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Government short-changed cocoa farmers on new price increase

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The Minority in Parliament has accused the government of short-changing cocoa farmers by increasing the price of a bag of cocoa to GHC1,300.

According to the Minority caucus, cocoa farmers should have been given at least GHC2,500 per bag. The Deputy Ranking Member on the Food, Agriculture and Cocoa Affairs Committee of Parliament, Eric Opoku, slammed the government for giving cocoa farmers “peanuts”.

He expressed worry over the price given to cocoa farmers, stressing that this season is a good year for cocoa farmers to benefit from their produce.

“We sell cocoa on the international market, so it is not the president who decides he will give cocoa farmers the prices he wants. His ability to determine the price depends on what prevails in the international market. If at any point in time, the market is favourable, cocoa farmers must also be given the opportunity to enjoy it. This is a good year for cocoa farmers all over the world. This year, cocoa prices have surged to historical heights. And so this is an opportunity for cocoa farmers to enjoy.

“Unfortunately, the government is giving them a price far below what is prevailing in the international market. And so some of us became worried. Why is it that we have this high price and then our cocoa farmers are being given just peanuts? This is not what is happening in the international market. Cocoa farmers should be given something close to GHC2,500 minus the premium. That is why we are saying this government is short-changing the cocoa farmers.”

The Ghana Cocoa Board (COCOBOD) on Tuesday lashed out at former President John Dramani Mahama for criticizing the government’s decision to increase the price of cocoa.

In a statement, COCOBOD CEO Joseph Boahen Aidoo said that Mahama should be familiar with the process for determining the producer price of cocoa.

The former president John Dramani Mahama described the government as “insensitive” to the plight of farmers, saying that the increase was not enough.

The government has defended its decision to increase the price of cocoa to GHC1,300, saying that it is based on a number of factors, including the international market price of cocoa, the cost of production, and the need to maintain a competitive advantage for Ghanaian cocoa.

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Agribusiness

Reassess implications of imports on Ghana’s food security

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Dr. Frank Adu, an economist and researcher at the African Center for Economic Transformation, has raised concerns about Ghana’s high reliance on food imports.

According to the 2023 Trade Report by the Ghana Statistical Service, Ghana had a trade surplus of GH₵20.7 billion with other African countries, an increase from GH₵13.2 billion in 2022.

Despite this surplus, Dr. Adu’s concerns highlight the need for Ghana to balance its trade relationships and develop its domestic food production capabilities.

Shea nuts represented 82.3 percent of the total imports from Burkina Faso, with an import value of GH₵1.9 billion. Compared to 2022, the only change in the top five import origins within Africa is Burkina Faso replacing Nigeria in 2023. Notably, Burkina Faso predominantly supplies vegetable products, constituting 89.8% of imports.

In an interview with Bernard Avle on ChannelOne TV, Dr. Frank Adu highlighted the issue of heavy reliance on food imports, citing a video showing truckloads of onions being transported to Kumasi in the Ashanti and Bono Regions.

He expressed concern over the large-scale importation of onions and other food items from neighbouring countries, urging policymakers to reassess the implications of these imports on Ghana’s food security.

“I think for shea and vegetables, probably, shea, Burkina Faso is actually trying to transit their goods at our ports. But we should be more worried about chicken and vegetables. A few days ago, I think I saw on social media how truckloads of onions are trickling into our various markets in Kumasi, the Ashanti Region and some parts of the Bono Region.

“The Bono Regions are noted for producing some of these vegetables, so when this happens, we should be worried about the food security implications of such imports. I think it’s something for policymakers to look at. Especially with vegetable production. But for shea, I’m quite sure they are transiting their goods through our ports,” he pointed out.

Ten products accounted for over a third (38.3%) of all imports. The highest import value was diesel-automotive gas oil, amounting to GH₵27.1 billion, followed by light oils, motor spirit, and super at GH₵22.3 billion.

