Non-Traditional Agricultural Exports and Natural Resource Management in Ghana: Practices and Prospects

Okyeame Ampadu-Agyei

Center for International Development and Environment World Resources Institute 1709 New York Avenue, NW, Suite 700 Washington, DC 20006

1994 This discussion paper is prepared by Center staff and collaborators. WRI takes responsibility for choosing the topic and guaranteeing authors and researchers freedom ofinquiry. Unless otherwise stated, all the interpretations and findings are those ofthe authors. \ EXECUTIVE SUMMARY iii) Improved employment opportunities and income. Beginning at the time of itS independence in 1957. the . government ofGhana has actively been promoting non­ iv) Introduction of new technology and capacity traditional exports (NTE) in an attempt to reduce the building•. country's historical dependence on cocoa. In 1984. a Structural Adjustment Program supported by the World v) Stimulation ofprivate entrepreneurship. Bank and inspired by continued slumps in world cocoa I prices. led to the introduction of Ghana's Economic From the government, individual and social Recovery Programme (ERP), a prominent feature of perspectives, the NfAE is a profitable business, (that which has been additional support for Nf'Ec;.lts strategy is, total financial benefits exceed total costs). These I focused on increasing exports ofa variety ofhigh-value success haVe not come without a price, however, products that are in demand both in temperate countries particularly in the form ofenvironmental degradations and other African nations, and that are suitable and and socio-economic disruptions. economical for production and manufacture in Ghana. I Policies and institutional capacities were established to Generally speaking, the production of NfAE crops is support and facilitate the marketing and export ofthese considered a mixed blessing in the villages where the products by the private sector. crops are actually cultivated. While there have been tangible improvements in household incomes and the The dramatic expansion ofN1Es over the past ten years quality of socio-economic life, there have also been (from US S1.9 million in 1984 to S62 million in 1990 considerable deteriorations in the quality of the local and about US SIlO million in 1994) suggests that NI'Es • environment. The government's active promotion of will continue to have a strong role to play in the ongoing NfAEs, for example, has resulted in increased levels of economic development ofthe country. deforestation and soil degradation, heightened levels of agro-chemicals in the nation's soil and water, and the Non-traditional agricultural exports (NTAEs) constitute erosion of local genetic resources and national an important subsector ofoverall NTE growth.· When biodiversity. the recent round of NfAE initiatives was formally introduced, only six crops were being exported, Now, In addition, the socio-economic benefits of NfAE over 60 products are being exported to the global production have not been uniformly distributed. The market. Three of Ghana's leading NfAE crops ­ increasingly mechanized nature of production ofsome pineapples, kola nuts, and yams - have all seen dramatic NfAE crops, especially pineapples, clearly favors large­ production increases, in part a response to the scale producers. The social inequities that have come as government's promotional efforts, and in part a response a consequence of this has led to the displacement of to the ongoing decline ofthe cocoa trade. poorer fanners and subsequent disruptions in the production ofsubsistence crops, and the increased use of The analysis of the NfAE business at the individual, marginal lands and inappropriate fanning techniques ­ village, and national levels shows net advantage to the all of which have environmental consequences of their country in the following: own as a result of the inherent interconnectedness of human activity and the natural resource base. i) Diversified economy both at the village and national level. The promise ofNTAEs has already been demonstrated. The continued realization of this potential, however. ii) Increased foreign exchange for the nation. requires that increased attention be given to the impacts ofNfAE production on both Ghana's natural and human resource base. The challenge is to ensure that production I is environmentally. economically, and socially 1In this context, the concept of "non­ sustainable. traditionalM refers to: a) crops which are inew' orexotic I to Ghana (not produced traditionally in Ghana), or b) This study ofthree NfAE-producing communities was crops which have been traditionally produced for local undertaken in an attempt to gauge the sustainability of consumption. but are now being exported in foreign current production practices. Assessed in this capacity markets or in unprecedented volumes.

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•... were the pineapple-producing center of Kuntuse in vi) The change in the use of the resources and Nasawam District. the kola nut production center of whether that change is reversible or Kwahu Praso in Kwahu South District. and the yam­ irreversible. producing area around Atebubu in the Atebubu DistricL As the results of all three surveys suggest, if the The complex interrelations that exist between human sustainability challenge is not met, the government's • activity and environmental well-being defy simple cause current promotional policies will lead instead to and effect assessments. As the production of NTAE ·1 environmental disasters and social conflicts whose direct crops depends directly upon, affects, and is affected by and indirect price wiD far outweigh the monetary returns the natural resource base, a full understanding ofNTAE ofincreased exports. production and its potential in Ghana requires knowledge of all the environmental impacts that the As illustrated by the three village studies, the specific production of these crops entails. Among the more local-level environmental impacts of non-traditional obvious of these are their repercussions on vegetation, agricultural exports vary considerably and depend soils, water, human health, since these are the impacts largely on the type ofcrop, production technologies, and that will influence productivity, yields, profitability, and prevailing agroecologica1 conditions. Some of the hence the long-term viability ofNTAE activities. production practices currently being practiced degrade the natural resource base. Though the results of this To this end, all available knowledge and expertise must degradation have not generally had time to manifest be taken full advantage of in an attempt to fully and themselves, indicators suggest that the resulting negative accurately evaluate the effects of the government's impacts will result in high costs - not only to producers, N!'AE promotion activities on Ghana's rich, but but to the country as a whole when they translate into vulnerable natural resource base. Among the relevant off-fann resource degradation, or 'externalities'. These institutions that should be called in to lend their activities definitely require mitigation measures. assistance arc the Environmental Protection Agency (EPA), the Ghana Standard Board (GSB), the Crops In contrast, some environmental impacts may be neutral Research Institute (CRI), the Food Research Institute or even positive. For example, certain production (FRI), the Forestry Department (FD), and the Plant practices facilitate soil conservation or enhance Protection and Regulatory Services (PPRS). In agricultural diversity. These cases offer valuable lessons accordance with their specific capabilities and mandates, for the sustainable development ofNTAE activities and these agencies should be charged with the responsibility objectives. of providing support and services, especially in the following areas: As the three community-level studies suggest. the sustainability of Ghana's current NTAE Programme i) Policy, legislation and institutional depends upon a host of environmental and socio­ developmenL economic factors, most ofwhich have just barely begun ii) Standardisation and quality control. to be appreciated, much less assessed. A comprehensive iii) Environmental standards and public and accurate evaluation ofthe overall impacts ofN!'AE loccupational health safety production clear~y needs to be carried out before these iv) Education and training factors lead to adverse or even irrevocable· v) Monitoring and evaluation consequenCes. Among some ofthe more pressing factors vi) Research and development I which need to be considered arc: Though Ghana needs the foreign exchange that it earns i) The price distortions leading to the degradation from its NTAE activities for a variety ofworthy social I ofreso~; • goals, that income comes at a price, apd there are some ii) The costs imposed by externalities; costs that Ghana cannot afford to pay. Thegovernment iii) The effect of time, i.e., the often protracted has the authority and responsibility to provide an time lag between cause and effect; appropriate enabling environment to ensure that the iv) Theeffects on traditional resource management production of NTAEs is environmentally sustainable, systems; financially rewarding, and socially beneficial. What is v) Therenewable qualities ofthe resources being needed now is a package ofpolicy incentives and used;

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". programs that wiD encourage and facilitate the the most threatening consequences ofthe three crops i~ production ofNTAEs on a sustainable basis. that they require large amounts ofchemical inputs which end up being dispersed throughout the local environment Thedesire for export diversification, combined with the where they cause ecological destruction and human push by international development agencies for an health hazards. In addition, cultivation techniques that export-oriented development strategy, were the main emptWize yields result in land degradation. not only on rationales for the emphasis on NTEs since the launching the land actually being cultivated in pineapples, but upon oftheERPin 1984. adjacent lands that are now being called to produce the I subsistence crops that commercial pineapple production Notwithstanding the fact that the ERP made the is forcing out. promotion and production ofNTAE crops a priority, the .1 sector is stiD facing a number ofproblems. Efforts have Less devastating are the impacts of both kola nut and been made by the government to introduce incentive yam production, primarily as both require substantially schemes, credit guarantee, overseas trade promotion. less agricultural inputs. The expansion ofproduction of 100 percent foreign exchange export proceeds. corporate these two crops, however, has resulted in increasing I tax rebate, bonded warehouse facility, duty exemption. deforestation. In the case ofkola nuts, it is also resulting institutional back-up services, and small loans, to in biodiversity losses in Ghana's forest zone. promote the NTAE business. The socio-economic impacts ofthe production ofthese However, these schemes have not achieved the desired three crops arc equally skewed towards pineapples results in terms ofgrowth offoreign exchange earnings where intensive cultivation practices encourage the due to a number of problems which need further accumulation oflarger and larger farms. The inevitable attention by the government. These include: consequence of this is the displacement of smaller farmers and an increasing disparity in incomes between i) Cumbersome bureaucratic procedures in small and large-scale producers. As yams and kola nuts obtaining the necessary permits. arc still typically produced by smallholders, these effects ii) Uncooperative attitude of some officials are substantially minimized. responsible for issuing permits. iii) Limited assistance to stimulate production. Clearly, there is a need to look more carefully at the iv) Absence of facilities to process the raw process of production for all NTAE products. Up to material before export. now, the government of Ghana has been primarily v) Absence ofadequate warehousing facilities. concerned only with increasing production levels in an vi) Inadequate infrastructure - roads. cargo attempt to generate larger export earnings. Their attitude, facilities, information and communication. ar.d that offacilitating donors such as USAID. has been vii) High cost of inputs i.e. fertilizers. agro­ that there are few constraints in the production ofNTAE chemicals. products and that hence. they should be concerned more viii) Lack ofmarkets with enhancing their marketing. ix) Dependence on foreign investment for production and exports. Though there is certainly much that needs to be done to x) Prices and profits determined by external improve marketing, this study suggests that there is also demand factors. much to be concerned about in the production process as well. Ifpresent practices are not carefully monitored and Government and donor efforts have focused on revised, there is the very real possibility that NfAEs will improving the export ofNfAEs. Much less attention has end up costing more in social and environmental tenns been given to improving production, principally because than they are able to bring in. To prevent that from production is not an immediate constraint. Yet this study happening, the government needs to work with the shows that unless production is improved, the long-term producers to come up with strategies that minimize the viability ofNTAEs will bejeopardized. adverse environmental and socio-economic iinpacts. Unless directed and specific actions are taken in the ncar As the results ofthe three community studies show, the future. NTAE prOduction in. Ghana will not be environmental impacts of NTAE production practices sustainable. and the results wiD be only a further vary tremendously by crop and in accordance with deterioration ofthe natural resource base and a decrease production methods. Pineapples appear to have some of in the quality oflife for most Ghanaians.

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More specifically, the package of refonns needed A. EXPORT AGRICULTURE IN GHANA: AN include: OVERVIEW

(a) Control ofthe importation. distribution. sale, Agriculture is by far the largest sector of the Ghanaian and use ofagro-chemicals. economy. accounting for halfofthe GOP and employing just over SO% of the national workforce. Given the (b) Adoption of sustainable fanning system. i.e., generally favourable rate of agricultural resources to organic fanning practices, IPM. and agro­ population. this sector is destined to playa key role in forestry for the production ofNTAE crops. Ghana's continued economic development. This role win include: earning foreign exchange; generating public (c) Development of environmental management revenue; generating' private capital; feeding an .J plans for large-scale NTAE crop farms. expanding non-farm population; and providing raw materials for industry. (d) Introduction of Environmental Impact Assessment before the production ofthe NTAE A.l.l Land Resources and Use crops in fragile environments. Ghana's two main ecological zones. forest and savannah, (e) Development of land use plans for NTAE are joined by a transitional area that varies in accordance villages. with local conditions. The forest zone. which occupies the central part ofthe country, is divided into the eastern (f) Provision of back-up services. i.e., semi-deciduous forest, with an annual rainfall of 1,142 infrastructural facilities. credit facilities. to 1,651 millimetres. and the western high rainforest, extension services, training and education of where rainfall can be as high as 2,100 millimeters. The farmers. marketing, packaging and advertising topography of the former is composed of gently facilities. undulating hills separated by numerous small drainage valleys and gullies. The soils vary from red, sandy loams (g) Development of quality standards for NTAE and light clays at the .top ofthe slopes to grey, gravelly products. sands on the lower slopes. Alluvial sands and clays predominate along the watercourses. Given the (h) Processing some NTAE crops before they are prevailing high temperatures and humidity, all of the exported. eastern semi-deciduous forests are suited to the production ofcoffee, cocoyams, plantains, citrus fruit, Only time will tell whether the economic returns that the cassava, and other root crops. (see map I) Ghanaian government's promotion ofNTAEs to date can be maintained. While the increases in production and The area of greatest economic productivity in Ghana, earnings have been impressive. so too have been the however, coincides with the zone of dense forest, and results in other nations. Many of these countries are includes mineral as well as agricultural products.2 The better able to compete in the global market by virtue of red. upland soils, however, are ideal for cocoa - Ghana's superior quality products, better infrastructure and traditional leading export crop - as well as coffee. transportation capacities. and/or lower production costs. rubber, pepper. palm oil. and palm kernels, the country's other traditional export crops. Timber is the major forest Future promotional activities will thus need to take into export commodity. The forests have many valuable account not only the sustainability ofcurrent production hardwood species. only a few of which have been practices. but Ghana's relative strengths and weaknesses exported in any volume as logs and sawn timber. Non­ as a producer of NTAEs. Although the overall cultivated agricultural and forest products include kola objective ofreducing the country's historical dependence nuts. rubber, hides, ivory, and salt from the lagoons. The on cocoa is being accomplished. it remains to be seen extraordinary growth in the agricultural export trade exactly how beneficial current NTAEs have been to the since the last quarter ofthe 19th century. natural environment and traditional Ghanaian society.

2 The most significant exception is copra which comes mostly from a narrow coastal strip. s

•... ". map 1: Distribution of Commercial Crops

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r:zJ Coco,"'•• Ko:, n ..tl T lob.ceo • 0 ClIodvUcOft OR E;j 8,ft.n. oJ .Jut. Rvllb., ___ lom:t or Coco. 00.1 P.lml el c•.,u. ClCOCO~U' C Coff•• _ Fora,. A,~.

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has brought the inhabitants ofthe forest zone a degree these commodities is handicapped by the lack of ofwealth unrivaled in the rest ofthe country. transportation and storage facilities.

Because ofthe heavy rainfall and subsequent leaching. For the most part, annual crops are cultivated by hand soils in the western high rainforest tend to be highly according to traditional systems of bush f~lIowing acidic. As such. they are well suited to the production of cultivation, a practice based on the agricultural reality oil palms. rubber. and rice. but limited in their that the accumulated supply of humus is quickly adaptability to other crops. exhausted as a result of the high temperature and humidity. Traditionally, three to five years ofcropping Ghana's savannah lands are divided into two zones: is followed by three to ten years of fallowing during nonhern savannah and coastal savannah. The northern which the soil is allowed to regenerate naturally. Very savannah comprises nearly three-fourths ofthe country. little animal manure is available in most areas, and the Annual rainfall here is between 1.143 and 1.270 use ofchemical fertilizers, while increasing, is still very millimetres, most ofwhich falls between mid-April and limited. mid-October. The topography consists of gently undulating ridges with broad valleys and isolated low A.l.2 Traditional Mana&:cment Practices hills. These conditions are favourable for mechanized agriculture. Given the labour-intensive nature of most traditional cultivation, the area that can be farmed by one family is The natural vegetation of the savannahs is grass with small: generally less than five acres. Since yields are scattered shrubs and trees. This is Ghana's major grazing low, so is production per family. Generally speaking, region, but the long dry season is a severe limiting cocoa yields the highest return per acre. As a result, factor. To the extent that the water supply permits, the cocoa farmers tend to have incomes that are substantially grasslands are grazed by cattle. This is also the part of above average. the country where most of the draft animals (bullocks) are found, although hand cultivation still predominates. According to traditional systems of communal ownership, land belongs not to individuals but to the The soils ofthe nonhern savannah are mostly loamy or tribe or clan. The chief dispenses usage rights to sandy and suited to the production ofyams, groundnuts. individual plots, usually exacting payments in cash or guinea corn, rice, and beans. The distance from the kinJ. Modifications to this system have occurred as larger markets, however, effectively limits large-scale agriculture has become more commercial and as tribal commercial crop production. Population distribution is law and custom have given way to national uneven, with some areas being practically uninhabited administration and laws. Cocoa and other types oftree­ and others quite crowded. crop farming. for example. have brought about a more .formal tenure system. Individual ownership ofland with The considerably smaller coastal savannah region fans a recorded title is now possible in many areas, and the outgradually as it extends eastward. increasing to about Government is proceeding with a survey and title­ 96 kilometres in width at the Togoan frontier. The recording program. In addition to the significance that annual rainfall here varies from 635 to' 1.143 lenure issues have on security and soil conservation. they millimetres. The soils are mainly heavy clays. although are also important to credit and capital formation. there are also considerable areas of sandy and loamy I soils along the piedmont These areas are suitable to the Ghana's present economic structure began to evolve in production ofrice, sugarcane, vegetables and traditional the closing years ofthe last and the early decades ofthe subsistence crops. Most of the cultivation is still done present century. when the natural resources ofthe forest with hand tools, though conditio~s are suitable for both belt began to be exploited for. export Robert I draft animals and mechanical power. Szcreszewski (1965) has summarized this development as follows: I Major products for domestic consumption are: beef. millet, Guinea com. yams. rice. maize, and groundnuls ...Capital started to accumulate around cocoa. in the North; plantains, cocoyams. maize and cassava in mining and timber industries. and strong the forest region; and beef. ~assava: maize. rice, and migratory movements of labour. both internal vegetables on the coastal plain. Internal distribution of and external. followed. Urbanization.· the development ofnew services and the provision

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of social and economic infrastructure were improvements in road transport. the building ofrailways, largely restricted to the areas of favourable and the energy of migrant fanners from the older cocoa natural resources and to the coastal.centres areas.' which were the seats of administration and points ofcontact with the outer world. Cocoa, which soon replaced rubber as the dominant export crop, experienced a phenomenal growth from the Over the course of the next fifty years, this pattern of first recorded shipment of55 kilograms in 1885. By the development would be enhanced and deepened as 19205, Ghana was the world's largest producer ofcocoa I production levels of the British colony's three major - a title it would hold well for nearly fifty years. Though export commodities remained high. When independence significant peaks of 311,000 and 316,000 tonnes were was achieved in 1957, the new country ofGhana had one recorded during the 1936 and 1959-60 seasons .1 of Africa's most productive and stable economies. respectively, cocoa production would continue to expand Though it has continued to rely upon the contributions until 1971-72 when the single largest crop of462,000 made from the lesser traditional export crops of palm oil tonnes was harvested. (See Table 1) J and palm kernels, rubber, and coffee, most of Ghana's post-independence economy remained dependent upon cocoa. Table J; Cocoa Export in Quantity in Quinquennial ~ A.2 CQCOA &ri2.d Total Shipments

Cocoa, also known as cacao, is indigenous to South 1892 - 1896 62 America. It was first mentioned as having been grown in 12 the former Gold Coast in 1815, but these early attempts 1897 - 1901 1644 were rendered futile by the prolonged and general tribal 329 warfare which prevailed in most parts of the country 1902 - 1906 23855 throughout the first three decades of the nineteenth 4771 century. 1907 - 1911 104669 20934 In 1843 the Basel Mission began its second invasion of 1912 - 1916 291528 the country, carrying out its work under the aegis ofthe 58306 Danish Government. In 1857, a missionary at an 1917 - 1921 591451 agricultural station at Akropong received some cocoa 118290 seedlings from Surinam. Though these trees all died, a 1922 - 1926 1029292 further consignment proved more successful. Nine years 205858 later, the first cocoa pods were harvested, some ofwhich 1927 - 1931 1128662 were replanted at Akropong while the rest were 225732 distributed to the other stations ofthe Mission at Aburi, Mampong, and Odumase. Source: A. W. Cardinali. The Gold Coast, 1931

Following the successful plantings in Mampong, cocoa J cultivation spread rapidly, initially along the Akwapim Ridge and later, in the Eastern Region, Ashanti, and the 3 Despite the historical evidence from the Western and Volta Regions (see map 2). By the tum of Basel Missionaries, the prevailing belief among I the century, cocoa bad become fully established in the Ghanaians is that cocoa was originally introduced to the southeastern part ofthe closed foresL Its rapid expansion country in 1879 by Tetteh Quarshie, a Ghanaian into the rest ofthe forest region was made possible by blacksmith and farmer, who brought the first seeds from Fernando Po. According to this legend, it was Tctteh J Quarshie's "pioneering" efforts that aroused the interests of Ghanaian fanners and resulted in the phenomenal development in the industry.

