sources for statistics and other data; and how to organize, analyze, and use data as evidence to encourage policy-makers to include the special needs of women farmers in policy decisions. • Administer the Organizational Capacity Assessment Tool (OCAT), adjusted for determining advocacy capacities, to measure the project’s indicator #3 focused on gender. • Identify at least 10 organizations that have knowledge of both local and international sources disaggregated data and are using such for gender policy advocacy.
D2. Environmental Compliance In FY4 Q3, APSP continued to follow the requisite environmental rules and regulations to preserve the environment during the implementation of project activities. The project activities carried out were
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research surveys, trainings, meetings with stakeholders, and validation workshops, which did not have any negative impacts on the environment. Thus, activities in FY4 Q3 were exempted from any environmental examination.
The table below shows the activities excluded from initial environmental examination.
Activities under 22 CFR 216 Categorically Excluded APSP Activities in FY4 Q3 (illustrative)
Activities involving education, training, technical assistance or Seed quality training of NASTAG members training programs, except to the extent such programs include activities directly affecting the environment (constructions, etc.) Activities involving analyses, studies, academic research or Brown bag on the role of FBOs in the government’s workshops and meetings Planting for Food and Jobs program Studies, projects or programs intended to develop the capability of Assessment of METASIP I & II for the development local institutions and organizations to engage in strategic planning METASIP 111
E. MONITORING AND EVALUATION Mid-Term Performance Evaluation (MTPE): During the quarter, APSP received the MTPE report covering the period between project inception through the end of Year 3 of project implementation. The evaluation team was commissioned by the USAID Monitoring, Evaluation and Technical Support Service (METSS) under the USAID Office of Economic Growth. APSP reviewed the findings and recommendations of the report and provided responses to the USAID Office of Economic Growth. APSP also took the opportunity to provide an update on project achievements to give a clearer understanding of the progress made since the evaluation exercise and a plan to meet its contractual targets. The MTPE’s Final Report indicates that”
“The APSP has been implemented in accordance with its contract Statement of Work, USAID/Ghana priorities, and in accordance with mutually agreed upon MoFA priorities. It is on track to achieve most of its specific targets. It has supported the development of improved policies, regulations and procedures for agricultural markets, inputs, women’s involvement, and agricultural statistics in accordance with its Statement of Work. In addition, it has provided support to the development of policies on agricultural extension and irrigation, and reviews of land policy and risk. It has provided capacity building and training to key stakeholders in the GoG, private sector, and media and that capacity building and training have been of high quality. It has contributed to improving the policy dialogue, collaborated and coordinated effectively with other projects and development partners, and been responsive to the needs of the changing policy environment”.
Indicator Targets: As shown in the FY4 Q3 Indicator Tracking Table below, and corroborated by the MTPE report, APSP is on track to achieve most of its intended project indicator targets. However, the MTPE report noted that evaluators perceived three indicators covering high-quality research (#8 and #9), and gender (#3) to be behind schedule. APSP has taken the following steps to address the affected indicators:
INDICATOR Measures Taken to achieve the indicator Target Indicator #8: Number of high quality • APSP had completed four out of an intended target of 20 high-quality research research reports published. studies at the time of the MTPE. APSP has since ramped up activities and plans to complete eight more studies by August 2017. Additionally, ISU has agreed to provide peer review for the eight ongoing research studies. • To work towards to the remaining target of 20 research documents, in FY4 Q4, APSP will issue a tender directed to a limited number of public and private research organizations to develop research studies. The tender requests research papers that: a. Provide actionable recommendations to binding constraints in the agriculture sector b. Reflect the concerns of relevant agriculture sector stakeholders (MoFA, FBOs, CSOs, etc.) c. Reflect other relevant concerns as identified by the METASIP Steering Committee, SAKSS Nodes, ASWG sectors, and others. d. Encompass impact/systematic and/or meta-analysis
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• List of potential bidders will include, among others, the following: ISSER, the African Center for Economic Transformation (ACET), and Local consultancy firms specialized in agriculture research. • Based from lessons learned from the first round of research development, the project expects to increase the amount of the individual research awards so other potential bidders can participate in the tender. This will allow APSP to commission at least four research papers for a total of 17 documents. Indicator #9: Score, in percent, of APSP will complete costing of requests that the project has received from four improved areas of policy research selected universities/research institutions and will provide support to them to capacity in assisted research improve capacity for research in their institutions organizations and units. Indicator #3: Number of organizations • APSP will provide a grant to a gender focused organization, NETRIGHT, to focusing on women in agriculture policy undertake activities that will stimulate other organizations to use gender advocacy, demonstrating knowledge of disaggregated statistics to inform and support their gender policy advocacy. sources and use of gender • NETRIGHT will assess at least 10 organizations in their knowledge of sources, disaggregated data on agriculture. and use of disaggregated data for gender advocacy, using the OCAT.
Monitoring of Research Activities: During the quarter, the APSP technical team continued its routine performance monitoring of project activities. The project policy advocacy component followed up on implementation of agreed upon recommendations with GoG stakeholders at the district level.
Planned activities for performance monitoring in FY4 Q3. APSP will continued with performance monitoring of activities as follows:
• Routine performance monitoring of project activities. • Monitor agreed upon actions and recommendations with GoG stakeholders and grantees. • APSP has given feedback to USAID on the recommendations contained in the MTPE report and is waiting on directions to act upon
F. OPERATIONS AND FINANCE F1. Operations
Weekly project management teleconferences with the home office project management unit continued during the quarter, as well as regular technical review meetings at the project staff level, and with USAID. During the period under review, the Finance Manager, and the Grants and Subcontracts Manager voluntarily resigned their positions and recruitment is ongoing to fill both vacancies. As part of staff phase-out, one driver was terminated in June, and therefore the number of project long-term staff at the end of the quarter totaled 16.
Two short-term consultants were hired during the period: Esteban Arroyo for developing the SMIFS study and Nana Afranaa Kwapong for developing communication material based on the project’s policy research papers and policy reports, with 55 and 20 days of LOE, respectively.
F2. Grants
APSP awarded no new grants within the quarter. During the quarter, APSP successfully completed and closed out four grants. These included a capacity and advocacy grant implemented by FMSL and research grants to the University for Cape Coast (UCC), the Science and Technology Policy Research Institute (STEPRI), and the Crop Research Institute (CRI) Annex III provides detailed information of active grants as of FY4 Q3.
During the quarter, APSP grants staff participated in quarterly grants webinars with Chemonics’ home office grants team and other Chemonics projects to refresh best practices in grants management and received clarifications on various grants questions
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F3. Finance
In FY4 Q3, APSP maintained project expenditures with new project activities and grants.
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Annex I. Performance Indicator Tracking Table (PITT) – FY4 Q3 Quarterly Report
Cumulative LOA FY17 FY17, Q3 LOA Analysis of Processes/Results Against Cumulative Targets as at end of FY4 # Indicator Target Target Actual Result at end of Q3 FY4 Q3 #1 Score, in percent, of combined key areas of INDICATOR IS ON TRACK organizational capacity among direct and indirect local implementing partners. • In FY4 Q3, the APSP Policy Advocacy Team followed up with organizations to assess improvements made in organizational capacities. In feedback received, 4 80% 75% 80% 80% CSOs completed the OCAT, bringing the number of CSOs responding to this assessment to 33. • The average score in advocacy capacity for the 33 CSOs remains at 80% as in the previous quarter. #2 Number of individuals who have received U.S. LOA TARGET ACHIEVED government-supported short-term agriculture sector productivity or food security training. In the quarter under review, the following training activities were undertaken: • 19 Staff of MoFA from the Policy Unit and other directorates trained by Institute of Statistical, Social and Economic Research, (ISSER) in project planning, policy 5,000 900 171 5,099 cycle, policy planning; policy analysis and M&E. • 90 executive members from 30 FBOs in northern Ghana were trained in Ghana’s Agriculture Policy documents, basic policy advocacy, FBO networking. • 62 public and private sector individuals were trained on the Ghana seed policy and implementation plan, and the role of private sector in seed sector reforms. #3 Number of organizations focusing on women in INDICATOR IS BEHIND SCHEDULE agriculture policy advocacy, demonstrating knowledge of sources and use of gender • In preparation to meet the target for this indicator, APSP has identified a civil disaggregated data on agriculture. society organization as a partner to continue capacity building of 20 CSOs in 10 5 0 0 FY4 Q4 on the sources and use of gender disaggregated data for policy advocacy. • Out of the 20 CSOs trained, this partner will identify ten organizations and will provide mentoring to these organizations beginning in FY4 Q4. • APSP expects to achieve the indicator target by FY5 Q3. COMPONENT 1: POLICY FORMATION & IMPLEMENTATION #4 Number of agricultural and nutritional enabling INDICATOR IS ON TRACK environment policies completing the following processes/steps of development as a result of USG During the quarter, the following process movements were made in the policy assistance. agenda of the project:
Stage 1: Analysis 20 3 3 22
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Cumulative LOA FY17 FY17, Q3 LOA Analysis of Processes/Results Against Cumulative Targets as at end of FY4 # Indicator Target Target Actual Result at end of Q3 FY4 Q3 Stage 2: Drafted for stakeholder consultation / public • Draft Land Bill has been submitted to Cabinet in June 2017, after this, the bill 15 3 1 17 debate will be forward to Parliament for passage • Development of a private-sector friendly Irrigation Policy for Ghana completed. Stage 3: Drafting or Revision 10 3 12 16 The drafting of legislation will be started in FY4 Q4. Stage 4: Approval (Legislative or Regulatory) 5 1 3 7 • Evaluation of METASIP I and II on-going and expected to complete in FY4Q4. • Development of Ghana’s third National Agriculture Investment Plan (METASIP Stage 5: Full and Effective Implementation III) on track and expected to complete by end of 2017. • Post-quality management training evaluation and coaching visits completed for 3 1 7 7 5 private seed producers in the Northern regions. • “Situational Analysis of Agriculture Marketing” completed and approved by MoFA and MOTI. Report will be shared with USAID. • Harmonized seed regulations forwarded to Parliament for its passage #5 Number of government units or divisions that have LOA TARGET ACHIEVED received short-term training In this reporting quarter, four universities/research institutions that were classified and reported under indicator #13, have been brought under GOG Units and thus increasing the number by 4. Also in the quarter APSP carried out the following activities to consolidate achievements as follows: 20 4 4 24 • The Project provided technical assistance to MoFA M&E Units in finalizing 2016 APR. • GIDA assisted to complete the development of an irrigation policy • Staff of MoFA Policy Unit were provided with working tools/equipment to strengthen their analytical skills. • District Departments of Agriculture were visited by the APSP Advocacy team to follow up on the formation of agriculture subcommittees #6 Number of agriculture policy communications, LOA TARGET ACHIEVED developed and/or written for stakeholder consumption In FY4Q3 8 pieces of communication material were developed / published for stakeholder consumption as follows: • Video Documentary on USAID’s support to create awareness on the Plants and Fertilizer Act 2010 (803) has been approved • USAID enriches MoFA staff Capacities in Agricultural Projects and Policy 200 80 8 204 Research-www.agricinghana.com, 25/05/2017 • USAID strengthens the capacities of MoFA staff- Business and Financial Times, 25/05/2017 • USAID strengthens the capacities of MoFA staff- Asempa News, 25/05/2017 • MoFA staff trained in Policy Briefs-- Business and Financial Times, 25/05/2017 • USAID strengthens the Capacities of MoFA staff-Modern Ghana, 24/05/2017 • Comprehensive agriculture marketing policy needed-Business and Financial Times, 26/05/2017
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Cumulative LOA FY17 FY17, Q3 LOA Analysis of Processes/Results Against Cumulative Targets as at end of FY4 # Indicator Target Target Actual Result at end of Q3 FY4 Q3
• USAID strengthens the Capacities of MoFA staff- GhanaWeb, 25/05/2017
#7 Number of activity-supported policy advocacy LOA TARGET ACHIEVED campaigns that focus on the separate needs of men and women small holder farmers 20 5 0 25 • In FY4Q3 APSP collaborated with NGGA in following-up on implementation of recommendation of public-private advocacy dialogues in 8 districts in Northern and Upper Western Region. COMPONENT 2: POLICY RESEARCH #8 Number of high quality research reports published INDICATOR IS BEHIND SCHEDULE
During the quarter, the following activities and processes where implemented to finalize 8 research studies for publication: • Initial findings and recommendations contained in final drafts reports of 8 high- quality research studies were discussed with MoFA management to receive their comments and inputs. • In the quarter, initial findings and recommendations contained in final drafts reports of 8 high-quality research studies were discussed with MoFA management. 20 11 1 4 • To strengthen the quality of the reports on the policy research studies, APSP has requested ISU to peer-review abstracts and final reports. (Please see Section 2 and Annex IV for details.) • A National Agriculture Policy Research Summit to disseminate the studies, will be held in the next quarter after peer reviews by ISU. • Research/Policy studies completed are as follows: a. Baseline Survey on Gender and Agriculture of Selected Communities in Ghana b. Towards a Sustainable Soil Fertility Strategy in Ghana c. Agricultural Insurance in Ghana Baseline d. Situational Analysis of Agricultural Marketing in Ghana #9 Score, in percent, of improved areas of policy INDICATOR IS ON TRACK research capacity in assisted research organizations and units • Following a recommendation from a Mid-Term Performance Evaluation of the APSP, a new baseline score covering four research institutions has been 80% 62% 62% recalculated. The score in research capacity among the four institutions is now 62% • A list of requirements and costs for assistance to improve capacity for policy research in four selected institutions completed COMPONENT 3: POLICY ADVOCACY
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Cumulative LOA FY17 FY17, Q3 LOA Analysis of Processes/Results Against Cumulative Targets as at end of FY4 # Indicator Target Target Actual Result at end of Q3 FY4 Q3 #10 Score, in percent, of the capacity of the private INDICATOR IS ON TRACK sector to advocate for pro-business agriculture 80% 75% 73% 73% sector reform in Ghana In FY4Q3, 4 more CSOs responded to ACAT bringing the score to 2.10 for advocacy capacity among 33 CSOs. The average score remained at 73% #11 Number of public-private advocacy dialogues INDICATOR IS ON TRACK focused on policy that supports private sector investment • NASTAG leadership held pro-business dialogue/meeting with MOFA, to negotiate contract agreement to supply 1,200MT OPV Maize Seed t under the 120 20 2 109 “Planting for Food and Jobs” program. • NASTAG held meeting on the national seed policy and implementation plan for 62 public and private stakeholders in the Western and Central Regions • APSP held a brown-bag session on the ‘Planting for Food & Jobs’ program of GOG, bringing together public and private officials including the NASTAG. #12 Percent of recommendations agreed upon during INDICATOR IS ON TRACK public-private dialogues that are implemented. • As at FY4 Q3, 30 out of a basket of 51 recommendations agreed upon have been implemented • SRID accepts to implement recommendations from APSP’s assessment to 30% 20% 59% 59% improve agriculture data collection methodologies • MoFA accepts to implement the new FBO Development Strategy in FY4Q4 • In FY4Q3 APSP followed up on implementation of recommendation of public- private advocacy dialogues in 8 districts in Northern and UWR, 2 (Mion and Savelugu) out of the 8 districts have formed agriculture sub-committees #13 4.5.2-11: Number of food security private INDICATOR IS ON TRACK enterprises (for profit), producers’ organizations, water users’ associations, women’s groups, trade • Through APSP’s grant, NASTAG identified in FY3 Q2, market opportunities for and agribusiness associations (such as FBOs, private seed companies to supply seeds to the PFJ, based on the contract 90 15 0 88 CBOs) receiving USG assistance signed between the organization and MoFA. • After due monitoring of this NASTAG activity, in FY3 Q4 APSP will incorporate the number of seed companies that benefited from NASTAG’s engagement with the PFJ #14 Number of Local Entities receiving performance INDICATOR IS ON TRACK improvement assistance (government, CSO, Private sector) • In the quarter, post seed-quality management training evaluation and coaching 110 19 0 112 visits were completed for 5 private seed producers in the Northern regions. • Follow up and activities to consolidate the achievements in assistance to GOG Units including District Assemblies
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Annex II. Policy Reform Activities and Linkages to Key Results Areas as of FY4 Q3
Policy Reform Agenda to Support Government of Ghana Priorities
PROCESS STAGES Relevance to Key Results Areas of APSP / Remarks
Policies/ Regulations/ Type of Stakeholder Approval Full and Effective Administrative Legal Analysis Consultation Drafting or Revision (Legislative or Implementation Procedures Document & Public regulatory)
STAGE 1 Debate STAGE 3 STAGE 5 STAGE 2 STAGE 4
AGRICULTURAL INPUT POLICIES
Act was approved by APSP’s KRA 1.3: Act 803 dissemination provides public education to ensure 1. Support to PPRSD Parliament in 2010. Over compliance with the law by stakeholders. Compliance will encourage to disseminate the the last three years APSP importation, production and sale of genuine and unadulterated agriculture Policy/ has been supporting Plants and Regulation MoFA to disseminate the inputs. Use of quality inputs will increase agriculture production and Fertilizers Act, policy across Ghana as productivity to enhance incomes, reduce poverty and promote food security. 2010 (Act 803). part of the implementation It will also lessen health risks in food consumption. of the Law.
MOFA, through the Attorney APSP’s KRA 1.3: The re-drafted seed regulations will safeguard interests of 2. Redrafting of Ghana General’s Department Ghana’s private seed sector operatives from unfair international competition Seed Regulation submitted the harmonized by contributing to monitoring of exports and imports of commercial seed Policy / GSR to Parliament in FY4 and harmonization transactions along the ECOWAS sub-region. This will promote commercial Regulation Q3 for approval. with ECOWAS production, international trading, availability and use of improved seeds for Protocols increased agriculture production, in line with government policy to expand use of certified seeds.
3. Assessment of the MoFA has incorporated APSP’s KRA 1.3: Soil Fertility Study provided a holistic and an integrated selected Fertilizer subsidy soil fertility management options for government, in view of challenges in the recommendations from fertilizer subsidy program. MoFA adopted three-selected study policy presented to APSP Policy study in its the GoG as part of Policy / Fertilizer Subsidy recommendations (i.e. inclusion of organic fertilizers, introduction of IT the study on Soil Regulation Program. MoFA is yet to platform and early announcement of program) in the government 2016 Fertility implement other medium fertilizer subsidy program and has introduced efficiency into the program Management and long-term policy implementation in a more cost effective and more transparent manner. recommendations from Strategy the research.
Copies of the guidelines APSP’s KRA 1.3: Guidelines for production of foundation seeds by private 4. Guidelines for have been circulated to NSC sector will speed up the process to privatize and commercialize foundation Production of Administrative members for their study. seed production, which hitherto has been the sole mandate of MoFA. GoG is yet to convene a Foundation Seeds Procedure meeting of the NSC to Privatization and commercialization of foundation seeds will expand its by the Private Sector consider approval. production and availability and further increase availability and use of certified seeds.
5. Variety Evaluation Secretariat of the TVRC has APSP’s KRA 1.3: Variety evaluation and release manual and the and Release reviewed the Variety accreditation manual both provide guidelines for seed manual for Administrative Evaluation and Release manual, but MoFA is yet to accreditation/certification application, among others, as part of efforts to Technical Variety Procedure convene a meeting of the modernize and introduce standards into the seed industry and build Release Committee NSC to consider approval. confidence of its stakeholders to facilitate the production, distribution, sale (TVRC)
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Policy Reform Agenda to Support Government of Ghana Priorities
6. Accreditation MoFA, Ghana Seeds and use of quality seeds for increased agriculture productivity and manual for seed Inspection Division has production. Administrative finalized the review of certification for Procedure manual. GoG is yet to Ghana Seed convene a meeting of the Inspection Division NSC to consider approval.
MoFA PPRSD approved APSP’s KRA 1.3: Approval of the quarantine list enables PPRSD to control 7. National Administrative the NQPL in FY2 Q3 and and avoid the entry of pest into the country. Quarantine Pest the directorate is currently Procedure List implementing the procedure.
8. Crop Variety The following NARIs have Administrative developed their seed Licensing Policy Procedure licensing policies: CRI, SARI, for NARIs UCC, UG (***) APSP’s KRA 1.3: Licensing policy, commercial agreements and licensing contracts will expose the national research institutions to business principles, The following NARIs have build their capacity to commercialize their research activities and make them 9. Seed developed their seed responsive to market demands thereby promoting a reliable and sustainable Commercialization Administrative commercialization production of breeder and foundation seeds to ensure dependable availability Agreements for Procedure agreements: SARI, UCC, and use of improved seeds in Ghana. NARIs UG, CRI (***) (***) In FY4 Q3, University of Cape Coast (UCC) approved the Licensing Policy, Commercial Agreements, Licensing Contracts in addition to the 10. Licensing The following NARIs have Savanna Agriculture Research Institute (SARI) and Crops Research Contracts for the developed their licensing Institute (CRI). Production of Administrative contract policies: SARI, UCC, UG, CRI (***) Breeder Seed for Procedure University of Ghana (UG) is yet to approve these policies NARIs & Seed Companies
ENABLING ENVIRONMENT FOR PRIVATE SECTOR INVESTMENT
MoFA has informed APSP’ KRA 1.2: Revised FBO strategy will promote the formation and APSP that the development of strong service-oriented farmer organizations capable of 11. Ghana Agriculture implementation of providing good agricultural practices and extension support to its members, Extension Policy: Policy / the FBO strategy given that MoFA extension strategy focuses on use of FBOs as entry points Review of FBO Regulation will start in FY4 Q4 for extension delivery. This support system will help increase farmer Strategy productivity and production to ensure food security, enhance farm incomes and ultimately lead to declining poverty.
In FY4 Q3, the review of the APSP’s KRA 1.3: Revision will make Ghana’s irrigation policy private sector- policy proposal was led by increasing private participation in irrigation infrastructure provision and completed and submitted to management and re-structure the Ghana Irrigation Development Authority 12. Support for MoFA for presentation to Policy / into a regulatory body. The revised policy will promote increased private Irrigation Policy Cabinet for consideration Regulation sector investments in agriculture and increase irrigation infrastructure across Reform the country, improve access to irrigation for year round agriculture production and for enhanced food security, expand agriculture production and productivity and thereby improve income levels of farmers. .
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Policy Reform Agenda to Support Government of Ghana Priorities
Assessments APSP’ KRA 1.2: Assessment of GCX helped to identify building blocks for of CTS were technical and financial assistance to establish a well-functioning commodity 13. Assessment of the discussed with market that will promote efficiency and reduce risks in Ghana’s agriculture public sector Agriculture marketing to attract increased private investments into the sector. Commodity Policy / stakeholders in FY2 Q4. No Trading Systems Regulation further action (CTS) in Ghana, has been taken GCX awaiting for USAID’s feedback.
LAND AND NATURAL RESOURCES TENURE, RIGHTS, AND POLICY
In June 2017 (FY4Q3) the APSP’ KRA 1.2: Both interventions support Ghana’s land reform program Ministry of Lands and through drafting of a new land bill and development of a novel policy Natural Resources finalized guidelines for acquisition of large tracks of land. Passage and the drafting of the Draft Land 14. Redrafting of Land implementation of both the law and policy will improve land administration Bill (Ministry of Policy / Bill and submitted it to Cabinet for approval and overall. Improved land administration will help reduce community agitations Lands and Natural Regulation subsequent presentation against especially on foreign landowners, create the enabling environment Resources) before Parliament for for increased private sector investments in agriculture, unlock the nation’s consideration and eventual potential for increased agriculture productivity, production and revenues for enactment in calendar year long-term agriculture growth and development. 2017
15. Guidelines for In FY3 Q4, the Lands large-scale lands Commission approved the Administrative guidelines as an internal transactions Procedure procedure and circulated it (Ghana’s Lands to its regional offices for Commission) implementation.
INSTITUTIONAL ARCHITECTURE FOR IMPROVED POLICY FORMULATION
Implementation of agreed APSP’s KRA 1.1: Unlike the current situation, the policy unit to be staffed upon guidelines to with a core of well- trained professional staff with capacity to coordinate restructure the Policy Unit sector policies and undertake rigorous policy analysis that will feed into 16. Restructuring the is in progress sector policy formulation and implementation. By so doing, MoFA can Policy Unit at Administrative continuously identify and produce evidence-based policy challenges that MoFA Procedure hinder private sector investments in agriculture and also analyse effects of
government macro-economic policies on the sector and thereby design creative interventions to address the challenges, in order to create an enabling environment for increased agriculture investments.
17. Gender and THE GADS was approved APSP’s KRA 1.2: Dissemination of GADS will allow for integrating gender Agriculture by MoFA in FY3 Q2. In into programs of relevant MDAs to promote inclusive national development Development Policy/ FY3 Q4, APSP assisted that takes into consideration the interest and concerns of all nationals, WIAD with the Strategy (GADS). Regulation dissemination of the especially the vulnerable. Support to strategy as part of its dissemination implementation process.
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Policy Reform Agenda to Support Government of Ghana Priorities
Recommendation Some MoFA data collection methodologies are in-correct resulting in from research publication of inaccurate sector data. APSP assistance will help improve 18. Assessment of New approved by MoFA. agriculture data collection methodologies and analysis, enhance data Methodologies for SRID plans to Administrative credibility and acceptability by sector stakeholders and provide a more Data collection, implement them in Procedure accurate empirical evidence for sector planning and policy decision making. Analysis and FY4 Q4. This will enhance effective design and implementation of agriculture policies Management: and programs that will enhance sustained agriculture development and growth for long-term food security that meets APSP KRA 1.2.
Draft Terms of Reference The assessment of the functioning of decentralization efforts at the local 19. Assessment of developed in FY4 Q1. (***) government level will produce findings and recommendations for GOG to put Effects of Suspended because of a in place clear policy interventions to improve agriculture at the decentralized Decentralization on Policy similar study being level to increase production and productivity in a sustainable manner and for Performance of undertaken by IFPRI overall growth and development of Ghana’s agriculture Agriculture Sector This study is suspended because of a similar study being undertaken by IFPRI
Data collection for this Preliminary The evaluation of the agriculture sector investments plans will provide evaluation started in the findings of lessons to feed into the development of a new investment plan with clearer 20. Evaluation of quarter. Stakeholder assessment Policy policy direction and an enabling environment for increased private sector METASIP I and II consultation will take were shared at place next quarter, 2017 JSR investments in agriculture in Ghana. FY4Q4.
AGRICULTURAL TRADE POLICY
Study has been APSP’s KRA 1.3: Farmers are currently exposed to market risks, including 21. Development of an completed and the high transaction costs and declining revenues, because Ghana has no Agriculture recommendations agriculture marketing policy. The development of this agriculture marketing from the study, Marketing Policy: policy will help farmers to operate within better organized market-oriented Policy / which have been Research on agriculture production environment that will result in better functioning of Regulation accepted by MoFA Situational analysis and MoTI, are being commodity markets. This will promote market efficiency that will lessen of Agriculture considered for farmer risks. It will also encourage agriculture commercialization and Marketing in Ghana implementation. modernization, stabilize prices and improve farmer earnings and overall livelihoods to unleash increased sector investments.
RESILIENCE AND AGRICULTURAL RISK MANAGEMENT POLICY
22. Assessment of Assessment of NAFCO APSP’ KRA 1.2: Assessment of NAFCO will assist MoFA to re-assess and National Buffer has been completed and amend NAFCO mandate and operations and make them responsive to Stock Company: report shared with USAID private sector concerns of market manipulations and thereby help create a and MoFA. Assessing policy on Policy / competitive pricing system and an enabling environment for increased price market Regulation private sector investments. interventions and establishment of food buffer stocks
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Policy Reform Agenda to Support Government of Ghana Priorities
Parliament approved the 23. Bio-Safety Act, 2011 APSP’s KRA 1.2: Ghana is experimenting with possible adoption of bio- law in 2011. Since FY3 technology to increase agriculture production. Implementation of the NBA (Act 831). Technical APSP has supported the Assistance to assist communication strategy will improve its external communications by Policy / National Bio-safety implementation of Authority’s publicizing benefits of bio-technology to promote its public acceptability and Regulation National Bio-Safety Communication Plan, to adoption. This will address several production challenges, modernize and Authority’s promote dissemination commercialize agriculture and help create an enabling environment for and implementation of the communication Plan increased private investments. law.
NUTRITION
The finalized Animal Health APSP’s KRA 1.2: The declining livestock sector in Ghana requires reforms Policy / 24. Animal Health Bill Bill is yet to be presented for for its resuscitation. The development and implementation of the Animal Regulation Parliamentary approval. Health and Production Bill provides blueprint for developing the livestock sector. In turn, a thriving livestock sector will create derived demand for FtF The finalized Animal Health priority commodities like maize and sorghum as animal feed. This demand 25. Livestock Policy / Bill is yet to be presented for will create ripple effects in expanding maize and sorghum production, Production Bill Regulation Parliamentary approval enhance farmer incomes and create conditions for increased agriculture investments. 25 Policies/ Regulations/ Administrative Procedures are 3 1 11 3 7 being handled by APSP as at FY4 Q3.
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Annex III. APSP Current Grants Activities
Type of Grantee Area of Grant Activity
Location Status of Value of of Grants Name of Grantee Women Grants (USD) Capacity Policy Grantee Activity Public Private Research Specific Building Advocacy Activity 1. Crop Research Institute (FAA – 023) Public ✓ Kumasi 31,012 Active
2. University for Development Studies Public ✓ Tamale 54,081 Active
3. Centre for Research in Efficient Agriculture CSO / ✓ ✓ ✓ Volta 79,238 Active Technology (CREAT) NSA
4. National Seed Trade Association of Ghana CSO / ✓ ✓ National 82,021 Active (NASTAG) NSA
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Annex IV. Regional & District Coverage of USAID/Ghana FtF APSP Implementation Activities
A. SUMMARY OF REGIONAL & DISTRICT COVERAGE OF APSP ACTIVITIES • APSP policy advocacy and capacity building activities have covered all 10 regions and a total of 79 districts of Ghana • APSP has completed these activities by working in partnership with subcontractors and with CSO grantees through a small grants program B. DETAILS OF ACTIVITIES (i) Implementation of Plants and Fertilizer Act (Act 803, 2010). Through workshops, forums, and media communication APSP increased awareness among major stakeholders and the general public on Part II of the Plants & Fertilizer Act 803 (2010). This has increased knowledge around issues of compliance and enforcement of the law. The increased knowledge of private sector stakeholders on the Act 803 (2010) has resulted in improved access to quality agro-inputs owing to the heightened interest among farmers to apply certified and good quality agro-chemicals. Activities included: o Created awareness and built capacities of District Agriculture Extension Agents (AEAs), FBOs, and agro-input dealers to comply with the provisions of Act 803. o Created awareness of district law enforcement officers including immigration, police, customs, and EPA officers on the existence and provisions of Act 803, and their role in safeguarding the law. o Created synergy between law enforcement agencies and district authorities. o Worked with the media on dissemination of relevant agriculture policies through radio programs o Organized media activities and coverage including radio discussions and jingles in local languages, print, and television on events related to Act 803.
(ii) Training National, Regional, and District Staff in Mobile Data Collection o Engaged staff in developing a holistic approach for quality agriculture data collection using a Computer-Assisted Personal Interviewing (CAPI) data collection system. o Trained staff in system administration and management of a cloud-based Virtual Private Server (VPS) system, an in-house server and software. o Trained SRID headquarters, regional, and district supervisors in the web-based and Android-based system of CAPI o Trained district agriculture extension agents (AEAs) in the use of 3G Tablets with GPS capability for farm area measurements.