These are the only two commodities that contributed over 10.0 percent each of all imports. Ghana imported from 214 countries and exported to 159 in 2023, compared to 208 and 160 respectively in 2022.

Over the period 2022 and 2023, the value of food products exported increased by GH₵3.4 billion. Similarly, food product imports witnessed a rise of GH₵3.6 billion within the same timeframe.

However, the share of food products in all trade has declined from 2022 to 2023, with 2.9 percentage points decline for exports and 0.7 percentage points for imports.

Cocoa products (62.4%) recorded the highest for exports followed by edible fruits and nuts (12.7%). Grains, cereals, meat, animal or vegetable fats and oil, and fish products collectively constitute half (50.4%) of all food product imports into Ghana.

In contrast to the trade deficit of GH₵4.8 billion experienced in 2022, Ghana recorded a surplus of GH₵5.3 billion in 2023.

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Agribusiness

Technology Can Boost Agric In Africa – Bagbin | Technology

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The Speaker of Parliament, Rt. Hon. Alban Sumana Kingsford Bagbin has called on African governments to focus on innovation and technology in farming if Africa is to attain its potential as the food basket of the world. He was speaking at the Convention and 30th anniversary of the Council of Ewe Associations of North America (CEANA) in Atlanta, Georgia under the theme “Empowering our youth towards innovative entrepreneurship in transformational agriculture”.

The Speaker said technologies such as GPS, sensors, drones, and data analytics must be deployed in agriculture to optimize resource use, monitor crop health and improve yields. It will also enable the youth in agriculture to make informed decisions based on reliable data, reduce waste and increase efficiency.

He insisted that today’s youth are technologically savvy, making the crude approach to farming a turn-off for them. “If governments direct resources into modernising agriculture and infuse technology into farm practices, more youth will opt for the sector. This will address the challenges of feeding a global population sustainably, create economic opportunities for rural communities and transform how we produce, distribute, and consume food,” he said.

Innovation in agriculture, he said, should target waste reduction and a re-think through the perennial glut of farm produce, the horribly low prices during the glut, how farm produce are left to rot, only to be followed by a season of scarcity That, he said, should inform the approach to managing post-harvest losses and supporting agro-businesses to mitigate such losses.

Mr. Speaker suggested that marketing of farm produce could also do with innovation as it can support local economies in Africa, reduce food miles, and enhance the effectiveness of the food supply chain. Moreover, the youth farmers will generate more returns on their investment and re-invest in their farms.

To attract the youth into agriculture, he called for policies to promote secure land tenure and access for the youth. He mentioned land redistribution, leasing programmes, and support for communal land ownership as some necessary initiatives, as well as a deliberate effort to involve women, indigenous communities and the rural youth in agriculture.
He asked financial institutions in Africa to provide access to financing for young farmers, offer low-interest loans, grants, and subsidies to help the youth to invest in equipment and seeds among others. He explained that empowering the youth in agriculture requires a holistic approach that addresses the modernization of agriculture, education, access to resources, policy support and cultural attitudes. 

The Speaker, also known as Torgbui Nuterperwola Awudome I, congratulated CEANA, which groups Ewes from Ghana, Togo and Niger in North America, on its 30th anniversary. He said the resilience, perseverance and hard work that have sustained the association over the past three decades cannot be taken for granted. He spoke about the coincidence of CEANA, Ghana’s parliament and himself celebrating 30 years and said “I know what it takes to be doing the same thing for 30 years, and striving to be better each year than you were in the previous one”. 

He was impressed by CEANA’s commitment to improving upon farm practices and develop the Ewe communities in the three countries and said “it portrays an association of people who are altruistic, driven by the desire to make an impact on the current and future generations”.