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map 2: Cocoa Production in Ghana, 1984

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9 Apart from the climatic and ecological suitability of Oil seeds, oil nuts 124 Ghana's forest zone for cocoa cultivation (see maps 3 Natural rubber 64 and 4), there are other factors which helped to make Timber 13,279 cocoa cultivation a major industry. First, improvements Hides and skins 45 in the transportation system, specifically road and railway construction. Second, the technique of Source: Monthly Accounts Relating to External Trade of intererOpping cocoaseedlings with food-producing nurse Ghana, December, 1959. crops helped overcome the problem of food supplies in I frontier areas and in uninhabited forest areas. Finally, the As a result ofthe thriving and lucrative cocoa industry, expansion of cocoa farms into new forest areas was Ghana was able to enjoy a standard ofliving well above facilitated by the prevailing system of communal land that of other West African nations. Beckman (1976) ,- tenure which allowed members of the owning clan or estimated that Ghana's percapita GNP in 1960 was more family easy access to cultivable lands. than twice that ofnearby Nigeria and almost three times that of India. The dominant role ofpeasant production, The development ofthe cocoa industry was made even especially in the cocoa industry, resulted in a relatively I more significant by the fact that it was achieved by the wide distribution of the prosperity, often in sharp nation's farmers with vinually no assistance from the contrast to other post-colonial economies based on government. Then as now, cultivation is almost foreign-owned mines and plantations. exclusively in the hands ofa large number of individual farmers. During the 19705, total output of cocoa declined by more' than 50% and Ghana's share of the world cocoa For about fifteen years after gaining its independence, market fell from one-third to 12%. In recent years these Ghana continued to be the world's largest producer of trends have been reversed and the cocoa industry in cocoa. A full halfofthe country's agricultural land was Ghana has been revitalized. Though cocoa continues to given over to cocoa production which was also the major be Ghana's major commercial crop, and is still an source of employment. In 1959, for instance, cocoa important source of employment, its prominence has acc;:ounted for over 80 percent of the total value of diminished substantially _. principally because other exports ofprincipal agricultural and forest products (See exports have increased. Table 2). The 1960population census indicated that over haifa million people (40% ofthe total population) was A.2.2 Cultivation Methods and Requirements directly dependent upon cocoa production including some 300.000 farmers, 50,000 caretakers, 90.000 family Today, two varieties ofcocoa are cultivated in Ghana: workers, 68,000 labourers, and numerous clerks, drivers. Amelonodo, which was the first to be introduced and is and others involved in exponing the crop to overseas more popular; and the Amazonian type which was markets. introduced in the 19505. The Amelonado variety takes at least five years to bear fruit while the Amazonian type Table 2; Ghana Value of Exports of Prindpal takes only three to four years to mature. A~ri<:ulturaland Forest Products. 1959. Cocoa cultivation is generally done in conjunction with Imn . Value in LCOOO) food crops. Preparation ofthe land usually begins some Bananas and Plantain 46 months in advance of planting. The forest is cleared, Coconuts 28 though some trees are left standing to provide essential Kola nuts 762 shade for the young cocoa trees. The debrisis then burnt Lime Iuice 71 during the height of the dry season. At the stan of the Dried fruits and preserves 3 rains, the shade and ground crops - mainly cocoyams Coffee 380 and plantains - are planted. Once these crops have ) Cocoa beans 68,779 grown sufficiently, the cocoa seedlings are either Cocoa butter 26 transplanted via the "bare-root seedling" method or Cocoa paste 1,066 planted via the "beans at stake" method. ) Copra 205 Palm Kemels 116 The "bare-root seedling" technique, which was commonly practiced during the early days of the I industry, involves raising seedlings in nursery beds in

10 map 3: ... mperatures (0C) Annual 1 e • Mean __ """-'-- . l

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11 ". map 4: Mean Annual Rainfall (em)

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12 damp places before transplanting them in the field with arrest the ongoing collapse ofthe cocoa trade and bolster '. a cutlass. The "beans at stake" method consists merely of the staggering economy. The older agents were invited planting the beans at the point where the cocoa tree is to renew their activities. desired to grow. Though much simpler in terms oftime and effort. this method is much more dependent upon Today, the Board is solely responsibility for the sale of timing since the beans are vulnerable to destruction by Ghana's cocoa on the world market As a general policy, rodents. The best time toplant is between Septemberand the Board fixes the local price substantially below the November. Very little weeding is done no matter which world price, the difference of which is to. be saved on method is used; that which is done is mainly to ensure behalf of the farmers. In recent years, the government maximum yields from the nurse crops. The cocoa trees has increased the share to farmers and used part ofthese themselves don't receive much attention until they start savings to invest in educational programmes and bearing fruits, which is somewhere between three and infrastructural development in the cocoa-growing areas. five years depending on the variety. A.2.4 Diseases As cocoa pods can be harvested over a period oftime, the crop is arbitrarily divided into a main crop and a As with any mature and well-established agricultural mid-crop in response to marketing demands. Harvesting industry, the cocoa industry in Ghana has undergone a of the main crop begins around September and may number of outbreaks of disease. The most serious and continue until mid-January. The mid-crop season usually persistent of these have been repeated outbreaks of begins in Mayand lasts until mid-August, when there is swollen shoot disease, a contagious viral disease that a break of about three weeks before the main crop first threatened the crop in 1936. As its name implies, season begins again. Harvesting is done by men, women, the virus causes a series of swellings on the trunk. and children who collect the pods. The pods are opened Though remedial treatments are available, the most and the fresh beans are removed and fermented for a effective way ofcombatting swollen shoot disease is to period of up to six days. The fermented beans are then destroy afflicted trees before the virus can spread. transferred to raised platforms made of sticks and covered with mats for drying. Another devastating disease that has afflicted the cocoa industry is known locally as sankonoabe or ~. It is A.2.3 I!:i!.sk caused by an insect pest, ~, which destroys the shoots of the cocoa trees, thus retarding normal Early on, the purchase and sale ofcocoa in the country development and fruiting. This disease is quite was almost exclusively in the hands ofprivate, foreign widespread, but can be effectively combated by spraying companies, all of which maintained an efficient network the affected trecs with Gammalinzo, an insecticide which ofagents throughout the cocoa growing areas. The only kills the cap.sids and revives the dying trees. indigenous body involved in the cocoa trade was the Ghana Cooperatives. A.2.5. Additional Characteristics

In 1947, the colonial government established the Cocoa Perhaps the most significant feature of the cocoa Marketing Board (now known as the Cocoa Board). This industry in Ghana is that it is almost exclusively in the body was responsible for ensuring stable prices for hands of the local population. Moreover, although the cocoa on the local market and that part of the profits Government has encouraged the establishment of accruing from the sale of cocoa on the world market nurseries and the planting ofthe seedlings, the growth of were used for the social and economic development of the industry has been primarily due to the efforts oflocal the country. populations who have responded to the opportunities of a new cash crop. In 1958, the newly independent government created the United Ghana Farmers Cooperatives. The new company, As pointed out by Beckman (1976), foreign-owned which took over the assets of the other purchasing plantations or foreign settlers played virtually no role in agents, was invested with the exclusive responsibility of thedevelopment process though the government did start buying cocoa. In 1966, however, the new militaJy several state plantations. The driving force was a stratum government cancelled the monopoly enjoyed by the ofrural entrepreneurs investing in land and labour, United Ghana Farmers Cooperatives in an attempt to

13 moving to areas where soils were most suitable and cedis, nearly three times as much. It was differentials where land could be acquired through leases or such as this. combined with the instabilities in the cocoa purchase. Polly Hill (1963 ) has documented the business. thatencouraged cocoa fanners in Kwahu Praso pioneering role offarmers in the Akwapim Hills. where and other areas of the country to shift to kola nut cocoa was first grown. and their migration to the forests production. ofthe Eastern Region. The widespread shifts away from cocoa, Ghana's The development of the cocoa industry has resulted in traditional main foreign exchange earner. to NTAE crops the promotion of new relations over land and labour. has naturally meant that cocoa now accounts for a This traditional system of individual family production smaller percentage ofexport revenue. While Ghana has within a framework of communal land tenure has experience and expertise with regard to the cocoa gradually given way to private or semi-private property industry. the production of NTAE presents a different rights. Land is now bought and sold. and farms challenge altogether. mortgaged and auctioned. As a result of these market forces. an increasing number of farmers have become The cocoa industry is well developed in Ghana. Its tenants in areas where. only a generation or so ago. they forward and backward linkages are well established and could have claimed a share ofcommunal lands. gives employment to thousands ofGhanaians. It is also the sector which receives the most government attention In the same vein. bringing the cocoa crop to market has in resource allocation (finance and technical back-up) introduced far-reaching changes in traditional farming and support. Any change ofshift affects the country. The practices. Traditional systems of shifting cultivation opportunity cost ofkola nuts production is the decline of were maintained for the purpose of subsistence food the cocoa industry. since the two crops compete for production. but the fields which had once been left to space in the same ecological zones ofthe country. fallow were increasingly being planted with young cocoa plants. As a result oftheir commercial activities. farmers A.3 PALM OIL AND PALM KERNELS found it increasingly difficult to care for their· subsistence farms. They resorted to hiring labour, Oil palms are indigenous to the forests ofWest Africa. generally immigrants from a neighbouring country. The palm fruit consists of a pericarp. or a red fleshy These labourers are hired most commonly as share fibrous outer layer. which covers a nut containing a seed. croppers, receiving one-third ofthe crop in accordance or kernel. Palm oil is extracted directly from the pericarp with a system known as a!z.JJz!. while the palm kernels are obtained by cracking open the nuts. Palm kernel oil is used in the manufacture ofsoap, Wage labour has also came into extensive use. The cost margarine. candle. and paint. For centuries, the fruit of ofthis labour. however, constitutes an ongoing problem these wild palms have been used for domestic purposes, for the cocoa farmers. Because ofthe competition from and the pericarp oil, reputed for its richness in proteins other industries such as mining, manufacturing, and and fat. has been the primary cooking oil used timber. labour costs have risen considerably. As a result. throughout Ghana's forest zone. many small-scale farmers - who have little disposable cash anyway - are no longer able to secure the hired A.3.t History ofDevelopment labour they need. . Until the establishment of plantations in the 19505. the A.2.6 NTAE Crops and Other Cash Crops oil palm industry in Ghana had developed on its own; no attempts had been made by local farmers or the government to improve the quality of the naturally Since 1960. the world producer price for cocoa has growing palms or to plant them in pure stands. The two steadily declined. Recent falls have been particularly areas ofgreatest concentration were Krobo areas in the dramatic: as recently as 1975 the world producer price Eastern Region and AhantalEastern Nzima areas in the was US $3.160 pertonne. By 1990. it had fallen by more Western Region though large concentrations were also than two-thirds to US $1.050. Meanwhile. the producer found in the forest remnants in the derived savannah price for kola has been steadily increasing, especially in zone and in the northeastern part ofthe coastal savannah relation to cocoa. For example. in 1970 the producer zone and around Dzodze in the Volta Region. price of 62.5 kilos of cocoa was 18.40 cedis while the equivalent price ofthe same quantity ofkolanuts was 54

14 Along with kola nuts, palm oil became an important akpeleshie. Traditional methods of palm wine tapping export commodity in the first half of the 19th century, necessitate felling, and thus destroying, the tree. replacing the slave trade which had been abolished by Attempts to introduce a less destructive method have not the British in 1807. Palm oil became the industry of been successful. choice in southern Ohana where it grows naturally. A.4 RUBBER By about 1880, palm oil and palm kernels had become the Gold Coast's leading agricultural exports. In 1884, A.4.t HjstOlJ' J export quantities reached an all-time peak of 20,000 tonnes of palm oil and 40,000 tonnes ofpalm kernels. Before the emergence of cocoa, rubber (Hevea Afterwards: exports ofthese items declined mainly as a brasiliensis) WlIS Ghana's major export crop. First J result ofthe following: exported in 1880, rubber was obtained from tapping the LandQphja vine and the Funtumja tree, both of which i) Inefficient methods of preparation resulted in grow naturally in the closed forest. By the early 1900s, lower quality exports and consequently, lower rubber had become a major agricultural export. But its I prices from European merchants. position was short-lived for two reasons. First, many of the rubber vines and trees were over tapped, often by ii) Lack ofadequate transport facilities resulted in unskilled tappers. This resulted in irreparable damage to high transportation costs within the country and the trees. And second, the quality ofGhanaian rubber income declines for the farmers. was low compared to the high-grade rubber which had begun appearing on the world market from Southeast iii) The emergence of cocoa as a far more Asian plantations. profitable cash crop. Rubber received liule attention from the Division of Between 1900-1904 some 13,000 tonnes of palm oil Agriculture except during the First and Second World were still being exported, but volume steadily declined. Wars. Rubber became an important export crop again By the 19505, total production was consumed within the particularly during the Second World War when Far country. Exports of palm kernels have fluctuated from Eastern supplies were cut off from the western 13.500 tonnes per year in the 1900-4 period to 2,452 consumers as a result of the Japanese occupation. tonnes in 1951. Ghanaian production lines were reestablished both by retapping trees in established plantations and utilizing A.3.2 New Trends wild (para) rubber sources.