(iii) Agriculture Policy Dialogues Forums with District Assemblies and District Departments of Agriculture. o Organized dialogue forums on National Agriculture Policy Documents (FASDEP/METASIP) o Implemented advocacy dialogues at the district level with MoFA District Directors of agriculture for an agriculture sector responsive to the specific needs of women-farmers o Strengthened Capacities of Women & FBOs on FASDEP and METASIP and held dialogue forums between the women farmers and districts agriculture staff to access Extension Services o Improved Approaches to Mainstreaming Gender in Ghana’s Youth Policy and Youth in Agriculture Program; focusing on Climate-Smart Agriculture C. LIST OF DISTRICTS COVERED NORTHERN REGION UPPER EAST REGION UPPER WEST REGION 1. Bunkpurugu 21. Builsa North 30. Jirapa 2. Central Gonja Chereponi 22. Builsa South 31. Nadowli 3. Gonja West Gushegu 23. Kasena-Nankana Municipality 32. Wa East 4. Karaga 24. Bawku West 33. Wa Municipal 5. Kpandai 25. Bawku Municipal 34. Wa West 6. Kumbungu 26. Bolgatanga Municipal 7. East Mamprusi 27. Bongo 8. Mion 28. Garu-Tempane 9. Nanumba North 29. Pusiga 10. Nanumba South 11. Saboba 12. Sagnarigu 13. Savelubu-Nanton 14. Sawla-Tuna-Kalba 15. Tamale Metro 16. Tatale 17. Tolon, 18. Walewale 19. Yendi Municipal 20. Zabzugu District CENTRAL REGION EASTERN REGION VOLTA REGION 35. Abura Asebu Kwaman District 42. Akuapem North, 52. Adaklu 36. Assin North 43. Akyem North, 53. Afadjato South 37. Assin South 44. Asuogyaman, 54. Ho Municipal, 38. Cape Coast Metropolis 45. Birim Central 55. Ho West District 39. Gomoa East 46. East Akyem 56. Hohoe, 40. Komenda Edina Eguafo Abirem 47. Lower Manya Krobo, 57. Jasikan, 41. Mfantsiman District 48. Manya Krobo, 58. Kadjebi,
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49. New Juaben Municipal 59. Keta Municipality 50. Upper Manya Krobo 60. Ketu South Municipality 51. Yilo Krobo Municipal 61. Kpando Municipal 62. Krachi Central 63. Nchumuru, 64. Nkwanta North 65. Nkwanta South 66. North Dayi 67. South Dayi ASHANTI REGION BRONG AHAFO REGION GREATER ACCRA REGION 68. Ejura Sekyere-Odumasi 72. Kinatampo-North 75. Shai-Osudoku 69. Kumasi Metropolis 73. Sunyani West District 76. Accra Metropolis 70. Ejisu-Juabeng District 74. Techiman Municipal 77. La-Madina Nkwatanang 71. Obuasi Municipal 78. Tema Metropolitan WESTERN REGION 79. Sekondi-Takoradi Metro
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Annex V. ABSTRACTS of Policy Research Studies
TITLE OF RESEARCH: IMPACTS OF FOOD SECURITY INTERVENTIONS IN THE USAID ZONE OF INFLUENCE: A SYSTEMATIC REVIEW GOG POLICY PRIORITY: FOOD SECURITY AND EMERGENCY PREPAREDNESS RESEARCH INSTITUTION: SCHOOL OF AGRICULTURE & NATURAL SCIENCES, COLLEGE OF AGRICULTURE UNIVERSITY OF CAPE COAST OBJECTIVE OF STUDY: To research the status of GoG policies and programs for food security and emergency preparedness. Introduction A number of food security interventions have been undertaken in the three deprived northern regions of Ghana aimed at reducing food insecurity and poverty and to improve overall livelihoods and incomes. Have these interventions made any impacts? Objective The aim of the study was to undertake impact analysis of Agricultural development interventions for food security and emergency preparedness in the USAID zone of influence (ZOI), which covers Upper East, Upper West and Northern regions and the seven northernmost districts of Brong Ahafo region. Methods In order to quantify the pooled impacts of these interventions on food security in the ZOI to inform policy, a systematic review was conducted for the period 2006 – 2016. Published documents (research articles, project reports, communication materials) were retrieved from web portals, academic databases and organizational websites. Documents for the study were retrieved through physical visits to identified organizations and online searches of academic databases and institutional repositories or portals. The documents were retrieved largely from international development agencies, government ministries and agencies, NGOs and academic/research institutions. A systematic and explicit inclusion and exclusion criteria were applied to distil included studies for the analysis. Twenty-seven studies satisfied the inclusion criteria and were included in this study. Results Results of the study show that huge number of interventions has been implemented in the ZOI between 2006 and 2016 but difficulties with data/information sharing retard robust quantitative analysis of the impacts of these interventions on food security. Further, it seems that the monitoring and reporting styles of the development-oriented interventions are not consistent with systematic review and meta-analysis, making quantitative evaluation of pooled impacts difficult. Overall, due to the nature of information obtained, it was difficult to quantify impact of the interventions on food security. Based on pooled data from documentation from projects which met defined criteria on food security indicators and intervention pathways, weak evidence for impacts on food security was found as food security outcomes were largely assumed (rather than measured) to occur through the identified pathways. Finally, a substantial number of the studies had no counterfactuals, weakening confidence in attributing impacts on food security for even the beneficiaries. Data gaps and inconsistencies in annual reports precluded analysis of impacts over time. Conclusions It is concluded that evidence of impacts of the interventions in the included studies on food security is weak or largely assumed; and it is difficult to track impacts over time. A logical recommendation is the need for development partners to synchronise their measurement and indicators of food security outcomes. It is also recommended that some food security indicators are explicitly incorporated into intervention design while bearing in mind the potential need for counterfactuals. Open data or information policies should be given practical meaning in development-oriented interventions.
EXPECTED IMPACT OF STUDY: Implementation of recommendations by the GoG in general and by MoFA will contribute to national efforts to enhance food security and emergency preparedness in Ghana.
TITLE OF RESEARCH: SITUATIONAL ANALYSIS OF AGRICULTURAL MARKETING ACTIVITIES AND INSTITUTIONAL ARRANGEMENTS IN GHANA
RESEARCH INSTITUTION: CENTER FOR POLICY ANALYSIS Ramatu M. Alhassan, PhD. Professor of Agricultural Economics, Introduction Ghana has no comprehensive agricultural marketing policy although the sector is confronted with marketing constraints that could be addressed by appropriate policies. Smallholder farmers dominate the country’s farming population and though contribution of smallholders is said to be large, there are not estimates of precise share of their output to national agricultural output. Furthermore, their participation in markets makes them vulnerable to risks and where the markets do not function well, they also incur high transactions costs. The power of the market notwithstanding, smallholder farmers are unable to tap its potential because of low levels of production, small units of producers, non-standardized produce and an environment of poor infrastructure and limited access to marketing services such as information. Market oriented production by smallholders will contribute to the commercialization, transformation and growth of the agricultural sector, thereby enhancing the sector’s role in national development. Objectives The objective of the consultancy is to provide a comprehensive situational analysis of the agricultural marketing system in the country by assessing the strengths and weaknesses against the current and future needs of the sector; and by so doing, identify potential interventions and directions for agriculture marketing policy reforms. Methods
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This is a qualitative study designed as a desk review and complemented with interviews. The literature reviewed include journal papers, thesis reports, reports of development projects, value chain profiling reports prepared for the Ministry of Food and Agriculture. Interviews were conducted with key informants of relevant public and private agencies involved in agricultural marketing either as regulators or facilitators. Focus group discussions were also held with farmers and traders in the Upper East and Northern Regions for tomatoes, cultured fish, small ruminants, and rice. Results Ghana’s agriculture marketing system has the advantage of being well organized trader groups, non-interference of the state in marketing, in price setting or product flows; existence of a system of grading and standards for use by traders, and spatial market integration. It also has weaknesses as being highly informal, with prevalence of face to face trading and associated high transactions costs, which pose challenges for facilitating and regulating the system to create level playing field and food safety. There are several opportunities for development of agricultural marketing to enhance its contribution to agriculture performance and food security. These include growth in demand for food in general; preference for quality produce from a growing middle class and an expanding agro-industry; interventions linking small farmers to nucleus farmers, larger aggregators and off-takers; emergence of commercial market information service providers; use of ICT for agricultural and market information; availability of standards for fruits, vegetables and grains; and the promotion of grains trade by the GGC. Conclusions There is a growing commodity value chain models that link grains and cassava to breweries and vegetable oil processing industries that can be up-scaled and targeted at supermarkets to reduce their imports of locally produced agricultural produce like tomatoes, rice and vegetables. This will require building capacity of farmers to produce these commodities to meet required grade and standards. Farmer Organizations and Trade Associations may be used in this regard to pilot value chain partnership models in alignment with government strategy for agroindustry development.
EXPECTED IMPACT OF STUDY:
TITLE OF RESEARCH: PRODUCTIVITY HETEROGENEITY OF RICE PRODUCTION IN GHANA: POLICY IMPLICATIONS FOR FARMER INNOVATIONS AND IMPROVED AGRICULTURAL TECHNOLOGIES GOG POLICY PRIORITY: SCIENCE AND TECHNOLOGY APPLIED IN FOOD & AGRICULTURE RESEARCH INSTITUTION: Department of Innovation Communication Technology, Faculty of Agribusiness and Communication Sciences, UNIVERSITY FOR DEVELOPMENT STUDIES OBJECTIVE OF STUDY: To research into gender dynamics in rice production systems and recommend to policy makers the technologies that will enable women farmers to increase productivity Introduction In recent times, rice production can be said to be receiving some attention in Ghana due to its high import bill. Government and its development partners are implementing domestic interventions to address this problem by raising rice productivity. These efforts notwithstanding, there are still wide variations in rice yield across regions due to differences in production systems and technologies. This study analyses rice productivity heterogeneity among agro-ecological zones and policy implications for adoption of farmer innovation systems (FISs) and improved agricultural technologies (IATs) to enhance yield in Ghana. Objectives To research into productivity differentials in the various agroecological zones and gender dynamics in rice production systems and recommend to policy makers the technologies that will enable rice producers especially women farmers to increase productivity. Methods The study used primary data from 907 rice farmers from Guinea Savannah Zone (GSZ), Forest Savannah Transition Zone (FSTZ) and Coastal Savannah Zone (CSZ). Principal component analysis was used to typologically classify farmers into non-adopters, adopters of FISs, adopters of IATs and adopters of both. The new-two step stochastic metafrontier model was used to estimate and identify the determining factors of productivity performances of farmers in GSZ Zone (GSZ), FSTZ Zone (FSTZ) and CSZ Zone (CSZ). The generalized linear model (GLM) and multinomial endogenous switching regression model were used to analyze the drivers of technology gap ratio and the impacts of technology adoption typology on rice yield and metafrontier technical efficiency respectively. Results Farmers in CSZ had the highest rice yield. The adoption of IATs has the highest impact on rice yield and metafrontier technical efficiency followed by joint adoption of FISs and IATs. While fertilizer, farm size, labor, capital and pesticides each increases rice output, the opposite is true for rice seed. Farmers in CSZ are the most technically efficient. Technical inefficiencies of farmers are negatively influenced by age, sex, household size, education years, extension visits, contract farming, access to improved seeds, access to irrigation, high rainfall amount, less lodging of rice, and well-coordinated and synergized adoption of technologies. Albeit farmers in CSZ are doing well in terms of rice yield, they still have the highest potential of increasing rice yield since they had the lowest technology gap ratio. Factors which increase TGR are contract farming, access to irrigation facilities, good condition of road from district capital to farming communities, nearness of rice farm to the farmers’ houses, non-lodging of rice, high actual mean annual rainfall amount within the district, FISs and IATs. Conclusions MoFA, development partners and individual private commercial farming enterprises could promote the adoption of IATs and educate farmers to coordinate and synergise the adoption of the whole package on a national scale, especially in the GSZ, considering the high percentage of non-adopters of the superior technology package. In the short-term, MoFA must encourage contract farming; but in the medium to longer-term, infrastructure like rural roads and irrigation facilities in rice production communities need to be improved. Furthermore, research should adopt the demand-driven approach to vigorously research into rice production FISs and improved upon, and made them available to farmers to adopt.
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EXPECTED IMPACT OF STUDY: The adoption of recommendations by MoFA extension agents, development partners, and other stakeholders will support smallholder women farmers in Ghana to address their resource constraints, help increase their productivity and incomes, improve their livelihoods, and reduce household poverty.
TITLE OF RESEARCH: THE ROLE AND EFFECTIVENESS OF MOBILE PHONE TECHNOLOGY ON AGRICULTURAL EXTENSION S ERVICES DELIVERY IN NORTHERN GHANA GOG POLICY PRIORITY: SCIENCE AND TECHNOLOGY APPLIED IN FOOD & AGRICULTURE RESEARCH INSTITUTION: Department of Innovation Communication Technology, Faculty of Agribusiness and Communication Sciences, UNIVERSITY FOR DEVELOPMENT STUDIES Introduction The use of ICTs is now springboard for agricultural development in many countries. Ghana, through MoFA, has established an e-extension portal to use innovative ICT based approaches which provide advice to farmers on line and through mobile phones and community radio stations. This approach has become critical considering that agriculture extension is challenged by the current farmer-agriculture extension agent ratio of 1:3000 and justifies a case to expand extension through phone technology. Objectives The research measured the effectiveness of three extension delivery approaches, namely Mobile-phone technology, participatory video and direct contacts with extension agents. The objective is to provide evidence to justify the promotion and adoption of mobile phone technologies for agriculture extension delivery in Ghana. Methods Farmers were interviewed in the Tolon, Kumbungu and Sagnarigu districts of the northern region, on the effectiveness of Information technology use in agricultural extension services delivery. The data was analyzed using descriptive statistics, SERVQUAL analytical tool, correlations and chi square. The research measured the effectiveness of three extension delivery approaches, namely mobile-phone technology, participatory video and direct contacts with extension agents. Results Farmers are willing to use mobile phone for accessing agricultural extension information. Opinion leaders, agricultural extension agents, NGOs and religious leaders have strong influence on farmers’ choice of mobile-phone technology for accessing agricultural extension information. Furthermore, if farmers are able to interpret agricultural extension messages; pay less for mobile units; have links to tractor services using mobile phone; receive incentives for mobile-phone extension services approach patronage, they will use mobile-phone for accessing agricultural information. And over 35.5% of farmers expressed strong interest in using mobile phones for accessing agricultural information; therefore, there is a strong potential for introducing the technology on a larger scale. Conclusions From the service delivery point of view, there is great potential for extension workers and agricultural extension services to harness the potential of mobile-phone technology to access, store and deliver timely and relevant agricultural information to farmers. With farmers expressing strong intention to use mobile phone for receiving agricultural extension information, strong policies should be enacted to aid MoFA and other agricultural extension stakeholders to produce local content-specific agricultural extension knowledge and information for farmers, to help increase their access to relevant knowledge and content specific information for their farming operation. EXPECTED IMPACT OF STUDY: Findings will assist MoFA’s Agriculture Extension Directorate and development partners to initiate policy interventions that will promote the adoption and use of relevant mobile technologies that are already available in Ghana to improve agriculture extension delivery.
TITLE OF RESEARCH: GENDER RESPONSIVE AGRICULTURAL EXTENSION DELIVERY FOR IMPROVED AGRICULTURAL PRODUCTIVITY IN NORTHERN GHANA GOG POLICY PRIORITY: IMPROVED INSTITUTIONAL COORDINATION RESEARCH INSTITUTION: SCIENCE AND TECHNOLOGY POLICY RESEARCH INSTITUTE COUNCIL FOR SCIENTIFIC AND INDUSTRIAL RESEARCH Introduction Despite the critical role women play in agricultural development, their access to extension and rural advisory services delivery for improved agricultural productivity is still limited; and to address this, the USAID/ADVANCE II project has adopted gender responsive agricultural extension strategies in order to reach out to more female farmers with extension delivery and other rural advisory services. The approach gives consideration to differences between the conditions, situations and needs of men and women as well as the disadvantaged along the commodity value chains. Objectives To study gender responsive strategies and practices, as adopted by ADVANCE II, to enhance technology adoption by women farmers. Methods A total sample of 592 smallholder farmers were interviewed in selected communities in East Mamprusi, Garu Tempane and Wa East districts in Northern Ghana. In addition to one-on-one interviews, 18 focus group discussions were conducted in the surveyed districts. Both quantitative and qualitative techniques were employed in the data analysis. A quantile regression was employed to assess how the ADVANCE gender extension strategy impacted program receipients. Results The study concludes that agricultural programs that deliberately targeted gender in extension activities benefited females more than males. The new socio cultural and financial dynamics resulting from the gendered extension delivery by the value chain project has led to some improvement in women empowerment, including for example, increasing women access to land by 6.4% and yield by 22.9% per acre for maize and 13.8 % per acre for soybean. Furthermore, information provided by MoFA staff reveal that more women in project districts have started winning the district best farmer awards during the National Farmers Day celebrations since 2014.
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Conclusions Recruitment of female agriculture extension agents must be central in the implementation of the extension pillar of government’s Planting for Food and Jobs policy program, as first step in mainstreaming effective gender strategies in agriculture extension delivery. Use of male champions to increase women access to extension services could be considered to hasten the process of women empowerment EXPECTED IMPACT OF STUDY: Findings and recommendations will address challenges to women’s access to productive resources, including access to agriculture extension services and new technologies, and will ultimately help enhance productivity, production, and incomes of resource poor women farmers.
TITLE OF RESEARCH: Market Standardization, Grading and Pricing in Maize Markets in Ghana: Producing and Consuming Markets GOG POLICY PRIORITY: Increased Competitiveness and Enhanced Integration into Domestic & International Markets RESEARCH INSTITUTION: CROPS RESEARCH INSTITUTE COUNCIL FOR SCIENTIFIC AND INDUSTRIAL RESEARCH Introduction Maize is the most important grain cereal in Ghana because it is grown across all the agro-ecological zones, occupies 29% of food crops under cultivation, and constitutes 67% of cereal production. However, the domestic maize market faces a number of challenges; notable amongst them is the issue of low standardization and product differentiation. This has affected the nation’s competitiveness and integration into international markets. It has also contributed to the growing inequity in income distributions among the maize value chain actors. Objectives The study sought to understand how existing measuring units evolved in maize marketing; evaluate marketing standards in relation to that developed by Ghana Standards Authority; identify the most acceptable standards by all actors; identify options for introducing new standards; and to make policy recommendations. Methods The study was conducted in the two most important maize growing and marketing municipalities (Ejura and Techiman) of the transition zone of Ghana. The study employed a number of research methods such as reconnaissance survey, participatory rural appraisal (key informant interviews, focus group discussions) with maize value chain actors and relevant ministries, departments, and agencies. Results Results indicated that, measuring units evolved from an unstandardized measure size 4 bags (132Kg) to size 5 bags (155Kg) introduced by traders at the farm-gate. Through an enactment and enforcement of a bye-law by the Ejura Sekyedumase Municipal Assembly, the size 4 bags (132Kg) was re-introduced in maize marketing and adopted by surrounding districts and municipalities such as Techiman, Nkoranza, Atebubu Amantin and Wenchi. The introduction of the new measure which resulted in a 23Kg gain on each bag sold leading to a 15% extra income for producers. The study shows that few institutions operating in the municipalities purchased maize with a standardized weight of 50Kg. The use of the standardized weight resulted in higher income gains for producers. Conclusions Investment in warehouse receipting system in the maize growing districts through public private partnership should be explored by government as it will enforce adherence to the standards, improve the maize value chain and enhance maize grain export. In the meantime, lessons could be drawn from the experiences of the two municipal assemblies to introduce standardization among district assemblies. Government may also use its procurement advantage to push for adoption of standardization and grading by marketing agents. EXPECTED IMPACT OF STUDY: Based on the research, Ghana can adopt appropriate grading and standardization mechanisms to promote both operational and pricing efficiency, and make production of quality commodities rewarding to attract increased private investments.
TITLE OF RESEARCH: CONSTRAINTS AND INSTITUTIONAL CAPACITY FOR NATIONAL VARIETAL RELEASE AND REGISTRATION PROCEDURE IN GHANA: THE CASE OF THE NATIONAL RESEARCH INSTITUTIONS GOG POLICY PRIORITY: SCIENCE AND TECHNOLOGY APPLIED IN FOOD & AGRICULTURE RESEARCH INSTITUTION: CROPS RESEARCH INSTITUTE COUNCIL FOR SCIENTIFIC AND INDUSTRIAL RESEARCH OBJECTIVE OF STUDY: To assess the status of preparedness of research institutions to conduct DUS and VCU testing in Ghana to improve the availability of quality seeds for farmers ABSTRACT: There have been various efforts in the past few years by the Government of Ghana and its partners both private sector and donors to re-vitalize the seed industry, which is key to ensuring food security. One of the major steps a plant breeder must take in availing newly developed or improved crop varieties to farmers is to have the developed variety pass the Distinctiveness, Uniformity and Stability (DUS) Tests as well as Value for Cultivation and Use Tests (VCU). A new system of DUS and VCU Testing has been proposed for Ghana. This system ensures that only institutions who are accredited for crop variety testing accordingly conduct these tests. However, the question remains as to whether the various potential institutions that will perform this function are prepared in terms of both human and infrastructural capacity. It was therefore important that the status of the potential institutions, that are likely to be accredited for this purpose be evaluated and necessary recommendations made. Primary data was collected using semi-structured questionnaire with both open and closed-ended questions where applicable. Purposive random sampling technique was used for the selection of the institutes while simple random sampling was employed in interviewing individual professionals. From the study, it was revealed that the Plant breeding activities of the NARIs and Universities involved all food crops and fruit tree crops, except cocoa and sheanut. CSIR-CRI and SARI were identified to contribute about 90% of all improved crop varieties in Ghana. There is evidence of availability of human resource and trained personal to conduct DUS and VCU tests for varietal release and registration in Ghana. However, there are still gaps to be filled as well as the need for continuous capacity building to keep these professionals updated on new and improved procedures on DUS and VCU testing. DUS tests could be limited to only
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one growing cycle for cereals and legume crops particularly and VCU test should be optional. For a more effective, efficient and transparent VRRS, it is recommended that independent institutions are accredited to conduct DUS and VCU tests. These institutions must be independent of the applicant of the new plant variety. EXPECTED IMPACT OF STUDY: Based on the recommendations from the assessment, research institutions and seed organizations will be technically prepared to test and produce quality seed to expand access to and use of improved seed varieties.
TITLE OF RESEARCH: THE WELFARE IMPACT OF USAID-ADVANCE INTERVENTION PROGRAMME: EVIDENCE FROM ACDEP FACILITATION IN NORTHERN GHANA GOG POLICY PRIORITY: Improved Institutional Coordination RESEARCH INSTITUTION: Faculty of Agribusiness and Communication Sciences Department of Agricultural and Resource Economics UNIVERSITY FOR DEVELOPMENT STUDIES Introduction The quest to apply modern agricultural technologies to increase productivity and income of smallholder farmers cannot be over-emphasized but Ghanaian smallholder farmers still use traditional and backward technologies. To address this, several civil society organizations, NGOs and international donor agencies including USAID, Agriculture Development and Value- Chain Enhancement (ADVANCE II) project, have initiated many intervention programs to develop and disseminate new production technologies for small farmers. ADVANCE II intervention is helping to promote Good Agricultural Practices (GAPs) and marketing strategies in the context of value-chain development, to enhance productivity growth in maize, rice, and soybean in the three northern regions; however, there is a paucity of empirical evidence about the aggregated impact on beneficiaries’ productivity and economic wellbeing. Objectives To analyze and recommend strategies to enhance the agricultural crop value chain approach as a model for improving the livelihoods and incomes of rural households. Methods The study used a cross-sectional farm-level data collected from 673 farm households in the three northern regions of Ghana. The study adopted Multivariate Probit Model to analyze the interdependency among the selected GAPs and marketing strategies while Poison Data Count Regression was employed to identify the determinants of the intensity of adoption of GAPs. Propensity score matching technique was used to estimate the welfare impacts of the ADVANCE II intervention program on the beneficiaries. Results Study results indicate that all the selected components of GAPs and marketing strategies were complementary, and that the impact of the adoption of a particular GAP and marketing strategy is conditioned on the adoption of the other. Moreover, different socio-economic and institutional factors, such as educational level, the age of the farmer, visits to demonstration farms, and extension services, were found to influence the adoption of different components of GAPs and marketing strategies significantly. The intensity of adoption was also influenced by some socioeconomic, farm-specific and institutional/policy variables. The study has also demonstrated that the ADVANCE project’s value-chain approach, has contributed significantly to farm household productivity and income of the beneficiaries. Conclusions The interrelationship between the GAPs and the marketing strategies suggest that policies that affect a GAP strategy should promote both strategies as there are spillover effects on each other. Therefore, the study recommends that farm-level policies that support productive-enhancing technologies must continue to have a joint support for marketing strategies. For instance, the ongoing USAID/ADVANCE program that merged productivity-enhancing technologies with marketing strategies should be intensified and implemented to raise the living standard of northern Ghana. Finally, policies and development efforts focusing on increasing access to extension services, input and output markets are crucial to improving adoption of GAPs, and subsequently, increase farm productivity and income.
EXPECTED IMPACT OF STUDY: Implementation of the recommendations by public and private agents, from MoFA, district level agriculture directors and other stakeholders working in value chain development, will add value to Ghana’s agriculture commodities, reduce post- harvest losses, and make agriculture rewarding to attract increased private investments.
TITLE OF RESEARCH: The Impact of Land Use Pattern and Change on Farmers’ Access to Land for Urban and Peri-Urban Agriculture in Ghana GOG POLICY PRIORITY: INCREASED GROWTH IN INCOMES - SAKSS Node 2 RESEARCH INSTITUTION: Faculty of Agribusiness and Communication Sciences UNIVERSITY FOR DEVELOPMENT STUDIES Introduction In Ghana, more and more of the food needs (especially vegetables) of the urban population are being met by people farming in the urban/peri-urban areas, giving rise to what has become known as Urban and Peri-urban Agriculture (UPA). UPA is a farm and non-farm activity adopted for livelihood and domestic food security improvements. These activities have had challenges resulting in dwindled growth over time period due to urbanisation expansion and the lack of proper land use plans for that activity. Objectives The study identified major UPA activities in key cities/big towns, examined major areas of production and marketing of UPA livelihood activities and their profitability, with particular attention to cost of inputs such as land and tenure security. It further reviewed critical and relevant policies, laws and by-laws guiding land use and access in urban and peri-urban areas and their adequacy in guiding and protecting UPA activities. Finally, it examined and described changing land use patterns in the cities/towns and their estimated effect on the profitability and sustainability of UPA in the country. Methods The study adopted a mix of methods including survey questionnaire using a sample of 244 respondents, gross margin analysis, and the gross ratios, focus group and key informant discussions as well as document reviews. With purposive and
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cluster sampling frames, farmers and farmer groups were interacted with, as well as key individuals from some state institutions. Results The results indicate there is lack of policy for UPA activities and absence of land rights for farmers, with 47% of the farmers using their land with permission and 14% of them without permission. Most lands used for UPA are government owned (5.3%), individual private ownership (27%), plots along streams and valleys (36%) and 8% for open spaces. Of late, community expansion and real estate development have taken over almost all lands used for UPA, a situation that is affecting livelihoods of UPA operators. In terms of earnings, average seasonal incomes from UPA operations amount to GHC 9,673.00 for onions, GHC4,002.00 for cabbage, and GHC7,300.00 for sweet pepper. Conclusions UPA is an important as source of food, especially vegetables, and provision of income for large proportion of the city population; accordingly, MOFA needs to work with relevant agencies to formulate policies to regulate UPA activities, including nationwide zoning of lands into UPA, real estate and for industrial use. The ministry may also consider establishing an UPA desk at each of its regional offices to support UPA activities. EXPECTED IMPACT OF STUDY: The GOG in general and the MLNR in conjunction with MoFA may use this empirical evidence to enact policy to improve the management and use of land in urban and peri-urban areas for agriculture and avoid the threats to the agriculture sector associated with land demands coming from other sectors of the economy.
TITLE OF RESEARCH: Documenting Various Sustainable Land and Water Management Technologies into Forms that can be used for Extension Service Provision: The experience of Northern Ghana GOG POLICY PRIORITY: SUSTAINABLE MANAGEMENT OF LAND AND ENVIRONMENT - SAKSS Node 4 RESEARCH INSTITUTION: UNIVERSITY FOR DEVELOPMENT STUDIES Introduction Food insecurity is rising in SSA and likely to worsen as a result of climate change and population growth, and to tackle it, underlying causes like land degradation and climate change must be addressed by increasing the resilience and capacity of farming communities. Over the years, research has developed various SLWM technologies, which have been integrated in a National Sustainable Land Management Strategy by MoFA and MEST; however, there is still paucity of information/ knowledge on the impacts of these technologies in the various agro ecological zones. Objectives The study is to help document key proven SLWM technologies for use by MoFA and other organizations. Methods The study was undertaken in the three Northern Regions of Ghana and the methodology employed included the administration of questionnaires, focused group discussions and key informant interviews. Results The study established low levels of adoption of identified sustainable land and water management technologies across all the three regions of the north. In terms of the level of adoption, tree planting was most adopted (44.7%), followed by composting (39.7%), bushfires (35%) and bunding (34.7%). It was established that factors such as support received, labor, water availability, exposure, access to information and farm size influence the adoption of SLWM technologies. Some SLWM technologies are making great impacts on farmers, particularly in terms of yield increases, nutrient retention and water conservation. The study established that SLWM technology project interventions are in pilot bases, and therefore many more farmers are not able to access support. Conclusions MOFA lacks human, technical knowledge of SLM and logistical capacity to extend its education to other farmers and this is likely to affect the effectiveness of extension service delivery in SLWM technologies. MoFA with support of Development Partners (DPs) should facilitate the development of a national knowledge database on proven key SLWM technologies which have achieved results in key agroecological zones across the country and SLWM projects should move from pilots to high levels of upscaling in whole communities. The ministry should adopt, as a policy to make it mandatory for major agricultural development projects by both public and private sectors integrate SLWM technologies in their implementation. In the meantime, MoFA, DPs and the private sector should consider adopting a Public Private Partnership model in the implementation of SLWM technologies across the country, with the beneficiaries required to make in kind/monetary contributions towards SLWM. EXPECTED IMPACT OF STUDY: MoFA will disseminate research findings to farmers, who will benefit if extension agents understand and provide information on the water management practices assessed in the research, thereby improving the overall condition of agriculture production in Ghana
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Annex VI. SNAPSHOTS SNAPSHOT APSP Champions the Use of High Quality Seeds to Promote Ghana’s Agricultural Transformation Production of quality seeds Ghana’s continued agricultural growth will require a vibrant commercial seed can be a profitable business sector that is able to deliver high quality seeds to farmers. Currently, the and Ghanaian seed Ghanaian seed sector lacks strong private seed trade organizations needed producers are taking up the to promote a healthy and prospering seed sector. Until recently, seed sector challenge to deliver organizations in Ghana were fragmented and ineffective, offered few services to their members, and had a low capacity to advocate for reforms competitive and high that will modernize Ghana’s seed industry. Only about 12 percent of all seeds quality seeds to farmers used by farmers in Ghana are improved quality seeds, highlighting the need for an organization that champions and leads the development of the seed industry in the country.
In order to ensure the availability and use of improved seeds among farmers, contributing to higher yields, better incomes, and enhanced livelihood, the USAID-funded Ghana Feed the Future Agriculture Policy Support Project (APSP) facilitated the amalgamation of the splinter seed associations in Ghana into a national umbrella seed organization called the National Seed Trade Association of Ghana (NASTAG). APSP has trained NASTAG’s board members and executive secretariat in policy advocacy and strategic planning, strengthening the organization’s capacity to serve as the voice of the seed sector in Ghana. Through a grant awarded to NASTAG by APSP, Photo: Employees from Anitka Farms the organization is implementing a medium-term strategic plan that focuses Limited sorting maize seeds on influencing policy and expanding the production, supply, and use of Photo Credit: USAID/APSP certified seeds by farmers in the country.
“Previously we were complaining With APSP’s support, NASTAG has achieved a number of successes since about the lack of market for seeds, its formation. NASTAG has conducted sensitization sessions for public and but with the formation of NASTAG we private stakeholders on Ghana’s national seed policy, which has increased have been able to approach the awareness among farmers on using certified seeds including new seed government to supply seeds under the varieties and their implications for agriculture productivity and food security PFJ and this will further promote the in the country. Recently, NASTAG partnered with Ghana’s Ministry of Food business operations of our members.” and Agriculture (MoFA) to supply 1200 MT of Open Pollinated Varieties of Godwin Agbedanu certified maize seeds to farmers in the southern zone of Ghana to support Benzene Farms Ltd implementation of MoFA’s flagship “Planting for Food and Jobs” (PFJ) program. “The contract between NASTAG and MoFA has been good because we According to Thomas Havor of Jonifah Seeds Ltd and a NASTAG Executive have been able to mobilize more Member: “NASTAG has been able to link all value chain actors in the seed seeds for the PFJ program from our industry for easy and better collaboration between the public and private local seed producers. We are trying to sectors, towards rapid development of the sector in Ghana, the sub-region secure a new contract for our and Africa.” members to supply more seeds to the program next year,” James Mckewown Frimpong Through these activities and APSP’s support, NASTAG has established itself Jafel Agro Ltd as a major seed industry organization that is promoting public-private dialogue on seeds and championing the supply of quality certified seed in Ghana.
SNAPSHOT APSP and the University of Cape Coast are Analyzing the Impact of Food Security Interventions in Ghana to Improve Future Efforts Evidence-based Studies have shown that Northern Ghana lags behind the rest of the country in recommendations will socio-economic development and food security. Moreover, gender disparities improve the design, and income gaps between urban and rural residents in Northern Ghana are outcomes, and impact of particularly wide. Over the years donors, including the U.S. Agency for agriculture development International Development (USAID), have targeted Northern Ghana to promote agricultural development as an avenue to address poverty, stimulate socio- projects economic growth, and ensure food security.
To determine the impact of these interventions on the socio-economic wellbeing and food security of beneficiaries in Northern Ghana, the USAID-funded Ghana Feed the Future Agriculture Policy Support Project (APSP) provided a grant to the University of Cape Coast to assess the impacts of agricultural interventions in Northern Ghana between 2005 and 2016. This study is one of a set of policy research documents that was jointly selected by the Ministry of Food and Agriculture (MoFA) and APSP to address ministry priorities and improve the design and impact of future programs. Major recommendations of the study that will guide the design and implementation of new programs include:
KEY FINDINGS FROM THE • Policymakers and development partners STUDY Photo: Women harvesting vegetables should develop food security indicators that measure the impact of interventions ▪ Analysis of impact has not been from their farm in the Northern Region taken seriously at the design, from the design stage all the way to implementation, and evaluation Photo Credit: USAID/APSP implementation and evaluation phases of projects. This makes it difficult to draw conclusions and • Food security instruments used in learn from past efforts. project/program monitoring and evaluation ▪ Only 14 percent of interventions across interventions in the country should reported increases in beneficiary yields and only seven percent of “With the Northern, Upper East be synchronized and harmonized interventions showed increases and Upper West Regions as the • The Government of Ghana should in household food availability. food basket of the country, it is establish a national database to serve as ▪ Approximately 44 percent of projects reported increases in important we effectively plan a one-stop information center to facilitate beneficiary incomes. food security interventions to compliance and reduce duplication of ▪ Interventions with longer durations – especially related to ensure our beneficiaries derive efforts extension and capacity building their full benefits.” • Food security interventions should have for the adoption of technologies Daniel Ohemeng-Boateng longer durations to ensure impact – achieved better results. Director of Policy Planning and Budget Directorate - MoFA According to Harry Bleppony, Deputy Director of Crop Services Directorate:
“This study will enable us know if food-security interventions are truly working
or if there is a need to re-strategize them.” The conclusions of the study could
not have been timelier. The new administration of MoFA has indicated that it wishes to participate more closely in the design and implementation of agricultural programs financed by the international community. At the same time, USAID/Ghana is working on a strategy that will guide the next stage of Feed the Future interventions in Ghana. APSP will continue sharing recommendations from the studies that it conducts on vital technical areas through forums and other channels to support donors and MoFA in designing impactful food security interventions in Ghana.