The Speaker was accompanied by his wife, Ms. Alice Adjua Yornas, Hon. Emmanuel Bedzrah, MP for Ho West, Hon. Rockson Dafeamakpor, MP, South Dayi, Hon. Dela Sowah, MP, Kpando, Hon. Joycelyn Tetteh, MP, North Dayi, Hon. Kofi Attor, former MP, Ho Central and Mr. Speaker’s Special Aide, and Mr. Gayheart Mensah, the Speaker’s Communication Expert.

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Agribusiness

Ghanaian-Swiss company Koa, inaugurates Africa’s largest cocoa fruit factory at Achiase

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A Swiss-Ghanaian cocoa social enterprise Koa, has taken the next step to scale its impact in the cocoa sector.

The company on Saturday, August 25, 2023, inaugurated its second cocoa fruit factory in Akim Achiase, in the Eastern Region of Ghana, together with 600 guests, the Ministry of Trade & Industry and the Embassy of Switzerland.

The new facility will allow Koa to scale its production capabilities tenfold thereby allowing the company to cooperate with an additional 10,000 cocoa smallholders in Ghana.

Koa is disrupting the cocoa industry through its innovative up-cycling of the cocoa fruit. The independent Ghanaian-Swiss company is the first company in West Africa to have unlocked a new value chain around the so far discarded cocoa pulp.

Working closely with cocoa smallholders, Koa reduces on-farm food waste around the cocoa fruit and increases cocoa farmers’ income while at the same time bringing unique new ingredients to the gastronomy and food and beverage industry for applications ranging from chocolate, confectionery, ice cream to drinks in Ghana and abroad.

Since its foundation in 2017, Koa has up-cycled 800 tons of cocoa fruit that were until then, overlooked in the cocoa industry.

2,200 cocoa farmers benefitted within the first five years, earning a total of GHS 2.3 million (USD 300,000).

The inauguration of the cocoa fruit factory in Akim Achiase on Friday, 25 August 2023, marked the beginning of a new era for Koa, as it expands its reach and impact.

It highlights the contribution of the company towards sustainable growth in rural Ghana and making a positive impact on the cocoa industry.

Distinguished guests, including Hon. Kobina Tahir Hammond, Minister of Trade & Industry of Ghana; Daasebre Nana Gyenin Kantan IV, Nifa Hene of Akyim Abuakwa Traditional Council; and Dr. Simone Haeberli, Deputy Head of Mission & Head of Cooperation, Embassy of Switzerland in Ghana, Togo and Benin, graced the occasion in Akim Achiase.

Dr Simone Haeberli; Hon. K.T Hammond; Daasebre Nana Gyenin Kantan IV; and Anian Schreiber.
Koa management with Dr. Simone Häberli from the Embassy of Switzerland.

Their participation signifies the importance of this milestone for Ghana and the cocoa industry.

In his welcome address, Koa’s Managing Director and Co-Founder, Anian Schreiber, highlighted how the new factory serves as a milestone in the company’s ambition to positively transform the cocoa value chain.

“By supplying products for both the domestic and international market, we will add value to the farmers, the communities and all people who work around here. This factory will connect Achiase and Ghana to the world”, Anian Schreiber said.

Daniel Otu, Production & Operations Director at Koa, explained that “the new factory will allow the company to grow in line with the demand from its customers.

The factory will generate 250 new jobs in rural Ghana, and allow us to extend our cocoa fruit upcycling to an additional 10,000 cocoa farmers” he noted.

About Koa

The Swiss-Ghanaian start-up Koa transforms the cocoa industry by upcycling parts of the cocoa fruit that are usually overlooked. With a mission to empower farmers to earn additional income and make a positive impact on the planet, Koa is redefining sustainability and social responsibility in the industry.

 As a certified B Corp™, the company integrates its mission into all business activities, focusing on the Triple Bottom Line: ‘People, Planet and Profit’.

Today, 100 employees in Ghana and Switzerland dedicate themselves to making an impact by creating ingredients for gastronomy and the food and beverage industry. www.koa-impact.com.

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