Since the 1950s, the government has promoted the After the war, rubber production dropped off and has cultivation ofoil palm by supplying improved seedlings never recovered. The price ofrubber has either been too to farmers at subsidized prices. A number of oil palm low or has fluctuated too much to encourage the plantations have also been developed at the insistence of establishment of rubber plantations, especially as the government and the number ofprivate plantations is farmers prefer to cultivate other perennial crops such as also in~ing. The oil palm "belt". which has an cocoa, oil palm, and coffee. average width of some 24 kilometres. extends from Asesewa in the Eastern Region to Aiyinasi in the A.4.2 New Deyelopment Western Region. In the past, this belt was covered by J one dense mass ofoil palms, but the felling ofthe trees Beginning in the 1960s, attempts were made to revive for palm wine (the sap from the palm) and the the rubber industry, especially in the Western Region subsequent use ofthe land for food farming, means that where the heavy rainfall is ideally suited for the growth the oil palm is now found (;lOly in scattered groves. of the tree. Through a subsidy scheme, the Ministry of I Agriculture has been instrumental in encouraging Palm wine is a major product of the oil palm and is farmers to establish plantations ofHevea brasiliensis (or produced in considerable quantities wherever oil palms Para rubber) which is native to the equatorial forests of I grow. When consumed fresh. it is a pleasant and Brazil. By 1963, there were seventy-eight rubber fanners nourishing drink, but it becomes quite potent when cooperatives in the Western Region cultivating a total of I allowed to ferment. Itcan also be distilled to produce an 2,023 hectares. Other government-owned plantations even stronger alcoholic drink known locally as have been established since then, but the bulk of the

IS '. rubber produced in Ghana today goes to the local lyre by ideology, Nlaumah introduced state participation into manufacturing factory. Only a smail amount is exported. various sectors of the economy in the first Seven-Year Development Plan (1963-1970). A.5 COFFEE Agriculture was particularly targeted. and a number of , Coffee was added to the list ofagricultural exports after state-run institutions were rapidly established to the 18505, and by the 18905 the crop was being undertake collective production. These institutions extensively cultivated in Akwapim and Krobo areas in included the State Farms Corporation, the Workers the Eastern Region. Interest was stimulated by the Brigade. the Young Farmers League, the United Ghana , prevailing high market prices and the distribution of Farmers Council, and the Food Marketing Board. By the seedlings - either free ofcharge or ata very low price ­ end of the 1963-64 financial year. the State Farms from the botanical and agricultural station at Aburi (later Corporation was cultivating a total of20,746 acres. (see the Aburi Botanical Gardens). Before the outbreak ofthe Table 3) First World War, the Germans also encouraged the I cultivation ofcoffee in the Volta Region, which was then Table 3; Area (Hectares) Under Cultivation by the part ofthe German colony ofTogoland. State Farms 1963-1965

The most widely grown species in Ghana are robusta (c. ~ 1963-64 ~ canephora) and a variety known as "niaouli", which is believed to have originated from a district with that Rice 3,596 7,183 name in the Republic of Benin. The main coffee Maize 2,719 3.893 producing areas are the forests of western Brong Ahafo, Guinea Corn 374 Sefwi in the Western Region, southern Ashanti, the area Groundnuts 1,692 2.956 around Hohoe in the Volta Region, and in Kwahu in the Tobacco 265 656 Eastern Region. Fibre (Lobata) 294 1,497 Rubber 4.270 9,222 Coffee has been grown almost exclusively as a cash crop Oil Palm 4.182 7,257 with most ofthe beans being exponed directly. In recent Coconut 202 1.060 years, however, some coffee has been locally processed. Citrus 178 667 The biggest obstacles to high-volume and high-quality Banana 586 1.Ol2 production are poor management, irregular harvesting, haphazard processing of the bean, and the competition Source: State Farms Annual Repon. 1963-65. from cocoa cultivation. By the end of the next year. an additional 10.634 acres Coffee is planted as seedlings in the same manner as had come under cultivation. most ofit from three crops: cocoa. Ifthe seedlings establish themselves successfully, rice. rubber, and oil palm. the coffee "farm" is weeded as necessary to ensure continued growth. If they do not, the natural Even though the objective ofbreaking the over-reliance regeneration is allowed to proceed and the land is used on one export crop was a worthy one. the farms instead for food farming. themselves did not prove to be cost effective. This was partially the result of Nkrumah's second, and hidden, I objective: using the State Farms and Workers' Brigade B. PURPOSES; mE ORIGIN. HISTORY. AND camps as employment centres for youth and pany STAm OFNTAEs IN GHANA supporters. As a result. the farms were grossly J overstaffed. inefficient, and often relied upon As far back as the 19SOS, the dangers of over inappropriate technologies. dependence on a single agro-export crop became apparent whencocoaprice fluctuations reduced revenues Soon after the government ofDr. Nkrumah was toppled I and adversely affected the economy. The need to in 1966. all the state institutions which had been diversify the economic base was clearly recognised by introduced into agriculture were abolished and the farms I Ghana's flI'St president, Dr. Kwarne Nkrumah. A Socialist were abandoned. There would be no conscious efforts by the succeeding regimes to assist the agricultural sector

16 until 1969 when the National Liberation Council (NLC) B.2 GOVERNMENT POLICIES AND Military government established the Ghana Export PROGRAMMES FOR mE PROMOTION Promotion Council (GEPC). Like the State Fanns OFNTAES Corporation, the GEPC was established in an effort to diversify the national economy. By then the More than three decades of government promotion of overdependence on cocoa had been transformed from a NTAEs has proven that getting the farmers to production risk to a reality by outputs that had steadily fallen from NTAE crops is not a problem: if anything there is 1959-1960'5 record high of 450,000 tonnes. usually an oversupply ofproducts during certain periods I Compounding the problem was the erosion in world of the year. On the other hand. a number of basic producer prices that further reduced earnings. The obstacles have been identified. Among the most GEPCs mission was to secure additional foreign prominent ofthese are marketing bottlenecks. periodic I exchange from the exports ofnon-traditional goods, and market gluts, and a lack ofefficient export and transport use those revenues for socio-economic development. processes. In an effort to address the root causes ofthese obstacles and mitigate their effect, the PNDC Despite the establishment of the GEPC, not much government has introduced a wide-reaching set of I progress was achieved during the 19705. The body itself enabling policy initiatives and implementing institutions. was ineffective and constrained by two fundamental An overview of those activities and bodies is given problems: it had no well-defined policies and below. programmes, and no funds to encourage the participation ofprivate entrepreneurs. The GEPC continued to be a D.U Institutional Arrana:ements relatively marginal institution until it received additional impetus and recognition under the National Economic D.U.t Overseas Trade Promotions Recovery Programme (ERP). Launched in 1984 as part of a World Bank-sponsored structural adjustment The Ministry of Trade and Industry (MaTI) is program. the ERP emphasized the promotion ofNTAEs. responsible for the formulation ofthe country's internal Success stories from Latin America contributed and external trade policy. It is also responsible for the immensely to the recognition that NTAEs constituted a development and promotion of Ghana's exports. major potential earner offoreign exchange in a country especially the non-traditional export items, and tourism. like Ghana where an acute shortage of investment These missions are carried out by the three divisions of resources limited development opportunities. the Ministry. namely, the Foreign Trade Division. the Tourism Division. and the Export Trade Division. The Provisional National Defense Council (PNDC) government of Fit. Lt. Jerry Rawlings introduced a The Foreign Trade Division is responsible for: preparing number of new initiatives to promote non-traditional draft trade agreements and protocols; participating in exports (NTEs). These have taken the form of: negotiation oftrade agreements and protocols; advising reorganisation of export-related institutions, on trade policy, particularly the goods which Ghana can simplification of export procedures, establishment of export to the various countries as well as what those production and marketing infrastructures, provision of countries would like to import from Ghana; and incentives for prospective producers and investors, and monitoring the operations of the agreements and export-driven educational programmes. Assisting in the protocols. design, development, and funding ofthese programmes has been the United States Agency for International Export activities are promoted by the various overseas J Development (USAID). Through its US $80 million trade offices whose responsibility it is to: Trade and Investment (TIP) Programme, USAID has played a major role in the developmental planning 1. Set up showrooms orshowcases to display both process that has as its goal increasing the contribution of traditional and non-traditional Ghanaian I Ghana's NTE sector to the national economy. exports.

2. Develop contacts to promote the importation of I Ghanaian products.

I 3. Assist in organising Ghana's participation in overseas trade fairs.

17 '. - 4. Conduct research into the availability of significant from the perspective of export promotion. markets for Ghanaian exports. and hence. most critical to the promotion ofNTAEs.

s. Transmit infonnation on market conditions and As spelled out in Decree 396, the main areas ofGEPC requirements for various products to the MOTI. responsibility arc as follows:

6. Provide information on the sale of Ghanaian 1. Obtain information on all products with export products in foreign markets. potential and determine the extent and location I of any market for those products outside 7. Prepare and submit status reports on those Ghana; importers wishing to do business with Ghanaian exporters. 2. Call the attention ofpotential customers to the availability ofgoods ofGhanaian origin; Locally, the MOTI assists exporters through its ten regional offices, each ofwhich is staffed with a Regional 3. Orgaruse trade fairs in Ghana and overseas, and Representative who is responsible for implementing arrange for attendance at foreign trade fairs trade policy and serving as a liaison between the region's where Ghanaian products can be promoted; exporters and the GEPC. 4. Bring Ghanaian sellers in touch with foreign 8.1.1.3 Ghana Export Promotion Council customers and encourage exploratory discussions between them; The agency with primary responsible for the promotion ofNfAEs continues to be the Ghana Export Promotion 5. Create interest in, and goodwill for, Ghanaian Council (GEPC). Established in 1969 by National products by promotional activities. including Liberation Council (NLC) Decree 396, the GEPC advertising, exhibiting. and providing mandate was to "promote. assist, and develop exports in information about such products; any manner which the Council considers necessary or desirable." 6. Make available expert advice and assistance to Ghanaian businessmen concerning export Although originally intended to be an autonomous procedures. credit and collection arrangements, organization, the GEPC was made into an agency of the shipping documentation. marine insurance. and Ministry of Trade and Industry. Its funds are now similar matters; appropriated through the national budget, and staff compensation is controlled by the Price and Incomes 7. Assist Ghanaian businessmen travelling abroad Board (PIB). The total labour force of about seventy­ by supplying advance information and, where five operates through five main divisions, namely: possible. on-the-spot advice;

i) Product development 8. Assist foreign visitors in examining business ~i) Trade information, public relations opportunities involving Mmade in Ghana" and export services goods; iii) Market development iv) Planning research and development 9. Find out about and recommend to Government I v) Finance and administration such trade agreements and pacts that will have the effect of promoting the sale of Ghanaian Under these five divisions are various departments that goods in overseas markets; deal with specific issues and mandates. As its name I indicates, the Trade Information, Public Relations. and 10. Organise an insurance credit guarantee scheme Export Services Division is comprised of three for the protection ofGhanaian exporters; departments. It is this last division that is the most I 11. Act as a centre of information for the Ghana Export Company Limited. and for all individual exporters;

18 0. 12. Find out about and recommend to Government from the Bank of Ghana (BOG), serve as a. what assistance should be given to Ghanaian means to monitor foreign currency transactions exporters to enable them to compete effectively and retention rates.) in overseas markets; S. Transport the shipment to the port of 13. Apply for. and receive. in Ghana or elsewhere embarkation. any trademarks. licenses, protections or concessions, and in relation thereto. do all 6. Have a forwarding agent prepare the shipping I things as the Council (GEPC) considers documents. and secure the necessary customs necessary or desirable for the development of certifications. exporters; and I 8.1.1.4 Product Associatjons Assistance 14. Discharge any other function which may be prescribed by regulation. Though each individual exporter has his own specific needs and concerns. there is a wide range of issues that J B. 1.1.3 SjmpJifigtion orExport Procedures are common to all, e.g., foreign exchange retention, warehousing at the ports. custom controls, transportation In order to facilitate and promote NTAEs. the GEPC has costs, and bureaucratic constraints. To address these simplified the exporting process. Under the new shared concerns, exporters have banded together into regulations. the first requirement is. that any prospective approximately fifteen (15) product associations and exporter must be legally registered as a Ghanaian organisations. These organisations vary greatly in type, business. Once the enterprise is so registered. the level ofdevelopment, the quality ofservice they provide following steps then need to be followed: to their membership, and the level of interaction they have with the relevant government organisations. The 1. Register with the GEPC as an exporter (the fee five main associations concerned with NTAEs are: is C25.000 for the first year, and C20.000 each year thereafter). . I. The Ghana Assorted Foodstuffs Exporters Association 2. In some sub·sectors, contract prices must be 2. The Ghana Yam Exporters Association approved. In the case of wood products, for 3. The Horticulturists Association ofGhana example. the Timber Export Development 4. The National Association ofKola Nut Dealers Board (TEDB) will approve contract prices for 5. The Vegetable Exporters Association a fee of one percent of the Freight-On-Board (FOB) value of the intended shipment The A!: their name suggests. these associations deal with GEPC sets some prices, such as for handicrafts, commodity-specific issues. In general. they help their but other contract prices are negotiated members deal with basic export activities, i.e., producing between producers, trader. and buyers or buying the product, sorting or grading the product. depending on grade and market fluctuations. packing the product. transporting the product to the point of shipment (seaport or airport). and collecting the 3. in some sub-sectors. the Customs, Excise and necessary permits. Preventive Service (CEPS) will check shipments for quantity and quality. For The members are required by the association J example. the Forest Products Inspection Board constitution to abide by the following practices and (FPIB) charges a fee equal to two percent of etiquette: the FOB value of a shipment to inspect for J quantity. 1. Do not fax a letter ofcredit. It is not safe. 2. Do not promise to export what is not in your 4. Complete an A2 form that is then filed with a power to export. bank once a Letter ofCredit has been opened 3. Do not undersell your fellow Ghanaian 1 or. depending on the product. contract prices exporter in the same market have been approved. (Al forms, which are ·I readily available at all commercial banks and

19 4. Do not send high-quality samples and follow­ Other credit facilities which are being considered by the up with inferior products. Bank of Ghana and the Ministry of Finance and s. Do not mix your export produce with drugs or Economic Planning include export production credit, other unacceptable items. and export resources and refinancing credit. In spite of 6. Replace all damaged products when the fault all these programmes, a lack of credit is still a major is yours. obstacle to many potential exporters and producers in all 7. Promptly discharge whatever financial sectors ofthe economy. As a result, many exporters still obligations you owe the importer of your face substantial pre- and post-Shipment financing I products. problems.

B.2 INCENTIVES AND DISINCENTIYES FOR 8.2.2.3QtherEmort Incentjye Schemes in Operation' ) NTAE BUSINESS 100% Exchange or Export Proceeds B.2.1 Credit Guarantee Scheme In June 1992, the government approved a scheme that I In 1969, the Bank of Ghana instituted a Credit allows exporters to exchange all foreign exchange Guarantee Scheme for small-scale borrowers in order to proceeds from non-traditional exports into cedis at ,stimulate a greater flow of institutional credit to competitive rates negotiated with their bankers. (see Box operators of small units in agriculture, industry, I) This replaces the 35% retention scheme which was transport, and commerce. thought to be functioning as a disincentive. Initially, three programmes were established:

I. A guarantee of 66.3% of the loan amount for all types ofsmall-scale borrowers. (Fee charge of 1%);

2. A guarantee of75% for small-scale borrowers purchasing an "alien" business. (Fee charge of 1.6%); and

3. A guarantee of 100% for borrowers who have technical capability or experience, but who have no start-up or initial equity share capital. (Fee charge of3%).

Though all banks in the country participated in the Credit Guarantee Scheme programme, most of them started to loose interest in the mid 1980s. The scheme has since been revised to include:

Revised credit guarantees (the maximum J liability of the Bank of Ghana, in case of default, was raised from CSO,OOO per borrower to C3 million). J A 100% guarantee programme ofspecial credit arrangements for the importation of raw -I materials by Ghanaian manufacturers. An Export Credit Guarantee Scheme. I An Export refinance scheme.

20 Corporate Tax Rebate

This scheme allows any manufacturer orperson engaged in agricultura1 production who is exporting part or all of his production to claim a tax rebate valued at between 40% and 75% ofhis tax liability. I Bonded Warehouse Facility Manufacturers can obtain a customs license to store imported raw materials that will e used in· the ) manufacture of goods intended for export in secured places without payment ofduty. I Duty Drawback Scheme This facility allows exporters to draw back up to 100% ofduties paid on materials imported to produce goods for export.

Duty Exemption

This scheme operates alongside the duty drawback scheme by enabling exporters to enjoy a 100% duty exemption on certain imports items that are intended to go into exports. B.2.4 Disjncentives to NTAEs National Award for Export Achievement Over the years. the GEPC has reviewed its policies and This is an annual national event held to recognise programmes to better facilitate and promote NTAEs. exporters for their contribution towards the economic Though the past few years have seen major well-being of the nation. This was introduced in 1989 simplifications in the exporting process. exporters and several exporters have been honoured. continue to face a number ofproblems. For example. the steps exporters are required to follow vary •• sometimes B.2.3 Loans for Exporters significantly - according to the product. This is a source of confusion and duplication of efforts for those who The Government of Ghana. in collaboration with the export more than one product. In addition. the International Development Agency of the World Bank. administrative procedures change frequently. particularly has recently embarked upon a US $51 million project to with respect to foreign exchange controls. promote non-traditional exports. (see Box 2) Initiated in February of 1994. the project will provide non­ Obtaining the necessary export permits is a particular traditional exporters with a maximum loan amount source ofinconvenience and frustration. Many exporters equivalent to US$SOO,OOO to strengthen their financial complain of the cumbersome bureaucratic procedures base. An export finance office has been set up at the involved and the uncooperative attitude ofsome of the Bank ofGhana to manage the financial schemes under officials responsible for issuing these permits. Apart the project Under the project. the Bank of Ghana, in from the costs involved in obtaining them. many I collaboration with the Ghana Export Promotion Council exporters end up losing orders as a result ofdelays. (GEPC) will provide specialised training for new and existing non-traditional exporters. Depending on what one is exporting. permits/certificates I must be sought from the following governmental bodies. ·I

21 I. Logs, lumber, and wood products: export s. Create or enhance employment and income permits are obtained f~m Forest Products opportunities in rural areas, thereby improving Inspection Bureau (FPIB): the standard ofliving ofthe rUral producers.