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Annex VII. Situational Analysis of Agriculture Marketing in Ghana
GHANA FEED THE FUTURE AGRICULTURE POLICY SUPPORT PROJECT (APSP)
SITUATION ANALYSIS OF AGRICULTURAL MARKETING ACTIVITIES AND RELATED INSTITUTIONAL ARRANGEMENTS IN GHANA
Contract No. 641-C-14-00001
ii SITUATION ANALYSIS OF AGRICULTURAL MARKETING ACTIVITIES AND RELATED INSTITUTIONAL ARRANGEMENTS IN GHANA
GHANA FEED THE FUTURE AGRICULTURE POLICY SUPPORT PROJECT (APSP)
SITUATION ANALYSIS OF AGRICULTURAL MARKETING ACTIVITIES AND RELATED INSTITUTIONAL ARRANGEMENTS IN GHANA
Contract No. 641-C-14-00001
March, 2017
This publication was produced for review by the United States Agency for International Development. It was prepared by Chemonics International Inc. The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government
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Table of Content List of Tables ...... vi Acronyms ...... vi Glossary ...... viii EXECUTIVE SUMMARY ...... xi 1. INTRODUCTION ...... 1 1.1 Background ...... 1 1.2 Objectives ...... 2 2. METHODOLOGY ...... 2 2.1 Analytical Framework and Concepts ...... 2 2.2 Research Design and Methods of Analysis ...... 5 3. FINDINGS ...... 5 3.1 Introduction ...... 5 3.2 The Agricultural Marketing System ...... 5 3.2.1 Structure ...... 5 3.2.2 Conduct ...... 6 3.2.2.1 Marketing Chain and Nature of Transactions ...... 6 3.2.2.2 Agricultural Marketing Practices ...... 9 3.2.2.3 Pricing ...... 10 3.2.2.4 Grading and Use of Standard Measures...... 10 3.2.2.5 Packaging and Transport...... 11 3.2.2.6 Market Information Services (MIS)...... 13 3.2.2.7 Stocking Practices ...... 13 3.2.2.8 Control of Market Entry...... 15 3.2.3 Performance of Agricultural Markets ...... 21 3.2.3.1 Price Variability ...... 21 3.2.3.2 Spatial Integration of Markets ...... 22 3.3 Value Chain Upgrading ...... 24 3.4 Policies and Legal Frameworks ...... 38 3.4.1 Policy Frameworks ...... 38 3.4.2 Mandates of MMDAs in Agricultural Marketing ...... 41 3.4.3 Private Sector Facilitators ...... 44 3.5 Legal Frameworks for Agricultural Practices ...... 45 3.5.1 Farming Practices...... 46 3.5.2 Trading (buying and selling) and Contracts...... 46 3.5.3 Control of Entry into markets ...... 46 3.5.4 Grading Standards and use of standard weights and measures...... 46 3.5.5 Stocks and Warehousing ...... 47 3.5.6 Slaughtering, slaughter houses and meat inspection...... 47 3.5.7 Fishing...... 47 3.5.8 Packaging ...... 48 3.5.9 Transportation ...... 48 3.5.10 Financing...... 48 iv SITUATION ANALYSIS OF AGRICULTURAL MARKETING ACTIVITIES AND RELATED INSTITUTIONAL ARRANGEMENTS IN GHANA
3.6 Service Providers (Regulation and Facilitation) ...... 48 3.6.1 MoFA’s Plant Protection and Regulatory Services Directorate (PPRSD) ...... 48 3.6.2 Training of major stakeholders (Seed Inspectors, Registered Seed Growers, Seed Dealers, Extension Staff of MOFA and NGO’s etc).MoFA’s Veterinary Services Directorate (VSD) ...... 49 3.6.3 Marketing Service Unit of SRID (MoFA) ...... 50 3.6.4 MoFA’s Directorate of Agricultural Extension Services (DAES) ...... 50 3.6.5 MoFA’s Crop Services Directorate (DCS) ...... 50 3.6.6 Post-Harvest Division of Agricultural Engineering Services ...... 50 3.6.7 Ministry of Fisheries and Aquaculture Development and Fisheries Commission ...... 51 3.6.8 Ghana Standard Authority ...... 51 3.6.9 Food and Drugs Authority ...... 51 3.6.10 Ghana Export Promotion Authority ...... 51 3.6.11 Export Development and Agricultural Development Fund (EDAIF – EXIM Bank) ...... 51 3.6.12 Ghana Customs ...... 52 3.6.13 Development Agencies ...... 52 3.7 Institutions providing Marketing Information and Intelligence...... 52 3.7.1 Public ...... 52 3.7.2 Private ...... 54 3.8 State of major agricultural marketing organisations ...... 55 3.8.1 Internal Trade (FBOs, Cooperatives, firms and individuals) ...... 55 3.8.2 Peasant Farmers Association of Ghana...... 56 3.8.3 Ghana Agricultural Producers and Traders Organisation (GAPTO) ...... 57 3.8.4 Cattle Breeders and Traders Association, Ashaiman ...... 58 3.8.4.1 Farmer and Trader Organisations in a Local Market (Bolgatanga) ...... 59 3.8.5 External Trade (Exporter/Importer Associations) ...... 59 4. SUMMARY OF FINDINGS AND CONCLUSIONS ...... 60 4.1.1 Strengths Weaknesses Opportunities and Threats of the Agricultural Marketing System 60 4.1.2 Strengths Weaknesses Opportunities and Threats of Regulatory Environment ...... 61 4.1.3 Strengths Weaknesses Opportunities and Threats of Farmer and Trader Organisations/Associations ...... 61 4.2 Conclusions ...... 61 ANNEXES ...... 69 A1a. List of Organizations Interviewed ...... 69 A1b. Commodity Groups and Participants in Focus Group Discussions ...... 70 A2. Mandates of Public Sector Regulatory Institutions ...... 71 A3. Public Sector Facilitating Institutions and Mandates ...... 73 A4. Private Sector and DP facilitators ...... 75 A5. Laws Affecting Agricultural Marketing ...... 77 A6. SWOT of Marketing System...... 81 A7. SWOT of Regulatory Environment ...... 82 A8. SWOT of Farmer and Trader Organisations ...... 83 A9. Summary of Interviews with Farmer and Trader Groups ...... 84
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A10. Summary of Interviews with Traders...... 85
List of Tables Table 3.1: Transport Costs on Selected Roads in May – June, 2011 …………………..………….16 Table 3.2: Distribution of Agro-input Dealers …………………………………...……………....25 Table 3.3: Regional Distribution of Agro-input Dealers ………………………………...………26 Table 3.4: Percent Difference about Mean Maize Price …………………………………………28 Table 3.5: Produce prices in Bolgatanga Market ……………………………………………...... 28 Table 3.6: Purchases of Cassava raw material by breweries ……………………………………..41 Table 3.7: Challenges of engaging with smallholders and solutions ……………………………47
List of Figures Figure 3.1 Rice Cropping Calendar …………………………………………………...... 4 Figure 3.2 Maize Cropping Calendars: South and North …………….....……….…...... …4 Figure 3.3: Groundnut Cropping Calendar ………………………………..…………...... …5 Figure 3.4: A typical marketing channel for food crops in Ghana ………..…………………….....9 Figure 3.5: Value Chain of Locally Produced Rice ………………………………………………10 Figure 3.6: The Soybean Value Chain (informal) …………………………………….…………34 Figure 3.7: Feed the Future Initiative – Kharma Farms……………………………………...…..35 Figure 3.8: Rice Value Chain Partnership between SAVBAN Company-Global Agri-Development Company (GADCO)-Copa Connect ………………………………………..37 Figure 3.9: Cassava Starch VC partnership between GGBL, ASCo, MAXPO TS and Farmers …42 Figure 3.10: Empowering Communities through Market Led Development – the approach ……49
Acronyms ABL Accra Brewery Limited ADVANCE Agriculture Development and Value Chain Enhancement AESD Agriculture Engineering Services Directorate AEZs Agroecological zones AIC Agribusiness Information Centre APD Animal Production Directorate ASCo Ayensu Starch Company Limited BUSAC Business Sector Advocacy Challenge Fund CABI Centre for Agriculture and Biosciences International CBI Centre for the Promotion of Imports from Developing Countries Netherlands, CSD Crop Services Directorate CSD DAES Directorate of Agricultural Extension Services DANIDA Danish International Development Agency EDAIF Export Development and Agricultural Development Fund EMQAP Export marketing and Quality Awareness Project EPA Environmental Protection Agency EU European Union FAGE Federation of Ghanaian Exporters FAO Food and Agriculture Organisation FASDEP Food and Agriculture Sector Development Policy FBOs Farmer-Based Organisations FDA Food and Drug Authority vi SITUATION ANALYSIS OF AGRICULTURAL MARKETING ACTIVITIES AND RELATED INSTITUTIONAL ARRANGEMENTS IN GHANA
FiNGAP Financing Ghana’s Agriculture Project FRI Food Research Institute FSA Foods Standards Authority (FSA) GADCO Global Agri-Development Company GAIDA Ghana Input Dealers Association GAP Good Agronomic/Agricultural Practices GAPTO Ghana Agricultural Producers and Traders Association GASIP Trade Policy and the Ghana Agricultural Investment Programme GASIP Ghana Agriculture Sector Investment Programme GAVEX Ghana Vegetable Exporters GEA Ghana Export Authority GEPA Ghana Export Promotion Authority GETIC Ghana Export Trade Information Centre GGBL Guinness Ghana Brewery Ltd GGC Ghana Grains Council GHABROP Ghana Broiler Revitalization Project GIZ German International Development GLSS Ghana Living Standards Survey GSA Ghana Standards Authority GSS Ghana Statistical Services GSSP Ghana Strategy Support Program HA Hectare HACCP Hazard Analysis and Critical Control Points HQCF High Quality Cassava Flour HQCS High Quality Cassava Starch ICT Information and Communication Technologies IFDC International Fertiliser Development Corporation/International Soil Fertility Management Institute IFPRI International Food Policy Research Institute IPPC International Plant Protection Convention ITC International Trade Centre IUU Unreported and Unregulated fishing LBTAG Livestock Breeders and Traders Association of Ghana MADE Market Development for Northern Ghana MDAs Ministries, Departments and Agencies MIS Market Information Services MISTOWA Market Information Services and Traders’ Organisation in West Africa MMDAs Metropolitan, Municipal and District Assemblies MOAP Market Oriented Agriculture Project MoFA Ministry of Food and Agriculture MoFAD Ministry of Fisheries and Aquaculture Development MoTI Ministry of Trade and Industry MSU Marketing Service Unit NACOB Narcotics Control Board NAFCO National Food Buffer Stock Company NEP National Enquiry Point NGOs Non-Governmental Organizations NRCD National Redemption Council Decree NRGP Northern Rural Growth Program OIE World Organisation for Animal Health vii SITUATION ANALYSIS OF AGRICULTURAL MARKETING ACTIVITIES AND RELATED INSTITUTIONAL ARRANGEMENTS IN GHANA
OVCF Outgrower Value Chain Fund PD Participatory diagnosis PFAG Associations studied are the peasant Farmers Association of Ghana PME Planning, Monitoring and Evaluation PMR Participatory Market Research PPME Policy Planning Monitoring and Evaluation PPRSD Plant Protection and Regulatory Services PSD Private Sector Development PSI Presidential Special Initiative PTD Participatory Technology Development SEND Sustainable Enterprise Development SFMC Savanna Farmers Marketing Company SPS Sanitary and Phytosanitary System SRID Statistics Research and Information Directorate TIPCEE Trade and Investment Program for Competitive Export Economy UNCTAD United Nations Conference on Trade and Development UNIDO United Nations Industrial Development Organisation USAID United States Agency for International Development VC Value Chain VEPEAG Vegetable Producers and Exporters Association of Ghana VSD Veterinary Services Directorate WAAPP West Africa Agricultural Productivity Programme WFP World Food Program WIAD Women in Agricultural Development WTO World Trade Organization Glossary
Aggregator An intermediary actor in the value chain who buys small quantities of produce from small farmers (also referred to as ‘collector’) and ‘aggregates’ the produce for larger trader, end-user (processor, exporter).
Agriculture Agriculture in this study includes the sub-sectors of crops, livestock and fisheries and covers production and off-farm activities.
Agricultural marketing Agricultural marketing encompasses a series of activities involved in moving agricultural produce from the point of production to the point of consumption. It includes harvesting, handling, storage, processing, retailing and consumption. Agricultural marketing includes agencies and policies involved in the procurement of farm inputs by producers and the movement of agricultural products from the farms to the consumers.
Agricultural Marketing Policy The set of guiding principles that helps a country to make decisions that inure to the achievement of the goals of marketing outputs of its agricultural sector. A policy is a principle of action adopted to guide decisions at the topmost management level (in the context of Ghana, at the Cabinet and Ministerial level).
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Agricultural Value Chain A ‘value chain’ describes the full range of activities required to bring a product or service from conception, through the different phases of production (involving a combination of physical transformation and the input of various producer services), delivery to final consumers and final disposal after use (Kaplinsky and Morris 2001). The value chain does not exist in the sense of having a tangible reality; rather it is a framework for understanding how the world works (Jonathan Mitchell, Christopher Coles and Jodie Keane, 2009).
Value chain upgrading Upgrading a value chain means acquiring the technological, institutional and market capabilities that allow resource-poor rural communities to improve their competitiveness and move into higher-value activities. Upgrading is the process of trading up, trading in higher value markets or items.
Commercial farming Commercial farming is farming with a market orientation, though it is not exclusive to large scale mechanized farms. Small family farms with market orientation are also commercial farmers.
Smallholder In the Ghanaian context, smallholders produce on about 2 hectares (ha) or less per farmer with a few livestock or poultry. They produce mainly for home consumption or local markets. They use little if any purchased input, including seed, therefore crop yield or livestock productivity are very low.
Informal marketing Market participants are largely individual actors operating outside an organized supply chain with little or no recording of transactions and not bound by formal contracts.
Nucleus farmer A large commercial farm entity around which small farmers are organized, the commercial farm engages with local service providers for technical support, credit, seed, chemicals and transport for its farmers. The commercial farm also guarantees the small farmers a market for their produce by procuring their produce.
Off-taker The final buyer of produce from a farmer either directly or through an intermediary that collects/aggregates the produce of a large numbers of small farmers.
Out-grower An out-grower is a farmer contracted by a large commercial farmer to produce a commodity for the mutual benefit of the out-grower (access to inputs, technology, services) and contractor (access to land, labor, guaranteed supply of produce).
Strategy Strategy is an action plan, designed to achieve goals of a country, sector, or business. A strategy is a plan of action.
Trader An entity that buys produce from one agent in the market and sells it to another or the final consumer, usually as part of a transactional relationship. In this report, the collector, aggregator, ix SITUATION ANALYSIS OF AGRICULTURAL MARKETING ACTIVITIES AND RELATED INSTITUTIONAL ARRANGEMENTS IN GHANA
wholesaler, and retailer are all traders. The entity that coordinates transactions between these parties, and does not take possession of the produce at any point is a “middleman.”
Trade credit Credit provided by one marketing agent to another through a formal or informal agreement and in the informal agricultural marketing, trade credit is based on trust built through long-term relationship.
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EXECUTIVE SUMMARY
Background
The main objective of the study of agricultural marketing practices and related institutional and regulatory frameworks is to provide a comprehensive situational analysis of the agricultural marketing system in the country by assessing strengths and weaknesses against the current and future needs of the sector; and identifying potential interventions and directions for agriculture marketing policy reforms. Specifically, the goal is to assess institutions responsible for regulating the market structure, their conduct and performance (domestic and foreign trade), including the regulation of primary agricultural produce markets and the legal and regulatory provisions relating to marketing activities, especially pricing and quality specifications in formal agricultural markets.
The market structure, conduct and performance framework is used to assess the workings of the agricultural marketing system and its efficiency. The study design is qualitative and relies heavily on content analysis of literature on the subject, complemented with interviews from regulatory and facilitating organizations through individual and focus group discussions. Relevant laws were also accessed and reviewed.
The findings of the research are presented in Chapter 3, as follows:
• Section 3.2 reports on the assessment of the marketing system following the structure- conduct-performance framework. • Section 3.3 presents ongoing initiatives to upgrade value chains in Ghana and elsewhere. • Section 3.4 presents policies and mandates of public and private institutions. • Section 3.5 a review of legal frameworks governing the marketing system. • Section 3.6 discusses the roles of the regulatory and facilitating organisations. • Section 3.7 focusses on providers of market information. • Section 3.8 is an assessment of state of major marketing organisations. • Chapter 4 presents a summary of findings and the study conclusions, with recommendations presented in Chapter 5.
The Agricultural Marketing System
Agricultural markets are dictated by the structure of production, which is dominated by small scale farmers. Markets at the farm gates have large numbers of farmers/sellers, and fewer buyers. Ghana’s agricultural production is highly seasonal and therefore characterized by periods of glut and scarcity, which are exacerbated by limited processing and storage infrastructure. As a result, producers have relatively weaker marketing power than traders, especially in pricing. Market access challenges of many and widely dispersed smallholder farmers has led to the creation of periodic markets in rural areas, and along major trunk roads by rural traders.
Input markets are also informal as many dealers are not registered and do not have permits, therefore oversight is limited and malpractices are common. There is no professional requirement for trading in agrochemicals therefore the human resource capacity is very low. Training of dealers should be intensified. Monitoring dealers and enforcement of regulations is weak because of inadequate logistics of the EPA and PPRSD.
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The dominant practices in Ghana are the personalized spot market (face to face transactions between sellers and buyers) and hybrids of informal contracts which are facilitated by agents/brokers. The main theme of the research problem is that the actors mediating between the farmer and the final off-taker are weak and need strengthening. Growth in agro-processing firms and programs aimed at facilitating the development of agricultural marketing have led to the emergence of larger and formal aggregators, who are also operating in value chain networks with enhanced access to inputs and services, as well as training on good agricultural practices.
The value chain networks provide win-win situations for producers, traders/aggregators and off-takers/processors/exporters. Value chains are being upgraded to supply industrial processors and users. The challenge facing aggregators and off-takers in the networks is lack of trust and the readiness of farmers to side-sell produce outside any contractual arrangements. Pricing of agricultural produce is largely dictated by supply and demand at the point of sale. Also, information asymmetry in favor of traders gives the latter stronger bargaining power. The facilitated value chain networks make room for price negotiation between producers and buyers before harvest and renegotiation at harvest if the negotiated prices are below prevailing spot market prices.
The informal agricultural marketing system is difficult and the consequences are improper handling of produce at farm gate, poor storage and packaging, exposure to the elements and improper transportation, especially of fresh produce in the absence of cold chains. Retailers are more likely to sort produce into grades than actors upstream, because of low incentive for grading. Ad hoc application of standards for produce and the use of unstandardized measures for trading limits transparency and fairness, especially for smaller actors. The positive developments in this area are the development of grades for grains by the Ghana Standards Authority in Collaboration with the Ghana Grains Council and with support of development partners. The National Buffer Stock Company is also a lead agency using grades and standard measures for their trading. The Ghana Green label has also been developed for fruits and vegetables, especially for export trade. All the value chain upgrade partnerships apply grades and standard weights and measures.
Market Information Services (MIS)
Price information is the most common information sought by market actors, which they access through other farmers and traders. Traders also obtain price information from urban markets and collude to set prices in the markets - rural wholesale/assembly and urban market centres. Traders and farmers may also obtain information from public and private market information service providers via open media. Information from these formal sources can be obtained on request but at a cost if the source is private. Trade associations as well as farmer organizations claim they support their members with market information. There is an emergence of private market information service providers, the pioneering agency being Esoko Ghana.
Wholesale traders in urban centres organize themselves into commodity associations (e.g. yam and cassava sellers, grain sellers, citrus sellers, etc.) under the leadership of “market queens.” These are mainly welfare associations but have strong influence in the facilitating marketing activities of their members. They organize transport, provide information and, most importantly, control the flow of produce into markets in cities. Where traders are successful in forming an association, they have the power to collude to fix prices offered to farmers. This limits competitiveness of the market as it tilts market power in favor of traders.
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Market Performance
Market performance is assessed by price variability, integration of prices between source and destination markets and interceptions of exports of produce. Although seasonal price variability is inevitable because of seasonality in production, the level of variability is magnified by limited processing and stockpiling capacity. The GGC is promoting warehouse receipt schemes which will increase this capacity. Several studies report some level of price integration but that greater integration is limited by poor road infrastructure and the tendency of traders to respond quickly to upward price shocks and to adjust prices when shocks are downward and profit margins are likely to be squeezed. This is a disadvantage to consumers.
Policies and Legal Frameworks
There are strategies in the Food and Agriculture Sector Development Policy (FASDEP), Trade Policy, Ghana Agricultural Investment Programme (GASIP) and other sub-sector policies for improving agricultural marketing. These strategies would be relevant in the anticipated agricultural marketing policy.
Public sector and private sector agencies are involved in regulation and facilitation of agricultural marketing, with the public agencies leading in the regulatory and policy formulation functions. The public-sector agencies derive their mandates from various legislations. Private sector and Development Agencies also play key roles in market facilitation
The legislation affecting agricultural marketing are the Plants and Fertiliser Act, Pesticide Control and Management Act, Fisheries Law and its amendment for Illegal, Unreported Unregulated fishing and, LI2217 for development of aquaculture, Standards Authority Law and Standards Board Amendment Decree, Weights and Measures Decree, Animals Act, Animal Diseases Act, Public Health Act, Biosafety Law, Sale of Goods Act and Contracts law. Bills for Plant Breeders and Warehouse Receipts are under consideration in parliament. However only the Plants and Fertiliser Act, Fisheries laws, Animals Act, and to some extent the Animal Diseases Act, specifically target the agricultural sector. This means that oversight and enforcement responsibilities of the other legislations involve several agencies. For example, the foods section of the Public Health act covers packaging, meat inspection and transportation, and labelling of agricultural produce that is consumed. Apart from meat inspection, for which responsibility is shared between the FDA and the VSD, the other areas appear orphaned especially at the primary production level.
Awareness of the general public and key market actors varies from law to law; level of awareness of Public Health Act is high but low for Standards and Fisheries Laws. Laws are enforced by registrations and penalties. Generally, low capacity of regulatory agencies in terms of staff numbers and resources (e.g. cost of testing and distribution of testing laboratories for agro- food safety) limit enforcement. In the case of fisheries enforcement is complicated by the number of agencies involved.
State of Major Agricultural Marketing Organisations
Associations studied are the peasant Farmers Association of Ghana (PFAG), Ghana Agricultural Producers and Traders Association (GAPTO), Vegetable Producers and Exporters Association of Ghana (VEPEAG), Livestock Breeders and Traders Association of Ghana (LBTAG) and small trader and farmer associations in Bolga. The associations advocate on policy xiii SITUATION ANALYSIS OF AGRICULTURAL MARKETING ACTIVITIES AND RELATED INSTITUTIONAL ARRANGEMENTS IN GHANA
issues and facilitate marketing services for members. The capacity of exporter associations is higher than those for internal trade mainly because of the strict monitoring by importing countries and severe sanctions for noncompliance. Even so, Ghana has received warnings for breaches of quality standards.
Trader and farmer organisations also carry out facilitating roles for their members. The exporter associations have more educated and knowledgeable members and are therefore expected to understand issues, especially in relation to product standards. However, the system is just beginning to self-correct after several incidents of notifications of substandard produce exported to the EU. This suggests that if the domestic market begins to demand standards, traders will conform. Opportunities for formalization are emerging through linkages between farmers on the one hand, and formal aggregators and off-takers on the other. Agricultural commercialization models of nucleus-farmer outgrower linkages also offer opportunity for transforming the marketing system. Enforcement of standardized weights and measures is weak because of a) unwillingness of traders to use the measures and b) absence of a designated agency to enforce the appropriate law.
Recommendations
Recommendations are provided in the following areas:
1. Upgrading value chains and formalize marketing. Some models of upgrading value chains are working and these should provide lessons for upscaling or wider adoption in the pursuit of formalizing the marketing system.
2. Develop necessary marketing infrastructure. Infrastructure requirements of the value chains for upgrading are: • Fruits and vegetables – availability of seed of desired varieties; irrigation; cold chain; improved transportation (e.g. boxes for transporting tomatoes); packhouses in production hubs • Roots and tubers – appropriate transport and storage services; harvesters especially for cassava • Cereals – certified storage infrastructure enhanced with cleaning and drying facilities, awareness creation about aflatoxins and education on their control. • Legumes (soybean and groundnut) – same as for cereals • Meat – abattoirs, appropriate transport vehicles • Fresh fish – appropriate transport • In addition, policy should aim to increase professionalism of service providers and input dealers. Also, packaging should be developed for all commodities across board for internal and external marketing.
3. Align institutional arrangements for effective regulation and facilitation of marketing. There are so many organizations involved in agricultural marketing. The main recommendation is that MoFA and MoTI should constitute a permanent Technical Team to lead in the development and promotion of agricultural marketing policies, laws and regulations and define oversight responsibilities for their enforcement.
4. Harmonize existing agricultural marketing policies, strategies and regulatory frameworks. There are several policy documents and strategies within MDAs. These policies need to be
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collated into an umbrella marketing policy, with a coherent implementation plan for harmony and effectiveness. There are also marketing laws with no assigned enforcement responsibility (e.g. weights and measures). There is a need to develop regulations for such laws and to assign oversight responsibility for their enforcement to an appropriate agency. The laws governing the livestock sector are dated and require urgent review. Given that law enforcement is weak, capacities of regulatory agencies for surveillance and monitoring should be built so that their presence in the field will be noticed.
5. Improve support services for marketing:
• Mandate MSU of SRID to deliver wider range of marketing services to farmers, by backstopping the Agriculture departments in the districts. Marketing services units could be established in the technical directorates of CSD, APD, and PPME of MoFAD and at the district agriculture departments, to take up responsibility for facilitating marketing activities of farmers. MSU services target actors in formal market linkages models. • Regulatory bodies have low reach to their clients or target groups for monitoring and surveillance therefore delegating decentralized agencies to carry these activities can improve the situation. An alternative will be to out-source the services to appropriate third parties. This may require special expertise and criteria for engaging such third parties. • Vigilance in the monitoring for SPS compliance by exporters should be increased and penalties reviewed for severer sanctions. There is need for an independent study to identify loopholes that contribute to the export of sub-standard produce. • There is no professional requirement for trading in agrochemicals; therefore, the human resource capacity is very low. Training of dealers should be intensified. Monitoring dealers and enforcement of regulations is weak because of inadequate logistics of the EPA and PPRSD. GAIDA appears to be a strong lobby group therefore the association could be partnered to monitor its members but EPA and PPRSD should expand the registration of dealers to facilitate the effectiveness of GAIDA.
6. Support Farmer Organisations and Trade Associations to Pilot Value Chain Partnership Models in alignment with government strategy for agroindustry development. Trade associations involved in both internal and domestic trade need constant training on best practices in marketing. This should include training on how to identify market opportunities, and how to link up with major buyers. They should also be provided with technical and managerial support to organize production. This requires training by specialist extension agents. MoFA should therefore review its policy of a generalist extension agent considering the value chain approach it is pursuing. For exporters, there should strengthening of the SPS system and constant sensitisation on the laws of importing countries as well as on the consequences of non- compliance for their businesses and for revenue to the country.
7. Improve Access to Financial Services. Lessons from ongoing financing support programs should be harness for wider application. These include the Outgrower and Value Chain Fund of GIZ; Financing Agriculture in Ghana project of ADVANCE, and the Export Development and Agriculture Investment Fund. This should be supported with analysis of minimum financing requirements of various actors in the different value chains. The analysis should disaggregate requirements for working capital from investments.
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1. INTRODUCTION
1.1 Background
Ghana does not have a comprehensive agricultural marketing policy1 although farmers and the entire agribusiness sector are confronted with marketing constraints that could be addressed by appropriate policies. Smallholder farmers dominate the country’s farming population; almost 50 percent of rural households have farm holdings less than two hectares (Diao, 2010) but smallholders2 are not homogenous and vary by size, input use, technology and market sales (Chamberlain, 2008). Although contribution of smallholders is said to be large, there are not estimates of precise share of their output to national agricultural output. For these smallholder farmers, agricultural production is an important livelihood activity and their engagement in markets can increase their incomes and good returns to their resources. However, participation of smallholders in markets makes them vulnerable to risks and where the markets do not function well, they also incur high transactions costs. The power of the market notwithstanding, smallholder farmers are unable to tap its potential because of low levels of production, small units of producers, non-standardized produce and an environment of poor infrastructure and limited access to marketing services such as information. Market oriented production by smallholders will contribute to the commercialization, transformation and growth of the agricultural sector, thereby enhancing the sector’s role in national development. Aggregators, warehouse operators, and processors for example, are critical in changing smallholder operations, therefore interventions that provide enabling legislative, regulatory and infrastructure environment can contribute to transforming smallholders and agriculture in general.
Characteristics of Ghana’s smallholder farmers • Ghanaian agriculture is overwhelmingly dominated by smallholders; many commodities— including cocoa, maize, and cassava—are produced predominantly on small farms. • More than 70 percent of Ghanaian farms are 3 hectares (ha) or smaller in size. The smallest average holdings are in the south. • Smaller farms tend to produce fewer commodities; farms of 2 ha or smaller produce an average of 3 crops compared to about 5 crops produced by holders with 4 ha. • Maize and cassava are important crops for the smallest farms, because of their importance in the farmers’ food security strategies especially under poor or variable market conditions. • Farmers’ market participation rates vary by holding size. Smaller farms produce fewer marketed crops and are less likely to sell the crops they do produce. • Market participation also has spatial variation. The marketed share of farm products and the percentage of farmers who sell their produce tend to be lowest in northern Ghana.
Sources: Ghana Strategy Support Program – IFPRI (2007).
1 Set of principles and directions guiding decisions for promoting best practices in agricultural marketing to achieve desired national goals. 2 See glossary for definition
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1.2 Objectives
The objective of the consultancy is to provide a comprehensive situational analysis of the agricultural marketing system in the country by assessing the strengths and weaknesses against the current and future needs of the sector; and by so doing, identify potential interventions and directions for agriculture marketing policy reforms. Specifically, the objectives are to assess: i. Institutions responsible for regulating the market structure, conduct and performance (efficiency). These include: (a) Regulation of primary agricultural produce markets; and (b) Legal and regulatory provisions relating to storage, transportation, packaging, processing, buying/selling (weights and measures), pricing and quality specifications in formal agricultural markets such as warehouse receipts system, commodity exchange etc. ii. Institutions providing marketing information and intelligence both for domestic and international trade in agriculture products. iii. Agriculture marketing services provision such as marketing standards and quality certification, packaging, processing and value addition. iv. Current state of major agricultural marketing organisations such as farmer-based organisations (FBOs) and cooperatives which represent the collective marketing interests of smallholder farmers in the country. v. Institutions influencing foreign trade - imports/exports and their roles. vi. Provide evidence-based analysis for formulating an effective and comprehensive agricultural marketing policy for Ghana.
2. METHODOLOGY
2.1 Analytical Framework and Concepts
Agricultural3 market is defined as a system or institution that coordinates the production, transformation and distribution of agricultural produce (Risopoulos et al., 1998). The purpose of agricultural marketing is to distribute agricultural commodities from producers to users and consumers. Market participants may engage in moving, storing, grading and processing the commodity in the expectation that this will enhance its value to consumers. Although these marketing services incur costs, producers, consumers and the overall economy gain where the benefits of specialized production and exchange exceed the costs of marketing and allow greater volumes and prices for producers and greater volumes and lower prices for consumers. In the context of Ghana where the agro-ecology4 is varied and production is distributed spatially according to the requirements of crops and livestock, marketing distributes produce from surplus production areas to deficit areas. Ghanaian agriculture (cereals, roots and tubers, vegetables, pulses
3 Agriculture in this report includes crops (except cocoa), livestock and fisheries and activities can be on farm (farming field activities) or off-farm (transportation processing and all related activities downstream along the value chain) 4 Agroecological zones (AEZs) are geographical areas exhibiting similar climatic conditions that determine their ability to support rain-dependent agriculture (Harvest Choice (2010). Agroecological zones of Sub Sahara Africa); accessed at: https://harvestchoice.org/maps/agro-ecological-zones-sub-saharan-africa
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and fruits and vegetables) is also seasonal as production depends on the rainfall pattern therefore marketing functions such as storage, helps to reduce the seasonal impacts on price variability, and ensures food security across the country. Figures 3.1 – 3.3 are the cropping calendars for rice, maize and groundnut in Northern region, and illustrate the seasonality of crop production. The report of the GLSS VI shows most households harvest and sell their crops from about mid-July to December (GSS,2014), which is consistent with the cropping calendars. Seasonality of production requires inter-temporal arbitrage and causes a deterministic price gap between harvest and lean season, owing to the costs arising from storing food between the seasons (Kornher and Asante, 2016).
Figure 3.1 Rice Cropping Calendar
NORTHERN REGION
Northern Region, Upper East Region and Upper West Region
cropping calendar for Rice
ACTIVITIES jan feb mar april may june july aug sep oct nov dec
STAMPING
LAND PREPARATION
PLANTING
Water
CULTURAL Weeding PRACTICES fertilizer application
HARVESTING
Source: GIZ (2011)
Figure 3.2 Maize Cropping Calendars: South and North SOUTHERN SECTOR MONTHS
ACTIVITIES Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2 4 2 4 2 4 2 4 2 4 2 4 2 4 2 4 2 4 2 4 2 4 2 4
LAND PREPARATION
PLANTING
st nd CULTURAL weeding 1 2 PRACTICES fertilizer application HARVESTING
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NORTHERN SECTOR
Northern Region, Upper East Region and Upper West Region MONTHS
ACTIVITIES Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2 4 2 4 2 4 2 4 2 4 2 4 2 4 2 4 2 4 2 4 2 4 2 4 LAND PREPARATION
PLANTING
CULTURAL weeding PRACTICES fertilizer application HARVESTING DRYING Source: GIZ, 2011. Cropping Calendars Figure 3.3: Groundnut Cropping Calendar NORTHERN REGION
Northern Region, Upper East Region and Upper West Region ACTIVITIES jan feb mar april may june july aug sep oct nov dec LAND PREPARATION
PLANTING
CULTURAL weeding PRACTICES fertilizer (5bags of SSP + application 17kg of MOP)/ ha HARVESTING Drying Efficient agricultural marketing is therefore essential to the development of the agri-food system5. An efficient marketing system is one that performs the marketing functions in such a way that consumers are satisfied, trading parties are remunerated according to effort and equitably, produce is distributed at minimum cost, and the market delivers the desired produce quality. An efficient marketing system therefore contributes to food security an aspect of which is food safety. Various services are needed to ensure an efficient marketing system. Some of these services are facilitating while others are regulatory. Facilitating services include transportation, finance, storage or warehousing, packaging, market information, and certification. Certification stems from laws and regulations to ensure quality, food safety or fairness and competitiveness. This situational analysis of agricultural marketing practices is based on the Structure, Conduct and Performance framework: • Market structure refers to the number of sellers and buyers, their size distribution, the degree of product differentiation, and the ease of entry of actors into the market (Tomek and Robinson, 1990). Competitive markets are preferred because there are no dominant actors, no hindrance to entry into or exit out of the market and information about the market, especially price is readily available and easily accessible. This study assesses market structure by the numbers of producers and buyers. • Market conduct refers to the behavior of economic agents within the market environment - buying and selling practices such as pricing behavior, price negotiation, coordination of market information, and trade and production credit. In other words, market conduct refers to market
5 A food system is an integrated network of relationship between farming of food commodities, processing and consumption of food as well as the support services of for example, transportation, packaging. It includes the governance and economics of the system with the objective of sustainability food security and nutrition
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actors’ pattern of behavior in executing its pricing and promotion strategy and its response to the realities of the market it serves. Conduct is assessed by the marketing channels, pricing practices, grading and use of measures, stocking, and transportation. • Market performance is an assessment of the quality or the standard of a marketing system. Indicators of performance are price levels and variability, costs and output (Bressler and King, 1970), market integration and the producer’s share of the consumer price. Performance is also measured by efficiency, which is the effectiveness with which the marketing system responds to shocks, by transmitting information among the different participants of the market. This is commonly assessed by market integration – the connectedness of source (or producer) and destination (or consumer) markets. Efficiency is assessed by market integration. Market structure therefore determines market conduct, which in turn determines the level of market performance (Caves, 1992).
2.2 Research Design and Methods of Analysis
This is a qualitative study designed as a desk review and complemented with interviews. The literature reviewed includes journal papers, thesis reports, reports of development projects, value chain profiling reports prepared for the Ministry of Food and Agriculture. Interviews were conducted with key informants of relevant public and private agencies involved in agricultural marketing either as regulators or facilitators. A list of institutions interviewed is presented in Annex 1. Focus group discussions were held with farmers and traders in the Upper East and Northern Regions for tomatoes, cultured fish, small ruminants, and rice.
3. FINDINGS
3.1 Introduction
The findings of this study point to an agricultural marketing system that is dominated by the informal sector; the structure of market and transactions along the various commodity value chains depends on the types and capacities of buyers and the relative power of the sellers and buyers. This section of the report presents an overview of Ghana’s agricultural marketing system as a whole, assessing the marketing chain, practices of market actors (production, pricing, grading and standards, market information, packaging, stocking, and controls of market entry by trader organisations). The effects of these on price variability and transmission are then assessed. A description of ongoing efforts to upgrade commodity value chains is then presented as the way to engage smallholders in formal agricultural markets.
3.2 The Agricultural Marketing System
3.2.1 Structure
Agriculture in Ghana is predominantly smallholder and this largely defines the structure of the market. At the farm gate, there are many more sellers than buyers. According to the Ghana Statistical Service (GSS) (2014), 3.4 million households operated a farm in 2011/2012; 83 percent of these households are located in rural areas. Similarly, nearly 2 million households raise chickens while a million households rear goats. Livestock rearing is concentrated in the rural savannah areas
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which account for 63 percent of cattle and 80 percent of guinea fowl. The concentration of agricultural production in rural areas has implications of access to the production areas by buyers, availability of transport services, ease of movement of produce, and costs because of poor infrastructure. Market access has been defined as the opportunity for producers to participate in a market to their advantage and this requires that there is a market; that the farmer is able to obtain information regarding profitable opportunities for participating in that market; and that the farmer is able to take advantage of those opportunities (Risopoulos et al., 1998). Individual communities, households or farmers in remote areas may have particular difficulties in moving themselves and/or their produce to main roads or local agricultural marketing centres. Remoteness is therefore not just a matter of distance but also of transport infrastructure and is reflected in higher unit transportation costs. Marketing in remote areas is also characterized by limited information on, and uncertainty of prices, demand and supply. A study on remoteness and maize price volatility in Burkina Faso (Moctar et al., 2015) found that maize price volatility is greatest in remote markets and that maize-surplus markets and markets bordering Côte d’Ivoire, Ghana and Togo tend to experience more volatile prices than maize-deficit and non-border markets. Therefore, improving road infrastructure would strengthen the links between rural markets and major consumption centres, and thereby stabilize maize prices. Because of the above challenges in production area, the markets at the farm gates have large numbers of farmers/sellers, and fewer buyers. This has implications for relative market power of actors, especially in pricing as shown in the next section. However, there can also be more buyers than sellers in times of the year when produce is scarce. During these times, produce is held by speculators and not the small producers. Ghana’s agricultural production is highly seasonal and therefore characterized by periods of glut and scarcity, exacerbated by limited processing and storage infrastructure. The market access challenges of many and widely dispersed smallholder farmers has led to the creation of periodic markets in rural areas. Farmers are able to sell small quantities in these markets in response to their cash needs. Once delivered to the market, the farmer must sell the produce because of the cost of returning the produce home and the need for cash. At this point arbitrager between buyers and farmers drives prices down to the disadvantage of the latter. Agricultural produce is also marketed along major trunk roads by rural traders. No research on the extent to which this mode of selling affects incomes of actors (farmers and traders) has been identified.
3.2.2 Conduct
The discussion on conduct of agricultural marketing covers the marketing chain, nature of transactions (including relations between sellers and buyers), post-harvest practices, pricing, grading, and use of measures), transportation and packaging, market information, quality assessments, and financing arrangements. Examples from specific value chains including maize, rice, soybean, cassava, tomato, vegetables, mangos, poultry (chicken) and farmed fish.
3.2.2.1 Marketing Chain and Nature of Transactions
Agricultural products include raw produce (grain, roots and tubers and fruits and vegetables), semi-processed products (doughs, flours/powders, pastes, oils) and finished products
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(prepared foods, chopped vegetables). Traditionally, the marketing channel has been from farmer to a ‘middleman’, to wholesalers, to retailers and to the consumer. The middleman is based in the production area and buys (collects/aggregates) produce from farmers and sells to larger traders (wholesalers). The wholesalers break the bulk and distribute to retailers, who then sell to final users. The wholesalers may also sell to processors. Similarly, processors can procure their raw material directly from farmers (e.g. cassava, soybean). Transactions in agricultural markets range from a continuum of impersonal spot markets to vertically integrated markets (Kwadzo and Srofenyo, 2012). The dominant practices in Ghana, as in many other African countries (Eaton et al, 2007) are the personalized spot market (face to face transactions between sellers and buyers) and hybrids of informal contracts which are facilitated by agents/brokers. Brokers provide information on availability of produce, sources of produce, and prices; they may also negotiate prices with farmers or collectors on behalf of larger traders/aggregators. The dominance of informal spot market transactions is itself due to the informal rules mediating transactions in African agricultural markets (Eaton et al, 2007).
Figure 3.4 illustrates a typical marketing chain for food crops in Northern Ghana. The local itinerant trader collects/buys from the farmer sells to another trader in an assembly market either in the community or in the district capital. The larger traders in assembly markets aggregate produce either from farmers or smaller traders/aggregators, and wholesale to processors or retailers (traders who sell in small quantities to consumers)6. This channel is common for internal marketing of maize, rice, cassava, yam, legumes, and fruit and vegetables. Processors procure from farmers or wholesalers.
Figure 3.4: A typical marketing channel for food crops in Ghana
Exporters 100% Local urban market retailers Local urban consumers 5% 35% (Households, 60% institutions & industry)
6 The percentages in figure 1 are estimates of proportion of actors’ produce that pass through a channel.
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Long distance urban wholesalers
60%
Local itinerant Local rural traders/collector 40% s market 40% 20% retailer 35% Farmers retailersLocal rural consumers Source: Al-Hassan, et al., 2011 5%
Figure 3.5 illustrates the traditional value chain for locally produced rice in northern Ghana. Just like the above case of staple food crops, there are no formal relationships between the value chain actors and service providers. Collectors/aggregators buy paddy from farmers and assemble for millers (off-takers); aggregators may add value by cleaning, sorting, grading and packaging. Processors add value by milling paddy rice into milled rice; they may also aggregate to ensure safety stocks. Rice post-harvest activities in northern Ghana is dominated by women. They buy the paddy, parboil it and custom mill at small milling centers owned and operated by men. The processors sell the milled rice in the open market to individuals or households. Those who trade in milled rice (wholesalers and retailers) buy the milled product, and distribute with or without packaging. In the coastal and forest zones, most farmers process their paddy for sale; this is not the case in northern Ghana (Ayambila, 2015).
Figure 3.5: Value Chain of Locally Produced Rice
InputMapping Produce Aggregator Marketers Consumers suppliers rs s/ / Processors Traders - Technical services, financial services, transportation, storage Ayambila (2015). Wholesal e In recent times, larger and formal aggregators have emerged- Retail from institutional innovations to procure produce for agro-processing or export firms. These arrangements are discussed in section 3.3.
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3.2.2.2 Agricultural Marketing Practices
The quality of produce marketed is determined by good agricultural practices, from seed selection to harvesting and post-harvest management. Marketing practices assessed cover on-farm and post-harvest and include pest management and use of pesticides; harvesting (including cleaning and drying); storage; packaging; transportation and handling. The assessments are made for grains, roots and tubers, fruits and vegetables, livestock and meat and aquaculture fish.
Pesticides application tend to be higher on legumes, fruit, vegetables, coffee and industrial crops than in other food or subsistence crops like root, tubers and cereals (Gerken et al. 2001). In a study of pesticide use on vegetables, Horna et al (2008) found high level of use pesticides among farmers, and ignorance of the types of agrochemicals used. Also, use of protective clothing, especially gloves and goggles, was low. Pesticide residues, including DDT, have been found in the breast milk and blood of vegetable farmers. A more recent study on the Ghana vegetable sector (GhanaVeg, 2014) also reports of high incidence of pests and diseases and inappropriate use of chemicals or soil fertility management. Vegetable producers use excessive amounts of pesticides and combinations of unsafe chemicals (Al-Hassan et al., 2010; Van der Maden, 2014). As a result, vegetables produced in Ghana have been excessively treated with pesticides (Van der Maden, 2014). Wrong choice of pesticide and higher than recommended application rates add to costs, and can reduce effectiveness of the chemicals as pests and disease organisms develop resistance, leading to low returns to the use of the agrochemicals. Pesticides are used in grain storage although cowpea crop may be stored in the field. Agricultural marketing is a highly informal activity, which is difficult to regulate or even facilitate. Therefore, improper post-harvest management (harvesting, drying and storage) of produce is rampant, raising risks of exposure to Aflatoxin contamination of maize, groundnuts and dried cassava. Soybeans become rancid from humid storage environment. Drying maize in the transition zone is a challenge because harvesting coincides with the major season rains when sunshine is low, humidity is high and maize can be exposed to rain during drying - conditions that favor the growth of mycotoxins. Akowuah et al. (2015) report on practices that aggravate aflatoxin contamination in the transition zone. Farmers delay harvesting and this exposes matured maize cobs to rain; famers also heap harvested maize cobs on the field and use crude methods of testing dryness of grain such as cracking maize grain with the teeth. At market centres, maize is stored in wooden stalls with no proper ventilation; traders also store maize temporarily in the open using tarpaulin; although the tarpaulin prevents contamination with foreign matter such as stones, it promotes heat build-up and moisture re-absorption. The authors report that grains from farms in Ejura showed aflatoxin levels that were below detection (less than 1ppb), but samples taken from markets in Ejura and Agbogbloshie had high levels of aflatoxin. The researchers conclude that practices of farmers and traders have direct effect on maize quality, and that aflatoxins build up from farm level through the marketing chain. Studies by the Food Research Institute also report high aflatoxin levels, varying from 20 to 355 μg/kg from silo-stored maize and from 0.7 to 313 μg/kg in fermented maize-dough collected from major processing sites7. Groundnuts are also subjected to similar practices and have high levels of mycotoxins.
7 MoFA and World Bank (nd). Ghana Food Safety Action Plan Final Draft accessed at: http://siteresources.worldbank.org/INTRANETTRADE/Resources/Ghana_Food_Safety_Action_Plan_Revised.pdf
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Cassava is also sun-dried or dried on platforms over fire into kokonte. Wareing et al. (2001) found that mould growth during processing or storage of kokonte was a problem during season June and July. Most producers and market traders preferred non-moldy kokonte, although many would consume a moldy product. Like maize and groundnuts, kokonte is stored in jute sacks and infestation by weevils is very common. Akowuah et al. (2015) also report that farmers and traders had no knowledge of aflatoxin and that traders reasoned that eating contaminated maize has no health effects because the maize is processed and cooked thoroughly during meal preparation.
3.2.2.3 Pricing
Pricing of agricultural produce is largely dictated by supply and demand. Farmers may price produce based on production cost plus a mark-up. However, the price received is based on bargaining with traders at point of sale. From farmers’ perspective, traders collude to dictate prices in a normal season. However, in times of scarcity when farmers or sellers should have an upper hand in bargaining for price, information asymmetry in favor of traders gives the latter stronger bargaining power. New production and marketing arrangements involving, for example, nucleus farmers and aggregators give room for price negotiation between producers and buyers. See section 3.3 for details of arrangements that are working in Ghana and elsewhere. These arrangements involve contracts which allow renegotiation when negotiated price falls below price prevailing in the open market (e.g. Savanna Marketing Company and soybean farmers). The essence of renegotiation is to reduce side-selling by farmers. The new developments are driven by the desire of off-takers to have quality produce (e.g. soybean processors) in right quantities, and the efforts of development projects (Northern Rural Growth Project, ADVANCE- USAID, Market Development for Northern Ghana), towards facilitating market access for smallholders.
3.2.2.4 Grading and Use of Standard Measures
Standardized grading of produce is rare in the marketing of agricultural produce in Ghana. Generally, grading in buying and selling is by appeal to the eye. Retailers are more concerned with sorting and grading than wholesalers. Typically, traders sort produce by size (small and large fruits of tomato or onion); type (variety, e.g. Bawku Red and imported onion varieties; parboiled and straight-milled rice) and source (imported and local rice; Burkina and Tono tomatoes). Grading by type and size is common in fresh fish marketing. Tropo Farms has 3 grades of tilapia based on size/weight. For fruits, grading is by whether the produce is fresh without signs of damage (due to for example, rot or bruises). Also, over-ripe fruit is likely to be sold at a lower price so it can be disposed of more quickly. Premium price for quality is rare or low. In Bolgatanga market, Navrongo rice, perceived to be of higher quality sold for GHC1 more per bowl than other types of rice. In the same market, tomato was sorted by variety but pricing was based on wholesomeness. There is therefore no incentive for grading at the farmer or wholesaler level. Generally, it is perceived that there is no price premium for quality; however, there is evidence consumers enjoy discounts on weevilled cowpea. Estimated discounts on cowpea prices in Senegal, Cameroon, and Ghana ranged from 0.17 to 2.3 percent of the average annual price per hole (Lowenberg-Deboer and Ibro, 2008, cited in Salifu (2012). Ghana Standards Board has developed grades for grains; maize for example has 5 grades based on quality characteristics such as level of contamination with foreign matter, mould,
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moisture content, discoloration, and malformed grain. However, these standards are used by only formal marketing agencies because their off-takers demand quality. The National Food Buffer Stock Company (NAFCO) has had bad experiences where farmers deliberately mixed chaff and stones with their produce. They have had to resort to buying from registered produce marketing companies who treat/condition the produce to the quality desired by the company for a commission. The perception of a major farmer association is that the procurement companies do not buy from farmers but rather from the market so farmers do not benefit from the guaranteed minimum prices offered by NAFCO. Despite Ghana having a law on the use of standard measures in trade, (Weights and Measures Decree (NRCD 326, 1975)), the use of standard measures in agricultural marketing varies along the marketing chain and for different products. Produce is generally sold by volume of various sizes - baskets, bowls, sacks, heaps, are examples of measures used by traders. The same measure may have different sizes depending on the level or point in the marketing chain. A bag of maize in a rural market holds about a third more produce than a bag in an urban market. Bags are sold by “bush weight”, which varies according to location. At the farm gate, where bags are typically filled by the traders or their brokers/agents, up to 170 kg of maize grain may be stuffed into a bag, which is sealed by having an extra piece of cloth sown on as a “cap”. At local assembly markets the grain is re-bagged (by the seller), reducing the weight of a bag to around 150 kg. Risopoulos et al (1998) report that in Techiman market, maize grain is bagged by the seller (in the presence of the buyer), which further reduces the weight of a bag to around 120 kg. (In measuring grain by the bowl, the grain is not only heaped, but the trader (buyer) wraps their hand around the bowl to hold more grain. The measures approach their true volumes in urban markets. In the case of yam, which is sold by the 100 tubers, at the farm gate the measure is 110 tubers; then at an assembly market, the measure is 103. The extra pieces are for costs incurred by the buyer. The rationale for using large measures at farm gate or in rural markets is to cover high transaction costs of going out to production areas where roads are bad, and risks of vehicle break down, theft, spoilage of produce are high. Grading and use of standard measures is accepted practice in export trade and in internal marketing with nucleus farmers, aggregator firms, industrial processors and institutional buyers such as NAFCO or World Food Program. Farmers, traders in the open market, and other stakeholders will need to be sensitized, incentivized and convinced about the benefits of grading and use of standard measures in marketing. The strategy will be to create awareness about the standards developed for agricultural produce, persuade farmers and traders to use the standards and follow with enforcement of the law. For exported produce the incentive for players to invest in quality and grading is access to the market; non-compliance is total rejection at the end market. For domestic market, incentive will be reward in a price premium for quality and access to large buyers. Therefore, standards can be enforced for produce delivered to institutions (schools, hospitals, security agencies, etc.) by limiting access to these buyers according to compliance with required standards. This will require close and honest monitoring by a relevant institution. Presently no institution is identified as being responsible for enforcing standards.
3.2.2.5 Packaging and Transport
Proper packaging can maintain product quality after harvesting and increase shelf life. There is no prescribed packaging for internal marketing of agricultural produce. Packaging is rudimentary and includes jute sacks for dry grain; plastic bags for fish and meat; re-used packaging
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material (e.g. plastic containers for oil); wooden crates for tomatoes; sacks for vegetables and cassava. The packaging is not labelled. The Food and Drug Authority is mandated to register packaging for processed food (imported and local). However, this service does not cover raw agricultural produce. Besides, the Authority is developing capacity to test and regulate packaging materials.
Produce for the export market are packaged in cardboard boxes with prescribed dimensions for fruits and vegetables. However, the packaging industry is not well developed. Poly Kraft, Ghana Carton and Packrite are the leading local packaging companies in Ghana. However, the large-scale growers, e.g. mango prefer to import packaging because of the lower quality of locally manufactured packaging (Zakari, 2012). Locally manufactured packaging has hand-folded corners, which are weaker than the heat-glued corners of imported packaging. Packages for exports are however labelled at the minimum with name/brand, type of produce and country of origin. In recent years packaging, may also have the Ghana Green Label to indicate compliance.
On transport, produce is head loaded, or transported on bicycles, push trucks or by motorized tricycles from farm to market or the home. Traders do not own transport; haulage on long distance is by general purpose trucks, and passenger buses. Traders of bulky produce such as yam, tomato, and cattle, jointly hire general-purpose trucks for transport service. Neither fresh meat nor fish is transported in cool vans; however, fresh fish may be transported frozen or chilled with ice (See interview notes with fish trader in Appendix 3). Transport charges vary according to distance and the condition of the road, which also determines the availability of transport services. Table 3.1 demonstrates that transport costs are lowest on major trading trunk roads even over long distances (Accra – Tamale; Kumasi-Accra; Kumasi – Tamale and Wenchi – Accra and Wenchi – Kumasi). As reported from Burkina Faso, poor road infrastructure exacerbates price volatility (Moctar et al.). The additional challenge traders and transporters face is the need to have full load in and out. Recently, tomato traders had to negotiate with transporters to agree to charge for partial load (Robinson and Kolavalli, 2008).
Table 3.1: Transport Costs on Selected Roads in May – June, 2011 Price/Mt Distance Cost GHC Route (GHC) (Km) (Mt/Km) Wench – Techiman 35.59 29 1.23 Kumasi – Ejura 60.16 98 0.61 Wenchi – Sunyani 53.29 97 0.56 Kumasi – Nkranza 60.16 150 0.40 Kumasi – Wenchi 46.28 155 0.29 Wench – Accra 88.98 427 0.21 Kumasi – Accra 46.28 272 0.17 Kumasi – Tamale 57.83 382 0.16
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Accra – Tamale 80.98 654 0.12 Source: Kornher and Asante (2016). 3.2.2.6 Market Information Services (MIS)
The purpose of an agricultural market information system is to create transparency and facilitate trading activities to the benefit of producers, traders and consumers. Market information includes prices (products and inputs/services), price trends and forecasts, sources of produce, production forecasts and critical conditions affecting production (forecasted weather conditions and its likely impacts), requirements of the market (quantities and quality), and policy information including quality requirements such as maximum residual levels of pesticides, and any events that could affect demand and availability of produce on domestic market. The frequency of production of specific data depends on the type of data and the frequency of change (e.g. price data change daily as compared to production data which change seasonally). Market actors in Ghana rely on various sources of information. Price information is the most common information sought by market actors. Farmers access price information from the market through other famers and traders. Traders also obtain price information from urban markets and collude to set prices in the markets - rural wholesale/assembly and urban market centres. These information sources and exchanges are informal. Traders and farmers access information from public and private market information service providers via open media. Information from these formal sources can be obtained on request but at a cost if the source is private. Trade associations (VEPEAG, GAPTO and LBTA) report that they support their members with market information. The range of information they provide includes supply and demand outside Ghana, and policies of importing countries on specific products (e.g. use of antibiotics for livestock; and approved pesticides and residual limits). The associations relay information concerning their trade or sector to members; such information is disseminated at workshops organized by public institutions and development organisations. Farmer organisations also access price information for their members. Farmer cooperatives of the Eastern Corridor under SEND-Ghana accessed information from Esoko, a private market information service provider. SEND subscribed the farmer groups on to the Esoko platform and this enabled farmer to receive alerts on price changes. There is an emergence of private market information service providers; these are discussed in section 4.4.
3.2.2.7 Stocking Practices
Stockpiling occurs with dry grains. The spatial distribution and storage behavior of farmers depends on the seasonality of production. Sales of produce by farmers is seasonal and peaks after harvest, only for food deficit farmers to repurchase produce at the end of the marketing year (GSS 2007; Chapoto et al. 2014). Therefore, stocks must be held by traders sometime and somewhere during the year to facilitate buy-back of produce by farmers (Kornher and Asante, 2016). Motives for storage by traders include speculation on high future prices, safety stocks by processors and traders to ensure supplies are available to meet demand of their customers, and aggregation stocks held over short periods by aggregators who mop surplus produce from farmers to supply to assembly markets and off-takers. Given the seasonality of production and prices, speculation on a future price increase is the most common motive for storage. Speculators would choose to provide additional storage as long as the marginal costs of storage do not exceed the expected return from storage in the subsequent
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period. Anticipated stocks, held in anticipation of a future change in demand, are a variant of speculative stocks (Minner, 2000). For example, rice traders in Ghana keep anticipated stocks for Christmas and Easter to satisfy the increase in demand (Kornher and Asante, 2016). Safety stocks are kept to cover late and inconsistent deliveries, (Kornher and Asante, 2016) and to reduce costs associated with downtime and loss of goodwill as a result of running out of stocks. The authors also report that safety inventories kept by processors would sustain production for 1 – 2 months. This means that processors need adequate warehousing (space and management of stored grain). Processing firms keep safety stocks. Small-scale traders at village and town level play an important role in aggregating or mopping up farmer surplus. As described in the section on marketing channels, aggregators buy larger quantities of produce from village and town markets and urban markets to supply institutional buyers such as NAFCO and WFP (Kornher and Asante, 2016). They therefore need to hold inventories for brief periods as they bulk the produce. Traders stock up maize from August to September (major harvest) and November to January (minor season harvest); these are the periods when prices are lowest. The pattern is the same for local rice, stocks of which build up between November and January and released between March and June. On the other hand, stocks of imported rice have less intra-seasonal variability8. Storage by farmers and traders over long periods of time is limited by poor or inadequate storage infrastructure, liquidity constraints, inadequate access to drying and cleaning facilities. An inventory of commercial post-harvest infrastructure identified about 18700 facilities, 70 percent of which are warehouses. The warehouses have rather low levels of utilisation due to lack of trust in them by farmers. The survey also inventory also includes 76 abattoirs meaning that only 36 percent of the 212 districts have abattoirs. In addition to inadequate numbers and low capacity utilisation, some of the facilities need additional enhancements such as drying platforms and cold stores. Also, the private storage facilities tend not to be registered, and the human resource also have little if any training in post-harvest management. Therefore, public policies and programs that encourage easy credit access from financial institutions to maize traders and farmers to finance stored maize or to hold maize stocks till the post-harvest season may be an appropriate means of promoting or encouraging maize storage among traders and farmers (Armah and Asante, 2005). In addition, owners of private infrastructure could be supported with financing guarantees for them to invest in upgrading their facilities. They can also benefit from technical and managerial training to enhance quality of their services. This is particularly important for the successful implementation of the warehouse receipts scheme for grains (cereals and pulses).
The handling (transport, storage and display) of fresh produce (fruits, vegetables, fish and meat) in internal marketing is especially problematic. There are no cold chains, no appropriate or adequate storage facilities nor special transport vehicles for fresh produce. About 20 to 50 percent of vegetables are lost before produce reaches the market because of exposure to the sun and heat, bruising through inappropriate transporting, absence of cold chain and poor packaging (GhanaVeg, 2014). Fruit exporters such as Blue Skies, BOMARTS, FMSL ITFC, VREL, and Golden Exotics have cold chain systems for the produce.
So, investments in cold chains, appropriate transport, awareness creation and training are needed for the internal fresh produce value chains. Public sector can facilitate access to investment
8 Kohner and Asante, 2016
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funds by private sector and support the latter to train and create awareness among the value chain partners. This will however be a challenge if marketing of the produce will continue to be dominated by open market traders.
3.2.2.8 Control of Market Entry
Unlike the assemblers and commission agents who act individually, wholesale traders in some urban centres organize themselves into associations around commodity trader associations (e.g. yam and cassava sellers, grain sellers, tomato traders, citrus sellers, etc.) under the leadership of “market queens” (Langyintuo, 2010). These are welfare associations but have strong influence in the marketing of produce through organization of transport, provision of information and most importantly, control of produce into markets in cities. Where traders are successful in forming an association, they have the power to collude to fix prices offered to farmers. This limits competitiveness of the market as it tilts market power in favor of traders. Box X describes the practices of itinerant traders and market queens in the tomato value chain in the Upper Region. This is typical of perishable produce including yam, plantain, cassava, onion.
There is no regulation on handling and transportation of produce, and the control of produce into market centres. MMDAs are responsible for providing market infrastructure, ensuring sanitation for which traders are taxed.
Box 1: Phenomenon of Trader Associations and Market ‘Queens’ The influence of trader associations in agricultural marketing is most evident in the marketing of tomatoes from the Upper East region. Actors in the tomato market chain in the Upper East region are farmers, sorters or packers, local traders, traders from urban markets in the South, market associations and market queens based in southern markets, the produce on the farm, brokers or middlemen between farmers and itinerant traders, loaders (load on- farm and off-load in destination market) and transporters/truck drivers. Buying at the farm-gate is largely by itinerant traders who then supply to wholesalers in urban markets in the south (e.g. Kumasi and Accra) on credit. Interpreters liaise between traders and farmers and although they are needed to bridge the language barrier, they function as agents for the traders and will bargain with farmers on behalf of traders. Farmers are dependent on them to access buyers from the south. This is one barrier to accessing the market by the farmer. ‘Usually, before the traders arrive, the interpreter would have done some homework, consulting his colleagues to find out where the tomatoes are ready so that he can take the traders straight there when they arrive on the scene’ (Adimabunyo, 2010, pg 76). Leaders of traders in urban markets are called ‘market queens’ and they have a lot of power relative to other actors in the chain. They control market supply by physically limiting the direct market access of farmers, and traders outside their associations. They also have a delivery schedule for the itinerant traders to deliver tomatoes to the market. These measures limit access to the larger urban open markets to only their members of the commodity traders’
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association. The rationale for this control is to avoid flooding the market with a perishable produce and driving down prices which will in turn reduce their profits. There are no storage facilities for fresh produce in markets so whatever is delivered should be sold. On the other hand, when prices at farm gate are rising towards the end of the season the market queens reduce the number trucks authorized to take tomatoes from the farms. Either way, the prices at farm gate do not reflect supply at that level. The situation has remained despite attempts to release the stranglehold of market queens on the tomato value chain. Awo provides examples of instances where tomato traders in Accra markets have thwarted efforts by public organisations to provide access to farmers to sell their produce in those markets. Traders associations provide a range of services to their members. These include organisation of transportation and negotiation payment terms; controlling the volume of supplies to avert risk of a glut. They impose delivery schedules so that itinerant traders can only discharge goods on specific days. They claim that control of supplies is needed because of the absence of storage facilities, and the need to maintain sanitation in markets
Source: Awo Adimabuno Martha (2010).
3.2.2.9 Tomato Marketing and Value chain9
Annual per capita consumption of fresh tomato is about 24kg and much of this is produced locally. Fresh tomatoes are imported during the off-season of about late November to May. Nevertheless, imports of processed tomatoes (mainly paste and puree) is high; the country is the second highest importer of tomatoes in West Africa, after Nigeria. In 2012, Ghana imported 95,000 metric tons compared to 147,000 metric tons of tomato imports by Nigeria. The key end market for Ghanaian tomatoes is the domestic market where the primary market segments are the open-air wholesale and retail markets and a much smaller, but growing, supermarket channel. Supermarket channel is dominated by imports due to the higher quality of imported tomato and longer shelf life. The average yield per hectare of tomato, under rain fed conditions, is 7.2 metric tons which is only 48 percent of attainable yield. Annual value of tomato output is about GHC135 million. Production has seen phenomenal growth and FAO data shows that between 1961 and 2013, Ghana had the highest expansion in area planted to tomato compared to neighboring countries of Benin, Burkina Faso, Togo and Cote d’Ivoire (Akudugu, 2015). However, yield growth has been low, increasing from 5.5 metric tons in 1961 to 8.1 metric tons per hectare in 2013 (an average of 0.9 percent per year). Farm size is less than 2 hectares per farmer and yields are low due to a number of factors including high incidences of pests and diseases, unfavorable rainfall patterns, high night temperatures, use of low quality seeds, poor soil fertility. Production is highly seasonal. Peak production is in the wet season when the incidence of pests and diseases tend to be high so yields are low. Even so, there is always a glut during this period with prices falling below famer expectations. The value chain actors are smallholder farmers, brokers/Aggregators, Wholesalers, Open- air/roadside retailers, supermarkets and small grocery stores, processing companies and institutional consumers/buyers. The dominant value chain is that for the open-air market which carries 80 percent of locally produced fresh tomatoes (Akudugu, 2015). Transactions between actors in this chain are informal. Product quality requirements are not sophisticated and there is no
9 Based on Akudugu (2015). Tomato Value Chain Profiling. Unpublished. MoFA/FAO
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enforcement of sanitary and phytosanitary standards in this channel. Transporters are the main services providers in the value chain but others are microfinance companies, extension services and tractor service providers. Middlemen (interpreters, brokers) are also very active in the marketing of tomatoes at the farm level (see Box 1). Farmers are not organized. Farmer associations are self-help groups that are not marketing oriented. As a result, they have weak bargaining power relative to other actors especially the brokers and wholesalers. The bane of producers in selling their tomatoes is the dominance by trader networks (Market Queens as discussed Box 2). This phenomenon is typical for fresh produce, including fruits and vegetables, yam, and cassava. Traders on the other hand do not trust farmers who tend to breach contractual agreements with traders because the farmers are always looking for a better price offer. Brokers/Aggregators act as a gateway of information between the wholesalers, small to medium traders, supermarkets and the producers. Brokers do not add any value to the product and only mediate in transactions between the producers and the buyers. The brokers/aggregators have well-established network of buyers and sellers. These are what Akudugu (2013) refers to as translators in the Upper East. Wholesalers buy the bulk of the produce from farmers and in some cases brokers/aggregators and supply the product to other wholesalers and retailers mainly in the open- air markets in large cities and towns. Supermarkets sell both local and imported fresh tomatoes and tomato-based processed products. This chain is the most regulated one in terms of quality, sanitary standards and supplier requirements. The supermarkets have more stringent requirements, including, longer shelf life (at least 1 week), timely and consistent delivery, quality certifications and direct supply from farms or ‘single point transactions’. The capacity of local producers needs to be built to improve their product quality and consistency of supplies since competition from imports is strongest in this channel. Small grocery stores are small convenience stores and kiosks that trade smaller volumes and offer less variety at relatively higher prices. Many of these stores have limited shelf space and do not offer full range of fruits and vegetables. Key processing companies are currently out of operation because of strong competition from imports, high prices of tomatoes, inadequate supplies and unsuitability of varieties for processing. Smaller processing firms (Tip Top, Tomafresh) are in operation but on smaller scale. They prefer to collect fresh tomatoes from farmers using a schedule that ensures consistent and sufficient supply from growers. Therefore, the firms sign contracts with FBOs ahead of harvesting. Institutional buyers are the schools, hospitals, restaurants, and hotels. These get their supplies, especially processed tomato products from aggregators. These end-buyers demand high standards and consistent supplies. Therefore, the capacities of tomato producers and local processors need to be built so that they could produce to meet the sanitary and phytosanitary standards as a primary requirement in this market segment. Here too farmers need to be helped to establish relationships with buyers in this market so that they will produce to meet their requirements. However, unlike the value chains for soybean, maize, cassava and rice, there are no programmes to develop the chains. Missing services in the tomato (indeed vegetables) value chain are pre-cooling and cold storage facilities and services. There is no temperature controlled or fit-for purpose transport vehicles for agricultural produce in general. Besides, large-scale processing facilities that could
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help reduce post-harvest losses by mopping up farmer produce, are not in operation. There is need to upgrade the wooden boxes, which are large and heavy, to lighter and smaller plastic boxes. Traders are unwilling to do this upgrading despite being involved in assessments of the plastic boxes. Ghana operates the unified extension system therefore there are no extension agents specialized in vegetable production (and for that matter, other crops or livestock). Though farmers generally have limited access to funds from formal financial institutions, vegetable farmers who invest in greenhouses and drip irrigation equipment can enjoy up to 50 percent of the value of the investment as matching grant under the Export Development and Agricultural Investment Fund.