Handicrafts and Antiques: export permits are These Export Production Village Companies are given obtained from Ghana Museum and Monuments special incentives by GEPC in the form of: Board (GMMB). If the items are made from animal parts. a permit must be obtained from I. Sponsorship I the Department ofGame and Wildlife. 2. Equity participation not exceeding a sum 3. . Foodstuff, plants. and seeds: exporters obtain equivalent to the share capital raised by the I phytosanitary certificate from the Plant GEPC Protection and Regulatory Service of the Ministry ofFood and Agriculture. 3. Assistance in sourcing production inputs and credit I 4. Fish and Fish Preparations: exporters obtain certificate from the Fisheries Department ofthe 4. Assistance in the organisation of land clearing Ministry ofFood and Agriculture. and development activities

s. Animals and Pests: permits are obtained from s. Extension services the Game and Wildlife Department Under the guidelines ofthe EPV Company Programme. B.2.5 Institutional Back-Up Services to NTAE an EPV may be established to undertake activities in the Producers following sectors: I. Vegetables Mushrooms The GEPC has initiated a novel programme aimed at harnessing and tapping the uncoordinated supply source 2. Fruits Pineapples. avocados, of rural export-oriented production activities. The pawpaws. bananas. coconuts programme is designed to provide a mechanism whereby the multitude of small rural producers can first be 3. Staples Yams. cassavas. plantains organised into export production village (EPV) companies that are owned and managed by producer 4. Spices Black pepper, chilies. ginger shareholders. and then linked with exporters with existing or potential markets for their products. s. Tree crops Rubber. cola nuts. cashew nuts The objectives ofthe EPV Company programme are to: 6. Aquaculture - Shiimp farming I. Develop an effective institutional mechanism for the planning and coordination of rural­ 7. Manufacturing • Coconut fibre products. 'based export production and marketing; Processed cashew nuts. salt

2. Create regular and guaranteed markets for rura1 8. Handicrafts Batiks. straw baskets. ratlan I export production; furniture. handloom textiles, wooden items. jewelry, etc. 3. Ensure the availability of supplies for J sustaining expon markets; Of the ten projected expon production villages. seven are already in operation. These are located: at Awutu 4. Develop, improve, and sustain Jaako in the Central Region and Amanten in Brong entrepreneurship, production efficiency, and Ahafo Region for the cultivation ofyams for export; at I quality c~:)Qsciousness among rural producers, Sampat also in Brong Ahafo Region. for cashew nut and; production; at Sefwi Bekwai in Western Region for I black pepper; at Bolgatanga in the Upper East Region for straw basket production; and at Aburi in the Eastern

22 Region for woodcraft production. Closely related is an nationwide, the fact that these three communities are artisanal fisheries project beingcarried out in the Central among the highest producing areas for their respective Region in conjunction with the Central Regional NTAE crops does suggest that the ecological and Development Commission (CEDECOM». sociological problems they are encountering are likely to be experienced by other export producing areas - ifnot The three GEPC companies that have yet to be already, then sometime in the near future. Indeed, it was established are in the Volta Region for the production of . for this very reason that these three communities were yams; at Bamboi in the Northern Region for chili pepper selected. I production; and at Bonwire in the Ashanti Region for the production ofKente; and in the Upper West Region for I cashew nut production. . C,l PINEAPPLES Moanas comosus) Today, pineapples are the leading NTAE crop in Ghana, c. PRACTICES: PRODUCTION accounting for 10% of all NTAE exports. The main CHARACTERISTICS OF THE MAJOR NTAE variety is Smooth Cayenne, and the favoured areas are PRODUCTS the hills of the middle Densu Basin, the Akwapim highlands, and other areas in the Greater Accra Region. To adequately understand the full range of environmental and socio-economic effects that the The major pineapple producing area is the Nsawam promotion of NTAEs is having upon the natural and District where a combination ofphysical, infrastructural, human resource base of Ghana, it is first necessary to political, and socio-economic conditions stimulate and understand prevailing production methods. The promote cultivation. Most importantly, Nsawam has the following discussion details those methods for Ghana's requisite climate. Temperatures range between 21"<: to three leading NTAEs, pineapeles, yams, and kola nuts, 32"<:, and annual rainfall, which falls in two distinct by focussing in on the practiceSOl three leadiiig seasons, varies between 700 mm. and 1,300 rom. The \\ production communities: the village of Kuntuse in major rainy season lasts from May to August while the Nsawam District (pineapples); the town ofAtebubu in minor one goes from October to December. Atebubu District (yams); and the village ofKwahu Praso in Kwahu South District (kola nuts.) Nsawam's high production levels are made possible by the dark and grey loamy soils which predominate. The Field research was carried out in 1994 by a savannahs and forest ochrosols which are very suitable multidisciplinary team ofsix researchers made up ofan occur within the plains along the slopes ofthe hill ranges Agriculturist, Economist, Sociologist, Development and tertiary sands. The soils are deep red, well-drained Planner, Forester, and Agriculture Extension Officer. and medium textured,. and very responsive to The team spent about three weeds in each of the three fertilization. centres. Participatory Rural Appraisal (PRA) methodology was employed with a few structured Pineapple production was first introduced to Nsawam in questionnaires to facilitate discussion. Local the late 1930s, primarily in response to declines in the traditional/community leaders, opinion leaders, and cocoa industry. At first, cultivation was on a limited stakeholders were given the opportunity to participate in scale and was concentrated along the slopes ofmountain the rliscussions at various durbars which were arranged ranges. Peasant farmers planted pineapples and citrus during the field studies. crops as part ofa mixed cropping system. J During the studies, all the major actors and operators When thousands ofcocoa trees were cutdown as a result were interviewed (ie. farmers, transporters, labourers, ofan outbreak ofswollen shoot disease in the 19605, the J and landowners) and their activities, practises and dense forest vegetation was converted into a derived concerns were analysed. savannah vegetation. This facilitated further clearance and set up the prospects for widespread pineapple \[ Though the results of these studies should not be \\cultivation, especially in the northern part ofthe district I \l extrapolated to represent production practices ,

23 -.

Government policies promoting the dive~ification of who are operating on family lands, four claimed they had exports, especially the emphasis on NTAEs contained in leased some part of their land to other small-scale the 1984 Economic Recovery Programme (ERP), served producers on a cash tenancy agreement. Five of the to stimulate pineapple production. It was then that interviewees acquired their land through inheritance, Nsawam's proximity to the greater Accra area carne into while three ofthem (aU large-scale exporters) acquired play. Like many perishable crops intended for distant it througlioutright purchase. The last fanner received his markets, pineapples mUst be picked long before they are land as a gift from a friend. J ripe. Profitability depends upon how quickly they can be transported from where they are produced to where they Thesize ofthe farms being cultivated ranged from 0.5 to ~ are ultimately. consumed, which in Ghana's case over 32 hectares. Average output is 30,000 kilogrammes ~ generally means Europe. Nsawam is linked to Accra by per hectare. Even -though· large-scale, mechanised ~ I a35-kilometre highway, thus allowing for fast and low­ farming is on the increase, most of the production ~ cost transportation to the international airport and the continues to come at the hands ofpeasants farmers. .¥ barbour at Tema. I C.l.2 Labour Input 1 c.l.l Land Acquisition I Commercial pineapple farming offers employment In Nsawam District, as in the rest ofGhana, most land is opportunities to local villagers. Generally speaking, still communally owned. Actual ownership is vested in there is a sufficient supply oflabour in the Nsawam area. a land-owning group which can either be a family or a Shortages do occur. however, during the land clan. Individual members ofthe group have access rights preparation period that lasts from January to April to any part of the communally-owned land, unless that because that coincides with cassava harvesting and land has already been allocated. Any land so acquired maize sowing on family plots. Small-scale producers cannot be sold without the consent ofall the members of must rely solely on their own families' labour during this the land-owning group. Land can also be granted to a four-month period. ·stranger· (one who does not belong to any ofthe clans or families) under an abusa agreement, a traditional Labour sources can be classified into three main types; share-cropping arrangement whereby a third of the family, hired local labour, and hired migrant labour, production goes to the landlord. which includes those with special skills or knowledge. In Kuntuse. 54% of the labour at the pineapple farms is In recent years, however, the needs of commercial performed by hired local sources, 36% is performed by production have led to drastic changes in the communal migrants. and the remaining 10% by the farmer's family. system of ownership. The extensive care and constant 'fhiny percent of the farmers rely on their extended maintenance required in pineapple production places a families for labour. premium on individual control of the land. As a result, long-term leases (SO to 80 years) and outright sales have C.l.3 Land Preparation and Plantine become increasingly common. Although an estimated 50-80 percent of the pineapples exported from Ghana Even though traditional small-scale farming is are still produced by smallholders, export liberalisation increasingly giving way to large-scale commercial policies launched under the ERP have resulted in fanning, farming methods have not undergone any major traditional small-scale fanners being displaced by large­ tianSformation. The small-scale farmers who account for J scale producers. This is evidenced by the fact that all but about 77 percent of the pineapple producers in the two ofthe large-scale farms in the Nsawam district were Nsawam area, still use slash-and-burn techniques in established after 1984. preparing the land for cultivation. They are unable to ) switch to the modem methods employed by the few f Of the 30 pineapple fanners in Kuntuse village, 12 of \ large-scale fanners due to financial constraints. them (40%) obtained their lands through leasehold arrangements. It must be pointed out that most of the Of the 23% of the fanners who employ modem farmers in this category are immigrants who are machinery to prepare their land, most use bulldozers or I producing pineapples for export. Ofthe nine producers tractors. These large-scale fanners also use herbicides I

24 '. to clear the land and control weeds. Ploughing and plus urea to get better results. A full 70% of the farme~ harrowing are sometimes undertaken to facilitate treat their crops with ethylene prior to harvest to ensure planting. ripening and good coloration. Fruit is harvested with the stalk trimmed and treated with a solution of Benomyl Three types ofplanting methods are used in the Nsawam (Benlate). Thiabendazole. or fungsil Benlate mixture area by both the small·scale and large-scale fanners: immediately before packing to control watery heart or suckers. crowns, and slips. Suckers are preferred in that blackroL they produce their rust crops sooner, usually between IS I and 18 months after planting as opposed to crowns and C.l.4 Production Costs and Returns slips which mature between 18 to 24 months. They are also more resistant to drought. They are, however, . :me main costs in the production ofr:ti.neaeples are land '7 1{, V J substantially more expensive and sometimes difficult to ,.!.cQ.U.i:iitiQ,n, !!nd preparation, ~cultural inputs :md ~ obtain. ~lipmeQt Most ofthe farmers are now using bulldozers for clearing the land. Other input costs include suckers, Kuntuse's seven large-scale farmers plant roughly 20,000 weedicides, and pesticides. Equipment costs also include I suckers per hectare, and adhere to relevant spacing items like knapsack sprayers, Wellington boots, and requirements: 30 em. between plants and 100 em. protective gloves. Generally speaking, these costs add up between beds. Most of the local peasant fanners, to about C896,200 per hectare ofland over the 18-month however, plant considerably less than 20,000 suckers production cycle, not including management and other and not in rows. )1 miscellaneous expenses.

Before the introduction of the SAP and the advent of On average, 30,000 kilograms ofpineapple are harvested large·scale pineapple farms, the small-scale fanners did per hectare. At the basic farm gate price ofC35 per kilo, not use any agro-chemicals at all. Given the chemical· the total return per hectare is thus approximately intensive nature ofexport pineapple production, almost CI,050,OOO. Gross profits (total returns less production all the farmers in the Nsawam area currently use a cost) are thus C153,800 per hectare, with total returns variety of pesticides, weedicides, and chemical reflecting managerial and miscellaneous expenses. Given fertilizers. Despite the increasing use ofnumerous agro­ the prevalence of spoilage, theft, and the effects of chemicals in all phases of production, however, adverse weather, however. what ends up being sold is extension officers are seldom consulted. generally much less than the average harvest. It is I estimated that on average only half ofthe total yield is of Usually a balanced fertilizer containing Nitrogen. JJ.exportable quality. . Phosphate-Potassium (NPK) is applied eitherjust before planting or 4-6 weeks after planting. Because mealy bug C.l.5 Marketine- of Pineapples wilt can spread rapidly, some farmers treat suckers with a systemic insecticide such as Dimethoate. Rixion, Importers usually prefer half-ripe to ripe fruit, but Perfecthion, Dimeton methyl, or Phosphomidon before there is variation in the preferred color. As there are planting. Ammonium Sulphate or Urea and Potassium no international grading standards, COte d'Ivoire fertilize~ are also applied at specified times after standards are generally applied. Pineapples are planting. normally packed by size. appropriately labelled. and transported by air or sea. Pineapples can not tolerate weeds. Most of the farmers J use underground stolans or rhizomeS such as systematic There are six main channels through which pineapples insecticides. e.g.. Dimethouse. Rixion, Perfektion. are marketed in the Nsawam area: local assemblers, Dimanton methylagen. Phytophthora (heartIroot) rot is urban wholesalers, local retailers. urban retailers. factory controlled by using Hetalaxil or Aluminium ethyl processors, and exporting agents. I phosphite. Base rot can be treated in similar fashion or with Captafol. Re-cropped land may be infested with i) Local Assembler .) nematodes. which are sometimes controlled with nematicides. Local assemblers are traders who are residents or who have spent most oftheir time in Nsawam. They are not .) Calcium Carbide is frequently applied to force fruiting. Many farmers add a small quantity ofkerosine or Ethrel

2S growers themselves. but they locate fanners and buy the remaining stock back to their homes or reduce the from them. They then send the accumulated pineapples prices for quick sale. to the periodic local markets. Whereas at the open market. pricing is based on size and ii) Urban Wbolesaler ripeness, processing industries buy on the basis of acidity and sugar content tests. Ifthe quality is good the These are traders who come. from urban centres, farmer is paid C35 per fruit (in 1993). However if the especially Accra. They buy the fruits from anybody they acid content of the fruit is "unacceptable" they only can, but particularly from the fanners and local receive between 12 and 20 cedis per fruil assemblers who serve as their agents. They then deliver the fruits to retailers in the urban centres. As wholesale prices continue to increase overall, most .J farmers prefer to sell their crop to exporters who not iii) Local Retailer only tend to offer higher prices than the proceSsing industries, but also generally make payment at the point For the most part, these are traders who sell along ofdelivery. J roadsides. They buy directly from the fanners. C.l.6 Impacts iv) Urban Retailer Pineapple production is on the increase in"both Nsawam This group is comprised ofsmall-scale traders who buy and the other producing areas in the vicinity of Accra. at the periodic urban markets. They, in turn, send the OveralJ. the number' of pineapple farmers has nearly pineapples to other urban outlets according to market doubled over the past several years. This is due to the day schedules. increased demand from exporters. A remarkable increase in total output has led to substantial improvements in v) Exportine A~nts household earnings.

These are individuals who actually export pineapples. A major constraint for increasing production is the They buy directly from the farmers who grow for export. shortage of available capital to purchase suckers and especially the large-scale producers. agro-chemical inputs. Few small farmers have the capital (or access to credit) to purchase all or sufficient vi) FactQr,y Processors chemical inputs; many pineapples are not of export quality and losses to pests and diseases can be high. These people represent the pineapple processing Outgrowers rely on their buyers to force and artificially industries (e.g., Astek and Nsawam Cannery) located in ripen the fruit. Nsawam. They buy directly from the farmers. Occasionally, when there are shortages, they will also go Another problem with pineapple production is that to local assemblers. market gluts at certain times of the year reduce prices and saturate the exporting avenues. These gluts are Marketing at the farm gate is primarily done between the attributed to the dependency on rainfed production. and farmer and either local assemblers. urban wholesalers, constraints of storage, processing. marketing. and local retailers, exporting agents. or factory processors. transportation. Soil erosion and the heavy use ofagrOo All these buyers generally bring their own vehicles so chemicals also pose serious environmental and health I that they can take their purchases away with them. problems discussed later in this report. Sometimes the farmers transport their pineapples to the C.2XA,MS open market themselves - either by road or rail. At I .Nsawam. even though the market operates on all days. Total yam production has been increasing in Ghana. In Tuesdays and Thursdays are especially busy. Activities 1992. 143 exporters earned roughly US$2.1 million by start early in the morning when traders arrive from exporting 2,728 lons ofyams. A year later. the number Accra. Tema. Koforidua. and other urban areas. When ofexporters dropped to 112 though the quantity ofyams J the trading dies down around 3 p.m.• the farmers take exported increased to 3,574 tons. As a result of lower producer prices. however. the 1993 exports earned only I US$2.0 million.

26 Six species ofyams are grown in Ghana. but white (or delicate of all farming operations as cuts or bruises Guinea) yams (Dioscorea rOlundala) predominate both increase the likelihood of attack by microorganisms. in local consumption and the export trade. The -Puna­ including nematodes. which can cause rot. A sharp stick and -Laborkor- varieties arc the most popular by virtue is used to dig the yams out of their mounds. Family of their taste and palatability. and thus constitute the labour is generally relied upon as hired labourers are bulk of exports. The main markets arc Europe and more likely to damage the yams through carelessness. North America. The other five species arc produced on a subsistence basis for local consumption. Ofthese. the C.2.2 MarketiDl: most prominent are the yellow yam (Dioscorea caynensis) and the water yam (Dioscorea a/ala). All of Yams arc normally bought at the farms and transported the 15 main centres of yam production in Ghana are to the nearest village by middlemen. These middlemen ) located either in the transitional or forest zone. (who arc mostly women) arc predominantly illiterate local people who have learned the business from on­ C.2.1 Production Process the-job training. Among the middlemen arc wholesalers. retailers. and marketing agents. Yams arc generally planted between August and January. just before the end of the main growing There arc two kinds ofwholesalers, the local wholesaler season. For the most part. yams are propagated by tuber who buy the yams from the individual fanners and bring sections/cuttings. Like other seed tubers. yams require them to the rural centres, and the visiting wholesalers a period ofdormancy before they are planted or else the who travel to the rural centres on market days, buy percentage sprouting is greatly reduced. Therefore. seed yams from the local wholesalers. and then transport yams arc stored for about two months before being them to the urban centres such as Accra and Kumasi. planted. Though they arc susceptible to bacteria. fungi. Both men and women work as wholesalers. At Atebubu, insects. and rodents, the cuttings are rarely treated with these two groups of wholesalers have formed an a pesticide. association called The Yam Sellers Association. Currently. there arc about 160 members. 80% ofwhom Most planting occurs in accordance with traditional arc women. systems of shifting cultivation. though many farmers now use tractors to clear the land. Preparing the land Some ofthe local wholesalers do not go to the various starts before the coming of the fall rains. The land is farms themselves. but hire marketing agents to perform cleared and the trees felled. When the debris has dried this task for them. Sometimes, the wholesaler will sufficiently, it is burned and the ashes are mixed into provide the marketing agent with a bicycle so that he the soil. A series of mounds. roughly 1.8 meters apart, can go around to all the villages and identify farmers are then made with hoes by drawing the top soil who are ready to harvest their yams. If the marketing together. Between 20,000-30.000 stem sector/cutting agent locates a farmer who is ready to sell, the agent arc planted per acre. Chemical fertilizers arc rarely negotiates with the farmer and sends the information on used. to the wholesaler who then comes with the money. The fee charged by the marketing agent is about C500 for As good yields can only come from staking. once the every 100 tubers ofyam they arrange. vines begin to grow, they arc tied around poles. The fanners ofAtcbubu insist that the poles must be at least C.2.3 Assembl;":. Sort;":. and Gradjo: 1.83 metres high. In the savannah and transitional I zones. however. good staking materials arc not readily Twice a week. yams are sent from the villages and available. The premature cutting of trees and other hamlets around Atcbubu to the local market. About 95 wood plan~ to stake the yams is one of the major percent of the yams arc conveyed there by the local J causes of land, degradation and soil erosion in the wholesalers. It is at Atebubu that most of the urban savannah zones. ' wholesalers buy their stock.