3.2.2.10 Livestock Marketing
Livestock traded in Ghana include animals of all species and breeds cattle, sheep, goats, pigs and poultry. Most of the cattle traded in the country originate from northern West African countries such as Burkina Faso, Mali and Niger. The imported ruminants ranged from 8,891 to 21,131 cattle, 6,594 to 16,738 sheep and 4,498 to 16,953 goats from 2007 to 2013. A total of 16,953 ruminant livestock was imported in 2013 (VSD, 2014, in MoFA, 2016). Traders also obtain supplies locally from livestock owners and primary collection markets; these traders either retail the animals in the village/town market, or sell to other traders who buy and transport them to the urban or coastal markets. The large amount of capital required for such transaction and transportation of the animals constitutes a relatively big capital outlay which restricts competition in the livestock import trade (Oppong-Anane, 2012). There are also poultry traders who go to farms and buy spent layers and eggs in bulk for to sell to retailers. However, these traders are not well organised. The marketing of birds by traders is done in the open market. Pig traders have well established market channels and outlets with end consumers (MoFA, 2016). They usually buy from farmers by the herd and prices are determined by bargaining on the size of the herd. The marketing of meat involves wholesalers who are either butchers, importers (who are also cold store operators). Operators of cold stores deal in dressed and cut up portions of beef, mutton, goat meat, pork and chicken. Retailers of meat involve butchers and farmer distribution outlets mainly for dressed and portioned birds. Other retailers sell live birds in open markets, on table tops and in small cold stores (Oppong-Anane, 2012). Supermarkets distribute imported meat as well as milk and dairy products. Other smaller players in the meat market are smallholder retailers in market places, fuel stations and mobile vendors (MoFA, 2016). Regulators in the livestock sector are: The Veterinary Services (for imports and exports, and internal movement of livestock); Food and Drug Authority for meat inspection with the VSD. The MMDAs are responsible for providing abattoirs.
3.2.2.11 Marketing of Fish from Aquaculture10
Ghana obtains fresh fish supplies from fish farming, marine and inland water fishing activities. The marine and the inland fish resources are the main sub-sectors. The Volta Lake is the major source of fresh water capture fish in the country. Fresh water aquaculture, part of the inland fisheries activities is a rather small component of the fisheries subsector. The average contribution of the three sub-sectors for 2013 and 2014 are about 71 percent, 20 percent, and 9 percent for
10 This section draws from Awity, 2015
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marine capture, inland capture and farmed fish. Therefore, aquaculture sector needs to grow given increasing demand for fish, declining fish resources both marine and inland, and environmental concerns. The rest of the value chain description of the fish value chain is focused on aquaculture. The marine sector is discussed in relation to laws and regulation. In aquaculture, fish is produced in earthen fish ponds, pens and cages. The farmed fish value chain includes large and small scale farmers. The large-scale fish cage farmers who are almost organized vertically. They produce seed, cultivate the fish, freeze the fish, and market themselves. The smaller scale farmers display a mix of vertical and horizontal management forms, involving sourcing of seed/fingerlings, feed. The farmers may sell their fish through outlets in town themselves, or through fish mammies at the farm gate. The regulators in this market are the Ministry of fisheries and Aquaculture Development, the |Fisheries Commission (regarding imports and exports, Illegal, Unreported and Unregulated fishing (IUU).
3.2.2.12 Agricultural Input11 Markets
The agro-input chain involves importers, wholesaler (dealers), retailers and farmers. Table 3.2 shows the numbers of registered importers and dealers in 2017. Table 2 gives an indication of the size of the relative sizes of suppliers in the market.
Table 3.2: Distribution of Agro-input Dealers Number of Registered Input Number of Importers Dealers Fertiliser 6 1500 Agro-chemicals (other than 6 4850 fertiliser) Seed 8 4225 Machinery and equipment Not available Not available Source: Ghana Agriculture Input Dealers (Personal communication, 2017) The regional distribution shows higher concentration in Ashanti, Brong Ahafo, Western and Eastern regions. This is probably due to the concentration of cocoa in these areas. For access proximity to dealers is important. So, we use the numbers of dealers in 2017 and the 2009 distribution to estimate the density of dealers in each region, based on land area of the region (Table 3.3). The Brong Ahafo, Northern, Upper West and Volta have less than fifty dealers per square kilometer while Ashanti and Greater Accra have more than 100. The sector has however expanded tremendously in all regions, with density doubling in all the regions. Table 3.3: Regional Distribution of Agro-input12 Dealers Density of Density13 of Percent Agro- Regional Agro- Agro-input Agro-input Change in input distribution input Region dealers dealers density dealers (Percent) dealers (2009) (2017) (2009 - (2009) Dealers/region (2017) Dealers/Km2 Dealers/Km2 2017)
11 Information was not available from GAIDA for machinery and importers and equipment dealers 12 Includes fertilisers, other agrochemicals and seed
13 Density is based on land area of each region reported in MoFA’s Agriculture Facts and Figures
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(GSSP – IFPRI 2009)
Ashanti 851 24.85 2628 35 110 215 Brong- 503 14.69 1553 13 39 207 Ahafo Central 176 5.14 543 18 54 202 Eastern 400 11.68 1235 21 65 214 Greater 98 2.86 302 30 101 234 Accra Northern 359 10.48 1108 5 16 214 Upper East 219 6.38 676 25 75 203 Upper 97 2.83 299 5 17 224 West Volta 195 5.69 602 9 29 206 Western 527 15.39 1627 22 68 209 Total 3,425 10,575 Source: GSSP-IFPRI (2009); GAIDA (2017); MoFA (2012) Dealers and retailers may stock seeds, pesticides, knapsack sprayer, farming tools and fertiliser. Therefore, appropriate storage environment is required especially for seed, fertiliser and pesticides. But this is not the case especially at the retail level, where agro-chemicals are distributed alongside general merchandise with no cooling in the shops. Dealers usually provide over the counter advice to farmers but may also provide on-farm demonstrations where necessary. There may be trade credit between actors but this depends on individuals and trust relations. The Ghana Agricultural Input Dealers Association (GAIDA), are members who are registered for the trade. However, there are many unregistered dealers in agro-chemicals. The main benefits of GAIDA to its members are, increased bargaining power with suppliers and customers; ability to get loans from financial institutions with favorable conditions; free flow of information, especially on prices among dealers, capacity building through training on proper chemical handling and usage so as to be able to provide advisory services to farmers and pest control service providers. Challenges confronting GAIDA mostly relate to trading practices of input dealers, inadequate enforcement of regulations, large numbers of unregistered members, and low human resource capacity of members as most players are illiterate. Input suppliers adulterate produce or import fake products and products with inadequate labelling (only in French or Arabic). Importation of unregistered products is also rampant. The requirements of regulators are too heavy because multiplicity of registrations are required; e.g. separate registration of the dealer and products. This could be the reason for dealers’ being unwilling to register. Regulators of the agro-input market are EPA (pesticide registration, imports) and PPRSD (training on pesticide use and seed). Inadequate logistics impedes proper enforcement of laws. Yet, GAIDA is not permitted to regulate its members.
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3.2.3 Performance of Agricultural Markets
Theoretically, the indicators used to assess market performance are price variability, and market integration reflected in the speed of price transmission. Here we also include interceptions in exports of fruits and vegetables as an indicator of performance of external agricultural markets.
3.2.3.1 Price Variability Prices of raw agricultural produce are characterd by strong seasonal variation and occasional price spikes at the end of the season which can be attributed to inadequate storage facilities and traders running out of stocks (Kornher and Asante, 2016). While price variability is a reflection of the seasonal nature of production, its magnitude also indicates the extent to which the market is able to deliver time value by distributing supplies through storage and processing/preservation. Traders hold the largest share of stocks (Speculative and safety) therefore trader stocking behavior can affect the market dynamics. Traders avoid carrying stocks into the next season because of high risk of making losses. High seasonal price increases often reflect high real transaction costs that are related to physical infrastructure, and price dispersion across space and time. However, seasonal prices increases are also necessary to make storage profitable, given the high costs of storage and transportation. Although there are no benchmarks for acceptable levels of variability, available data on price variability of agricultural produce in Ghana have magnitudes of 60 percent to more than 100 percent between minimum and maximum prices. Kwadzo and Srofenyo report that maize prices can vary by up to 67 percent around minimum seasonal prices or 45 percent around mean prices (Kornher and Asante, 2016). Maize prices vary the most in Table 3.4. Table 3.4: Percent Difference about Mean Maize Price Commodity Maximum difference Minimum difference Maize 20 -25 Millet 5 -6 Sorghum 5 -5 Source: Derived from Kornher and Asante, 2016 Prices recorded at Bolgatanga market show differences in the degree of variability of produce (Table 3.5). Millet, sorghum and beans vary much less than groundnut, beans, yam and onion; the latter two are very perishable produce. The high variability in groundnut prices is that the off-season produce is much dryer and preferred to the wetter produce at harvest. Rice prices tend not to vary during the season and rather have inter-year changes, driven by import prices and exchange rate movements. Table 3.5: Produce prices in Bolgatanga Market Modal Retail Prices (GHC) Modal Wholesale Prices (GHC) Item (Bowls) Main Off percent Main Off season Percent season season differenc season difference (Aug – Oct) (Apr – Jul) e (Aug – Oct) (Apr – Jul) Groundnut 7 11 57 6.5 10 54 Millet 4 5 25 3.5 4.5 29 Maize 3 4 33 2 3.5 75
21 SITUATION ANALYSIS OF AGRICULTURAL MARKETING ACTIVITIES AND RELATED INSTITUTIONAL ARRANGEMENTS IN GHANA
Sorghum 3.5 4 14 3 3.5 17 Beans 4 5 25 3 4.5 50 Yam (3 Tubers) 5 12 140
Onion (Rubber 10 25 150 9 22 144 Container) High Quality Local 10 10 0 9 9 0 Rice (bowl) Low Quality Local 8 8 0 7.5 7.5 0 Rice (bowl) High Quality 12 12 0 11 11 0 Imported Rice (bowl) Low Quality 10 10 0 9.5 9.5 0 Imported Rice (bowl) Source: Bolgatanga market, June 2016
There are also inter-annual price variations caused by supply or demand shocks. This is illustrated by with maize prices. Between 2006/07 and 2011/2012 crop years, prices declined between 15 percent and 34 percent (Amanor, 2012). The author concludes that there is a need for storage systems (at the farmer level) to stabilize seasonal prices. However, farmers sell maize soon after harvest because they need cash; therefore, some financing is needed to complement storage. This is the basis for inventory credit and the more advanced warehouse receipt scheme being piloted by the Ghana Grains Council (see section 3.3.3).
3.2.3.2 Spatial Integration of Markets
Spatial integration of producing (rural) and consuming (urban) agricultural markets is used to ascertain the efficiency of the marketing system. This section is based on research publications on market integration in Ghana.
Most studies on market integration on agricultural produce markets in Ghana report swift price transmissions from a central market (production or assembly) to a local market (Abdulai, 2010). However, high transportation costs (due to poor infrastructure), behavior of traders (commodity price speculators) in stock releases, collusive behavior of traders (e.g. market queens and price setting), and market entry barriers imposed by trader association impede full market integration (Abdulai, 2000 & 2010; Quaye and Ameleke, 2008; Cudjoe et al. 2010, Amikuzuno, 2001; Langyintuo, 2010). Amikuzuno and Ihle (2010) assess market integration in Ghanaian tomato markets in Navrongo, Techiman, Kumasi, Tamale and Accra, using a price transmission framework. The researchers find price transmission to be fast, suggesting that integration between the five markets is strong. According to the research findings, disequilibria mainly trigger price responses in the two production regions of Navrongo and Techiman and spillover to the other markets.
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An earlier study of yam market by Amikuzuno (2001) found the price transmission between Tamale (producer market) and Accra (consumer market) was slow but that the markets were integrated in the long-run. Amikuzuno also found that transport charges negatively influenced integration between Accra-Bimbilla and Tamale-Zabzugu markets.
Ankamah-Yeboah (2012) used regional monthly wholesale price data from 2002 – 2010 and applied the threshold autoregressive model to assess integration of maize markets. He found bi-directional market interdependence between market pairs both in the short and long run, consistent with findings of other studies. Ankamah-Yeboah also reports that recent expansion in communication infrastructure has enhanced the regional market integration. This is consistent with Egyir et al. (2013), who found in their study of the efficiency of maize, groundnut and yam markets, that price transmission between markets in the Eastern Corridor and Accra was 6 percent faster in the five-year period after farmers were introduced to ICT market information service in 2006 than the period before.
However, the literature also points to asymmetry in price transmission due to activities of traders. Traders in Accra are slow in passing on price increases in the central market for fear of loss of goodwill and/or loss of customer share given the multiple sources of supply of buyers; stocks are adjusted to either boost or dampen prices; that is, traders respond quickly when market margins are squeezed (prices falling) than when stretched (prices rising) for all market pairs except between Brong Ahafo and Greater Accra market pairings (Ankamah, 2012). The behavior of tomato traders in Box 1 (section 3.2.2.8) illustrates this.
Performance of agricultural markets is good but can be improved. Seasonal price variability is high especially for perishable commodities, and is amplified by poor infrastructure such as roads in production areas get even worse during the rainy season. Price of rice, millet and sorghum have low variability as storage of these for speculation purposes is low. The marketed surpluses of millet and sorghum is low while rice is dominated by imports and trader motivation for stockpiling rice is for meeting demand increases rather than price increases as is the case for maize. Agricultural commodity markets are integrated with prices between market pairs responding to shocks. However, price transmission is slow or asymmetric because of trader strategy to protect their market share by not fully transmitting price shocks that increase their margins. Trader practices such as control of product flow, control of entry into markets, and price collusion keep the markets from being competitive.
3.2.3.3 Quality of Exports
Despite of the high level of pesticides, the quality of exports of fresh vegetables to the EU have fallen short of desired standard. There has been high incidence of interception of vegetable exports to the EU due to the presence of pests (trips, white fly and fruit fly among others) on vegetables exported to the EU. Notifications to Ghanaian authorities from EU about pests in vegetables exported to the EU increased from 40/year in 2008 to 236 by July 2014. By August
23 SITUATION ANALYSIS OF AGRICULTURAL MARKETING ACTIVITIES AND RELATED INSTITUTIONAL ARRANGEMENTS IN GHANA
2014, the Ministry of Food and Agriculture had to temporarily ban vegetable exports. Maden and Koomen cite studies which have reported high residual levels of pesticides in vegetables.
3.3 Value Chain Upgrading Stakeholders in the agriculture sector have recognized the need to upgrade the country’s agriculture value chains from the informal to formal sector. Efforts are geared towards strengthening all actors, particularly the smallholder farmers, aggregators, inputs and service suppliers to perform their roles to deliver quality produce for growing sophisticated end-users (middle income consumers, domestic industrial food and beverage processors, and exporters). The drivers of these institutional innovations for a modernized marketing system are: - Growth in agro-processing firms who need large quantities of quality produce delivered on time - Increasing demand for quality to access export markets which requires closer relationship between the buyer and the farmer. - Piloting of value chain enhancement projects by MoFA and development partners (ADVANCE, NRGP, MOAP, OVCF, and MADE).
Partnerships between farmers, aggregators, processors and off-takers (processors or exporters) are being created to promote the pursuit the common goal of developing the value chains for the realisation of individual interest in profitability, growth and sustainability. These arrangements have evolved from private sector (e.g. maize and soybean milling, cassava processing into starch and flour). The MoFA and MoFAD have also initiated outgrower schemes as pilots toward developing value chains particularly livestock and fish. As shown below, partnerships are governed by formal contracts and standards (quality and measures). This section presents some of the partnerships successful and emerging partnerships.
3.3.1 Soybean Value Chain Upgrading Soybean production is driven by Ghanaian poultry industry. The size of Ghanaian commercial poultry production is pivotal to accurately assessing the volumes of imported soybean meal (and feed concentrates). Domestic soybean processing is meeting roughly 45,000 MT of the soybean meal demanded with the balance imported as soybean meal or feed concentrate (containing partial protein requirements). Soybean meal is a high-quality protein, which makes up between 20 percent and 28 percent of a poultry ration. It gives better quality eggs and meat. In Ghana, most of the poultry farmers use fishmeal as a percentage of required protein in a poultry ration. This leads to a fishy odor and flavor in eggs and the poultry carcass.
The soybean value chains are the soybean meal and products such as dawadawa, soy meat and soy milk. These three products are produced on small scale and can be classified as household or artisanal processing. They consist of farm households, local aggregators, regional aggregators, household or micro-processors and medium to large scale processing enterprises (of soybean meal/cake, flour blends, and oil). Enablers in the chain include input dealers, financial institutions, research institutions, and providers of warehouse and extension services. Various NGOs operating in most parts of the savannah belt also facilitate the soya value chain.
24 SITUATION ANALYSIS OF AGRICULTURAL MARKETING ACTIVITIES AND RELATED INSTITUTIONAL ARRANGEMENTS IN GHANA
Figure 3.6 illustrates the generic/informal soybean value chain. The main components are production, marketing, processing, utilisation of processed products, provision of inputs (seed, inoculum, fertiliser) and services (tractors, financial, extension). Farmer groups, NGOs, development projects facilitate the activities especially at the farm level. The relationship between the actors, especially up the chain, is very informal and actors are independent of each other. This implies that standards of quality and measures are not applied. This applies up to the local or district aggregator level. Actors beyond this point apply standards as the off-taker (processing firms) demand quality and only deal in standard measures.
Producing household retain less than 10 percent of annual soybean production so the soybean meal channel is the dominant. It is depending on domestic poultry industry. Crude soy- oil and refined oil are by-products from processing meal.
The soybean value chain is a focus of attention by NRGP and ADVANCE. NRGP promotes value chain committees and outgrower schemes linked to aggregators and off-takers (large scale processors) in BA and Ashanti.
Figure 3.7 illustrates the partnerships being developed among the soybean value chain actors to strengthen the chain. The network involves more than producers, traders and processors, and illustrates the types of services and facilitation that a value chain needs to build a self- sustaining trading system. In the network, several small farmers are linked to processing companies (the market) through Kharma Farms (nuclear farmer who purchases and aggregates the output of smaller farmers). The smaller farmers receive inputs (seed, agro-chemicals and mechanisation services) from the service providers through the nucleus farmer. The arrangement ensures that farmers produce the desired quantity and quality. Business development services and credit are brokered for the input and service providers and the nuclear farmer. This network is expected to be more efficient than the traditional trader gathering system because it reduces transactions costs, while improving access to inputs and buyers of the produce; buyers benefit from the higher certainty of supplies and quality of produce.
The sustainability of such a network depends on whether parties are satisfied with the net benefits. Scalability of the arrangements also depends on the availability of facilitators such as the ADVANCE project or the Northern Rural Growth Programme (which has engaged the IFDC to provide technical assistance and facilitate the field activities). Facilitation of these networks involves investment of public funds which is a policy issue.
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Figure 3.6: The Soybean Value Chain (informal)
-Grinders
- processing -Sacks -Electricity
-Land machine - moisture -Machinery INPUTS -Seed testing kits - Soybean -Soy milk
-Labour - labour - skilled HR -Soy meat
- Soybean for (“khebab”)
Weedicides Households and -Soy flour
-Inoculum Micro- -Dawadawa ACTORS -Fertilizer enterprises
-Soy flours -Soy milk Local Oil Mills/ Domestic Farmer ENABLERS & Aggregators of Regional Processors Refined oil consumptio SERVICE PROVIDERS soybean Aggregators of soybean n of soybean Crude Paint - oil producers Financing -Financing -Tractor -Financing Poultry -Transport service Meal/Cak -Research -Transport service and -Warehouse service e Source: Al-Hassan (2015).- Soybean Value-Warehouse Chain Cluster service Development. MoFA/FAO livestock -Solvent extraction Extension -cleaning & moisture testing technology - kits - quality control Tarpaulin
s Key = Inputs = Services = Output
Figure 3.7: Feed the Future Initiative – Kharma Farms14
USAID USAID Royal Denemac 3 K & A Golden Web ADVANCE ADVANCE Market Linkages Agro BDS One student One Sales Sales Sales Mechanization Sinapi Aba Savings Credit
& Loans John Deer
interim KHARMA FARMS
Ganye Agro- Heritage Seed Fertilizer & Chemicals Seed Weedicide
Outreach on Services Sale s Supplies seed strategy and inputs Training & Promotion 1,700 Chemico Ghana USAID Out growers Ltd, Kakyeri ADVANCE Training on GAPS Agro-Chemicals
Input Linkage
Key
Product Inputs Capacity Credit
14 Adapted from ADVANCE, Tamale (2014) 27
In innovative market arrangements in the maize sub-sector, aggregators operate on a much larger scale; they buy from collectors, large scale farmers, nucleus farmers and FBOs and supply to a variety of buyers (urban wholesalers and retailers; public sector organisations, the Word Food Programme; poultry farms that produce their own feed, as well as industrial food processors). In this system, there are some level of contractual relationships between parties. Similar types of this model are in operation or have been piloted for rice, sorghum, oil palm, mango and pineapple.
3.3.2 Rice Value Chain Upgrading15 Rice output in 2014 was 604,000 metric tons having increased from about 470,000 metric tons in 2011. The average annual output between 2009 and 2014 was estimated at 48 percent of annual requirement (MOFA, 2014); this has since increased to 56 percent. The growth in output is due to increase in area planted as well as improvements in yield. Ghana is therefore a large importer of rice.
The rice value chain actors are farmers, aggregators, processors, traders and consumers or end users. The marketing channels for paddy and locally milled rice are similar to traditional marketing system described for soybean, tomatoes and maize in this report. Imported rice has a shorter chain with the actors being importers, wholesaler and retailers with transportation services.
As with the traditional chain, rice is distributed throughout the country through independent marketing and distribution networks; that is there are no formal linkages between the actors. Ayambila has identified different innovative business models of value chains. The models aim to address the challenges limiting the growth of the value chain, including access to inputs, mechanized services, extension, finance and market by smallholders; access to adequate supply of quality paddy for processor; reduced side-selling by farmers; supply of high grade milled rice to high-end markets.
The first model is led by a processor who is a private investor that leads in organsing and establishing nuclear and outgrower schemes. The processor invests in a plant that cleans, mills, grades and packages the rice. The investor links rice farmers to identified banks, inputs suppliers and service providers. It also facilitates access of farmers to certified seed of the preferred variety and mechanized services for farmers. The processor also uses the public extension officers to provide technical support to the farmers. All these services are backed with a formal contract with farmers who are required to supply the output of paddy rice to the company. The company also has contract with identified super markets restaurants to supply first grade rice; it also has contract with Ghana School Feeding Programme to supply second grade rice to schools (Figure 3.8).
The chain is governed through value chain committees comprising of leaders/representatives of all the actors in the value chain. Together the farmers and processor agree on competitive prices to avoid side-selling, which reduces the risk of underutilized processing plant capacity.
15 Drawn from Ayambila (2015). Rice Value Chain Profiling. MoFA/FAO Unpublished report 28
All financial transactions are conducted through the banks and farmers are provided inputs in-kind while funds are disbursed through the accounts of beneficiaries. This is to reduce loan default rates, however it does not prevent farmers from side-selling. Figure 3.8: Rice Value Chain Partnership between SAVBAN Company-Global Agri- Development Company (GADCO)-Copa Connect
services Financial Banks
services l Financia
Processor Grade 1 Padd FBO (SAVBAN) Supermarkets y (Farmers) (Mills and Graded and restaurants rice Contrac package) Grade 2 t Ghana School
services Feeding
Inputs
l Technica Programme Extension, NGOs, (GSFP) Input suppliers and Development Source: Ayambilaagencies (2015) The second partnership model is led by Savanna Farmers Marketing Company (SFMC), a large produce aggregator in northern Ghana. SFMC buys and sells grains including maize and sells to off takers and processors. In doing so, the company: i) facilitates marketing of agricultural produce as an aggregator; ii) buys and sells to bigger markets and operators downstream of the value chain; iii) purchases grain (maize, rice and soybean) from the 3 northern regions; and iv) works with FBOs to guarantee supply. SFMC signs agreements with farmers; it does not pre- finance FBOs but facilitates access to loans by FBOs and therefore channels all transactions through those banks. Recovery rates for partner banks is high.
Nevertheless, SFMC still experiences breaches of contract by farmers. The company also has challenges with respect to transportation and working capital.
3.3.3 Maize Marketing and Value Chain Upgrading
The main economic agents in the maize output market in Ghana are collectors, aggregators, processors, exporters as well as poultry farmers. Collectors buy maize directly from farmers at community level or at the local market place and usually retail to domestic consumers, food processor or itinerant traders/aggregators. Aggregators operate on a much larger scale as they buy from collectors, large scale farmers, nucleus farmers and Farmer Based Organisations and supply to urban wholesalers and retailers; institutions such as the prisons, educational institutions and the
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school feeding programme, poultry farms as well as industrial food and feed processors. Aggregators vary in size from market queens to companies. There is usually no binding relationships between the small community level collectors/traders and aggregators. On the other hand, the large scale, high quality maize off takers and processors have networks of aggregators, as well large scale and nucleus farmers that supply maize to the firms. For example, Yedent is supplied by the Savannah Marketing Company in Tamale as well as aggregators from in the Brong Ahafo region; similarly, Premium Foods buys maize from aggregators in Brong Ahafo, Ashanti and Upper West regions. Other off-takers with network of suppliers are Nestle and WFP16. Below are some of the partnerships in maize value chain.
The input supplier model is led by Wienco/Yara and linked to Masara N’ Arziki, an association of maize farmers. Masara i) facilitates mobilization of farmers into associations; ii) provides extension and training for members of its associations; iii) provides input suppliers’ credit to farmers. Farmers repay for inputs with maize. Transactions are based on written contract with farmers, enforceable in the law courts. Masara in turn buys the rest of the maize from farmers and supplies these to poultry farmers, industrial food processors, World Food Program and traders in the open market. Challenges facing Masara are, low maize yield (a third of potential of 60 – 80 50kg/ha) despite the high quality input and close monitoring; and diversion of inputs or produce, or both. There is therefore opportunistic behavior among farmers as experienced by aggregators on the soybean value chain. Programme managers are addressing these challenges from three angles. There is shift from group-based support to support to individual farmers; farmers with potential are being identified to grow them to commercial farmers; farmers are being introduced to conservation agriculture to reduce input use and focus on soil and land management as a way of reducing expenditure on agrochemicals.
The processor-led model involves Premium Foods, which processes grains, especially maize into grits, fortified maize meal and supplies to a variety of markets, including the breweries, the School Feeding Program, Ministry of Health, the World Food Program, and Nestle. In doing so, Premium Foods buys maize from a mix of aggregators as described above. The company also runs an outgrower model that revolves around risk sharing as a motivation for smallholders to deliver supplies to the company. The farmers are allowed to choose their most crucial input or service need to be provided by the nucleus farmer. Premium Foods serves as an input provider and supplies fertiliser to the nucleus farmer for his outgrowers (about 600). The selected nucleus farmer also provides ploughing services. Outgrowers provide all the other services and pay for the with maize. Outgrowers produced about 68 percent of 1900 bags produced in 2014 under this model.. Pricing is by 100kg and the sacs are provided by Premium Foods. The produce is collected during the harvesting season therefore Premium Foods has to have adequate warehousing both for the maize and the final products. Premium Foods now has a purchasing power of at least 20,000mt per annum and US$3 million in capital investments17. Another model is the Guinness Ghana Brewery – Premium (maize processor) – Scan Farms.
Guinness Ghana Brewery Ltd (GGBL) uses maize grits to produce alcoholic and non- alcoholic beverages. The minimum maize consumption of GGBL per annum is 6000metric tons, which would be semi-processed into 3000 metric tons of grits. GGBL has a 3-way relationship
16 Afenyadu (2015). Maize Commodity Value Chain Profiling MoFA unplublished. 17 Afenyadu (2015). Maize Commodity Value Chain Profiling MoFA, unplublished 30
with Scan which supplies maize to Premium Foods to process maize grits for GGBL. GGBL facilitates and coordinates both the delivery of the raw maize to Premium Foods as well as the grits from the latter at pre-determined agreed prices. The brewery also provides technical services to Scan Farms to assure quality. With GGBL as a guaranteed off-taker, Scan farms, is able to secure offshore loans at minimal interest and short term loans locally to offset some recurrent expenditure18. Box 2 describes the role of World Food Program in building the value chains of maize, rice and cowpea
Box 2: WFP’s Support for Grains Value Chain Upgrading The World Food Programme (WFP) purchases locally produced food staples from farmers in the Ashanti and Northern Regions. The organization’s Purchase for progress programme (P4P) aims to increase smallholder farmers’ income, reduce poverty, hunger and malnutrition. WFP supports only producer groups and has trained these farmer groups on P4P forward Contracts and the important components of the post-harvest management in the value chains for rice and beans. Farmers are also trained in technical, business and organizational development, and how to get access to profitable markets. An important component of the WFP intervention is making farmers aware of warehouse practices, grading and storage that would enable them to deliver their produce to the Ghana Grain Council certified warehouses and how to use deposits as collateral for loans from banks under the Warehouse Receipt System. WFP has also provided farmers with rice reapers, rice threshers and tarpaulins to enhance the quality of paddy. Through their participation in WFP procurement processes, farmer organisations have built skills to access more remunerative markets. 3,000 metric tons of food were purchased by WFP Ghana during 2010-2014. The lesson from this support is that upgrading farmers in value chains should be comprehensive and involve all farmer activities in the value chain- farming, harvesting, storage, business development and accessing funds on commercial terms.
3.3.4 Cassava Marketing and Value Chains Upgrading19 Cassava production represents approximately 50percent of all roots and tubers output in the country. National production in 2012 and 2014 were 12.9 and 13.1 million metric tons of fresh roots. Most cassava is grown by small-scale farmers with small landholdings. At that scale of production, harvesting, and post-harvest handling are carried out with limited chemical and technical inputs. Cassava is grown in all regions of Ghana except the Upper East and Upper West regions; According to the statistics of MOFA production of cassava roots has increased by almost 40 percent from 2007 to 2011. In large part this is due to an increase in average yield per hectare of 26 percent over that period from 12.76 to 16.17 tons per hectare. The main planting season for cassava is during the rainy season from May to September. Cassava is harvested between March and October and the largest percentage of the cassava root harvest comes onto the market in the early part of the wet season (May to July). Approximately 50
18 Afenyadu (2015). Maize Commodity Value Chain Profiling MoFA, unplublished 19 Source of information in this section is Asuming-Brempong et al. (2016). Linking smallholder farmers to profitable markets: A case study of selected cassava value chains. Michigan State University and Syngenta Foundation 31
percent of cassava is either consumed or sold as fresh roots for production of Ghanaian staples at household level. About 1percent is used for industrial purposes. About 30 percent of mature cassava is unharvested (Onumah et al., 2008) due to insufficient demand, or likely weak marketing connections. Industrial use of cassava is key to enhancing the value chain. The possible industrial cassava based raw materials are high quality cassava flour (HQCF), high quality starch (HQCS), ethanol. These are inputs for breweries, plywood and textile industries, and the confectionary biscuit industry. Innovative partnerships are being developed in the private sector to upgrade the cassava value chain for industrial uses. The partnerships include: i. Guinness Ghana Brewery Limited (GGBL) – Ayensu Starch Company Limited (ASCo) – Aggregator (MAXPO Transport Services) – Smallholder farmers ii. Accra Brewery Limited – DADTCO-Ghana Limited –Smallholder farmers iii. Accra Brewery Limited – Caltech Limited – Smallholder farmers.
Through these partnerships, cassava product purchases by ABL and GGBL in 2013 and 2014 are presented in Table 3.6. ABL also purchased about 3000 metric tons of maize grits, valued at GHS4.3 mill in 2014. Table 3.6: Purchases of Cassava raw material by breweries Value Quantity (Metric tons) Company (GHS) 2013 2014 2014 GGBL 3527 7368 1105248 ABL 1214 795 488431 Source: MoFA 2015. Annual Progress Report, 2014 The partnership led by GGBL is illustrated in Figure 3.9. Guinness Ghana Brewery Limited (GGBL) uses cassava starch to produce its Ruut Beer brand. Less than 10 percent of its business and income is dependent on High Quality Cassava Starch (HQCS); even so this translates to a large ready market for fresh cassava roots. GGBL sources it starch from Ayenso Starch Company Limited (ASCo), which has an ultra-modern HQCS processing plant. ASCo also has a 200 ha cassava nucleus farm to supply cassava roots to the factory. ASCo receives funding support (about USD1 million) from GGBL for its operations, and sells 99 percent of its production to GGBL. GGBL has also brokered a partnership between ASCo and a transport service provider (MAXPO TS) for aggregation and haulage of fresh root from farms to the processing plant, allowing ASCo to concentrate on its business of processing HQCS. While there is no contract between MAXPO TS and GGBL, the partnership between the latter and ASCo is governed by a formal contract. The aggregation and transport services by MAXPO TS extends across the country. The partnership between farmers and the aggregator depends on the availability of roots and is therefore seasonal, but the transporter has informal agreements with sub-aggregators who help to assemble roots. GGBL is the innovator in this partnership largely because of its interest in assured quality and quantity of cassava starch. The partnership enables smallholders to access an industrial processor that supplies a high end market such as GGBL. The partnership demonstrates that smallholder farmers can have contractual relationships and deliver the needed quality if the
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market is assured, payments for their produce is timely, prices are set with consultation and logistics for moving the produce, especially a bulky produce like cassava, is available. The GGBL-ASCO partnership has been in operation since 2014 and Asuming Brempong et al. (2016) report that ASCO’s HQCS output is less than required by GGBL and this is also because ASCO’s utilisation of its capacity is only 6metric tons/day out of the 88 metric ton/day total capacity. What is not clear is whether the reason of the low capacity utilisation – availability of cassava roots or operating capital for the plant. Whatever it is, this is a weak link in the chain so farmers and ASCO have to increase cassava production or ASCO has to ensure it has the needed operating capital. Figure 3.9: Cassava Starch VC partnership between GGBL, ASCo, MAXPO TS and Farmers
GGBL
HQCS Payment of
HQCS of Supply
T
CONTRAC FORMAL Payment of cassava of Payment Supply of MAXPO TS cassava ASCo
cassava Payment of
cassava Payment for
cassava Payment for of supportSupply FORMAL
CONTRACT
cassava
cassava
Supply of cassava
Supply of support
Supply of cassava
FORMAL CONTRACT
Supply of cassava
FORMAL CONTRACT
OUTGROWER OUTGROWER NUCLEUS FARMER FARMER 1 FARMER 2
Source: Asuming-Brempong et al. (2016)
3.3.5 Livestock Value Chain Upgrading by MoFA
MoFA launched a livestock out-grower scheme to support pig farmers across the country with good breeding stock. One hundred farmers were selected in from each of the ten regions to serve as nucleus farmer to operate an out-grower scheme. These serve as centres for the production of breeding stock for supply to other pig farmers. At the end of 2014, 18 farmers had received 72 parent stock and 112 pigs were re-distributed to 28 other farmers.
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To improve hatchability and enhance guinea fowl production under WAAPP, 240 farmers in Northern, Upper East and Upper West Regions were trained and equipped with 40 incubators and 40 electric generators to serve as out-growers for the supply of keets to other farmers.
Ghana Broiler Revitalization Project (GHABROP) is a private sector led initiative. It has lead farmers who receive technical support from MoFA. Launched in July 2014 in the Ashanti and Brong-Ahafo regions, by end of the year, 300,000 broiler birds had been produced and processed at Darko Farms Limited and Yamoah Asamoah Processing Plant in Kumasi. Unlike the private-sector led value chain programmes the MoFA programmes for upgrading livestock value chains have not defined a market for the farmers. The market for the final produce drives the value chains so the MoFA outgrower schemes should eventually be upgraded further by identifying an off-taker who will work with the pig and guinea fowl farmers to build a win-win partnership.
3.3.6 Fish Value Chain and Upgrading
Ghana gets her fish supply from capture fisheries (marine and internal) and fish farming, which accounts for less than 9 percent while marine fishing accounts for about 70 percent of total fish supply in 2014 (FC, 2015). Most of the fish from capture fisheries is smoked by the fish mammies for the domestic market therefore there is not much demand for cold storage from this source. The smoked fish can be stored for over a year in traditional baskets. In addition, all fish importers need to show evidence of cold storage capacity before they are granted import licenses to import fish20.
Farmed fish, mostly Tilapia, is consumed fresh and its flow along the value chain is facilitated by chilling with ice blocks. The large commercial fish farmers have cold stores dedicated for storage of their own fish. Cold storage capacity is concentrated in the Accra-Tema area, with 85,789 and 92,968 metric tons in 2013 and 2014 respectively. In contrast, total storage capacity in four regions (Upper East, Upper West, Brong Ahafo and Northern) in 2015 was only about 4,120 metric tons21. What is generally lacking are blast freezers to quickly freeze the fish before they are packed into the cold stores.
Fish farms are generally located close to road networks or located in clusters along the Volta lake, therefore fish mammies who purchase the fish have easy access to the farms. The mammies do not use any specialized equipment in transporting the fish. Large baskets are lined with plastic sheets to carry the fish. Some commercial operators use polyethylene containers laced with ice to transport fish to marketing centres. Tropo Farms, which is a big commercial operator, has several refrigerated trucks to move fish from the cage farm to its marketing centre.
The Ministry of Fisheries and Aquaculture Development (MoFAD) has initiated the Nucleus-Out-grower and Input Support Scheme aimed at increasing fish output from fish farming. The target is to increase fish output from this sector from 38,547 metric tonnes in 2014 to 120,000 metric tonnes in 2017. Again this strategy does not have designated market for a high value
20 Awity (2015). Tilapia Agri-food Value Chain Cluster Analysis. Unpublished report, MoFA/FAO 21 Awity (ibid) 34
produce such as fresh tilapia. Such market linkage will be needed to accommodate the anticipated 2 fold increase in aquaculture output in 3 years.
3.3.8 Integrating Smallholders into Upgraded Value Chains: Examples from Africa
The dominance of smallholder production and informality of agricultural marketing and the associated problems of problems of with poor coordination, non-use of standards and poor quality assurance associated with smallholders is generally rife in Africa. Efforts are being made to address these problems because of their restraint on farmers’ access to markets. Some examples of successful interventions to integrate smallholders into value chains are discussed below. Together with the partnerships in Ghana discussed in section 3.3.1 – 3.3.7, lessons are drawn for policy. These African examples are from Nigeria and Uganda. This narrative is based on Studies by the FAO22 and a research paper on empowering communities through market – led development23.
3.3.8.1 AACE Foods Processing and Distribution Ltd in Nigeria AACE Foods, a start-up agro-processing company in Nigeria, has been successful in working with smallholders to process fruits, vegetables, herbs produced by small farmers in Nigeria. The company started with a developmental goal of addressing high malnutrition among children and reducing post-harvest losses. It also identified an opportunity to produce for the domestic market as 90percent of processed foods was imported. AACE Foods based its business model on processing and packaging nutritious and tasty foods with quality fruits, herbs and vegetables produced by smallholder farmers in Northern Nigeria. The company partnered with community groups and non-profit associations. The target market for AACE are institutional buyers, such as food processing companies, caterers, hotels, and fast food chains. It is reported that AACE has gradually displaced imports and improved its share of the domestic spice market. The partnership has been a success because in four years (2009 to 2013), AACE had sourced produce from 5000 farmers, 60 percent of whom were women. AACE has had to overcome the following challenges in engaging smallholder farmers in the beginning (Table 3.7). Table 3.7: Challenges of engaging with smallholders and solutions Challenge AACE’s Solution Unavailability of data on farmer groups/clusters and AACE accessed a grant from a donor funded business innovation facility and was their products, so the company had to conduct their able to engage Technoserve to conduct a supply chain study. Through this study, own research in order to find the farmer groups. the organization was able to identify clusters of farmers that could support its raw material requirements. Difficulty in reaching out to communicate with farmer AACE Foods linked up with IFDC field staff that support the key farmer clusters, groups to relay information about orders, pricing and payment terms Preference of farmers to deal in cash and to receive Used IFDC as an intermediary and guarantor to both parties, the smallholder payments for produce on the spot which was farmers accepted the company’s payment arrangement inconsistent with AACE Foods policy of paying 50
22 Ndidi Nuweli, Arona Diaw, Festus Kwadzokpo and Aziz Elbehri (2013). The role of the private sector and the engagement of smallholder farmers in food value chains: initiatives and successful cases from Nigeria, Senegal, and Ghana. In Rebuilding West Africa’s food potential: Policies and market incentives for smallholder-inclusive food value chains, Edited by Aziz Elbehri. FAO/IFAD Rome; Pg 187 – 209 23 J. Njuki, S. Kaaria, P. Sanginga, E. Kaganzi and T. Magombo (2008). Empowering Communities through Market led Development: Community Agro-enterprise Experiences from Uganda and Malawi
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percent up front and providing the balance about a week later, upon delivery of produce Low regard for produce quality standardization and use Over time, through periodic meetings to sensitize farmer groups on company’s of standard measures expectations on standards Farmers were encouraged to purchase scales and link prices to standard weights (e.g. per kg). AACE trained the farmers on cleaning and sorting practices. Farmers receive premium prices for higher quality output. Source: NUWELI et al. (2013) 3.3.8.2 Empowering communities through market – development: Application in Uganda
Cases on the application of the approach of empowering communities through market – development are reported by Njuki et al (2006) for Uganda and Malawi. It is an approach to community agro-enterprise development that focuses on building skills and knowledge of communities, local service providers, and farmer organizations to engage effectively in markets. Small farmers are enabled to successfully link themselves to potential markets, ‘producing what they can sell rather than trying to sell what they have produced.’ The systematic approach is illustrated in Figure 3.10. Unlike the value chain upgrading partnerships in Ghana (section 3.3.1 – 3.3.7), this discussion focuses on how to engage with smallholders and facilitate their access to markets.
Basically, it involves partnering with farmer groups or cooperatives and building their capacity through participatory actions (diagnosis and visioning, market research, and identification of potential markets through market visits and evaluation options for production; steps 1 - 5). Farmers then experiment to identify or develop suitable technologies (step 6). In step 7, farmers design and implement their agro-enterprise projects (organizing resources, production and their supply chains – step 7). They also facilitate support services for enterprise development by linking up with service providers (research, extension, finance, market information). Step 9 is a requirement for the local area to provide the enabling institutional environment for the growth and sustainability of the enterprises. The process involves the community (Local government, NGOs/Development agencies, private sector) as well as research and extension agencies. Therefore a network of partnerships is built to facilitate farmers’ enterprise development through their own decisions and choices.
The Nyambyumba United Farmers, Kabale, Uganda was able to transform from a seed potato growers to producers of ware potato. In three years (2003 – 2005), farmers of the cooperative sold almost 300 metric tons of potatoes, valued at equivalent of 50,000 US Dollars) to their partner supermarket. Similarly, in Malawi, households in sites where the approach is being implemented have an average income of USD 2.5 compared to the national average of less than a dollar a day. The households produced piglets using the Heifer Model of ‘passing on the offspring of livestock’ and have diversified their income sources.
The lessons from value chain upgrading with small farmers include the following: a. Relationship should be driven by opportunity to meet a market demand. There should be well developed systems and structures which ensure that quality produce is delivered on a timely basis. For example, systems for selling by standard measures, standards for grading produce
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quality, certification systems, adequate infrastructure and services, and market information and statistics on farmers. b. Adequate provision of technical and managerial support to farmers c. There should be transparent payment arrangements for both produce and inputs. This will help reduce side-selling. d. Remunerate farmers to higher production and quality. This will also help reduce side-selling. e. Not every farmer has the capacity or orientation to engage in high-end value chains therefore farmers should be selected on merit and partnerships should allow a transparent process for farmers to exit. f. Integrating small famers takes time therefore pilots are necessary for lesson learning before scaling up. Although this should be led by private sector, the public sector support to the developmental costs will be necessary. E.g. engaging NGOs to facilitate the process. g. Buy-in and alignment from all key stakeholders including community leaders, civil society, NGO partners, FBOs and the private sector, is critical for success. The linkage in these partnerships is not linear but rather a network of actors acting in the common interest of doing business successfully.
Figure 3.10: Empowering Communities through Market Led Development – the approach STEPS 1. Building strategic partnerships andBuild effective partnerships with key stakeholders - agricultural research selecting pilot sites organizations, extension services and government departments, NGOs, the private sector, and business support services 2. Participatory diagnosis (PD) and Hold interactive dialogues with farmers and communities to facilitate collective community visioning analysis and understanding of community assets and opportunities, and to create a collective vision of desired future conditions
PMR aims to strengthen existing groups and facilitate the formation of new 3. Formation of participatory marketgroups (of men and women) who represent their communities. Groups are research (PMR) groups trained by market facilitators in PMR procedures for collecting and analyzing market information, and evaluating and selecting enterprise options, and in group dynamics.
4. Market and enterprise visits Organise visits to major markets, supermarkets, hotels and restaurants, wholesale and retail markets, and food and agro-processing companies in nearby towns and cities including capital cities to broaden farmers’ minds and to get information on possible produce
5. Evaluation of enterprise options Market visits identify a portfolio of options with good market demand. These options need to be evaluated to match market demand with the biophysical and socioeconomic potential of the community to produce or supply the identified markets
6. Farmer experimentation and Experimentation provides farmers with opportunities to try out a range of participatory technology options and adapt them to their circumstances, and build local capacity to find development solutions to production problems. Experimentation uses participatory technology development (PTD) approaches
7. Design and implementation of Experimentation leads to selection of appropriate options and farmers then plan agro-enterprise projects for production, post-harvest management, marketing and other services for the enterprise
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Support groups with business development services (microfinance, market 8. Facilitating support services for information, credit, business skills training, processing and packaging, pricing). enterprise development Support requires sustained interventions by a variety of stakeholders, including the private sector.
Ensure gender and equity by encouraging and sustaining active participation, and 9. Strengthening local institutions andcooperation of both men and women in different wealth categories. promoting gender equity
3.4 Policies and Legal Frameworks
3.4.1 Policy Frameworks
Although there is no comprehensive policy (set of rules) packaged as agricultural marketing, there are strategies (set of plans to reach developmental goals of sector) in the Food and Agriculture Sector Development Policy (FASDEP), Trade Policy and the Ghana Agricultural Investment Programme (GASIP) to improving agricultural marketing. 3.4.1.1 Food and Agriculture Sector Development Policy The new direction for agricultural policy stated in FASDEP II is the adoption of a value chain approach to agricultural development and that value addition and market access will be given more attention. The strategies in the policy are consistent with this new direction. Agricultural marketing strategies in FASDEP II are listed in Box 1 and Box 2 below. Despite the specification of these strategies to address all the undesirable practices discussed above, the issues persist; this is probably because of implementation challenges. One such challenge is undefined institutional arrangement. While some of the strategies fall under direct responsibility of MoFA directorates (e.g. primary grading and storage under extension), others such as encouraging partnership between private sector and District Assemblies to develop trade with improved market infrastructure and sanitary conditions, require further clarification about the responsibilities of different directorates in their implementation. Box 3: Strategies for Increased Growth in Incomes (FASDEP, pp 27) 1. Promote primary grading, processing and storage to increase value addition and stabilize farm prices 2. Collaborate with MoTI PSD&PSI to develop institutional capacity to support commercial scale agro-processing and stock management 3. Develop standards and promote good agricultural practices along the value chain (including hygiene, proper use of pesticides, grading, packaging, standardisation), to enhance quality and incomes 4. Promote linkage of smallholder production (including indigenous and industrial crops, livestock, and fisheries) to industry 5. Improve accessibility from farm to market centres 6. Promote formation of viable farmer groups and Farmer-Based Organisations with gender equity, to enhance their knowledge, skills, and access to resources along the value chain, and for stronger bargaining power in marketing
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7. Advocate for improved rural infrastructure (transport and communication), and appropriate regulatory environment to enhance private sector investments and participation in delivery of services, including extension. 8. Advocate for the enactment and enforcement of laws on good agricultural practices.
Box 4: Strategies for Integration into Domestic and International Markets (FASDEP, pp 29) Strategies for domestic marketing 1. Encourage partnership between private sector and District Assemblies to develop trade in local and regional markets with improved market infrastructure and sanitary conditions, and enforce standards of good agricultural practices. 2. Encourage the development of commodity brokerage services to support marketing of agricultural produce. 3. Create awareness of processors on GAP/HACCP. 4. Build capacity within MoFA to provide marketing extension. Strategies for exports 1. Provide comprehensive support of improved access of operators to market information and intelligence, technology, relevant market infrastructure, and financing to enable operators to respond to the changing needs of markets. Operators will also be encouraged to identify market niches for new products. 2. Promote good agricultural practices, particularly for meeting sanitary and phytosanitary 3. requirements of importing countries. 4. Advocate a legal environment that supports agricultural production and trade contracts. 5. Collaborate with relevant MDAs to improve road access to link production centres to air and sea ports. Strategies for post-production management in general 1. Improve supply chain management with emphasis on developing clusters of small to medium- scale farmers and processors to enhance access to technical advice and logistics. 2. Promote the utilisation of locally processed products and the production of quality and well packaged products to enhance demand. 3. Strengthen linkages between public and private sector institutions to support agro-processing. 4. Provide improved and targeted tax relief for agro-processors. 5. Promote cottage level agro-processing industries with interventions to enhance access to machinery and quality of products. 6. Develop standards to be at par with those of competing imports, and advocate for their enforcement
Other policy documents under the Ministry of Food and Agriculture are summarized in Table 3.8.
Table 3.8: Other MoFA Policy Guidelines and Strategies for Agriculture marketing Policy Document Policy guidelines/strategies Livestock 1. Promote setting up of appropriate market, slaughter and processing Development plants
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Policy and 2. Promote hygienic handling of and safety of livestock products Strategy 3. Promote appropriate packaging and traceability of livestock products 4. Encourage the use of appropriate vehicles for haulage of livestock and livestock products. 5. Encourage patronage and consumption of locally produced poultry and nonconventional livestock. 6. Promote capacity building of stakeholders in marketing of livestock and products. 7. Encourage capacity building of stakeholders in value addition to livestock products. 8. Promote creation of satellite livestock markets Tree Crop Policy Improvement of Marketing through the Value chain approach through better organisation of the VC and support for the development of new products and marketing channels. Rice Sector 1. Minimize postharvest losses Development 2. Improve the quality and competitiveness of local rice Strategy 3. Build capacity of marketers and processors 4. Improve access into producing areas and marketing centres.
3.4.1.2 Trade Policy and Trade Policy Support Program Ghana’s trade policy and the implementation programme, Trade Policy Support Programme also specify policies and projects that are relevant to or target agricultural marketing. For domestic agricultural marketing, government would: i. Intervene in farm gate prices of strategic products to stabilize prices for consumers and producers; ii. Encourage downstream processing; iii. Develop measures to promote all year round production; iv. Support the development of farmer based organisations to reduce the potential for exploitation; v. Develop an advertising strategy to promote Made-in Ghana goods.
MoTI has also prepared the Yam Sector Development Strategy and the Export Strategy. The Objectives of the yam strategy are to: i. Enable a private sector-led policy in support of yam and agriculture development ii. Professionalize the management of farmer associations for improved quality, consistency and returns iii. Improve commercialization strategies focusing on positioning of Ghana Yams and explore product diversification for value addition and processing of new products iv. Improve access to finance across the value chain and promote commercially-driven investments v. Develop commercially-driven research and development and capacity building vi. Improve compliance with quality standards and logistics for gaining competitiveness
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Again many of these actions are with farmers but the institutional arrangements for working with farmers are not clear raising questions of coordination with extension services. The processes for undertaking the strategies are not clear.
3.4.1.3 Ghana Agriculture Sector Investment Program
GASIP is the current investment programme for the agricultural sector. Its strategic focus is to make smallholder more competitive by increasing their capacity to respond to market demand in terms of quality, price, time and volume. This will be operationalized through the formalization of relationships with agribusinesses, in order to give smallholders reliable access to technologies, financial services, factor and output markets and supported with investment in public and commercial infrastructure. The first two components of GASIP are: a) value chain development (agribusiness linkages, value chain financing) and investments in enabling infrastructure. The purpose of the agribusiness linkage sub-component is to help formalize smallholder’s relationships with agribusiness partners. This means shifting from relationships based on trust to those governed by some regulation to provide better protection to parties. The second component on financing also involves relationship building based on financial transactions. The thrust of the sub- component is building capacity of rural and community banks and universal banks to manage risks and for them to leverage smallholder equity for loans. Again, the environment for this focus on financial transactions need some legal baking as a deterrent to default on agreements between parties. GASIP seems to assume that these interventions can be carried out in existing trust-based relations. The preceding review of marketing practices reveals that the issues that drove the above strategies in FASDEP and the Trade Sector Support Programme still exist and cause severe limitations to Ghana’s agricultural marketing. This calls for a re-examination of policies and how implementation of the strategies may be improved. To begin with, the review of policies and strategies reveal some overlaps of activities of MoFA and MoTI. Although the two ministries identify the same issues, there seem to be no defined boundaries as to what activities fall within their mandate. For example, a protocol for quality assurance would include standards development, training producers on GAPs needed to meet the quality standard, a system of testing to ensure conformity with the set standards and inspection for compliance and approval with permits. In the case of SPS, there is need for a reliable risk assessment. The mandates of the MDAs are discussed next to identify areas of overlap and complementarity between their activities.
3.4.2 Mandates of MMDAs in Agricultural Marketing
Several agencies are involved in the regulation or facilitation of agricultural marketing in Ghana. The public sector agencies fall under the Ministries of Food and Agriculture, Fisheries and Aquaculture Development, Trade and Industry, Environment Science and Technology, Local Government and Rural Development (Appendix A2 and A3). Private sector and Development Agencies are involved in market facilitation and they include: the Ghana Grains Council, providers of market/agricultural information (Esoko, Prep-eez, Farmerline, VOTO), trader associations such as Vegetable Producers and Exporters of Ghana, Ghana Association of Vegetable Exporters, Cattle Breeders and Traders Association, and Ghana Agricultural Producers and Traders Organisation (Appendix A4). The GIZ, USAID, CABI, World Food Program, FAO and the EU Delegation are
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some Development Agencies involved in facilitating agricultural marketing, particularly exports (Appendix A4).
MoFA is the lead agency and focal point responsible for developing and executing policies and strategies for the agriculture sector. MoFA’s mission is to promote sustainable agriculture and thriving agribusiness through research and technology development, effective extension and other support services to farmers, processors and traders for improved livelihood24. According to its mission, MoFA’s target groups are farmers, processors and traders. Under MoFA, PPRSD, VSD, and SRID have mandates directly related to agricultural marketing although activities of all the other technical directorates (APD, AESD - Post-Harvest Unit, DAES, WIAD and EMQAP of CSD) also facilitate agricultural marketing (Table 6). PPRSD and VSD derive their mandates from legislation. PPRSD is mandated under the Plant and Fertiliser Law (Act 803), and the Pesticides Control and Management Act (528).
The Ministry of Fisheries and Aquaculture Development (MoFAD) and the Fisheries Commission facilitate and regulate activities in the fisheries sub-sector. Regulation of fisheries is to ensure that Ghana complies with international standards for Illegal Unreported and Unregulated Fishing (IUU), to ensure that Ghanaian fish exporters continue to access foreign markets, especially the EU. The Fisheries Commission registers shipping vessels and issues permits for fishing, and imports and exports of fish. The Ministry of Fisheries and Aquaculture Development promotes fish health by facilitating the provision of needed infrastructure at landing sites. Although it has mandate over aquaculture, the Aquaculture Regulations of Ghana (LI 1968 of 2010) addresses production practices mostly. The only marketing regulations are on permitting for imports and exports of fish and sanitary inspection of landing sites. Issues of handling of fresh fish in domestic market (transportation, storage, display) are not addressed.
The Ministry of Trade and Industry (MoTI) has the mandate to formulate, develop, implement policies, and monitor and evaluate trade and industry programmes and projects. MoTI has oversight responsibilities over Ghana Export Promotion Authority (GEPA) and it engages in, development of policy/laws, market infrastructure improvement, export promotion through GEPA and GETIC, facilitating the work of quality assurance institutions, and resolution of disputes among traders25. From the above, it appears that the functions of directorates and agencies under MoFA and MoFAD are at the level of production and trade or marketing of raw agricultural produce. However, MoTI, by virtue of the GSA being under it, also gets involved in the setting of standards. Food safety in Ghana falls under the Food and Drugs Authority (FDA) which is under the Ministry of Health. It derives its mandate from Public Health Law, Act 851, 2012, specifically section 7. The FDA registers food (imports and domestic), premises for food production, and food packaging. It inspects premises and enforces the provisions of the law in respect of food industry players. It also conducts tests for contaminants, including microbes and pesticides. The Environmental Protection Agency (EPA) under the Ministry of Environment Science and Technology regulates pesticides and plant protection products. The agency registers, licenses, inspects, monitors and enforces the provisions of the Pesticides Control and Management Act.
24 http://mofa.gov.gh/site/?page_id=56 25 See summary of personal interview with Mr Bartels, MoTI, Accra 42
The Food Research Institute (FRI) advices government on national food policy through its research into problems of the food processing, storage and marketing among other functions. It is also involved in food safety quality assurance through testing for contaminants. The institute is leader in the development of food products from local raw materials. The Ministry of Local Government and Rural Development is involved in agricultural marketing through the Metropolitan, Municipal and District Assemblies (MMDAs). They are supposed to make provision for the inspection of foodstuffs and control the manufacture of food stuffs. The MMDAs are directly involved in the provision, maintenance, supervision and control of slaughter houses and market places. Around the area of slaughter of animals and meat inspections, the roles of VSD, MMDAs and FDA are clearly defined. The MMDAs provide and control slaughter houses; VSD certifies the health of animal for slaughter; the FDA inspects the meat and facilities and enforces food safety provisions. The EPA’s mandate on the regulation of pesticides covers registration of products, importers and distributors, while PPRSD ensures safe use of the products. The activities of Ministries, Departments and Agencies (MDAs) appear to overlap in the following areas: i. Export trade facilitation, including provision of market information and quality desired by the market. Exporters of agricultural produce benefit from trade fairs organized by GEPA and the market information gathered by the GEIC. Market information data collected by SRID is also available to exporters. ii. Quality assurance is the area where there seem to be multiplicity of actors and activities. However, it is understood that GSA depends on the relevant technical departments to provide information (parameters) about the desired standards. The GSA in turn uses its network of international standard agencies to develop suitable and widely accepted standards for the country. iii. The GSA is also the custodian of the Weights and Measures Decree, NRCD 326, 1975 on the use of accepted standard weights and measures for commerce26 but whether GSA has the mandate to enforce the decree is not clear. The Marketing Service Unit of SRID, however, has an interest in seeing transparency and fairness in agricultural marketing trade. Besides, the price information MSU collects and disseminates is based on established standard weights and measures for agricultural produce, which suggests that these weights and measures should be used in the market for trading. However, MSU-SRID does not have the mandate to enforce the weight and measures standards; neither does the GSA. iv. Assignment of food safety regulation to the FDA means that its functions cut across activities of PPRSD, VSD and MoFAD; however, the FDA is the enforcing authority; PPRSD does the inspection and certification for SPS and pesticide residue compliance, while MoFAD focuses on provision of infrastructure for fishers. VSD and FDA are supposed to collaborate on meat inspection.
Trade facilitation is provided by both public sector, private sector and development agencies. Activities of public sector actors include provision of market information, training on GAPs, technology development and transfer, product development, and trade missions/fairs to promote market access among others.
26 See summary of interview with Mr Eugene Adarkwa Adae, Director of Operations, GSA, Accra 43
Standards are developed and promulgated by the GSA. It provides inspection and laboratory services and post-registration market surveillance (details are provided in Table 4.6). The GSA conducts periodic testing of agricultural produce for non-approved pesticides and for pesticide residue levels (for compliance with export requirements); performs tests on packaging materials to assess suitability for various products; develops standards for agricultural produce, including facilitation of development of grades. The facilitation activities of private sector are detailed in the next section.
3.4.3 Private Sector Facilitators
Some of the private sector facilitators are the Ghana Grains Council, trade associations (Vegetable producers and Exporters Association of Ghana (VEPEAG), Ghana Vegetable Exporters (GAVEX), Federation of Ghanaian Exporters (FAGE), Esoko, Ghana Agricultural Producers and Traders Organisation (GAPTO), Livestock Breeders and Traders Association (LBTA), and other farmers’ associations. The Ghana Grains Council is a private not-for-profit organization aiming to modernize grain trade. It promotes standardization/grading, use of standard measures by farmers and traders, improvement of warehousing and introduction of warehouse receipt system. GSA standards have been adopted to ensure food safety and quality. GGC is developing posters for pictorial education. It is also in the process of introducing a commodity exchange for grains. Certification by GSA promotes traceability and to allow for recall. It also promotes good public health. The GGC collaborates with MoTI and USAID. GGC is interpreting the national standards for grains. It is also promoting government policy of procurement of graded grain and purchase by weight in accordance with the Procurement Law – minimum 50 Kg weight, graded by GSA by institutional buyers – school feeding programme, hospitals, etc. It is also advocating for institutional buyers to make payments on time to suppliers to attract farmers and sustain their interests to sell to them. GGC is promoting trade by weight and grades in a more structured market. GGC has internal rules and regulations for association members. E.g. insurance for bigger warehouses; calibrated equipment for weighing; moisture metres to ensure 13percent moisture content; register with FDA, and must have Fire Service certificate. Agrochemical dealers must have permits. Challenges being faced by the GGC are slow response of target groups to their interventions. Adoption of weights and measures by farmers is slow due to low response of the market to pricing by quality grades. Progress on quality level is much better. Major buyers such as the breweries have their traditional suppliers and this needs to change to open up the market. The poultry sector is a major market but users prefer to pay fob prices, implying that producers have to be competitive against imports. The incentive for farmers to adopt GAPs is premium prices for quality produce. There is need to harmonise efforts of regulatory bodies (PPRS, FDA). Although 11 warehouses have been certified and 22 approved, fewer warehouses are receipting because of low response, which in turn limits their profitability and further awareness about the benefits of the warehouses. The Council Plans to use Esoko’s platform to disseminate market information, including offers for sale to potential buyers. The Grains Council enjoys support of the Ministry of Trade, and development agencies – USAID, AGRA. The challenge for GGC in the progress of the WRS is the slow progress arising from lack of information on the benefits and costs to actors (warehouse operators, farmers, aggregators). Intensive education of potential players is needed through appropriate forums (extension meetings, seminars, field days).
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The Council should analyse benefits and costs for various actors and share with them at the sensitisation forums. Laws will also be needed to guide activities of parties involved in the warehouse receipts (financial institutions, warehouse operators, aggregators); this will help build confidence in the system. Esoko, and others (Prep-eez Farmerline, VOTO) provide market and agricultural information. Their services are provided at cost27. There are also commodity specific trade associations who support their members with information and advocate for their interests28. They also access support services such as training for members and in turn convey information about government policies to members. The services are provided from the registration fees and membership dues. Their capacities vary. The export trade organisations are stronger than the internal trade associations. The exporter associations are able to self-regulate members to sanitize the export trade. GAPTO on the other hand seems to be spearheaded by one individual; this can limit growth and sustainability of the organisation. The GIZ has facilitated the horticulture sector, from production to trade, through the EMQAP project, working through the Horticulture Unit of the Crop Services Directorate. GIZ has facilitated the development of a GhanaGAP for fruits and vegetables in collaboration with MoTI. EU and FAO work closely with the Ministry of Fisheries and the Fisheries Commission to build structures for the effective regulation of the fisheries sector, particularly on IUU fishing. CBI is implementing a project to develop a phytosanitary system for vegetables; the aim of the project is to develop technical and organisational capacity of the existing export related SPS system. The Customs Service support PPRSD in ensuring vigilance in inspection of agro-produce crossing the country’s borders.
3.5 Legal Frameworks for Agricultural Practices
Agricultural marketing should be conducted within a supportive regulatory environment; laws provide the framework for property and other rights, contractual relations and regulate the behavior of market actors to influence marketing outcomes positively. Regulation should not distort or reduce the efficiency of the market, nor increase cost of marketing or retard development of a competitive private sector. Although laws should be enabling for economic activities and efficiency, they can also be constraining for the public good (Cullinam, 1999 -FAO Ag Marketing Service). Regulation aims to provide a level playing field for all actors to ensure fairness of trade, quality and safety of consumers. Facilitation on the other hand is to empower actors in the market to improve their activities to benefit themselves and consumers. Areas that need to be regulated are terms for trading (buying and selling and contractual enforcement); quality and food safety to ensure traders deliver wholesome produce to consumers; use of standard weights and measures to ensure uniformity, convenience and transparency in trade, improve efficiency in pricing to the benefit of all parties; regulation to ensure sustainable extraction of a common natural resource such as fisheries. The following sections present the laws governing agricultural marketing practices and discuss issues of enforcement of the laws29 (Appendix Table 5). The practices discussed include
27 See section 3.7 for more detailed discussion of the MIS providers 28 See section 3.8 for discussion on farmer and trader associations 29 Discussion on enforcement is based on discussions with organisations whose mandate fall under the laws. 45
contracts between market actors, terms of exchange (buying and selling), actions of trader organisations and access to markets or control of produce into markets, grading and quality assurance, stocks and warehousing, slaughtering and meat hygiene, fish health, packaging and transportation. The laws are summarized as follows:
3.5.1 Farming Practices
A range of farming practices that affect quality of production are use of agro-chemicals; these are collectively termed Good Agricultural Practices. Farmers are informed about GAPs through the extension services. However, with respect to SPS measures and use of pesticides, the PPRSD has the mandate to train farmers or backstop extension with technical expertise. EPA regulates importation of pesticides (registration of products and distributors). The laws giving that mandate are Plants and Fertiliser Act, 2010 (Act 803); Pesticide Control and Management Act, 1996, Act 528. The food safety mandate of the FDA is under the Public Health Act, 2012 (act 851). Therefore, FDA tests products for contaminants (e.g. aflatoxins). The GSA also tests for maximum residual levels as part of the standards conformity assessments. However, neither FDA nor GSA deal with farmers.
3.5.2 Trading (buying and selling) and Contracts
Sale of Goods Act, 1962 (Act 137) regulates the sale of goods, agricultural and non- agricultural (Cordero-Salas et al., 2015). Farmers and traders engage in contract but the level of formalization of contracts is low. Agricultural contracts are governed by the Contracts Act, 1960 (Act 25) which regulates contracts in various sectors of the economy, including agriculture. Cordero-Salas et al., 2015 also report that several enactments have been made to the law to regulate the agricultural sector. The Sale of Goods Act applies to every contract of sale of goods but it is not clear whether it applies to informal contracts, the form of contracts prevalent in internal agricultural marketing.
3.5.3 Control of Entry into markets
Ghana has an open market policy although there is no law supporting it. Actions of trader associations in urban markets create oligopolies and influence the levels of food prices. Traders control the numbers of traders and even for those with access, the amount of produce supplied to the market may be limited, especially when prices are falling (margins are squeezed). This practice is counter to the macro policy of free trade (trade liberalisation) but there is no law to counter this.