Harvesting is done once a year in accordance with local At the local market. the yams arc graded and grouped I conditions. but almost always sometime between June according to their size and variety. This facilitates and August There can be as many as three llJbers in pricing. transportation. and storage. Large yams I each mound. but most mounds yield only a single yam. norinally weigh about 2.7 kilos. medium ones 2.0 kilos. Harvesting is very laborious and one of the most and the small ones 1.4 kilos. All yams arc sold in units

27 ". of one hundred. There are no standard criteria for farmer a week to get a tractor to cart his yams from the grading yams, so the framers and wholesalers rely upon farm to the local rural centre. - their experience. Standards are maintained by the competitiveness of the market: if one wholesaler's Transportation chaJ:ges vary, but arc generally levied on grading standards were appreciably below those ofthe the basis ofthe distance travelled and assessed on a per others, he would have difficulty attracting customers 100 tubers rate. Generally spealcing, the longer the who move freely throughout the market, inspecting distanCe, th~ lower the rate. Total costs are around before buying. C20,ooo for distances of less than six kilometers and I C30,OOO for distances in the neighbourhood of 24 C.2.4 Storace kilometers.

Yams must be stored since production is seasonal while The existing system of transportirigyams from the consumption is spread throughout the year. A number farms to the rural centres is far from efficient. The of practical difficulties arc encountered during the shortage of transportation equipment and the lack of storage process. Dehydration leads to a loss in weight adequate feeder and farm roads (which cause the and an impairment in quality, while bacterial infection tractors to get stuck on the untarred roads during the (especially from cuts incurred during harvesting) leads rainy season) prevent the yams from being moved to spoilage. Because of these dangers, farmers try to quickly and cheaply. They also contribute to harvest their yams only when they are needed. unnecessary crop damage.

When yams must be stored, it is usually done at the Transportation from the rural centres to urban centres farm. The methods used are geared primarily towards is largely by road. Big trucks weighing five and seven minimising dehydration. One ofthe more popular ways tons transport the yams to the urban centres. The is to keep them in a covered pit. Yams stored in this number ofyams that can be carried by a seven-ton truck way will survive for two months before they start to naturally depends upon the size of the yams, but germinate and spoil. At Atebubu, the middlemen store generally ranges between 2,000 and 3,000. their yams in an open area. covering them with yam vines until they arc sold. Chemicals are not used. C.2.6 Financing OfMarketing

C.2.S Transportation Yam traders are able to receive credit facilities from the Agricultural Development Bank (ADB) which was Transporting the yams to market is one of the key established in Atebubu in March 1975. Under the ADB functions performed by the yam wholesalers. Moving credit scheme, small farmers growing specific crops are the yams from the farms to the rural centers can be quite organised into groups which elect their own executives. difficult. The farms arc scattered and many ofthem arc When the bank is satisfied with the constitution ofthe very far fJ:om the main and feeder ,roads. Where good group, it gives out loans ranging from C200 to CI,OOO roads lead to the farms, trucks go to the farms to collect to each of the members. The loans are payable in 18 the yams and convey them to the urban centres. But months and the interest rate is 8~%. poor road conditions prevent the use of trucks, and tractors become the primary means oftransportation. Ifall the members in a group arc able to pay their loans by the end ofthe 18-month period, they automatically In some cases, the tractors are able to maneuver through qualify for loans for the next season. Ifthey are unable I the bush paths and get quite close to the farms. But to pay and the bank is convinced that it was through no where this is not possible, the yams have to be head­ fault oftheirs (e.g., crop failure) they arc not penalised, loaded to the tractors. The number of tubers that a but arc given additional loans to operate their farms. If, person can carry at a time is a function ofmany factors however, the group members arc not able to provide I" including the distance that has to be traveled, the size of any satisfactory reasons for not being able to pay their the tubers, and the physical strength ofthe person. loans on time, they arc denied further loans until they settle their debts in full. I The chaJ:ges for the use ofthe tractors depends on the distances to the farms and the condition of the roads. Most ofthe yam traders near Atebubu, however, do not . Making matters worse, is a shortage of tractors that approach the ADB for loans: 80% ofthose interviewed incites competition. On average, it takes the average were financing their own operations from the capital

28 they had slowly accumulated over the years through Not a single one ofthe wholesalers interviewed stated trading on the retail market where the quantity handled that they had received any loans from private money is small and the capital requirement is low. Another lenders. The high interest rate charged by the money reason why most of them prefer not to deal with the lenders discourages the wholesalers from going to them, bank is because they do not often get the money when even in times ofneed. they need it due to processing delays. C.2.7 Distribution of Return When these farmers run into financial problems, they I are helped out by their fellow wholesalers, friends, and The returns from the sale of yams in the wholesale relatives. The loans they receive from these sources are market are divided between the farmers. the local generally interest free, but when they are repaid, they wholesalers, the marketing agents, those who provide J are generally accompanied by gifts. transportation, the local council tax, and those who provide storage facilities. (See Tables 4, 5, and 6) I Table 4: Analysis ofMarketing Margins for Small Sized Yams

Functionlltem Cha~ellOOTubers % of Wholesale Price Wholesale Price C70.oo - Producer Price C50.OO 71.4 Agent Commission CO.40 0057 Transportation C14.29 14029 Unloading CO.40 0.57 Storage CO.40 0.57 Local Council Tax Cl.OO 1.43 Wholesaler's Profit C7.80 11.14

Source: Survey Data

Table 5: Analysis of Marketing Margins for Medium Sized Yams

Functionlltem Charl!ellOO Tubers % ofWholesale Price Wholesale Price C90000 - Producer Price C70.oo 77.78% Commission to C0040 0.44% Agents Tra!!sportation CIO.oo 11.11% Unloading CO.40 0.44% Storage CO.40 0.44% Local Council Cl.OO 1.11% J Tax Wholesaler's C7.80 8.68% ) Profit Source: Data from Study I I

29 ". Table6: Analysis ofMarketing Margins for Large Sized Yams

Function/ltem Charge/IOO Tubers % of Wholesale Price Wholesale Price CI20.00 . Producer Price C90.00 75.0% Commission to Agents CO.40 0.33% J Transportation CIO.OO 8.33% Unloading CO.40 0.33% Storage CO.40 0.33% LoCal Council Tax Cl.OO 1.18% I Wholesaler's Profit C17.80 14.83% I Source: Data from Study An analysis of the prices paid by visiting wholesalers being traded internationally -- in this case, by being from urban areas reveals that farmers receive about transported overland to the savannah c()untries ofWest 72% ofthe wholesale price for small-sized yams. 78% Africa and across the Sahara to the Mediterranean. for medium-sized yams. and 75% for the large yams. The farmer would have received the highest percentage Though kola trees are indigenous to the entire forest for large yams. but the difference between the zone. they grow most densely in the central and wholesale price and the farm-gate price (producer northern parts of the zone where annual rainfall price) is greater for large yams than it is for the other averages between 1.300 and 1,400 millimetres. The two categories. For small and medium-sized yams. the area of highest production occurs in Ashanti, parts of difference is about C20 per yam; for large-sized yams. Orong Ahafo. and the Eastern and Central Regions. it is closer to C30. At least three species of kola are found in Ghana: Cola Since marketing charges are fixed. their percentage of nitida, Cola acuminata, and Cola lIirticillata. Of these. the wholesale price is reduced as the size of the yam Cola nitida. generally known as White Cola dominates increases. Thus. as the price of the yams increases the popular trade. Even within the species. there are (because of their size) the percentage ofthe wholesale several varieties. Differences lie in the colour of the price that market charges comprise is reduced. The nuts. the size ofthe seeds. and the colour ofthe flowers. same applies to the percentage return to the local The nuts can be either red. white. or pink. but it is the council from taxes. As a result of these fixed charges. red nut that is favoured for export and hence the most wholesalers make more per 100 tubers from the large­ commonly produced.} sized yams: a minimum of 15% ofthe wholesale price as opposed to a minimum of 8.4% for medium-sized C.3.1 Production Process yams and II% for the small-sized ones. Since kola is indigenous. there are generally trees There is an inverse relationship between the already growing when a commercial farms is transportation charge and the share of the wholesale established. Kola is easily propagated from fresh nuts. price that goes to the local wholesaler. The higher the and old trees are generally replaced by those grown I transportation charge. the lower his share and vice from their own seeds. As a result. kola production is versa. often as much the work of nature as it is of man. and large plantations of kola trees have yet to be I c.3 KOLA NUTS established.The land is cleared using simple farm tools such as cutlasses. feUing axes. mattocks. and hoes at the Kola trees grow naturally in Ghana's closed-eanopy end of the wet season (late December and early forest. The nuts are popular among the Muslim January) to allow for burning. Kola is usually I populations in northern Ghana and the countries interplanted with foodcrops and is sometimes planted extending to the Sahara. It is believed that long before together with cocoa. I the first Europeans set foot in Ghana. kola nuts were

30 In order to facili~te early gennination, the tip ofthe nut C.3.2 HarvestiOg '. is usually cut before planting. Germination is slow, taking between 7 and 11 weeks. As shooting seedlings There are two main harvesting seasons. The major arc often destroyed by termites and crickets, many season, locally known as Abiribira, begins in October farmers rely upon pesticides. The plant thrives best in and gradually increases to a peak in December. By the shade, and with the exception of occasional March, the main crop has been harvested in most areas, brushing around the trees and the removal ofclimbers but a smaller, mid-season crop is then ready in late May and epiphytes, little in the way ofcultivation is given or and June. This minor season is called Awia Bese (Sunny -I needed. The first fruits are normally produced within leola). six to eight years, and by the twelfth to fifteenth year, the tree yields a fair crop. From the age of twenty Harvesting involves gathering the fallen nuts- or I onward, the tree is considered to be in full production. plucking them with a cutlass or hooked knife fixed to a It may continue to bear until it is seventy to a hundred long pole. This work, which is tedious and frequently years old. performed with the assistance ofa ladder, is generally done by men, while women and children gather the I Kola production is believed to have started in earnest in plucked nuts. the 18705 when the then British colony of the Gold Coast began sending kola nuts back to the United After they have been gathered, the pods are cracked Kingdom. As a way of increasing production, the open to remove the nuts which are covered by a white. British established a botanical garden in Aburi where pulpy coating. In some cases the nuts are sold in this kola. along with some other crops, were subjected to condition. but generally they are heaped in small piles experimentation. In 1908, the Germans established a under the trees and covered with plantain leaves for promising plantation in Kpandu and Ho in the Volta about seven days so that they can ferment. The white Region. The success of that ventureencouraged many coating is removed and the nuts are checked for weevil farmers to plant kola tress, especially in Ashanti, damage. The nuts arc then stored in baskets. normally Eastern Region, and other areas within the high forest made from raphia palm. which are lined with leaves. zone. The nuts are preserved for about three months to await In 1924, kola exports peaked at 7,773 tonnes. From demand. One method of preservation is to spread a 1928 onwards, guaranteed and attractive cocoa prices layer of kola nuts under a 25 centimetre layer of soil. led to the spread ofcocoa production at the expense of Under dry conditions. the nuts can be stored for up to kola. Most kola farms were interplanted with cocoa and three months this way. The only problem with this when the kola trees died, they were replaced with cocoa method is that too much moisture in the soil may cause trees. fbe nuts to germinate. Farmers may also preserve the kola nuts by removing the greensheel cover. burying Kola started regaining prominence after the Second them in a six-by-four meter pit. and then covering them World War when the price began to rise relative to with leaves. Every two weeks. the farmer uncovers the cocoa. In 1970 when the producer price of625 kilos of nuts and removes those that have germinated. cocoa was C18.40, the same quantity ofkola nuts was yielding 04.00. This nearly threefold discrepancy, C.3.3 Diseases and Production Problems combined with the general instability of the cocoa business, induced many farmers to shift to kola. The kola tree is normally attacked by the same fungi I Continued falling cocoa prices only caused that trend to (Fomes lingnosus and Fomes noxius) (Root rots) which continue. As a result, many traditional cocoa producing attack cocoa and other forest trees. The kola fruit fly areas were converted to kola production. The village of (Ceratitis colae) is reported to cause the nuts to open Kwahu Praso, where weather and soil conditions are prematurely, which allows for infestation by the kola I particularly conducive to kola production, was one such weevil (Balanogastris kolae). Damage by the kola aru. It is now Ghana's leading producer ofleola nuts. weevil has yet to be accurately determined. but it is J considered to be the major cause ofcrop loss.

I

31 C.3.4. Marketing Slightly more than half(55%) ofthe fanners in Kwahu Praso acquired their farms through their own efforts. In the early days of the kola trade, nuts were head­ The rest, inherited their lands according to traditional loaded by Ashanti fanners to staging posts in northern matrilineal practices. Ashanti astride the Hausa (of Northern Nigeria) trade routes. From there, they were generally sold to buyers Kola nut production employs about 80% of the from the north though these buyers occasionally villagers. It also provides employment to immigrant journeyed to the producing areas to buy the nuts farmers, most of whom are engaged in harvesting, I directly from the growers. For centuries, kola nuts weeding. and marketing the nuts for export. constituted Ghana's leading agricultural export commodity. Today, they are among the most valuable During the major harvesting season, most ofthe farmers I ofexports to the interior ofWest Africa. who are civil and public servants obtain leave from \ \ their work in the cities and towns to return home and The introduction of motor transport and the engage in the lucrative kola nut trade. During school construction ofa railway from Accra to Kumasi led to holidays, most students also return home to help out. I the expansion ofthe kola fanns and trading. It also led Some ofthe students even use the income from the kola to the diversion of traditional trade routes. Nuts now business to finance their education. It is also through began to be transported southward to the coast where the kola business that many fanners have been able to they were shipped by sea. educate their children. even at the university level.

The principal constraint to increasing export volume C.3.6 Markel Returns and value are fonnal markets. The trade has for the most part been infonnal. although the government is Kola continues to dominate the economy of Kwahu attempting to fonnalize the effort -- especially with Praso despite recent increases in the producer price for Nigeria -- to generate much needed foreign exchange. cocoa and the government's efforts to rehabilitate cocoa Recently. quantities ofdry nuts have also been exported production by hiking producer prices. Out ofthe total by sea to Europe and North America to service the C17.969.OOO accrued from the sale of both cocoa and growing African and Caribbean communities. kola in 1989. a full three-quarters came from kola. The reasons for this are based in simple economics: C.3.S Socio-Economic Impacts production per hectare ofkola is far greater than cocoa. and hence. so is the income earned. That year, kola Kola production is the major source of income in production yielded an average of 12.5 bags per hectare Kwahu Praso area and it affects the socio-economic life while cocoa yielded only 4.8 bags. The average fanner ofthe people more than any other activity. Ofthe 100 made C135.ooo from kola. three times what he or she kola fanners in Kwahu Praso, 70 are male and 30 are made from cocoa (C44.690). female. Only 20 of them have had any fonnal education; the rest are illiterate. As a body. they are In 1992. kola's relative advantage had fallen somewhat: disinclined to adopt new ideas. Most of them, for about CI20,968.000 was realised from the sale ofkola example, have never used fertilizers. nuts. while cocoa earned C70,286,ooo. roughly three­ fifths that number. The yields of both crops has In general, the female fanners are younger than their decreased considerably since then as both the trees and male counterparts: 63.3% of the female fanners are the fanners advance in years. The next year, 8.2 bags of I between the ages of30-34 as compared to 37.1% ofthe kola were obtained per hectare, compared to 2.9 bags of males. Nearly half of the male fanners (47.1%) are cocoa - both ofwhich represent declines ofover 30%. between 50 and 59 years whereas only a quarter (26.7%) ofthe females are. Since most ofthe farmers C.3.7 Infrastroctural Development I are rather old. maintenance (periodic weeding and pruning) tends to be very unsatisfactory. This affects In addition to improvements in household incomes. production and jeopardizes the sustainability ofthe kola infrastructural development has been one ofthe major I farm. benefits ofkola production. The kola farmers ofKwahu Prase have made significant contributions towards the I construction ofroads. bridges, the local primary school,

32 KVIP toilets, boreholes, and a community centre in the With the recent moves to increase and formalize village. Before the introduction of kola production in export, some old cocoa farms are being uprooted and the 1960s, there were no motorable toads in the area. In converted to the cultivation ofkola trees, including 11 the 19705, the cQmmunity began constructing a series of the use ofsome hybrid varieties. It must be noted that feeder roads so that all kola farms could be linked to the kola cultivation has increased partly because many ~ilIage and hence to Nkawkaw, the main market centre. cocoa farmers prefer to use kola tress as shade for Twenty-two kilometres offeeder roads were built at a young cocoa trees. There are two primary reasons for total cost of CI60,OOO,OOO, all of which was raised this preference: one, the indiscriminate destruction of I through periodic individual contributions. cocoa farms by timber merchants should they use other hardwood species; and two, the fact that c.3.8 Kola Production and Other Cash Crops interplanting kola with cocoa reduces the incidence of I Especially Cocoa disease in the cocoa trees. Cocoa is the major foreign exchange earner for Ghana. c.3.9 Impact ofKola production on foodcrops ) Until the mid 1960's, cocoa cultivation was a source of great pride and income to the farmers ofKwahu Praso. The increaSing profitability ofthe kola trade has During the 1960s and 70s, changes in market prices in induced roughly 90 percent of Kwahu Praso's favour of kola induced farmers to shift resources from inhabitants to reduce the amount oftime and effort the cultivation ofcocoa to kola production. Since then, they put into the cultivation of food crops. Land the production of other crops has also declined allocated for foodcrops production has also dwindled. significantly. This has led to periodic food shortages in the village.