3.5.4 Grading Standards and use of standard weights and measures
Standards Authority Act, 1973 (N.R.C.D. 173) Standards Board (Amendment) Decree, 1979 (A.F.R.C.D. 44) govern standards formulation and promulgation. The Weights and Measures Decree, 1975 (N.R.C.D. 326) also rests with the Standards Authority. The levels of awareness and about the law and compliance is much for export trade than for domestic trade. The GSA’s activities focus on standards. Labelling is a very effective instrument of enforcement. So is conformity assessments after registration. Development of agricultural standards is led by MoFA and recently the Ghana Grains Council for grains and warehouses. The Ghana Green Label is for
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fruits and vegetables and is developed for the export market. The Public Health Act, 851 requires that food for sale meets prescribed standards therefore the FDA is involved in setting and regulating food standards, including testing for conformity. Section 104 of Act 851 provides that food standards may be prescribed by enactment. The Ghana Green Label and the activities of the GGC in standards setting for grains and warehousing need to be backed by law. Enforcement of Weights and Measures Decree has been difficult probably because there are no regulations neither is the responsibility for enforcement assigned to any organisation. Pilots by MoFA, MoTI and GSA to introduce weighing of agricultural produce for trade in markets in Accra, Kumasi and Tamale failed. Traders complained about quality of scales provided for the pilots; but there is generally resistance to selling by weights. The Marketing Services Unit of SRID is planning to conduct a survey to ascertain if weights and measures being used in markets conform to the standards that SRID uses to report prices (e.g. 100kg bag or 50 Kg bag). A concept paper is being developed in collaboration with Esoko.
3.5.5 Stocks and Warehousing
Stocks are held by farmers, traders and processors. There is no quality assurance system in the informal marketing system and stock holders do their best to ensure produce is protected from the elements, contaminants and pests. Stock holders may apply storage chemicals on stored produce. The use of pesticides is governed by the Pesticide Control and Management Act, 1996. Ghana Grains Council has supported the development of standards for certification or approval of warehouse but there are 12 certified warehouses with total capacity of about 54,700 mt and 22 approved community warehouses. A Warehouse Receipts Bill is being developed by MoTI with inputs from the GGC.
3.5.6 Slaughtering, slaughter houses and meat inspection
The Public Health Act, 2012 (Act 851) caters for sanitation of slaughter houses, meat inspection in collaboration with the VSD, and transportation. Meat inspection shall be in accordance with the standards of the Codex Alimentarius Commission of the Food and Agriculture Organisation and the World Health Organisation. Animal Diseases Act, 1961 Act 83 mandates the VSD to examine livestock before slaughter. Under Act 851, slaughter houses shall be registered by the District Assembly. The MMDAs are responsible for providing the physical infrastructure. The FDA works with the MMDAs to monitor the facilities and ensure compliance through local surveillance of slaughter houses.
3.5.7 Fishing Laws governing fishing are to ensure sustainability of the fisheries resources (Fisheries Act, 2002. Act 625), guard against Illegal, Unreported and Unregulated fishing (Fisheries (Amendment) Act 880 (2014) & Regulations (2015), LI 2217 and for the development of Aquaculture (Fisheries Regulation, 2010 (L.I.1968) with Aquaculture regulations). Act 625 establishes the Fisheries Commission, whose activities seem to be biased towards marine fishing and international fishing regulations such as those on IUU fishing. Fish health is captured under Fisheries Regulations (LI 1968). It prohibits the use of harmful substances in fishing and fishing facilities; use of chemicals or drugs in aquaculture shall be in accordance with the Environmental Protection Agency Act, 1990, (Act 490) & Pesticide Control and Management Act, 1996. Fish health has food safety
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implications therefore the FDA is also involved, although FDA presently does not have human resource capacity to monitor sanitation of fishing and fish storage facilities.
3.5.8 Packaging
Packaging of food is captured under Public Health Act 851. The FDA is required to register all food manufactured locally or imported, along with packaging. The Authority is also mandated to test food packaging materials in its laboratory. The packaging of raw agricultural produce (raw material of food) does not get coverage in the law.
3.5.9 Transportation
Act 851 provides that the FDA approves vehicles for transporting meat for sale. The law gives parameters to be met for approval. There are no provisions for transporting fresh perishable agricultural produce and livestock that are also susceptible to contamination and stress during transportation.
3.5.10 Financing
The Export Development and Agricultural Investment Fund (Act 823 (2011) and Export Trade, Agriculture and Industrial Development Fund Bill provide for the establishment of a fund to support exports, agriculture and industry. The purpose of the fund is to promote non-traditional export, Product Development, Capacity Building, Market Research and Development of Infrastructure, Development and Promotion of other entrepreneurial activities, Export trade- oriented activities and Agricultural and Agro-processing development30. The funding facility has grants and credit components. Farmers linked to processors, markets and aggregators, as well as investments for processing infrastructure are eligible. Sources of the fund include levy on dutiable value import and 10 per cent of the net proceeds from divestiture carried out by the Divestiture Implementation Committee. Agricultural insurance products are being developed but these are available for production issues only. There is also need for insurance after harvest for crops in storage or in transit to market centres, as well as for long distance traders themselves. Innovative low cost products for payments are also available (e.g. mobile money).
3.6 Service Providers (Regulation and Facilitation) Service providers in agricultural marketing include public and private organisations and development agencies. The services cover both domestic and international trade so the focus of the section is on what services are provided and whether they are on internal or external trade.
3.6.1 MoFA’s Plant Protection and Regulatory Services Directorate (PPRSD)
The services of PPRSD cover both domestic and international trade (imports and exports). Services cover measures for sanitary and phytosanitary standards conformity, plant protection and pesticide imports, use and management and seed sector development. Services of PPRSD are categorized as internal trade, external trade or both.
30 http://moti.gov.gh/agency/export-trade-agricultural-investment-fund-edaif 48
Internal trade - Sample, inspect, analyze and test fertilisers distributed in the country and prepare appropriate manuals and reports of these - Certification of Foundation and Certified Seeds and also Primary and Secondary planting materials - Educate and create awareness for farmers on the benefits of certified seed/planting materials
External Trade - Inspection, certification (Phytosanitary and marketing quality compliance), treatment (confiscation and destruction), and training on export requirements. - Inspection, certification (import permits), release, (confiscation and destruction, return to country of origin), information on import requirements; post-entry quarantine, training on import requirements. - Inspection on marketing quality standards on fresh fruits and vegetables for export - Provides information on IPPC and WTO on SPS Agreements through the National Enquiry Point (NEP) and any other information on export requirements.
Internal and External Trade - Training of trainers in pesticide and fertilizer management for export certification - Provide pesticides and fertilizer consumption statistics. - Develop and publish information material, keep records of plant imports and exports, the importers and exporters, as well as the pests and diseases of quarantine importance. - Registration of Seed Growers, seed dealers, seed importers and exporters - Monitoring of seed and planting material production, outlets of seed dealers, importers and exporters 3.6.2 Training of major stakeholders (Seed Inspectors, Registered Seed Growers, Seed Dealers, Extension Staff of MOFA and NGO’s etc).MoFA’s Veterinary Services Directorate (VSD) The VSD provides animal health services for the national livestock in order to further the expansion of the livestock and poultry industries in the country. Its responsibility is to ensure that meat and other products of animal origin are safe for human consumption. Services provided cover both internal marketing and international trade and cover the following: Internal Trade - Issues permits for movement of animals in country - Certifies health of animals before slaughter
External Trade - Link with the OIE to verify that animals and meat imported meet international standards. - Inspection of livestock before they are imported - Issues permits for importation of livestock
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Internal and External Trade - Records data on livestock imports, meat imports and animals slaughtered.
3.6.3 Marketing Service Unit of SRID (MoFA31)
MSU/SRID’s mandate in facilitating agricultural marketing is to collect, collate and disseminate market information, including commodity and input prices, trade flows and marketing costs for farmers, traders and the general public. Although the information and data is available to both internal and external trade actors, the focus seems to be more on internal trade. SRID does not have a regulatory function in marketing. Nevertheless, it has in the past liaised with GSA, MoTI and others to promote standards and measures in agricultural marketing. Current activities of SRID include the following marketing related activities: a. Collect and analyze market prices of various agricultural produce both at the wholesale and retail levels. b. Monitor producer prices, farm input prices (monthly) and transport charges for agricultural commodities. c. Liaise with VSD to collect, process and analyze livestock and poultry data. d. Liaise with PPRSD to collect and analyze the flow of commodities across the borders. e. Liaise with MOTI and GSS to collect and analyze agricultural imports and exports.
3.6.4 MoFA’s Directorate of Agricultural Extension Services (DAES)
DAES is responsible/oversees agricultural technology diffusion through the management of an extension delivery service in the country. The extension service trains farmers on GAPs and new production technologies but probably not on market extension. The services are available to both internal and external trade.
3.6.5 MoFA’s Crop Services Directorate (DCS) CSD promotes crop production, and facilitates the processing, distribution and marketing of food, industrial and export crops. The Directorate led the development of the Green label – good agricultural practice development for fruit & vegetables, including development of standard operating practices. These standards were developed with the Standards Authority and are therefore covered by the standards law. Regulation will need to be developed to support enforcement especially on the domestic market. CSD oversees the production of quality planting materials and the efficient use and management of soil and water resources for sustainable agriculture production. These services target both internal markets and those who access external markets.
3.6.6 Post-Harvest Division of Agricultural Engineering Services
The Post-harvest unit is charged with reducing post-harvest losses. The Unit focuses on production of quality produce through appropriate processing and storage of target commodities. Its services include: Post-harvest extension, development and introduction of appropriate technology, technical backstopping and supervision of projects on post-harvest management. Its
31 See section 3.5 for more details 50
focus is on internal markets. Ensuring quality for exports is the responsibility of the Sanitary and Phytosanitary Division of PPRS.
3.6.7 Ministry of Fisheries and Aquaculture Development and Fisheries Commission
MoFAD oversees fish health and sustainable capture fishing and aquaculture/fish farming. It facilitates the provision of market infrastructure for internal trade. Fisheries Commission registers fishing vessels and gives fishing permits as well as permits for imports and exports of fish. Ensures measures against IUU. These services facilitate external trade.
3.6.8 Ghana Standard Authority
GSA is responsible for standards development and promulgation and custodian of Decree on weights and measures. Services include: analysis of food and food products (including agricultural produce) for pesticide, microbiological, heavy metals, histamine and mycotoxin analysis for clients. GSA certifies measurement equipment; calibrates equipment and conducts post-certification market surveillance to monitor compliance. GSA issues permits for the exportation of processed fish. Services of GSA target both internal and external trade.
3.6.9 Food and Drugs Authority
FDA’s core mandate is to ensure that all food processors, importers, exporters and venders are satisfactorily and duly registered, and to ensure that such registered parties adequately abide by regulations of the food and drugs law. FDA develops certified and codified food safety and quality assurance standards for the food industry. FDA controls meat production and assures the safety of genetically modified organisms for food, feed and processing. FDA services listed below, target both internal and external trade. a. Food premises inspection and registration (locally manufactured food and imports) b. Registration of food produced and imported, along with packaging material. c. Inspection of slaughter houses and meat. d. Food and food facilities post-registration market surveillance e. Technical support in food safety and quality management to food industry, including testing and specification of safety standards f. Food standards and legislation research
3.6.10 Ghana Export Promotion Authority Focal areas of GEPA are market development, access, and penetration; product development and expansion of s33upply of priority products; and dissemination of export trade information (prices, market requirements including quality standards. GEPA’s focus is on promotion of export trade. (See section 3.5 for core services)
3.6.11 Export Development and Agricultural Development Fund (EDAIF – EXIM Bank) The agency facilitates funding for production for exports and for the domestic market.
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3.6.12 Ghana Customs
Customs verify compliance with the quality standards of the products passing by the ports. This allows Ghana to take part in the international fresh fruits and vegetables trade. The focus is external trade.
3.6.13 Development Agencies • GIZ has support horticulture exports through the Export Market Quality Assistance Programme. The Value chain finance fund also facilitates production for both domestic and external market. • EU and FAO support the effective regulation of the fisheries sector, particularly on IUU fishing. • CABI is implementing a project to develop a phytosanitary system for vegetables; the aim of the project is to develop technical and organisational capacity of the existing export related SPS system. • UNIDO: Trade Capacity building programme for Ghana. The programme objectives are: • Improve Ghana's export capacity • Upgrade its conformity assessment institutions to ensure that products meet the stringent quality standards expected of exports • Deepen Ghana's integration into the competitive global markets. • DANIDA, USAID and EU provided support to the Private Enterprise Foundation through BUSAC to advocate for the inclusion of agriculture in the Export Development fund. USAID facilitates access to markets for producers of rice, maize and soybean through its projects (ADVANCE and FiNGAP). The Market Development for Northern Ghana (MADE) facilitates market development by linking farmers to aggregators and input suppliers. The focal commodities are rice, tomatoes, groundnuts, chillies and livestock.
3.7 Institutions providing Marketing Information and Intelligence
3.7.1 Public
SRID-MSU. Formal public market information providers are the Statistics Research and Information Directorate (SRID) of MoFA, Ghana Export Promotion Authority and Ghana Export Information Service. The FDA, PPRSD, VSD, and the Fisheries Commission provide information in carrying out their mandate. The private sector actors are Esoko, VOTO and Prep-eez. Development partners such as the FAO also provide information on sustainable fishing and anti- biotic management in livestock. Only SRID focuses on internal trade. Enumerators of SRID collect wholesale prices from 184 market centres across the country and disseminates this information weekly through radio, indicating where the highest and lowest prices of commodities pertain as a guide to traders on where to source produce from. The information is also available on request. SRID also collects information on product flows and transport costs but this information is not as readily available as the price information. The disadvantage of the SRID price data is that it is not available in real time and give high variability in prices, weekly dissemination may be too late for trader or farmer decision making. The prices are not farm gate prices therefore farmers’ expectation of prices will be overestimated. On the other hand, lack of farm gate prices leaves
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room for traders to decide what prices to pay famers at any point in time. The capacity of the MSU under SRID is low. There are only 5 staff stationed at headquarters and they rely on the Departments of Agriculture in the districts to collect the market information. The staff at headquarters should monitor field staff but are constrained financially.
GEPA and GETIC. The export promotion authority is the other market information service provider (section 3.4.13) and they target exporters only.
GEPC was established by Act 396 in 1969 as an agency of the Ministry of Trade and Industry with the mandate to develop and promote Ghanaian exports. The change in status of the export promotion council to an Authority is in accordance with the Revised Laws of Ghana Act 1998, (Act 562) (1) of the Ghana Export Authority Act, 1969 (NLCD 396). The revised laws help to more clearly define the core functions of GEPA in terms of the marketing and promotion of NTE products. GEPA's clientele include 17 export trade associations (about 3,000 companies). GEPA relates to these clients both on individual corporate basis and as groups / associations. GEPA also acts as an interface between these exporters and other public organizations.
Areas of focus of GEPA are: • Market access and development and expansion of supply base for selected products. GEPA facilitates trade missions, contact with trade partners, trade fairs and exhibitions, buyer-seller meetings and conferences, group marketing schemes. Other instruments are contract production/supply schemes, Export Production Village Schemes, and Technical Advisory Services. • Export Human Resource Capacity Strengthening through operations of an Export School that organizes export management, product development, market development and other specialized trade related courses, workshops and seminars for export companies, trade facilitators and businesses. • Coordination of Export Development Activities through consensus building with Stakeholders by holding consultative Exporters’ Fora and round table consensus building activities with various stakeholders with the view to coordinating export related programmes. • Export Trade Information Dissemination and Communication support through the maintenance of a Trade Library, trade publications and operation of an internet based Export Trade Information Centre.
GEPA houses the Ghana Export Trade Information Centre. The information centre provides, product and market information to the business community; refers exporters to other important sources of information; operates a cyber café with ten internet - connected computers for clients to use for business information and communication; disseminates information on topical trade events and issues to the business community through email broadcasts. GETIC assists exporters who deal in food export to register their food facilities as well as products intended for the USA as required under the Bio-Terrorism Act of 2002. The FDA is responsible for the registration. GETIC networks with international trade promotion organisations to source for information for its clients. The sources included, International Trade Centre (ITC)/WTO/UNCTAD, Centre for the Promotion of Imports from Developing Countries (CBI) in the Netherlands, UK Foods Standards Authority (FSA) (e.g. received alert on Khebab Powder and
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New Food Control laws at Heathrow); International Customs Organization (e.g. information on major amendments in Harmonized Codes System); UNCTAD Commodity Price Lists for monthly free-market prices and price indices for selected commodities; EU Export Helpdesk (an online service provided by the European Commission, to facilitate market access for developing countries to the EU. GETIC disseminates trade information through print publications which are available at GETIC. Other dissemination channels are email broadcasts, direct exchange and publication on GEPC website and Newsletters. GEPA is well resourced and has set up the Ghana Export Trade Information Centre as a one-stop shop for export information. However, agricultural exports is only one segment of its activities. The GEPA and GETIC are more engaging and proactive than the Market Services Unit of SRID. 3.7.2 Private
The private market information service providers are Esoko, Farmerline, VOTO and Prep- eez. Access to these private MIS sources can be limited because the users are charged for the services. Trade Associations also support members with market information beyond prices.
Esoko is the leader in provision of market information using ICT. It was set up in 2006 and started with the collection, collation and dissemination of market prices of agricultural commodities. Initially farm-gate, off-lorry, wholesale and retail prices were to be collected. It has set up a common platform for market prices, e-extension; it also matches buyers and conduct surveys. However, Esoko collects only wholesale and retail prices. Esoko covers 43 markets (including two livestock markets in Ashaiman and Kumasi), and plans to add 10 more markets by the end of August 2016. The company also disseminates information on weather, and agricultural practices, on request. Esoko supports the dissemination of government policies; e.g. information on fertilizer policies through SMS and voice.
Price information is collected by two categories of enumerators – the company’s own enumerators and enumerators under MoFA. The market agents are assigned to specific markets and are equipped with Android devices for the data collection. Esoko supports the MoFA price enumerators with resources to facilitate their work. The price data is provided weekly; but the data is also aggregated into a monthly index. The difference in methodologies of MoFA-SRID and Esoko is that MoFA reports the average prices in three markets while Esoko reports the most common prices in the markets. The sources of price information is traders. Prices are collected either daily or on specific market days, where markets are celebrated periodically. The weather information and agricultural tips are sourced from Ghana Meteorological Agency and CSIR respectively.
Information is disseminated to individuals through call centres and SMS to individuals registered on their platform. Registrations is by individual, but organisations also register for farmer groups (e.g. Vodafone Farmers’ Club, MoFA).
The information is made available to selected media houses – Business and Financial Times, Ghana Financial magazine, Citi FM, and TV 3. Data can be provided on request with a charge. The charge for registration is GHC2/year. The services are demand-led. Although Esoko started with market prices, other services have been added because of the need and demand for those services. Types of information demanded is seasonal. At the beginning of the season, farmers
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request information on weather, and specific agricultural practice; after harvest requests for price information increases.
Users of information are willing to pay for information that is beneficial to them. However, revenue generated from registration fees and payments for services is not adequate to sustain services. Therefore, Esoko finds other sources of funding. E.g. it has a programme to support 227 female farmers through the Ministry of Gender and Social Protection.
Esoko strongly agrees that the numbers of staff needed for production and dissemination of information is adequate. However, upon recruitment there is usually a need to train staff on the use of IT. The company has the equipment for its work. Esoko collaborates with SRID, MoFA, Ministry of Trade and Industry. Other MIS providers Farmerline is a social enterprise specializing in the development of web platforms and mobile applications to disseminate and collect agricultural data to/from smallholder farmers. Since its launch in 2013, Farmerline works with farmers in five (5) countries (Cameroon, Ghana, Malawi, Sierra Leone, and Nigeria), The company provides bulk voice messages to farmers on prices, GAPs and the weather. VOTO is a social enterprise. It uses a mobile phone platform to make it easy for businesses, governments, and NGOs to share information and gather feedback through interactive SMS or voice calls in local languages. Prep-eez was designed in partnership with WAAPP and the World Bank, as part of effort to address the shortfall of adequate dissemination and adoption of successful technologies generated from West Africa Agricultural Productivity Programme (WAAPP). e-Extension is being considered to plug the loopholes in the existing extension services by providing farmers with affordable direct access to content through modern technologies like the mobile phone, improving extension officer to farmer ratio, and facilitating effective knowledge sharing without limits to language, literacy, distance and affordability. Prep-eez also offers farmers access to demand- driven time-critical content and real-time access to any extension services no matter their location, language and level of education. The e-Extension project is being delivered in partnership with WAAPP within the context of e-Agriculture (innovative use of existing or emerging information and communication technologies (ICTs) with a primary focus on all facets of agriculture). The Ghana Grains Council also provides market information as part of its facilitation activities. It has market and trade development initiatives, provides and training and capacity building to members and specifically provides market information, business advisory services and market access services, through publications, posters for pictorial education, and radio programmes in local languages (See Table 7, Section 3.3.3). Trader Associations. The Services provided selected trader associations (VEPEAG, GAVEX, LBTA, GAPTO) are presented in section 3.8.
3.8 State of major agricultural marketing organisations
3.8.1 Internal Trade (FBOs, Cooperatives, firms and individuals)
Farmer based organisations are of different sizes and forms. The Peasant Farmers Association of Ghana, the Ghana Agricultural Producers and Traders Association and smaller
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farmers and traders organisations in the Bolgatanga area were randomly selected for study based on production of and trade in tomatoes, and trading in fresh fish. The membership, scale of operations, of individual traders, trade facilitation activities and challenges faced are discussed.
3.8.2 Peasant Farmers Association of Ghana The association was set up in 2005 at the instigation of Oxfam, following the trade talks in Doha and the Doha Development Agenda under the WTO. PFAG is a not-for-profit network of 1,517 farmer organisations found in at least 5 districts in each of the10 regions of the country. The secretariat of the Association is based in Accra and it reaches out to its members through focal persons in members’ communities. The focal persons also rely on proactive farmers in the FBOs to reach farmers.
PFAG is an advocacy organisation that organizes its members or leadership of member FBOs for advocacy. The association also implements projects to help FBOs in production. Advocacy is for improving implementation of agricultural policies. The objective is to improve investment in agriculture based on the Maputo Declaration of allocating 10percent of government expenditure to the sector and to track the share of that spending that is on smallholder agriculture. Some of the policies they advocate on are, the fertiliser subsidy, extension, mechanisation and credit for the modernisation of smallholder agriculture.
On fertiliser subsidy they advocated for the level of subsidy and the distribution to reach smallholders; on extension, they have been involved in the review of the extension policy and employment of more female extension staff to increase reach to women; on credit, they partnered Concern Universal to pilot a maize value chain development project, which linked farmers to input supplier and a microfinance company, through a cashless credit scheme. The scheme was partially successful because farmers still defaulted therefore there was no continuation since the plan was to operate a revolving fund.
The following support services have been provided to farmers through projects:
a. Negotiations on prices b. Training on good agricultural and marketing practices c. Encouraging farmers to store grain for better prices during the lean season; however, farmers are unable to store grain for long because of pressing cash needs. d. Linking farmers to markets outside the community through arrangements with off-takers, who also purchased using standard measures to off-takers e. Linked members to financial service providers through projects.
PFAG supports internal marketing only. Their observation is that smallholder farmers are not entrepreneurial compared to traders who are able to forecast and manipulate the system to their advantage. Therefore, there is an imbalance in power between the parties in trading.
Challenges:
1. Resources – funding and staff to reach out to members at the community level. 2. Farmer are unwilling to repay loans
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3. Farmers have several problems which cannot be addressed by single projects 3.8.3 Ghana Agricultural Producers and Traders Organisation (GAPTO)
GAPTO is an umbrella organization of trader associations and farmers in Ghana although about 70percent of members are traders’ organisations based in major cities of the country. Most traders involved in agricultural marketing in Ghana are organized into commodity based associations. The associations are based in cities and metropolitan areas such as Accra, Kumasi, Takoradi but source produce from all over the country. GAPTO was formed in 1992 as an umbrella organization for associations in Agbogbloshie, one of the largest food markets in Accra, and other parts of the country. It was re-organized and registered as a trade association with the Registrar General in 2004. GAPTO’s vision is to improve production and trading in terms of value and volumes and to help minimize, if not eliminated, post-harvest losses. The organization’s mission is to design programs aimed at ensuring that the vision is realized.
GAPTO actively promotes and controls trade in different products in the markets by supporting individual associations in managing supply in order to avoid seasonal gluts in the markets as a result of seasonal production patterns. GAPTO also facilitates access of traders to information about supply conditions, weather and road conditions especially in poor access areas. GAPTO supports traders to organize logistics for procurement of produce, especially from neighbouring countries. GAPTO arbitrates disputes between different associations and between their members and non-members and is also able to intervene on behalf of their members to recover monies paid to farmers when the latter fail to deliver produce as promised. GAPTO advocates for improved market services from the City authorities, especially in Accra; it provides representation to District, Municipal or Metropolitan Assemblies. It is therefore a liaison between its members and public sector authorities or development agencies, when it comes to initiatives to support traders.
For example, the City authorities in Accra have engaged GAPTO on the plan to construct model markets, with enhanced facilities, for the city. In 2005, GAPTO, was funded under the MISTOWA project to establish the Agribusiness Information Centre, where members could access market information either from notice boards or from the TradeNet platform. Traders could access information on prices, volumes, weights etc. on all crops, livestock and fish. The information was uploaded onto computer/internet and made available to the producers and traders. Members were also given price information via SMS at no cost. There was an internet service in their offices which members could access at a token fee. GAPTO had also worked on the TIPCEE project although the nature of engagement was not disclosed.
However, during a visit in June 2016 for the present assignment, the GAPTO office had very little activity. There was only one computer in the Chairman’s office and a secretary. There was also no notice board displaying prices. So the organisation does not seem to have the staff and probably finances to sustain its activities.
GAPTO is financed by contributions of individual association from their dues. As long as the services from GAPTO continue to flow, trader associations will be happy to make these contributions to payment for office premises and staff salaries.
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3.8.4 Cattle Breeders and Traders Association, Ashaiman
This is a private association of livestock traders. They do not breed although it is one of their goals. They import cattle, sheep and goats from the West Africa sub-region, mainly Burkina Faso, Nigeria, and Niger. The association was formalized in the 1990s. Turaku as one of two international livestock markets in Ghana; the market was established out of need for an assembly point for customers. The other is Mayanka market in Kumasi. There are other weekly markets at Juapong, Yeji, Buipe, Tamale, Bolga. These feed the international markets. Registered members of the association pay a registration fee for their commitment and monthly dues of GHC5 (under review for increase). Services provided to members include: a. Weekly livestock prices from Esoko. Members have difficulty in accessing the platform therefore they make phone calls for the prices. b. Association serves as conduit to access training for members from organisations such as WATH-USAID c. Association has a platform that links sources of livestock, types and 5 – 8years old. Members rely on buying agents to feed them with needed information. Traders are linked to buyers by middlemen, also known as landlords; the landlords are under the Association and are paid a commission for each transaction. Presently price of an animal includes a GHC50 commission for broker services of the landlord. Buyers of animals from the cattle market are mainly butchers. Traders sell to butchers on credit, which is repaid after sale. The association is aware of this arrangement and can mediate if there are disputes. d. Association provides information on government policy to members (e.g. the veterinary drug bill and Animal production Bill). These concern welfare of animals, e.g. during transportation, and antimicrobial resistance (workshop organized by FAO, representation by executive Secretary of the Association). e. Members are educated on how to get the veterinary service to regularly check their animals for symptoms of ill-health and to advise them; but this is not working. f. Association does not access loans for members because of experience of default. On financing, the interest rate is too high. Members are advised to use Ecobank for payments. g. Association advocates for members and advises members on how to behave and be disciplined on the roads when livestock are being transported. Traders experience harassment by the police and often the association intervened to bailout members caught in harassment situations. Association has advocates on: i. the need to upgrade quarantine status of entry points along the country’s borders ii. For vehicles transporting livestock to be treated as ambulances so that there are minimal delays in their movements. iii. There is no use of standards in livestock marketing. Animals are assessed by the eye and this is the general practice in the WA sub-region, except Senegal. Working to introduce scales. iv. Costs of services provided to members are covered from the registration and monthly dues. So Association sometimes looks for funding to carry out their activities.
Association is aware of the Public Health Act, 2012 (and advocates for lorries transporting animals to be treated as ambulance). Executive is also aware of the need for livestock to be
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inspected before moving livestock internally but application of regulations to internal trade is difficult because of limited marketing points for holding animals. Challenges 1. Road harassment by police. Not less than GHC3,000 provision per truck load from Bolgatanga to Accra, for extortions from police 2. Difficult to get trucks. Traders depend on trucks for general goods. So, that return trips are not empty.
3.8.4.1 Farmer and Trader Organisations in a Local Market (Bolgatanga)
Summary of interviews with small farmers and traders Farmers - Small scale - Sell to traders, who also operate on small scale, in the informal market - Prices received by farmers are determined by bargaining but relative bargaining power of farmers is stronger in the off-season. Farmers’ perception is that they receive low prices. But farmers are unable to store up to this season either because of the perishable nature of produce or that there is pressure for cash. - Cold storage infrastructure is required for fish traders.
Challenges faced by small farmers are inadequate market space, poor market infrastructure, low prices and limited storage facilities especially for fish and tomatoes. Producers of tomatoes and fish also face strong competition from Burkina Faso, although for tomatoes, seasonality in production is a factor. Traders Scale of business is small and two of the four commodity trader groups interviewed were in some organized groups for welfare of members, price negotiation, and facilitating access to credit and inputs. Contracting relationships between traders and producers are scarce. Fish traders finance nets for fishers and in turn can have trade credit for very short periods, usually per batch. Tomato wholesalers may also provide trade credit to retailers as in the case of fish. Challenges facing traders are limited access to finance, poor market infrastructure (space and quality of infrastructure). Interestingly, price is not an issue for traders. Common challenges for both farmers and traders are poor market infrastructure and lack of access to capital to expand the scale of business.
3.8.5 External Trade (Exporter/Importer Associations)
Vegetables Producers and Exporters Association of Ghana (VEPEAG) is a voluntary association of 380 members, consisting of lead commercial exporter/nucleus farmers, individual growers and farmer groups. The nucleus farmers procure produce from individual growers and farmer groups to supplement their own production for export. The association has a national coverage but members are concentrated in the Central and Eastern, GAR, VR and Ashanti regions.
Services provided to members are price information, training on GAPs (including quality requirements of the market and certification processes), control on grades into the market; bulking
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of produces for export at association’s packing shed. They also access markets for members and link farmers to buyers.
VEPEAG is a member of the GSA Agriculture Committee and therefore contributes to standard setting for vegetables. Other partners are agro-input shops, NGOs, Fruit Logistica for international fairs, Ghana Export Promotion Authority and GIZ. Members sell produce by grades because of their involvement in the export market. Containers (packaging boxes) are standardised by weight (Kg). Members of the association are required to register with the Civil Aviation, PPRSD, EPA, the Narcotics Control Board (NACOB). The main source of funding for VEPEAG is the dues paid by members; the association also reaches out to international NGOs for support but response is low.
The association needs access to software on market information and GAPs in the Value Chain. For now, they get information from the market and text messages from ESOKO. VEPEAG prefers price data at the farm gate; current prices are from markets and do not meet the needs of farmers. Such prices for farmers are not realistic because they include marketing costs between the farm gate the point of sale.
Main suggestion is that agricultural marketers in Ghana should use standards and standard weights and measures. This is of importance to the association because the destination markets deal in standard weights and measures, but the internal market from where the produce is procured does not promote use of standard weights and measures. The exporter association will like the law on standards to be enforced, through awareness creation, ensuring availability of quality equipment on the market and assigning responsibility for enforcement. Also, traders and farmers should be educated on the use of appropriate packaging and transportation especially for fruits and vegetables.
4. SUMMARY OF FINDINGS AND CONCLUSIONS
Analyses of the strengths, weaknesses, opportunities and threats of the agricultural marketing system, the regulatory environment, and the trader and farmer organisations/associations guide the conclusions and recommendations from this research. The findings are summarized into SWOT analyses for the agricultural system, the regulatory environment, farmer and trader organisations.
4.1 SWOT Analyses
4.1.1 Strengths Weaknesses Opportunities and Threats of the Agricultural Marketing System
The strengths of the agricultural marketing system (Table A6) are, well organized trader groups, non-interference of the state in marketing, in price setting or product flows; existence of a system of grading and standards for use by traders, and spatial market integration.
The weaknesses are the high level of informality, prevalence of face to face trading and associated high transactions costs, which pose challenges for facilitating and regulating the system to create level playing field and food safety. Imbalance in market power between traders and
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farmers due to high level of organization of traders compared to farmers, gives traders the opportunity to collude. Similarly, aversion to use of standard weights and measures in trading leads to preference of face to face trading which increases transactions costs. There is low price incentive for investments in quality and this feeds into disregard for quality and safety of food commodities, in an environment of pervasive ignorance about critical food safety issues such as aflatoxin contamination and its effects on human health. Farmers and traders do not have the ability to use higher level of ICT tools to access information.
There are several opportunities for development of agricultural marketing to enhance its contribution to agriculture performance and food security. These include growth in demand for food in general; preference for quality produce from a growing middle class and an expanding agro-industry; interventions linking small farmers to nucleus farmers, larger aggregators and off- takers; emergence of commercial market information service providers; use of ICT for agricultural and market information; availability of standards for fruits, vegetables and grains; and the promotion of grains trade by the GGC.
Threats to the development of agricultural marketing include poor road infrastructure; high costs of transport off-trunk roads; rising standards on international markets especially for horticultural produce (GAPs, ethical standards and carbon footprints) (Table A9).
4.1.2 Strengths Weaknesses Opportunities and Threats of Regulatory Environment
There is a well-established system for facilitating and regulating marketing but more so for quality control than for fair play in the market. Technical capacities of regulators are high and there are laws governing the work of regulators. However, capacity for enforcement is low (low staff numbers, limited funding, testing laboratories are concentrated in the National Capital). The Marketing Services Unit of SRID is weak and does not engage with farmers and traders for internal marketing; meanwhile smallholders and small traders are not aware of laws. There are some overlaps of functions, especially of MoFA and MoTI. Some potential threats are budget cuts and recruitment freezes confronting public organisations; these can reduce effectiveness of regulatory bodies, especially for monitoring and surveillance activities (Table A7).
4.1.3 Strengths Weaknesses Opportunities and Threats of Farmer and Trader Organisations/Associations
Export trade associations are well informed about laws and the risks and costs of non- compliance. They can advocate for members, self-regulate and contribute to policy dialogue. This is not so with small farmers and small traders because of the scale of their operations and inward looking attitudes, especially of traders. Major threats are resistance to standards, poor roads and facilities within markets, and limited access to capital for expansion (Table A8).
4.2 Conclusions
Agricultural marketing needs to be transformed from a predominantly informal system to a predominantly formal system if it is to support growth and transformation of the agricultural sector. This means that market actors should change marketing practices from the farm level down
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the value chain. Knowledge about how to change the practices exists but use of such knowledge is low because of lack of awareness, low incentives to change, especially where change involves cost and consumers do not demand quality, or there is resistance to change on the part of farmers or traders.
Facilitating and regulatory systems exist to influence change but progress is more visible in external trade than in internal trade because of the demands of the former for quality and standards. However more needs to be done to improve compliance of exporters with import requirements. The informal nature of internal trading is a challenge to facilitate or regulate. Regulatory frameworks are geared towards food safety, ethical fishing and sustainability of fisheries, and standards but enforcement is stronger for food safety and ethical trade. Multiplicity of regulatory functions across organisations and laws seem not to pose challenges of enforcement because each law mandates an organization for its enforcement. Discussions with the regulatory bodies reveal that each knows the scope of their responsibilities, however, the influence of the FDA in the areas of other organisations is sometimes seen as usurping of roles (FDA and fish health), especially if the FDA is seen as not having the technical capacity in terms of human resource. Multiplicity of agencies can have implications for effectiveness and costs.
The administration of the laws take the form of registration, licensing or certification, testing, and monitoring or post-registration surveillance; and enforcement is by withdrawal of licenses, renewal of certificates, seizure and destruction. Because registrations and certificates are essential for businesses to operate, response of market actors is positive. However, post-market surveillance, which is a key factor in enforcement is weak due to low capacities in human and financial resources. This area needs to be strengthened either by new recruitment and increased financing, or by strategies that can increase effectiveness at lower cost (e.g. use of decentralized structures or outsourcing some services).
Public sector agencies are also involved in trade facilitation through training and information sharing. There are two public sector market information providers, one for domestic marketing and the other for exports. The MIS for exports is stronger and more engaging while the domestic service provider tends to concentrate on wholesale and retail price information collection and dissemination. The domestic MIS system should be strengthened.
Trader and farmer organisations carry out facilitating roles as well for their members. The exporter associations have more educated and enlightened members and are therefore expected to understand issues, especially in relation to product standards. However, the system is just self- correcting after several incidents of notifications of substandard produce exported to the EU. This is evidence that if the domestic market begins to demand standards, traders will conform. But it will take some effort to plant the seed for formalisation through say institutional buyers. The opportunities of formalisation are emerging through linkages between farmers on the one hand, and formal aggregators, and off-takers on the other. Agricultural commercialisation models of nucleus-farmer outgrower linkages also offer opportunity and demonstrates the benefits of selling according to standards to farmers.
The marketing practices for agricultural inputs is also informal. Dealers do not have appropriate storage environment for agrochemicals and seed and tend to stock these inputs
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alongside general merchandise. Also, malpractices among input dealers are common and this is due to large numbers of unregistered dealers.
Discussions with regulators revealed that existing laws are adequate to achieve their goals. However, on Weights and Measures law, there is no clear designation of responsibility for enforcement or promotion because the Standards Authority claims32 it is not a regulatory body.
5. RECOMMENDATIONS
a. Upgrading Value chains and formalize marketing
Lessons from existing models should be used to upscale the upgrading of value chains for grains and cassava. Efforts are being made to linking up with the breweries and the vegetable oil processing industries. It will be useful to upscale these arrangements with the lessons outlined in this report. This will require active participation and leadership pf the private sector, working with strong farmer organisations. The upgrading should target supermarkets to reduce their imports of locally produced agricultural produce (tomatoes, rice, vegetables). But this means increasing the capacity of farmers to produce these commodities.
b. Develop necessary marketing infrastructure
Specific requirements of the value chains for upgrading are:
1. Fruits and vegetables - availability of seed of desired varieties; irrigation; cold chain; improved transportation (e.g. boxes for transporting tomatoes); packhouses in production hubs 2. Roots and tubers – appropriate transport and storage services; harvesters especially for cassava 3. Cereals – certified storage infrastructure enhanced with cleaning and drying facilities, awareness creation about aflatoxins and education on their control. 4. Legumes (soybean and groundnut_ - same as for cereals 5. Meat – abattoirs, appropriate transport vehicles 6. Fresh fish – appropriate transport 7. Train and certify warehouse managers and floor workers in post-harvest management. 8. Liaise with packaging industry to develop standards for quality packaging for agricultural produce (dry and fresh produce, and for bulk and retail quantities). These should be consistent with the standard weights and measures allowed by law.
c. Align institutional arrangements for effective regulation and facilitation of marketing
There are so many organisations involved in agricultural marketing. Although the agencies see their roles as well defined, it is important to define a common structure or framework with a clearly defined leadership for these organisations. It is recommended that MoFA and MOTI should constitute a permanent Technical Team to lead in the development and promotion of agricultural
32 Interview with Eugene Adarkwa-Addo, Director of Operations, GSA 63
marketing policies, laws and regulations and define oversight responsibilities for their enforcement.
The item on foods under section 7 of the Public Health act covers packaging, meat inspection and transportation, and labelling of agricultural produce that is consumed. Apart from meat inspection, which responsibility is shared between the FDA and the VSD, the other areas appear orphaned especially at the primary production level, because the FDA activities do not cover fresh produce on in local markets.
d. Harmonize existing agricultural marketing policies, strategies and regulatory frameworks
There are several policy documents and strategies within MDAs. These policies need to be collated into an umbrella marketing policy, with coherent implementation plan for harmony and effectiveness. There are also marketing laws with no assigned enforcement responsibility (e.g. weights and measures). There is a need to develop regulations for such laws and to assign oversight responsibility for their enforcement to an appropriate agency. The laws governing livestock sector are dated and require urgent review.
Law enforcement agencies should be sensitized on the need to facilitate rapid movement of agricultural produce such as livestock and other perishable produce.
e. Improve support services for marketing
The mandate MSU of SRID to deliver wider range of marketing services to farmers, by backstopping the Agriculture departments in the districts. Marketing services units could be established in the technical directorates of CSD, APD, and PPME of MoFAD and at the district agriculture departments, to take up responsibility for facilitating marketing activities of farmers. MSU of SRID will engage producers more closely (for internal marketing) in the manner that GEPA does with exporters. However, MSU services will support only formal market linkages between farmers and buyers.
Regulatory bodies have low reach to their clients or target groups for monitoring and surveillance therefore delegating decentralized agencies to carry these activities can improve the situation. An alternative will be to out-source the services to appropriate third parties. This may require special expertise and criteria for engaging such third parties.
Vigilance in the monitoring for SPS compliance by exporters should be increased and penalties reviewed for severer sanctions. There is need for an independent study to identify loopholes that contribute to the export of sub-standard produce.
There is no professional requirement for trading in agrochemicals in particular, therefore the human resource capacity is very low. Training of dealers should be intensified. Monitoring dealers and enforcement of regulations is weak because of inadequate logistics of the EPA and PPRSD. GAIDA appears to be a strong lobby group therefore the association could be partnered to monitor its members but EPA and PPT+RSD should expand the registration of dealers to facilitate the effectiveness of GAIDA.
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f. Support Farmer Organisations and Trade Associations to Pilot Value Chain Partnership Models in alignment with government strategy for agroindustry development
Trade associations involved in both internal and domestic trade need constant training on best practices in marketing. This should include training on how to identify market opportunities, and how to link up with major buyers. They should also be provided with technical and managerial support to organize production. This requires training by specialist extension agents. MoFA should therefore review its policy of a generalist extension agent in light of the value chain approach it is pursuing. For exporters, there should strengthening of the SPS system and constant sensitisation on the laws of importing countries as well as on the consequences of non-compliance for their businesses and for revenue to the country.
g. Improve Access to Financial Services
Lessons from ongoing financing support programs should be harness for wider application. These include the Outgrower and Value Chain Fund of GIZ; Financing Agriculture in Ghana project of ADVANCE, and the Export Development and Agriculture Investment Fund. This should be supported with analysis of minimum financing requirements of various actors in the different value chains. The analysis should disaggregate requirements for working capital from investments.
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Ayambila Michael (2015). Rice Value Chain Profiling. MoFA/FAO Unpublished report
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Ayeduvor Dela (2015). Maize Value chain
Bressler, R. G., & King, R. A. (1970). Markets, prices, and interregional trade (Vol. 8). New York: Wiley.
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Cordero-Salas Paula, Mulangu, Francis and Kodam Chapman Mitchchris (2015). A Study of Existing Commercial Problems in Agriculture and Agribusiness Contract Violations in Ghana.
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Egyir, I. S., Al-Hassan, R. M., & Abakah, J. K. (2013). Agricultural Markets: Experiences from Ghana. Technology, Sustainability, and Rural Development in Africa, 59.
EU Delegation (2015). EU Supports Groundnut Value Chain in Ghana – Corrigendum to two articles published in the Ghanaian Times and B&FT (20/05/2015). Accessed at:http://eeas.europa.eu/delegations/ghana/press_corner/all_news/news/2015/20150520_g roundnut_en_01.htm on 20th June 2016.
Export Development and Agricultural Investment Fund (Act 823 (2011)
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ANNEXES
A1a. List of Organizations Interviewed
Organisation Position Marketing Services Unit Head of Unit Esoko Programme manager Vegetable Producers and Exporters Association of Ghana Executive Secretary Ghana Grains Council Program Officer Plant Protection & regulatory Services, Pokuase Ag. Director Ministry of fisheries Director, PPME Fisheries Commission Monitoring and Surveillance (MCS) Veterinary Services Directorate Ag. Director Cattle Breeders and Traders Association, Turaku Market General Secretary Agriculture Engineering Services Directorate Head, Rural technology Information Unit Technical Officer, AESD Head, Post-harvest Unit Food and Drugs Authority Head, Agro products and Biosafety Regulatory Officer Snr Regulatory Officer Ghana Standards Authority Head of programmes Ministry of Trade and Industry Head, Agribusiness Peasant Farmers Association of Ghana Programme Manager Ghana Agriculture Producers Chairman National Food Buffer Stock Company Director of Operations Amare Projects Tilapia Trader, Accra Ghana Agriculture Input Dealers Association Executive Secretary
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A1b. Commodity Groups and Participants in Focus Group Discussions
Number of participants Type of Groups in Focus Groups Sheep and Goat Traders (Bolgatanga) 5 Sheep and Goat Farmers (Bolgatanga) 5 Fish Farmers (Navrongo) 3 Fish Traders (Navrongo) 4 Tomato Farmers (Bolgatanga) 5 Tomato Traders (Bolgatanga) 4 Rice Farmers (Tamale) 5 Rice Traders (Tamale) 4 Total No. of Participants 35
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A2. Mandates of Public Sector Regulatory Institutions Ministry Departments/Agencies/Authorities Regulatory areas Ministry of Food and Agriculture Plant Protection and Regulatory Services Organizes, regulates, implements and coordinates the plant protection services Directorate i. Sanitary & Phytosanitary safety ii. Pesticide use iii. Seed sector development Veterinary Services Directorate The activities relevant to marketing are: i. Ensures that meat and other products of animal origin are safe for human consumption ii. Helps to regulate imports of meat and animal products by ensuring that such products come from countries certified by the OIE to be disease-free. iii. Monitors and enforces regulations on import and export of livestock and poultry and their products, through quarantines, and permits for imports and internal movement and seizure of animals imported in contravention of the law. Ministry of Fisheries and Fisheries Commission i. Fish health Aquaculture Development PME of MoFAD ii. Fish market infrastructure iii. Sustainable aquaculture/fish farming iv. Sustainability of fishery resource v. Ensure IUU compliance: registration of vessels; permits for fishing, imports and exports vi. Enforcement with the marine police and local law enforcement Ministry of Health Food and Drugs Authority Regulates all aspects of Food Safety Ministry of Science and Environmental Protection Agency Competent National Agency charged with the responsibility for regulating the Technology procurement, importation, storage, sales, distribution, disposal and application of all pesticides or plant protection products in a matter that they do not harm the environment, pose health hazard and safety risk to human beings, crops, animals, plant and fish products for consumption. This includes: i. Pesticide registration & licensing ii. Inspection & monitoring of (agro)chemicals iii. Management of hazardous chemical waste disposal and obsolete (agro)chemicals iv. Post registration enforcement Analysis of pesticides Food Research Institute Advise Government on national food Policy • Support the food and agricultural sectors • Conduct applied research into problems of: i. Food processing, preservation and utilization
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ii. Storage, marketing and distribution iii. Food safety & quality assurance iv. National food and nutrition security v. Support micro, small, medium & large-scale industrial food processing Ministry of Local Government Metropolitan, Municipal and District i. Make provision for the inspection of all meat, fish, vegetables and all other and Rural Development Assemblies foodstuffs intended for human consumption whether exposed for sale or not. ii. Seize, destroy and otherwise deal with all such foodstuffs or liquids as are unfit for human consumption. iii. Supervision and control of the manufacture of foodstuffs and liquids intended for human consumption. iv. Provide, maintain, supervise and control slaughter-houses Source: Developed by Author based on relevant public documents
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A3. Public Sector Facilitating Institutions and Mandates Departments/Agencies/ Ministry Regulatory areas and functions Authorities Ministry of Food and Statistics Research and Collect, collate and disseminate market information Agriculture Information Directorate – Market Services Unit Directorate of Agricultural Transfer technology and good agricultural practices to farmers Extension Services Crop Services Directorate Mandate is to promote the production and facilitate the processing, distribution and marketing of food, industrial and export crops; i. Responsible for the development of the Green label – good agricultural practice development for fruit & vegetables, including development of standard operating practices (SOPs)Development of Ghana Green label Agricultural Engineering Services - i. Develop and introduce technologies for post-harvest management (storage, Post-harvest Unit dryers, processing equipment) ii. Backstop Agriculture directorates of Local Government Service Women in Agricultural Promote Development i. Nutrition improvement ii. Food safety along the agricultural value chain iii. Value addition to agriculture produce Ministry of Fisheries and Aquaculture Development Streamline the fish market to facilitate traceability for access to export market Fisheries Commission Focus is on Fish health and sanitation through provision of PME of MoFAD infrastructure for fish processing and marketing Specific provisions in Fisheries Regulations, 2010 (LI 1968) i. Use of chemical ii. Minimum sanitary requirements iii. Inspection of sanitary conditions of landing sites iv. Importation of fish and fish products Fisheries Commission Illegal, Unreported Unregulated fishing Ministry of Trade and Industry Mandate of Trade and Industry is to facilitate of domestic trade. i. MOTI’s mandate starts after harvest and into processing and marketing. ii. Mandate covers transportation, packaging, standard measures, and grades, and policy MoTI has been involved in the following marketing issues: i. Grading, ensure quality, traceability, use of chemical (approved chemicals, proper application and maximum residual levels). ii. Resolution of disputes among traders iii. Building of model markets Ministry of Trade and Industry Ghana Standards Authority Competent Authority for standards and method development, testing and analysis 73
i. Demand-driven analysis of all products, both non-food and foods products, including fresh fruits, vegetables and their processed products covering domestic, exports and imports ii. Conducts pesticide, microbiological, heavy metals, histamine and mycotoxin analysis on food and food products on client own samples delivered to the Authority Conformity assessment tasks include: i. Certification services ii. Inspection services iii. Laboratory services iv. Testing and calibration of equipment. GSA does not regulate; conducts post registration and market surveillance Ghana Exports Promotion i. Market Access, Development and Penetration Programs. Authority ii. Product Development and Supply Base Expansion iii. Export Trade Information Dissemination and Communication Ghana Export Trade Information i. Provides product and market information, including trade events and topical Centre issues to the business community or refers exports to other important sources of information ii. Assists exporters who deal in food export to register their food facilities as well as products intended for the USA as required under the Bio-Terrorism Act of 2002. Source: Developed by Author based on relevant public documents
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A4. Private Sector and DP facilitators Organisation Functions Ghana Grains Council The mandate of the GGC is to enhance the efficiency of grain crop value chains through the provision of a variety of services. The areas of focus are: i. Warehouse receipts programme, ii. Policy and advocacy (grains standards development, warehouse receipts bill, fertilizer act and revision of old standards in rice) iii. Training and capacity building of actors in the grains value chain to better enable them compete in the grains sector. iv. Market and trade development initiatives. v. Support services including, market information, publications, business advisory services and market access services, posters for pictorial education, and radio programmes in local languages. vi. Promoting trade by weight and grades in a more structured market – through institutional buyers, at certified warehouses vii. GSA standards have been adopted to ensure food safety and quality. Esoko Esoko is a market information provider. i. Esoko collects, collates and disseminates market information including, wholesale and retail prices, good agricultural practices, and weather. ii. It disseminates information through selected media houses and on radio iii. Information is available on demand through subscription to the Esoko platform or call centre. Producers can also access Other e-based MIS providers are information by subscribing to SMS alerts. Pre-eez, Farmerline, VOTO Prep-eez provides e-extension. It facilitates knowledge sharing among actors through the entire agricultural value chain through without limits to language, literacy, distance and affordability. Cattle Breeders and Traders i. Advocacy organization; mediates in disputes and is link between members and policy makers Association ii. Moderates transactions between traders and buyers via middlemen, also known as landlords. iii. Educates members on government and international policies33
Costs of services provided to members are covered from the registration and monthly dues. So Association sometimes looks for funding to carry out their activities. Ghana Association of Vegetable Advocate for compliance with quality standards among members Exporters (GAVEX); Self-regulation (e.g. voluntary ban on exports of vegetables) Investments in technical expertise to train extension agents and outgrower Organise trade missions to understand and appreciate nature of inspections of vegetables in the UK Provides information on quality standards, policy to members. Vegetable Producers and Exporters Advocates on behalf of members of Ghana (VEPEAG) Serves as link between members and public institutions through membership on important committees (e.g. Standards Committee). National Food Buffer Stock A semi-autonomous organization under MoFA, with the mandate to: Company (NAFCO) i. Mop up excess cereals in the market
33 See section 3.6 for details on trade associations 75
ii. Buy produce at minimum guaranteed prices iii. Provide assured market to farmers iv. Reduce post-harvest losses v. Hold emergency stocks vi. Supply food to government institutions (school feeding, hospitals, prisons etc.) vii. Employ buffer stock mechanism in regulating prices.
Target commodities are maize, rice (paddy and milled), soybean, sorghum and millet. Although the target groups are farmers, NAFCO has stopped purchasing produce directly from farmers because of poor quality. NAFCO procures grain quality grain through produce buying companies at a commission. Basic farm gate price is determined through a committee as cost plus 10 percent margin Ghana Agricultural Producers and GAPTO is a pressure group that advocates for members on marketing issues Traders Organisation Association serves as information centre for traders. Members have received training on financial management, record keeping, advocacy, dispute resolution through projects such as MISTOWA, TIPCEE. World Food Program Goals of WFP: reduce post-harvest losses, improve food storage and safety, market infrastructure and link smallholder farmers to quality markets. WFP works with farmer organisations to produce quality produce which the organization procures for its school feeding programme. The organisation has provided: i. Trainings on business management, GAPs, etc on production of quality produce ii. Farmer organizations have been provided with tools on a cost-sharing basis to manage quality (e.g. blue boxes for testing for aflatoxin and moisture levels). iii. Successfully introduced use of weighing scales by farmer organisations in collaboration with the Ejura District Assembly. This demonstrates a potential to successfully promote weights and measures in other districts. CABI Phytosanitary system development for vegetables Project, 2015 – 2019 Work with existing SPS system to develop Ghana’s technical and organizational capacity for core phytosanitary competencies related to export. Source: Developed by Author based on relevant public documents
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A5. Laws Affecting Agricultural Marketing Regulatory Legal framework Administrative measures Ease of Enforcement Institution Buying and selling Sale of Goods Act, 1962 (Act Act applies to every contract of sale of goods but it does Unable to assess 137) (Cordero-Salas et al., not say whether contract is formal or informal. Contracts 2015
Contracts Act, 1960 (Act 25) Plant Protection and Plants and Fertilizer Act, 2010 Four Divisions: Awareness of the laws is low and compliance varies, Phytosanitary services (Act 803). Plant Quarantine being high for exports and very low for domestic Crop Pests and Disease Management production. Monitoring is limited by funding Seed Inspection and Certification otherwise it is easy to enforce laws because of the Environmental Protection Pesticides and Fertilizer Regulation (only fertilizer is licensing requirements binds stakeholders to do the Agency responsible for mentioned under the regulations Sections 106 – 114) right thing. Structure for official quality assurance is in Pesticide Control and place; e.g. post-certification surveillance is working. Management Act, 1996, Act Regulations: 528. Its functions Clients pay for services but the charges are low. Also, i. Plant Protection and Regulation LI 2910 the 20 percent retention of charges by PPRSD is too i. Pesticide registration & low to cover costs of services. licensing ii. C/REG. 4/05/2008 on harmonisation of the ii. Inspection & monitoring rules governing quality control, certification PPRSD leads in licensing and inspections; GSA and of (agro)chemicals and marketing of plant seeds and seedlings in FDA conduct pesticide and aflatoxin tests respectively iii. Management of the ECOWAS Region for export clients hazardous chemical waste disposal and iii. Regulation C/REG.13/12/12 Relating to iv. obsolete fertilizer quality control. (agro)chemicals v. Post registration The Environmental Protection Agency manages enforcement pesticide imports and distribution vi. Analysis of pesticides Animal health Animals (Control of Regional Veterinary officers enforce laws The VSD gives a positive assessment about the Importation) Act, 1952, Act Veterinary services at border posts and livestock awareness of the laws among the general public, 36 markets traders and public institutions. VSD collaborates with FDA for meat inspection. Animal Diseases Act, 1961 i. Link with the OIE to verify that animals and Act 83 meat imported meet international standards. Monitoring capacity is weak because of few numbers ii. Inspect and issue permit for importation of of veterinary officers. animals Paravets could support the vet officers
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iii. Issues permits for movement of animals in in monitoring but they not being utilized. country iv. Certifies health of animals before slaughter Preparation of new regulations is underway to v. Records data on livestock imports, meat upgrade to WHO & CODEX standards (Modified Act imports and animals slaughtered 1961)
VSD does not have adequate places to hold livestock internally for inspections and permitting for movement34.
VSD leads; collaborates with FDA, MoH, GHS, Environmental Health departments of the MMDA Food Safety Public health Act 851, 2012 1. Set up of the Food Safety Division comprised Awareness of the Food Safety law is high among the of Animal Products and Biosafety general public and industry players. This is evidenced Local Government Act, 1993, Department (APBD), the Food Safety by increasing complaints from the public and increased Act 462 Section 10, Management Department (FSMD) and registrations and requests for supervision. The level subsection 3, items c and d the Food Industrial Support Services of compliance with the law is high because of the high state: the district; Department (FISSD). awareness and implications for noncompliance. c) shall promote and support 2. The Import and Export Control Department productive activity and social (IECD) of the Food and Drugs Authority is development in the district mandated to regulate the importation and The laws are also effective in achieving their objective and remove any obstacles to exportation of food. because 90percent of areas to covered are compliant. initiative and development; 3. Registration, certification, inspections and post d) shall initiate programmes market surveillance used to enforce the law. Amendments and new regulations may be necessary for the development of basic 4. Sanitation in slaughter houses and as new issues emerge. infrastructure and provide transportation of meat municipal works and services 5. Food Safety Policy Capacity of FDA for agro-produce safety is low; in the district; 6. Food Safety Strategic Plan tracing produce is difficult or impossible; testing of products is expensive and concentrated in Accra. Assemblies set up Development and Planning Sub- committee of the Executive Committee Socio-cultural factors limit compliance (e.g. butchers need to trained on sanitation and meat hygiene) FDA leads and collaborates with MoFA (VSD, CSD, APD), GSA, EPA, Police, CSIR, Universities, and MMDAs Fishing (Fisheries Fisheries Act, 2002. Act 625 1. Establishes the Fisheries Commission to Awareness of fisheries laws among general public is sustainability and Fish regulate and manage the utilization of the and low but is better among marketers. health) coordinate the policies in relation to them.
34 Discussion with the Executive Secretary, LBTA, Ashaiman livestock market 78
Fisheries Regulation, 2010 2. Registration, declarations, inspection, The laws are not easy to enforce and therefore they (L.I.1968) with Aquaculture certification by MCS and permitting by the are not effective in achieving their objective. regulations Minister Although there is no need for additional regulations, 3. AQUACULTURE REGULATIONS OF staff of MoFAD think there is need to harmonise Fisheries (Amendment) Act GHANA LI 1968 OF 2010 institutional arrangements for the law. Roles of 880 (2014) & Regulations Undesirable aquaculture practices are prohibited to Fisheries and FDA in terms of fish health need to be (2015), LI 2217 ensure safety of food fish; prohibits addition of harmful harmonized. substances or organisms to facilities; use of chemicals or drugs in aquaculture shall be in accordance with the A new fisheries law is being developed. Environmental Protection Agency Act, 1990, (Act 490). Permits needed for the importation and exportation of MoFAD and Fisheries Commission lead; collaborators fish. Health certificate needed for imports; A fish are Marine Police, MMDAs, Water Resources. inspector from a competent authority shall inspect fish landings for their quality and status at landing sites. Standards (Quality, Standards Authority Act, No LI for NRCD, 326 1975 Awareness of laws on standards is very low therefore grades) and Weights 1973 (N.R.C.D. 173) the level of compliance is also low. Monitoring is not and Measures Standards Board adequate and enforcement is not easy because of (Amendment) Decree, 1979 financial limitations and cultural limitations. Otherwise (A.F.R.C.D. 44); existing GSA law is adequate to achieve the objectives of standardization. Weights and Measures There is need for regulations to support the Decree Decree, 1975 (N.R.C.D. 326) on Weights and measures so that they can be enforced.
GSA is custodian of NRCD 326 but it has limited enforcement powers (not a regulator) therefore there is a gap on who should enforce the use of Standard weights and measures
Same with grading of produce to standards developed by the authority. Compliance is engendered by demand for those standards as is the case in export marketing and trading with formal institutions and processors.
GSA leads and collaborates with all regulators and organisations wanting to introduce standards for their sector.
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Market infrastructure Local Government Act, 1993 Establishment of Instruments for The DA Common Fund is the main source of revenue (Act 462) Metropolitan/Municipal/District Assemblies for Metropolitan, Municipal. Revnue from market tolls Environmental Department and Environment and other taxes are reliable source of revenue but not The laws regarding Committees enough for the assemblies to provide services to agricultural trade in the traders. assemblies are the general national and international No structure for the enforcement of safety standards agricultural trade laws for agricultural produce in markets (sanitary and phytosanitary laws, veterinary laws and food safety laws regarding slaughter of animals) Financing Export Development and Agricultural Investment Fund (Act 823 (2011)
Export Trade, Agriculture and Industrial Development Fund Bill, 2013
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A6. SWOT of Marketing System Strengths Weaknesses i. Well organized trader groups i. High level of informality ii. Non-interference of the state in marketing in price setting or ii. Prevalence of face to face trading and associated high transactions costs; product flows iii. Challenges of facilitating and regulating the highly informal system iii. Existence of a system of grading and standards for use by iv. Therefore services to internal marketing are few (strong on dissemination of market traders, and spatial market integration. prices) iv. traders are entrepreneurial v. Imbalance in market power between traders and farmers v. Trader groups advocate for members vi. Collusion by traders vi. Well educated agricultural commodity exporters are aware vii. Aversion to use of standard weight and measures and willing to self-regulate their members enforce standards viii. Low price incentive and unwillingness to invest in quality ix. Inability of farmers to use higher level of ICT tools to access information. x. High cost of accessing market information xi. Practices in domestic market pose threat to food safety, yet low awareness about food safety risks xii. Ignorance of majority of market actors about aflatoxin and its effects on human health Opportunities Threats i. Growing demand for food i. Poor road infrastructure ii. Increasing demand for processed food items ii. High costs of transport off-trunk roads iii. Growing middle class needing quality produce who are more iii. Rising standards on international markets especially for horticultural produce (gaps, ethical willing to pay for quality standards and carbon footprints) iv. Growing demand from agro-industry xiii. Capital to expand farming and trading is not available v. Rising demand for processed food items will shift market iv. No insurance for traders shares toward the industrialised food sector vi. Linkage arrangements between farmers on one hand, and nucleus farmers, formal aggregators, agro-processors growing and institutional buyers vii. Emergence of commercial market information service providers viii. Use of ICT for market information ix. Development of Ghana Green label and standards for some agricultural commodities. x. Public market information service providers hinged on ICT and mobile technology xi. Efforts of GGC to modernize the market (warehousing, warehouse receipt system
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A7. SWOT of Regulatory Environment Strengths Weaknesses i. High technical capacity of existing staff i. Low financial capacity to monitor or conduct market surveillance ii. Existing laws are appropriate for addressing ii. Laws are enforced through registrations and threats of withdrawal licenses issues of standard and quality iii. Enforcement is by multiple agencies creates room for enforcement system to be compromised (in iii. Many of the laws have well laid out systems marine fisheries, Fisheries Commission, fishing communities and Marine Police) for their enforcement iv. MSU is only a price collation division with limited engagement with the internal marketing system iv. Awareness of laws among traders is high v. Role of FDA as a food safety regulator extends its activities across the food system and can create (perceptions of regulatory institutions) duplication of efforts and possible conflicts with mandates of other organisations (e.g. aflatoxin is an v. Well educated agricultural commodity SPS issue under PPRSD but a also a food safety issue. What are the scopes of mandates of FDA and exporters are aware and willing to self- PPRSD? regulate their members enforce standards vi. Concentration of testing laboratories in the national capital limits access to testing services and constrains wider adoption of standards vii. Cost of testing also high partly because of concentration of the services. viii. Awareness of relevant laws (weights and measures, food safety, pesticide, animal diseases/animal health) is low among the small FBO and trader organisations research team interacted with in the Upper East region Opportunities Threats i. Interest of DPs and international market i. Negative attitudes of farmers and traders in quality assurance facilitators in addressing food safety issues and ii. Unwillingness of traders in internal markets to adopt standard weights and measures in raising food safety standard iii. Consumers not demanding standards (weights and measures and quality) ii. Compliance with food safety and ethical iv. Cuts in budget to MoFA standards a requirement for accessing v. Freeze on employment in public sector international markets iii. At least one project to build technical capacity of regulatory institutions (CABI)
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A8. SWOT of Farmer and Trader Organisations Strengths Weaknesses i. Export trader associations are well-informed i. Smaller organisations (farmer and trader) tend to focus on welfare of ii. Awareness of laws among external traders is high (perceptions of members and so pay little attention to their livelihood activities regulatory institutions) ii. Multiple registrations required of agricultural export traders iii. Well educated agricultural commodity exporters are aware and willing to iii. Internal trader organisations are inward looking – actions limit competition self-regulate their members enforce standards iv. Awareness of relevant laws (weights and measures, food safety, pesticide, iv. Trade associations (internal and export) can advocate for members animal diseases/animal health) is low among the small FBOs and trader v. Associations can contribute to policy dialogue with state organisations organisations
Opportunities Threats i. Increasing awareness of consumers for quality produce i. Unwillingness of middlemen to use standard weights and measures ii. Interventions to develop structured markets inclusive of smallholders ii. Poor market infrastructure, especially for holding perishable produce (e.g. Ghana Grains Council)
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A9. Summary of Interviews with Farmer and Trader Groups Commodity Scale of production Price determination Challenges Tomato (Asungtaaba 60 – 80 crates (52Kg) per season Sell to local and distant wholesalers No storage facilities in markets Tomato Farmers Prices set through negotiation. Inadequate capital for production Association). Producers have no power in times of glut Low prices 20+ members. Competition from foreign tomato Welfare support and price producers (Burkina Faso) negotiation for members Sheep and goats Sell in Bolgatanga market or by Prices determined by negotiation Low financing Farmers not organised in roadside Livestock diseases group Fish 270,000 kg/year (about 90,000kg Sell on farm to wholesalers and retailers, Difficult to produce big fish desired by A single producer in in 2 batches and to local restaurants and hotels buyers Navrongo Prices are negotiated but bargaining powers Competition from Burkina Faso of producer and buyers changes depending Lack of storage facilities on availability of fish High cost of feed Rice Kpangmankawonson Average of 3 acres/farmer Do not sell all at harvest. Store for about 4 High production cost FBO in Kpalahi near tamale 45 bags (4.5 tons/year) months. Low prices FBO assists members to Prices are negotiated and farmers have No credit facilities access inputs and credit stronger bargaining power in the lean Poor roads season Farmers sell independently
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A10. Summary of Interviews with Traders Commodity Scale of trade Price determination Relationships between actors Challenges Tomatoes 3 buckets/week Sell in Bolga market No contracts with farmers Losses in storage Asongtaba Tomato 1.5 non market days Traders set prices Wholesalers may sell on credit to Limited market space Traders Source produce from retailers Poor structures Association, different sources No storage facilities Bolgatanga Dec – Feb (Vea and Tono) No credit Other periods, Techiman Supply shortage during the off- and Burkina Faso season Farmers transport produce to market Sheep and goats Sell 9 – 15 sheep/market Sell in Bolgatanga No contracts High cost of transport day and 20 goats market No pre-financing Poor market infrastructure Buy from nearby villages Prices are negotiated Limited market space and Burkina Faso Theft Peak sales during limited finance for expansion Christmas and Easter No support from Municipal Authorities Fish 60 – 90Kg/day Sell in Navrongo Traders may finance nets for fishers Irregular supply Dewolidane Fish Traders buy from Tono market. Shed provided Trade credit from farmers/fishers Financial constraints traders fish farmer, and from Yejji by Member of Traders bear all marketing costs No loan facilities Association, and Burkina Faso Parliament Navrongo. About Sell to consumers and 3 members local retailers from Bolgatanga Rice Wholesalers – 800Kg/day Uniform price of rice in No contracts or other engagements No shed for retailers Individual traders Retailers – 100Kg/day market. between traders Limited market space in Tamale Market All trading in Tamale Cost plus approach High transportation costs market. Aggregators buy paddy from farmers and sell to wholesalers who mill.
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