After 1983. however, cocoa production started to Immigrants from northern Ghana as well as from the become more attractive, especially in light of neighbouring countries have aggravated Kwahu government-sponsored schemes. Notwithstanding this, Praso's food problem. While a "bunch" ofplantains. the production of kola nuts in Kwahu Praso has kept the local staple, costs C800 in the village. the same increasin. (see Table 7) quantity is sold for C500 in Danteng. which is only 10 kilometres distant. Acute food shortages have Table 7: Produc(jon of Cocoa and Kola nuts by resulted in the rampant theft offood crops. And while 100 fanners in Kwahu Praso from 1989 - 1993 the kola farmers continue to receive significant income during kola harvesting season. the cost of Cocoa (Bags) Kola Nut (Bags) staples (plantain. cassava, yams) is taking an increasingly large percentage ofthat income. 1989 1,200 980 1990 730 1.200 C.3.10 Impact of Kola Production on Forest 1991 450 1.620 Ecoloev 1992 370 1,540 1993 410 1,600 Before the large-scale production ofkola began in the I970s. about 98% of the Kwahu Praso area was 3,160 6,900 covered with forests. The area was rich in timber species. especially QW.un. Qm1na.~. and~. According to the farmers themselves, the ongoing J declines in cocoa production are due to: But the increased cultivation ofkola has resulted in the destruction ofmost ofthe natural vegetation. along with i) Low prices ofcocoa output and delays in its rich biodiversity. Most farmers deliberately destroy payment by the Ghana Cocoa Board which even young timber species on their fanus to prevent the I has a monopoly on the purchase ofcocoa; timber merchants from entering their kola and cocoa ii) Cocoa's heightened vulnerability to disease, farms with bulldozers. especially swollen shoot disease; J iii) Per unit yields and prices that are below As a consequence of the deforestation, the micro those ofkola nuts: and climate of the area has been adversely affected. As I iv) Cocoa production's heightened maintenance rainfall patterns become increasingly unreliable, many demands. II areas ofthe village have become infertile and erosion is 33 rampant. The whole area is being covered by an economic development of the country and the uncontrollable weed (Chromolina odorata) which is amelioration ofthe quality oflife for many Ghanaians, able to spread quicldy over the infertile ground due to it does not take into account many ofthe flaws inherent the easy dispersal of its seeds by the wind. Another in a policy that is geared strictly towards increasing major consequence .of the destruction of the forest is short-term outputs. Particularly susceptible to being that the villagers have less "bush meat" (wild animals) overlooked are many adverse local-level impacts, with which to supplement their diets. especially those ofan environmental and sociological nature. I As kola nut production increases, so too does the destruction of the available semi-deciduous forest. In addition to the short, medium, and long-term Kwahu Praso is only oneof2S main kola growing areas detrimental effects that environmental degradation and I in the country. Although the 10,038 tons of kola nuts sociological disruptions can have on the natural exported in 1992 earned Ghana US SI,432,845 and the resource base, continued downplaying ofthese impacts 9,973 tons exported in 1993 brought in US $1,020,750. can quite literally undermine any overall success that the cost ofthe negative environmental impacts might be the NTAE sector has had to date. I higher than the value ofthe income earned. In short, it is imperative that the development of Given the financial incentives posed by the cultivation NTAEs in Ghana be done in a sustainable manner. As ofkola nuts and its impacts on Kwahu Praso's forests, the following discussion demonstrates, there are many initial efforts should be to consolidate production on reasons to believe that this is not happening. old farms. It may also be necessary to encourage the farmers to adopt better maintenance practices and increase output through the use ofappropriate fertilisers D.I. NATIONAkLEVEL IMPACTS OF THE and pesticides, and encourage diversification on kola NTAE STRATEGY tree plantations by intercropping kola with cocoa and other crops to increase the production per unit of land. D.I.I Growth and Reyenue Diversifying the agricultural base might be important for the well-being of the national economy, but the Initial results of the government's efforts in expanding promotion and production ofthe selected crops must be the economic base through the promotion ofNTEs are done on a sustainable basis. encouraging. Sector earnings skyrocketed from US SI.9 million in 1984 to $62 million in 1990. Commercial agricultural exports, which include horticultural D. NTAES: RESUl.TS TO DAIE products, fish/seafood. game/wildlife, medicinal plantslseeds, and other agricultural products, is both the largest and the fastest-growing subsector. (see Tables 8 In general, the government's promotion ofNTAEs has and 9) In 1989, the value of NTAEs was US $21.17 been successful in increasing the quantity of these million (61 % oftotal value ofNTEs). Five years later, exports. Unfortunately, however, a number offactors NTAEs earned US $26.13 million (29.5% oftotal NTE have conspired to reduce the earnings ofthese increased earnings of US $71.7 million) an annual average exports. Some ofthese, such as falling world producer increase of approximately 5 %. prices and increased competition from other producer nations, are beyond Ghana's power to control. Others, Second, is horticultural products which contributed such as transportation and processing bottlenecks, II% oftotal NTE earnings in 1989. Ofthis subsector, confusing and delaying administrative procedures, and pineapples areclearly the largest contributor. They have insufficient or inappropriate provision of agricultural also demonstrated the most consistent gains: in 1989, inputs are within the government's control and are 7,947 tonnes yielded earnings of US $2.1 million; in currently being addressed. 1990,9,440 tonnes earned US S3.8 million; in 1991 10,675 tonnes earned US $5.1 million; in 1992,9,754 These remedial actions, however, are all geared toward tonnes had a value of US $4.38 million; and in 1993, increasing export productivity, and hence revenues. As 13,156 tonnes earned US S5.177 million. worthy as this goal might be in terms ofthe overall .I

34 TableS: :-'------;;----:;-:-;~:-:-.:::::-::-;;-;;-;:~;------j Commercial £%ports orSelected -...------,Agricultural Products (1989 -1993)

1 ~ .- . 1."'.If'" .1"1 1m t.. .J .,m

) I_- ) I -

•

Table 9: ,-'------,Commercial Export Values ofSelected Agricultural Products 6-r------....., ,_1989. 1990 _ 1991 @] 1992. 19931 s

I )

o I Pineapples Yams KolaNulS Cocoa I

35 ".

.\ The primary contributor to the sub-sector's overall African countries which import significant amounts of earnings came from the steady perfonnance oU!sh and NTEs from Ghana include Libya and South Africa. fish Eroducts. which continues to account for roughly 60% ofsu6Sector earnings. e yearperiod. this translates Other developed countries, mainly USA, Japan, and \ into a total increase of 65% percent by quantity and Switzerland imported about 16.4 percent of the NTE nearly 1509& percent by value.Although the volume of items in 1993. while South Asia, the Middle East, and pineapple exports increased by nearly two-thirds over South East Asia combined for 9.0 percent. period from 1989-1993, Ghana has not been able to I maintain its market share. Ghana's share of the U.K. D.2. market, its traditional leading market, for example, . dropped from 36 percent in 1990 to 4.7 percent in GEPC statistics indicate that the earlier growth of the I 1993. The reason behind this prodigious slump is NTE sector has slackened in recent years. Between Ghanaian producers inability to compete with Latin 1990 and 1991 for example, NTEs grew only 0.33 American producers on the basis of productivity, percent. Even the 5% growth that was recorded between quality, price, and marketing strategies. 1992 and 1993 was well below the 29 percent per I annum goal set under the Medium Term Non­ Though they still account for less than halfthe earnings Traditional Export Development Plan. 1991-1995. of pineapples, yam exports increased even more According to that plan. NTEs were to be contributing dramatically in both volume and earnings: from 1,635 US $171.48 million to the Ghanaian economy by 1993. tonnes worth US $.39 million in 1989 to 3,574 tonnes In reality. they are currently only contributing US $110. worth US $2.034 million in 1993. This constitutes an The realised growth rates were also well below the 20 increase of 115 percent in quantity and nearly 500% in percent per annum (between 1991 and 1997) targets set earnings. under the USAID-sponsored Trade and Investment Programme (TIP). This could be due to the GEPC's During this same five-year period, kola nut exports failure to: increased 329& in volume (from 7,482 tonnes in 1989 to 9,972 tonnes in 1993), but decreased nearly the same i) create Goodwill for Ghanaian products percentage in earnings (from US $1.48 million in 1989 overseas; to US $1.020 million in 1993). Much of this decline ii) Locate markets for the exporters; and/or can be attributed to Togo's closing of the eastern iii) Develop a national export awareness. border, thus blocking traditional export routes to Nigeria. Although the NTAE sector has generated additional foreign exchange, it is not clear how that income will D.l.2. Export Markets affect the country's external debt situation since the debt is principally in the public sector while the profits from Ghana's NTEs now go to more than 60 destinations, NTAEs accrue primarily to the private sector. In though the proportions of those products differs addition, the incentive packages offered to NTAE significantly from nation to nation. The European producers by the government constitute a reduction in Union. (EU) continues to be the leading destination, state revenues. taking more than half (52.9 percent) of all NTEs by value. The leading EU markets arc the UK, Gennany, Notwithstanding the recent slowdown in earnings. there Spain. Italy, Netherlands, and Belgium, and the leading has been a significant increase in the number of ) exports arc pineapples, cotton seeds, rubber, fish and exporters - from 666 in 1990 to 893 in 1993. The fISh products. furniture. and scrap metal. numbers ofproducts exported has also increased -- by about 109& - over the same period. These figures\ ~ The second largest market is the Economic Community indicate that the NTAEsector is becoming an important I for West Africa (ECOWAS) which took 20.3 percentof providerofempJoymenL Anestimated S.sOO people are Ghana's total exports in 1993. Those ECOWAS now directly or indirectly dependent on the NTAE countries receiving the largest share of Ghanaian sector. J products are Nigeria. Burkina Faso, Togo, cate dlvoirc, and Niger. The major items which are exported As the development of the NTAE sector is still in its -. to these countries include kola nuts, salt, Aluminium early stages, few spin-off activities have had time to products, palm oil. yams, and _smoked fish. Other materialize or mature. In addition, the potential forward

36 and backward linkages have yet to be exploited to the encroachments. though timber exploitation, fuel wood overall benefit of the country. In the meantime, gathering, and bushfires also play their parts. however, those individual exporters, companies, farmers. and others directly and indirectly involved in The expansion ofNTAE production plays a particularly NTAE activities continue to benefit, often in significant role in the process ofdeforestation. Not only disproportionate numbers. are more lands overall being cleared for production. but that production is forcing traditional food crop D.3. LOCAkLEYEL ENVIRONMENTAL production into increasingly marginalized areas. .J IMPACTS Nowhere is this more apparent, and pernicious, than in the expansion into steeply-sloped hillsides that are Given the complex and extended nature of ecosys~ems. unsuited for cultivation. Such expansion invariably J environmental impacts sometime:; take a long time to causes the land degradation and soil erosion which can manifest themselves. As the NTAE program in Ghana seriously jeopardize production in adjacent lowland is still very much in its infancy. it is not surprising that areas. ) many ofthese effects have yet to reveal themselves. The inherent shortage of both qualitative a.nd quantitative The problems associated with deforestation are analyses is further compromised by the government's particularly evident for pineapples (because of the lack of capacity to be able to carry out thorough necessity oftheir being near transportation centers) and environmental impact assessments and its reluctance to yams (because of their need for stakes). As discussed call into question NTAE programs that are both above. yam cultivation depends upon the annual bringing in much-needed revenues and providing much­ clearing of new plots, a task that is usually needed employment. accomplished by fire. It is therefore not a coincidence that the highest percentage ofbushfires recorded every . The shortage of hard data means that anecdotal year in Ghana comes from the yam-growing regions. ~ evidence is often the only evidence available. In an Between staking and clearing. it has been estimated that ~II attempt to maximize the value of that evidence. the approximately two acres are deforested for every one three studies that were conducted in the preparation of acre ofyams cultivated. this report specifically sought out farmers' thoughts and attitudes about the future of NTAE production on the Although there are no up-to-date data on the specific assumption that conditions there are likely to be ahead effects of bushfires in the yam-producing villages, a ofnational trends. study by Brookman-Amissah in 1976 which was carried out in the yam-growing areas (savannah zones) shows Generally speaking, the production of NTAE crops is that: considered a mixed blessing in the villages where the crops are actually cultivated. While there have been i) Fire affects the delicate ecological balance tangible improvements in the quality of life as a result between the woody and herbaceous ofincreased incomes and the government's provision of components ofthe vegetation, a balance which infrastructural improvements. there have also been is otherwise determined by the forces of some adverse socio-economic developments such as natural competition. landlessness and widening income disparities. perhaps more alarming are the deteriorations in the quality of ii) Early dry season fires retard, but do not stop, local ecosystems. Some of the more prominent the development of woody vegetation by J environmental problems associated with the production destroying a considerable portion of the ofthe three NTAE crops are summarized below. natural regeneration offire-sensitive species.

) D.3.1 Deforestation and Land De~radation iii) Late dry season fires are particularly destructive to all but the most resistant trees Deforestation of all types has reduced the extent of and shrubs. Ghana's forests from about 8.2 million hectares at the ) tum ofthe century to about 2.1 million hectares today ­ Brookman-Amissah observed that bushfU'CS cause a loss of nearly three-quarters. This deforestation significant increases in the surface temperatures ofthe J J continues at an estimated annual rate of 72,000 soil: anywhere between 100 and 85O"C. Meanwhile. Jhectares, primarily as the result of agricultural temperatures at a depth of about 2 em. may vary by ·7 ~~ . 37 only as much as 14oC. Under these conditions, he Soil erosion leads to degradation ofsoil structure and concluded, many macro and micro flora and fauna are declining fertility, both of which result in internalized destroyed, thus resulting in changes in the physical and costs to farmers. It also can provoke off-farm damages chemical nature o~ the soil. to other farmlands and resources. For example, increased soil runoff into the Densu river as a result of The burning of vegetation and crop wastes often has increasing pineapple production has ~ulted in siltation additional undesirable effects. For example, fires that that disrupts fisheries and causes water pollution. get out of control may affect nearby settlements and In addition, when cultivation and other farm practices I destroy valuable watersheds or other natural habitats. are mechanized for a long period, the subsoils tend to Smoke and particulates may also create a considerable become compacted. The widespread use ofbulldozers local nuisance. Potentially much more serious - but . in Kwahu Praso to level the land for pineapple essentially impossible to quantify - are the global production is a major contributing factor to soil consequences arising from the emission ofgases which compaction. When this happens, the exploitable volume affect the ozone layer and the global climate Although is reduced as air and water and roots cannot penetrate actual rates .of deforestation that can be directly through the compacted layer. As a result, drainage is attributed to NTAE production are not known -and reduced at plough depth, thus promoting salinity perhaps not knowable -- it is clear that the process will problems, especially when fertilizers are regularly used. intensify in the future, if measures are not taken to control the expansion ofNTAE production into forested One important reason for the increasing degradation of and sloped land. the land is the breakdown of traditional conservation mechanisms. Once the long fallow period oftraditional In other areas, the growth ofNTAE production does not farming systems (which allows for the regeneration of entail the clearing offorested land per se, but rather the organic matter) is ignored, the consequence is a rapid conversion of diverse subsistence crops or grains to loss of soil fertility. As a result of the active and monoculture systems. These land use changes not only continuous production of NTAEs, land degradation is reduce the availability of food crops for local on the increase in both the yam and pineapple growing consumption, they compromise the integrity of the areas. natural ecosystem and thus jeopardize the carrying capacity ofthe land. Soil conservation practices are rarely implemented in the pineapple.growing areas. The consequence has been D.3.2 Soil Capability and Erosion a severe decline in physical and mechanical properties as a result of structural deterioration. The continuous Ghana is naturally endowed with a variety of soil application of fertilizers, herbicides, and insecticides resources suitable for agriculture, but the optimal only destroys the potential of the land to regenerate production of any particular NTAE crops requires itself through the natural processes. The results ofall particular soil types, nutrients, and climatic conditions. these practices is the near complete degradation of An analysis to determine soil capability for specific some ofthe land in Kwahu Praso. Many old farms have NTAEs resulted in the de1in~tion of five main had to be abandoned there, rendered infertile by years agroclimatic zones. Ifproducers do not cultivate NTAE of inappropriate mechanical ploughing and chemical crops in those areas which have appropriate soils, inputs. Today, they are bare and unproductive. production will suffer and soil degradation may occur \ \ as well. Detailed data is not available on the transformations of I land use that have occurred for NTAE production, and Most of the upland soils described as 'suitable' for more information is clearly needed to understand the NTAEs are fragile and susceptible to soil erosion, extent of deforestation and the repercussions of crop especially when large. tracts are cleared for substitution. In any case, that area is likely to expand I monocropping of annual traps. Already over half the with further increases in NTAE production. land under production in Ghana has been determined to be subject to erosion. This is particularly likely when D.3.3 Impacts ofFertilizers I ) producers cultivate in steep areas and do not use soil Iconservation practices. For example, in some areas of Although the use offertilizer may be useful and needed J pineapple production, the farmers' failure to plant on in some crops for contributing to increases in yields and the contour has provoked erosion. quality ofproducts, the improper use offertilizers can

38 have negative impacts on production as well as hannful The widespread ignorance ofthe dangers ofpests is the off-fann effects. In particular, whe!1 pineapple fanners main' cause of the growth in pesticide use among usc fertilizers excessively or with an inappropriate pineapple fanners. Problems of pesticide misuse arc nutrient balance, the fruit of the pineapple may be particularly evident among smallholders. The reasons banned. Incorrectly balanced fertilizer applications will for the problems are largely related to the users' lack of create undesirable levels ofsweetness and a shortened information about alternative non-chemical methods of shelf-life, both of which cause them to fall short of pest control, their lack ofexperience and information export standards. about safe and effective agrochemical use, and their I lack of capital for purchasing appropriate equipment In addition, chemical fertilizers are easily washed off and products. Although these smallholders may already into streams. rivers, and other drainage areas, where be familiar with NTAE crops, the switch to commercial ) . they become sources ofpollution. When deposited into production often obliges them to use chemicals with rivers and streams, heavy loads ofchemical fertilizers which they are often unfamiliar. contribute to an increased growth of vegetation and J weed, which leads to eutrophication and reduced water In addition, both small and large-scale farmers tend to volume. This disrupts fish and aquatic life, as well as use pesticides as a 'weapon,' sometimes believing the t qual~ty I reducing the and quantity ofwater available for myth that 'more is better,' rather than using chemicals human consumption. judiciously and selectively. About 98 percent of the small-scale pineapple farmers, particularly those on the D.3.4 Chemical Pollution fringes ofthe large-scale pineapple farms, overestimate the dangers ofpest and the likelihood oftheir outbreak'l NTAE producers use considerable volumes of Pesticides are employed primarily as an insurance pesticides. including insecticides, nematicides, measure. Over 90 percent of the fanners interviewed fungicides. and herbicides. to control a variety ofpests calendar spray, that is, spraying at pre-set times and diseases. This usc is especially prevalent and high regardless ofcurrent pest populations. In thinking that in perishable crops, such as pineapples. which are they are protecting themselves against disastrous '7 subject to stringent quality controls (See section C.I.3). situations, they are in reality enhancing pest resist~e J L I Though export levels have been maintained as a and the likelihood of resurgences and thus increasing aLtP­ consequence. the excessive use of these chemicals has the possibility ofa disaster. had some adverse impacts on the productivity. health. and the effective functioning oflocal ecosystems. More These chemicals are very expensive, signifying a large serious effects, especially those in human health. could cost burden on producers. In addition. several negative still be in the "ecosystem" pipeline. effects emerge from their inappropriate use:

Large-scale monocultural plantations tend to use the a. Residues in prodpcts: If pesticides are applied in largest amounts ofpesticides per hectare. partly because excessive dosages or too close to the harvest time, the their homogeneous conditions tend to be more residues accumulate in the fruit in levels that exceed the susceptible to pests, and because they have strong residue standards established by the governments of the economic pressures for increasing yields. Prior to the importing countries. Consequently, when such a '1 recent large-scale production ofpineapples for export, violation is detected in the import inspection process, the usc ofagro-chemicals was relatively unknown in the the entire shipment ofthe product is rejected for import, villages ofNsawam. Now. 98 percent ofthe farmers in resulting in serious financial losses to the producers. J the area usc a wide variety of imported or locally This form ofrejection from pesticide contamination has 1concocted chemicals for planting. inducing fruiting. rarely happened in Ghana, but it has occurred in fruit coloration. and preservation.4 numerous other countries where NTAEs arc being promoted, and the rejections have resulted in losses of I millions ofdollars. With the rapid expansion ofNTAEs and the increase in pesticide use, this will become an 4 On the other hand. pineapples produced for increasingly serious risk to Ghanaian producelJ. I juicing or canning (rather than for fresh export) are not especially as they face increased competition from other required to be of as high or uniform a quality. Their countries for market share. The problem of residue I pfoduction, therefore. usually entails lower pesticide accumulation in products is particularly serious for 'I use. persistent pesticide products. such as organochlorines; 39 , '. and residues in excessive levels also pose health neural damage, or even death; and they are provoked . hazards to the consumers. usually by direct exposure to toxic products. The ~ number ofpesticide poisonings in Ghana per year is not b. Conwnjnatjon ofWater. Sojl. and VC£etatjoo: Some known. but the incidence of the problem is likely to kinds of pesticides also accumulate in the wider increase as the use of pesticides increases in NTAEs. p"l environment - in the water, soil, and vegetation, and Chronjc effects include longer term impacts that are ' air; and when they are used irrationally, they may result caused from exposure to pesticides, and they include .) in pollution/contamination problems. For example, it headaches. allergies, dizziness, dermatitis. blurred has been reported that some small pineapple fanners vision. or mutagenic or carcinogenic effects that often have hanned their own crops and vegetation in their take years to manifest themselves. farms when they have used herbicides that are unsuited I for the particular weed, or applied improper dosages. People who apply the pesticides and those who work on Pesticide contamination ofthe Densu River is suspected the farms immediately after the application, are always '7 from the runoff of pineapple pJantatio!!§. Soils in those most likely to be affected. In all ofthe pineapple J'Jr pineapple plantations also may be harmed with the growing villages, precautionary measures such as I accumulation of toxic nematicides which disrupt the protective clothing and staying out of fields useful functions of natural soil microorganisms over immediately after appli~tion are rarely followed. either time. The extent of kinds of problems require further out of ignorance (either their own or the lack of examination, and measures are needed to avoid such information provided by pesticide distributors). cost, or hazards. discomfort. Most of the farmers complained of skin 'seases andrlodic vomiting which could be ~ttributed ~~ The study showed that about 95 percent of the to pestiCl e pOlsomng. > . pineapple farmers in the Nsawam area do not take the proper precautions when cleaning agro-chemical As NTAE production continues to increase. so too will Il equipment. Poor disposal of empty containers is also the risk and numbers of poisonings and chronic common; often they are simply left at the edge of the damages from chemicals unless measures are taken to farm. Frequently the bottles and tins are resold to other ensure rational integrated pest management and safe members of the community for various uses. thus chemical use. Unfortunately, the existing legislation spreading the circle ofexposure. does not adequately prevent farmers from using toxic chemicals or protect them if they do, There are no The tendency ofwashing out sprayers and containers in specific legislation on the importation. sale. streams especially in the Densu River. which is also distribution. production. and use ofpesticides, Specific used for drinking, bathing. and washing clothes. tolerance levels for maximum pesticide residue exposes an even larger population to pesticide concentration in or on agricultural commodities have poisoning. A study carried out by the Water Resources not been set; nor is there any institution charged Research Institute (WRRI) ofthe Council for Scientific specifically with the responsibility of monitoring the and Industrial Research (CSIR) in 1986 showed that the sale. distribution. and use of pesticides. As a result, Densu River was highly polluted trom Densuso to highly toxic chemicals like DDT are still being used. -Weija. The study went on to point out that there were especially in the kola growing areas. seasonal variations: during periods of high flows, concentrations ofthe various pollutants decreased due The Environmental Protection Agency. in collaboration to the effects of dilution. But the fact that dissolved with the Ministry of Food and Agriculture, has been I oxygen concentrations also fell, may well be examining applications for the importation of agro­ attributable to the presence ofagricultural chemicals in chemicals into the country, presumably to ensure that runoffs. only safe and environmentally friendly chemicals are used. Accordin to the rescribed ure, all I c. Harm to Users' Health: Pesticides can also hann the prospective im rters must first apply to the EP or a health ofthose who apply the products and other people emIt to import the partlCU ar agro-c eml . •who are exposed. The types of health impacts from applications are to be accompanied by the necessary J pesticide exposure are categorized into acute and dossiers on the chemical, indicating such information as chronic damages. Acute effects are primarily the active ingredients. formulation, target crops. and I poisonings. associated with symptoms such as vomiting, toxicity data. Ifan application is found to beacceptable, fever. vertigo. diarrhea, delirium. muscular conwlsions. the applicant is granted a provisional certificate to

40 import. All approvals by the EPA are subject to review carried out by the Department ofCrop Science of the after a specific period ofuse when further investigations University ofGhana (Legon), for example, shows that are expected to have been undertaken into the there is already a serious case of resistance in the environmental impacts ofthe chemicals. diamond-back moth (Plutella zylostella). The report points out that the insecticides Ripcord and Cymbush .Unfortunately, the EPA procedures are only an lOEe, as well as various concoctions of these and administrative arrangement. As they have no legal Elocron and Perfekthion are being used at levels two or ,) backing, irilporters may choose to ignore the directives. three times their recommended doses at three, four, and jCustoms officials tend to permit the importation ofeven five-day intervals. The report attributes the the most toxic chemicals on the grounds that there is no development ofresistances and cross resistances among specific legislation requiring them not to. The other the currently used insecticides to the misapplication of I 1aspect ofpesticides control which is grossly neglected these pesticides. l in Ghana is rese3rch into the impact ofpesticides (toxic J chemicals) on human health and the environment. In sum, these actual and potential negative impacts from I pesticides create high costs and risks which can offset Even though the Environmental Protection Agency has' economic returns. Avoiding these kinds ofproblems is the mandate to screen all chemicals imported into the possible (and essential), through integrated pest country, toxic chemicals are easily smuggled in through management methods and only minimal safe application unapproved entry points. The fanners in the Nsawam ofpesticides. Furthermore, all ofthese negative effects pineapple growing area pointed out that before the can be avoided in crops such as kola nuts and yams that large-scale production of pineapples in the area, they rarely use pesticides. In this sense, kola nuts and yams had no problem with pest infestation. They suggested appear to be more ecologically compatible and less that pests might have been introduced as a consequence expensive than crops that are more chemical intensive. oflarge-scale production activities (extensive clearing and heavy chemical use) having destroyed the D.3.5 AWecological Diversity Impacts ecological balance of the area. "\ \ ,Although the promotion ofNTAE crops is intended to In February, 1988, the use of five pesticides, Aldrex 40, ~ encourage diversification, the conversion oflocal food Dieldrin, Azodrin, Parathion and Malathion was banned production to NTAE production sometimes entails a because of their long-term residual effect on the switch from heterogenous production systems (with a environment. The misapplication of pesticides in the diversity ofcrops and vegetative types), to less diverse country has quickly led to immunization in certain and even monocultural systems. Thus, though NTAEs pests. are intended to increase export diversification on the national scale. they actually decrease biological d. Resjstance - The 'Pesticide Treadmill': Finally, a diversity on a local scale by replacing forests or significant long-term effect and risk ofpesticide use is otherwise diverse vegetation for monocrop cultivation resistance ofpests to products. It is well-known fact that and the application of agro-chemicals that curtail pests develop resistance to chemicals through basic growth other than that ofthe export crop. genetic selection processes. As a result, most pesticides Moreover, standardized varieties and uniform genetic lose efficacy over time. The typical response is just to stock are often required by international markets. This increase the application, but this only serves to reduction ofdiversity within agroecosystems may have aggravate resistance, which leads to even higher some advantages for economies ofscale and efficiency, J applications of ever more toxic pesticides. The end but the reduction of crop diversity can increase the result of this "addiction" cycle is a dependence on agroecosystem's vulnerability to pests and diseases, pesticides that are ineffective. Not only are input costs reduce the number and level ofnutrients in the fanning J increased, output is decreased. High economic losses system, and actually increase the economic risks of are soon inevitable. production to farmers who depend on a single species or crop. Conversion to new, standardized seeds may The incidence of resistance in pineapples and other also mean the loss ofindigenous seed varieties. I NTAE crops in Ghana has not yet been documented, but this pattern has occurred in other countries and In the case ofkola nuts, however, production generally 'I inevitably will occur in Ghana as well if chemical­ maintains a diversity of crop species, since they are intensive production methods are continued. A study.. commonly intereropped with cocoa trees; and this type 41 .•

of agroforestry system therefore has agroecological small-scale farmers being outprOduced into selling their advantages. land. those that do remain are finding themselves forced to cultivate increasingly marginal land, particularly on D.3.6 Socio-Economic Imvacts unstable hillsides. This process contributes to deforestation and land degradation. The development of NTAE production in Ghana involves unique socioeconomic impacts that are Both small and large-scale fanners have to adapt their ., interrelated with the environmental factors in some production practices to new standards and requirements situations. In particular, it is important to consider the for export markets. but small fanners face special distribution ofbenefits ofNTAE production - i.e., who constraints in this situation. Poor farmers often lack are the main beneficiaries' of NTAEs? how is it access to information and inputs for NTAE production, ) contributing to local economic and social development? and therefore may be unable to meet the quality criteria. They also tend to lack credit resources and information One ofthe unique characteristics ofNTAE production for safe and rational use of agrochemicals (as noted J in Ghana is that a large proportion ofthe production is earlier), so that they are particularly susceptible to done by small-scale producers. Although specific problems from agrochemicals. The small NTAE survey data is not available, rough estimates suggest farmers have not been given attention and technical that S0-90 percent of the total value .of NTAEs come assistance that they need. from small-scale farmers. In fact, some ofthe crops are 'traditional' to smallholders for internal markets. Since Furthermore, NTAE production has the potential to ! generate off-farm employment and small rural small fanners have been producing kola nuts, yams, and even pineapples for generations for their own industries in some situations. In other countries consumption, the switch to export production offers (especially in Central America), the growth of small them special opportunities. In these cases, the small processing industries. such as canning or juicing farmers frequently become 'outgrowers' who sell their factories. has h~ a substantial impact on the NTAE produce to the large buyers and exporters. Furthermore, sector. Mprescnt, Ghana only has two small processing the Ghana Export Promotion Council has formed pl!!!Js.1fplanned carefully, the expansion ofthis seCtor 'Export Production Villages' in five areas, which help can increase socioeconomic benefits by minimizing the support NTAEs for small producers. In sum, early \ risks of exporting perishable crops. as well as adding indicators suggest that the NTAE sector appears to value to the product before it is exported. benefit a broad spectrum of farmers throughout the country. D.3.6.1 J,andlcssDess

At the same time, however. Ghana has several very The introduction of pineapple cultivation to the large-scale NTAE producers. particularly in the case of Nsawam area in response to the NTAE promotion pineapples. whose share of production is growing to programme appears to have increased the level of unprecedented levels. The very size oftheir operations landlessness and economic inequalities. Before, land allows these framers to enjoy a higher level of was rarely sold because it .was communally owned. efficiency and prOductivity. They also tend to have Individual members ofthe group had access to any part influential and prominent positions in the NTAE sector, of the family or clan land. Today, about 50 percent of thus allowing them enhanced access to capital, the pineapple farmers in th~ areas around Kuntuse technology, marketing connections, and the obtained their land by direct purchase or leasehold. I infrastructure required for export production. Most ofthese are from other parts ofthe country. 't All these competitive advantages combine to ensure As the production of pineapples has proven quite higher profitability for the large-scale producers. As lucrative, land values and rents have increased I their profitability is only furthered by the acquisition of accordingly. Mechanized production favors large-scale even more land, the large-scale producers arc farmers who have come to enjoy a competitive encouraged to take advantage of their higher income advantage. Their success· has allowed them the Ilevels to acquire the land ofnearby smallholders. As a I wherewithal and the incentive to buyout smaller, and result ofthese dynamics, there is a land-consolidation hence poorer, fanners. Small farmers who own their '1 process currendy underway in the most productive parts own land, but are increasingly unable to compete with of the pineapple-growing region. !"lot only are many the large-scale producers, often have litde recourse but

42 ". to sell. The dual results of this are an increase in D.3.6.3 EmplQyment and EconQmic Risks landlessness and a further concentration of economic ;nd social power in the hands offewer people. Numerous employment opportunities are generated in II NTAE crop-producing villages by the needs of land Rising land values are also squeezing out those small preparation and planting. maintenance. harvesting. farmers who were producing food crops for domestic packaging. and marketing. In the Nsawam pineapple­ consumption. As the economic returns of domestic growing area. the labour supply or source can be production are generally less than those for export classified into three main types: family, hired local ·J production, these farmers rarely have the capital needed labour, and hired migrant labour. to switch to NTAE crops. As a result, they are often tempted to sell out to their large-scale producing In the village ofKuntuse. S4 percent ofthe labour in the ) neighbours. It is from these displaced farmers that the pineapple farms comes from local sources, 36 percent large-scale pineapple producers obtain much of their from migrants. and 10 percent is family labour. The labour. migrant workers include those with specialised skills or J knowledge. These migrant workers could be machine D.3.6.2 Lack of Credit operators. agriculturists, extension officers. food specialists. or mechanical engineers .- all of which are Unlike traditional crops that use local seed and not readily available at the local level. relatively small quantities of fertilizers and pesticides, NTAE crops require a complete package of seeds, The socio-economic life of the village of Kuntuse is fertilizers. and pesticides. and equipment like sprayers. inextricably interwoven with the NTAE business. and all of which are imported. The initial investment is so hence. is vulnerable to price fluctuations. especially at high the peasant fanners can not qualify for the the international level. It is also vulnerable to the other necessary credit from the bank because they are not vagaries ofexport trade. For example. when the Kotoka able to come up with the required collateral security. International Airport was closed down for three months in 1993 due to cracks in the tarmac. many commercial Large-scale pineapple farmers, however. do not have exporters could not pay their workers. The peasant these credit problems, and can easily hire consultants to farmers who cultivated only pineapple also suffered as assist in the production of high cosmetic products to local demand could not absorb the output within the meet market demands. Therefore. most peasant farmers period. As a result. most of the pineapple crop could who have taken up NTAE crop production. particularly not be sold. and the village economy collapsed. pineapple and yams. have had to abandon their efforts because of financial problems. D.3.6.4 Women's Labour

NTAE crop production has led to the collapse ofsome Women are employed in all the stages of the NTAE indigenous crops. Because ofthe government's special production and marketing. At Kuntuse. female labour attention to the promotion ofthese crops. farmers tend constituted about 30 percent ofthe locally hired labour to focus exclusively on the NTAE crops. Extension and about 64 percent ofthe entire NTAE labour force. officers are assigned tp tbe communities on Ib"iViiiS;sAr. When planting pineapple suckers. female labour is eXport crop production. Hence access for technical preferred because the tedious nature of the work assIstance lias Mil senorely restricted for the poorest requires considerable patience. During farm farmers. those producing basic foodstuffs such as management. harvesting and packaging. women are J cassava, maize, and vegetables. As a result. the preferred for the same reason. production oflocal foodstuff for subsistence has been on the sharp decline. In the absence of sufficient 'l/Itis interesting to note that all workers at various stages ) quantities of technical advise, improved seeds. and ofproduction receive equal pay irrespective ofgender agricultural inputs. yields have been low and prices differences. The planting and harvesting ofyams are relatively high as compared to villages which have not done by men. but the collection of the yams from the specialised in the NTAE crop production. farms and marketing are the exclusive preserve of the I women. In kola production. the planting. weeding and harvesting activities arc carried out by men, while the 1 collection. sorting and marketing is done by women. Any significant disturbance in the NTAE business

43 directly affects women and the entire family. It must be NTE process include GEPC. the Ghana Investment pointed out that proceed from the women's income Centre (GIC), Customs Excise and Preventive Services support the family, the children school, health and (CEPS), and the Ministries of Trade, Tourism, and social needs. Agriculture. In order to sustain and plan the successful and sound expansion of NTAEs, policy dialogue and coordination is needed among these organizations. The Eo RESPONSES TO ENVIRONMENTAL Environmental Protection Agency should be involved .J IMPACl'S IN NTAE PRODUcnON: as an active member in policy dialogue and decision­ RECOMMENDED POLICY REFORMS, making. Non-government organizations or associations MmGATION, MONITORING & RESEARCH (e.g.• the Horticultural Association) should also be .involved in the NTE policy formulation. Any policy I changes proposed in the policy dialogues must ·be Diversifying the economy through the production and analyzed in terms of their environmental impacts and export ofNTAEs is important for economic and social their fit with the promotion of sustainable growth of development in .Ghana. And while more research is NTAEs. I needed to acquire complete information on the environmental impacts, the above overview of actual Ll.2 Legislative and Policy Enforcement Reforms and potential environmental and social impacts suggests that.EQlicy reforms, mitigative actions, and monitoring Other policy reforms may be needed to help mitigate iCtiviti s are needed ifNTAE prOducuon IS to bC"lroil negative environmental impacts and to ensure the in a sustainable an . . e 0 ~ective is sustainability and equity of NTAE production. In ;;Qt to recommend dial Iq rAE shoufd be abolished, but particular. legislative or regulatory reforms may be Ito attempt to address the critical promotional policy needed in the following areas: bottlenecks, so that adverse effects are mitigated or eliminated to ensure the sustainability of NTAE land use policies to prevent deforestation and business. Some important initiatives, summarized cultivation of marginal s~ply-sloped lands below, will require coordination and a leading and watersheds for NTAE production; responsibility by the Environmental Protection Agency (EPA). They will also require actions and collaboration im roved enforcement of pesticide policies -? by public institutions, farmers, and the private sector. ~d laws to ayOI t e negative Impacts and • ensure the sound use ofchemicals;

Ll Policy, Institutional, and Legislative Reforms policy incentives to encourage alternative non­ chemical means of pest control, soil V The present encouraging performance of the NTAE conservation, and agroforestry; sector can only be sustained through sound policy, legislative, and institutional framework. The existing improvement of infrastructure and marketing policies in agriculture, trade, exchange rates, and the policies for NTAEs, especially to meet the environment generally favor expansion in non· needs ofsmall-scale farmers; traditional agroexports. But these policies should also coincide with the government's broader policies review of land tenure policies, to ensure promoting decentralization and private sector secure ownership and sustainability of J expansion. and the National Environmental policy production, especially for small-scale which seeks to reconcile economic development and producers: resource conditions. Even more importantly, they need I to be harmonized to avoid and/or reduce undesirable environmental standards that pertain to land usc conflicts and ad\'crse environmental impacts. pollution levels In rivers and foods. and mechanisms to implement those standards, ~ aimed to mitigate the off-farm impacB, ) Lt.l Broader Participation in Policy Dialogue on NTA& establishment ofguidelines for environmental impact reviews to examine new activities and V ". Public institutions involved in the various aspects ofthe investments that affect NTAEs; and 44 policy support for subsistence and local 'I following specific areas should be trained and markets, to ensure food self-sufficiency and , encouraged in NTAE courses: local nutritfo[; needs so as to balance the support being given to exports. a. Sound land Use - including land-use planning. sustainable use ofNTAE land, good All of these policies to improve the sustainability of tillage methods, agroforestry practices, and NTAE production should be incorporated into overall use of beneficial tree crops such as kola nuts governmental planning. Iffocus on yield maximization in agroforestry. J and financial targets is pursued at the expense of the natural resource base, NTAE expansion may be b. Soil Conservation and Fertility -- i.e., jeopardiZed. Changes are needed to ensure a measures to avoid erosion and ensure soil J hannonious policy framework for sustained production. conservation and soil fertility in NTAEs, including strip cropping, cover cropping, £.1.3. Institutional Strengthening mulching, alley-cropping. intercropping, ploughing and ridging along the contour, I 'Activities concerning mitigation of environmental rational and appropriate application of . 1 impacts of NTAEs coincide with the interests and fertilizers. restricted use of agricultural • activities of the EPA. However, some changes and machinery in areas with fragile soils or slopes. :; improvements ofcapacities will be needed to strengthen and soil capability analysis. the EPA to pursue policy-related work, mitigation ~ me:lSures, and NTAE monitaring. Moreover. efforts c. Management of Pests and Pesticides ­ will be needed to build coordination among other especially Integrated Pest Management (IPM) ~institutions working on environmental issues. in NTAEs. safe and rational pesticide use to avoid the negative impacts of pesticide use, '&2 Mitigation Measures with an emphasis on non-chemical methods that are feasible and economical, and use of The negative environmental impacts of NTAE pest monitoring and threshold analyses production may be minimized or prevented through the (Special attention needs to be given to workers adoption of mitigation measures related to land use, who tend to lack information.). soils. agrochemicals. agronomic practices, and training. It should be realized that some of these problems are d. Other agroecological practices .•- including found not only in the NTAE sector; they require rational use of water. fertilizer. and organic changes in the broader agricultural field. The following manures, nutrient management methods. and measures are therefore recommended to ensure the selection of varieties. sustainability of NTAEs: E.2.2 Extension Services for NTAE Production and .2.1 Training and Education on Sound NTAE IPM production Also important is the need to develop reliable extension Theincreasing and improved production ofNTAEs has services for NTAE producers. especially to serve the necessitated the need to organize workshops and needs ofsmall farmers. Pineapple producers especially training for NTAE farmers, grower cooperatives, have mentioned that the lack ofexpert advice is a major J plantation ownerslmanagers, workers, and extension constraint. and they have to seek expertise and. agents. Educational opportunities for long-term courses information from other countries on specific agronomic and degrees, as well as short-term courses, will issues in NTAEs. Often. such information is expensive ) contribute to the overall productivity and sustainability and difficult to acquire. Extensionists need to give of NrAE crops. The government. universities, donor special attention to sustainable and environmentally agencies, and private sector will need to contribute to sound practices which will contribute to productivity the development and implementation of training and gains including sound land use, soil conservation, and J educational programs. The main coordinating bodies IPM and pesticide management (as summarized above). should include the Ministry of Agriculture, the EPA, The main implementing institution for this should be 'J and the programs should last at least four years. The Extension Services ofthe MOA, but more resources

4S and people will be needed to strengthen their expertise. increased mainly as a result of government The private sector may have a collaborative role as encouragement, export opportunities, and the well. introduction of high and quick yielding varieties. At present, there are only a few large oil palm plantations &2.3 NTAE Processing and Transport Needs in Ghana; the majority of production comes from smallholder farmers who dear nearby land. Hybrid oil Capital, tcehnologic:al capacities, and infrastructure arc palms arc usually monocroppcd; production often needed to develop processing - i.e., canning and juice­ involves the use ofagrochemicals. I making -- as well as maritime transport for NTAEs. These capacities are particularly crucial for pineapple Vegetables such as peppersfchilies, okra, eggplant, and since the requirements for fruit" produced for canning beans arc produced year round in Ghana. Though there ) and juicing arc less strict than they arc for fresh fruit is a year round export demand for these crops, winter exports, and hence, allow for lower inputs ofchemicals scarcities in Europe (from October to March) offer the in their production. Also, shipping by boat rather than greatest economic opportunity for Ghanaian farmers. airenablesexporters to exportdifferent qualities offruit Vegetable production, however, usually involves the I that can be produced with less chemic:als. At the present use of agrochemicals including fertilizers and time, a great deal offruit that is rejected because it does pesticides. As most vegetables have a short shelf-life not meet fresh fruit quality standards, could be exported and must be carefully handled to avoid damage, farms if it were canned or made into juice. At present there need to be located dose to ports. are only two large-scale processing companies in the country. Increasing this capacity could add value to Finally, two spices with significant potential for export ~\crops, increase NTAE earnings, and reduce crop waste, are black pepper and ginger. Black pepper is found as well as reducing expenses and potential problems growing wild in the c1oscd-canopy forest zones. Both of from agrochemicals. these spices can be commercially grown in the Eastern and Western Regions and areas along the fringes of the E.3. Further Diversification of NTAEs and On­ c1oscd-canopy forests ofKintampo, Wenchi, Sunyami, Fano Practices and Kete Krachi.

A number ofother agricultural crops have the potential E.4. Development ofMonitoring Capacities to greatly expand their current contribution to export earnings, including an assortment of fruits, nuts, An important way to help achieve the sustainable vegetables, and spiceslherbs. Promising fruits and nuts production of NTAEs is to develop an effective - mostly tree crops - include oil palm, mango, papaya, monitoring system. There is a need for improved coconut, banana/plantain, and cashew. These tree crops knowledge about the resource factors, capabilities, and are important not only because of their production interacting elements that affect and emerge from NTAE potential and export value, but also because their production. cultivation techniques are already well known to smallholders and thus more likely to be effectively A fair amount of environmental data and information adopted on a sustainable basis. In addition, perennial already exists in the country. However, these are tree crops also protect the soil and reduce the risks of scattered, uncoordinated, and inadequate. A major wind and water erosion. Some tree crops, such as shortcoming of the current monitoring system is the cashew nuts and coconuts, have an extra advantage ­ lack ofa common framework and collection center. In J their durability and long shelf-lives allow for addition. data colIected does not provide complete' production outside the Greater Accra Region. Together information on the social. cultural, and economic these factors bode well for extensive smallholder aspects ofthe human environment. production. I Monitoring of the impacted areas of NTAE crops Palm oil and palm kernel oil became important export should be carried out by a number of government commodities in the early 1800s. The oil palm tree ministries, departments. and research institutions in a ) grows naturalIy in the doscd-canopy forest zone. The coordinated way. These agencies have specific export trade in oil palm products has been informal and mandates which control their routine activities. Their I has fluctuated widely ~uring the past century. In recent years, the cultivation and export of oil palm has

46 ·,

mandates should be modified in order to include the NTAEs in the NElS. The institutions that will monitoring ofindicators pertaining to the sustainability collaborate with the EPA in the monitoring include: ofNI'AEs.

In order to ensure effective monitoring and evaluation Ministry of Agriculture (Crop Services, ofthe agroexport sector, the establishment ofa National Research and Extension and Plant Protection Environment Information System (NElS) within the and Regulatory Services) fPC as proposed under the Ghana Environmental J Action Plan (GEAP) is warranted. The NElS is Plant Protection and Regulatory Services administered by the EPC, but is a network of information centers and institutions that work in the Institute of Aquatic Biology, Council for J environmental field. All institutions participating in the Scientific and Industrial Research (CSIR) monitoring process and those gathering other environmental data will be required to furnish the EPA Water Resources Research Institute, CSIR with prescribed data periodically. The NElS has already I started performing in a limited way. ~ts main functions Food Research Institute. CSIR are: Soils Research Institute, CSIR a. to provide an information referral service on a J wide range ofenvironmental subjects; Department of Geography and Resource Development. UG b. to serve as a readily accessible archive of homogenous data sets on environmental Ghana Atomic Energy Commission quality; Environmental Protection Agency. c. to provide organized data on the state of the environment through publications and other The Ministry ofAgriculture has statutory responsibility means and to serve as information support for for agricultural activities and the respective departments development planning; identified perform general roles which pertain to the production of NTAE crops, e.g., with respect to crop d. to provide a means for early warning and species and yields, extension services, and application evaluating the impact of development and ofagrochemicals. environmental activities; and The research institutes of the CSIR have specific e. to provide inputs for environmental education mandates governing their activities. Their participation programs. in research and monitoring activities with respect to the NTAE sector will exert additional pressure on their already limited resources. The Geography Department The main services to be provided by the NElS will of the University ofGhana. the Ghana Atomic Energy include referral, data bank. data synthesis services. and Commission (GEAC), and the EPA have similar and publication and information support. The EPA with important roles to play in promoting greater other agencies will prepare annual National productivity within the non-traditional export I Environmental Data Reports and other information. The commodity sector. However. the quality and reliability reports will provide data on the quality of Ghana's of their service delivery system falls short of what is I environment and natural resource bases. including required by an expanding NTAE sector. This is due ) sector-specific profiles of the economy. including the mainly to the inadequate resources. The institutions production ofagroexport crops. need additional resources to enable them to render useful services. For example. the EPA could benefit Increased activities on NTAEs will imply additional from training in data management and analysis. ) responsibilities for institutions involved in monitoring. evaluation. and other activities. Special measures may For effective monitoring of changes in the quality of I be needed to ensure the incorporation of monitoring land and other natural resources, baseline data and procedures that pertain to environmental impacts of information will be systematically assessed and

47 ..

measured on several indicators. The indicators must be 8. Local Environmental Impacts ofNTAEs. carefully selected to ensure they correspond to the environmental impacts of NTAEs. The following is 8 b. Agrochemical Use and IPM in NTAEs partial list ofsuggested indicators for monitoring. c. Impacts of Pineapple Production on the a. Land-Use Trends Akwapim Hills

- Deforestation (location and rates) in NTAE d. Environmental Impacts ofVam Production in I area Fragile Zones - Changes in natural versus cultivated area - Changes in vegetation (maps, Geographic c. Improved Production ofTraditional Crops ) Information) - Cropping/fallow periods f. Natural Resource Accounts - Introduction ofnew land uses. g. Private Sector Research Activities I b. Measures in Soils

- Erosion indicators - Soil fertility measures -Soil capability (agricultural potential) analysis

c. Data on Agrochemicals and Pest Control

- Volumes and types ofagrochemicals used in NTAEs - Residue levels in products - Agrochemicallevels in soils and water with \ special attention to pollution in the Densu River • Pesticide poisoning and other health impacts - Data on integrated pest management methods - Monitoring ofpest resistance

d. Agroecological Data

- Agricultural yields - Crop species - Crop diversity indices on cultivated land - Biodiversity indices on fallow fields ~Appearance and frequency of indicator species

J £.S. Research Gaps

Though the NTAE strategy has been in place for over a decade, the full range of environmental and I socioeconomic impacts of NTAEs are either poorly understood or not even unknown. As the government aims to increase production of NTAEs, it is urgent to -I improve data and understanding in this area. Several research priorities can be identified. Some priority ". issues are: 48 '. .

" REFERENCES

Africa South ofthe Sahara. 1992. Twenty-first Ghana External Trade Report Monthly Accounts. Edition. London: Europa Publications Limited. 1959. Accra. Ghana: Government Printer.

Ashley, C.M.• et a!' 1994. Environmental Impact Ghana Second-Year Development Plan.' /959-64. Review ofthe Investments in Development ofExport Accra. Ghana: Government Printer. J Agriculture (IDEA) andAgricultural. Non- Traditional Export Promotion (ANEW) Ghana Seven-Year Development Plan. (/965). Accra. Ghana: Office ofthe Planning Commission. J ProgramlProject: Uxbridge. UK. AUANCSOIPACCA. 1992. Growing Dilemmas: Ghana Trade and Investment Program. 1992. Accra. Guatemala. the Environment andthe Global Ghana: United States Agency for International I Economy. Austin. Texas. Development. Barbousi, Shawki. et a!. 1993. Trends in Agricultural Hill P. 1963. The Migrant Cocoa Farmers of Diversification. World Bank Technical Paper Southern Ghana.' A Study in Rural Capitalism. Number 180. Washington, DC: World Bank. Cambridge: Cambridge University Press.

Beckman. B. 1976. Organizing the Farmers.' Cocoa Jaffeeis. 1993. Exporting High-Valued Food Politics andNational Development in Ghana. Commodities - Success Storiesfrom Developing Uppsala: The Scandinavian Institute ofAfrican Countries. World Bank Discussion Papers. Studies. Number 198. Washington. D.C.: World Bank.

Birmingham. Neustadt and E.N. Omaboe. Eds. 1966. Murray and P. Hoppin. 1992. "Recurrent A Study ofContemporary Ghana. London. Contradictions in Agrarian Development: Pesticide Problems in Caribbean Basin Non,Traditional . Cardinal. A.W. 1931. The Gold Coast. Accra. Ghana: Agriculture." World Development. 20(4) pp. 597-608. Government Printer. State Farms Annual Report /963-65. Accra. Ghana: Conroy. G.• ed. 1982. Pesticide Resistance and Government of Ghana. World Food Production. London: Centre for Environmental Technology. Szereszewski. R. 1965. Structural Changes in the Economy ofGhana /89/-/9Jl. London. Dickson. K and G. Benneh. 1988. A New Geography ofGhana. London: Longman Press. Temel T.T. and T.L. Roe. 1994. Adjustment. Agricultural Marketing and Environment.' The Case Economist Intelligence Unit. 1990. Ghana.' Country ofGhana. USAID project No. DHR-555-Q­ ·Profile. London: The Economist Intelligence Unit. 00-1087. St. Paul, Minnesota: University of Minnesota Press. Ghana Environmental Action Plan. VoL I. 1993. I Accra. Ghana: Environmental Protection Council. Thrupp L.A.• Veit P. et al. 1992. Environmental Impact Review ofthe Non-Traditional Agricultural Ghana EnvironmentalAction Plan. VoL 2. 1994. Export Sector in Ghana. Accra. Ghana: USAID. J Technical Background Papers by Six Working Groups. Accra. Ghana: Environmental Protection Thrupp L.A. 1991. "Long-Term Losses from Council. . Accumulation ofPesticide Residues:' Geoforum. 22(1) pp. I-IS. Washington, D.C. ·1 Beginners' Guide to Exporting. 1992. Accra: Ghana Export Promotion Council. 'I

49 Thrupp, L.A. 1990. "Entrapment and Escape from Fruitless Insecticide Use." International Journal 0/ Environmental Studies, Vol. 36, pp. 173· 189, Washington, D.C.

Thtupp, L.A. 1993. Challenges in Latin America's Recent Agro Export Boom: Sustainability and Equity 0/Non-Traditional Export Policies in Ecuador. I Washington, D.C.: World Resources Institute.

Thrupp, L.A. 1994: Bitter-Sweet Harvest and Global J Supermar1cets: Sustainability and Equity 0/ Agricultural Export Diversification in Latin America. Washington, D.C.: World Resources f Institute. World Health Organization. 1990. Public Health Impact 0/Pesticides Used in Agriculture. Geneva: WHO.

Wills, B. 1962. Agriculture and Land Use in Ghana. London.

I I J .J

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Okyeame Ampadu-Agyei, is the director ofthe Africa Eco-Farmers, a non-profit, non­ governmental organization committed to the promotion ofsustainable utilization ofthe natural resources through organic farming. Africa Eco-Farmers carries out its agenda through research, environmental education and a variety ofprogrammes to policy makers, individuals, communities, governmental and non-governmental organizations involved in environmental I resource management.

) World Resources Institute (WRI), through policy research and technical assistance, helps governments, the private sector, environmental/development organizations, and international ) organizations address the question ofhow societies can meet human needs and nurture economic growth without destroying the natural resources and environmental integrity on which life and economic vitality ultimately depend. WRI provides technical support and policy advice to developing country public institutions and NGOs to strengthen their capacities to develop and implement plans and policies for sound environmental and natural resource management.

AFRICA ECO-FARMERS P.o. Box 14399 Accra, Ghana J phone: 66-46-97/8 fax: 66-26-90

) World Resources Institute 1709 New York Avenue, N.W. Washington, D.C. 20006 USA J phone: 202-638-6300 fax: 202-638-0036 'J