The Vegetable Producers and Exporters Association of Ghana (VEPEAG) have indicated that about 200 Ghanaian vegetable and fruit exporters have lost minimum of $1.6 million to post-harvest losses (PHL) from March this year due to mobility restrictions across countries as result of the COVID-19 pandemic.
According to the Association, the produce to have been hit more ranged from okro, pepper (chillies), pineapple, banana, citrus to mangoes.
Speaking for the Association, the President of VEPEAG, Mr. Felix Kamassah made this known in an interview as he outlined his observations of the pandemic and the negative impact it was having on the industry.
Explaining the logic behind the incurred loss, he stated that, demand from buyers declined as restrictions were placed on human movement following the advent of the virus in Europe.
“Although goods were allowed to move across during the lockdown period, most buyers overseas stopped the supply of vegetables and fruit because demand for domestic and industrial consumption was very low. The irony of the situation is that based on the contract we had with our buyers; we have already invested our capital in the produce.”
This, he said, led to the exporters losing their capital of about $1.6 million since their produce are perishable ones and got rotten as they could not get to their destinations.
According to Mr. Kamassah, most of the exportable commodities were not preferred by local consumers hence, could not be redirected entirely onto the Ghanaian market as international demand reduced.
“Last week, for instance, one of our members reported that his company was supposed to ship a consignment to France, but his buyer said he should hold on with the consignment, even though he had already completed packaging and had made the consignment ready for export.”
VEPEAG’s President emphasized that his members are hopeful that demand for vegetables and fruit on the international market would soon start rising due to the gradual easing of the restrictions on human activities across the world.
“Because about $1.6 million of our working capital had been lost to post-harvest losses, it would be difficult for us to meet demand when it starts increasing again.”
Industry-specific package
He went on to urge government to develop an industry-specific stimulus package to support the horticulture industry, especially vegetables and fruit production.
“The government must also focus on developing industry-specific stimulus package to complement the efforts of businesses in their bid to survive and grow. This will ultimately achieve impact, resilience and sustainability of the entire industrial value chain, given the disruptions caused by COVID-19.”
He elucidated saying the disbursement criteria for government’s stimulus package to cushion small and medium scale businesses from the impact of COVID-19 did not favour firms operating in the vegetables and fruit industry.
“I applied for the stimulus package for my company but they said my turnover was more than GH¢1 million and, therefore, I am not eligible to benefit from the GH¢1 billion Coronavirus Alleviation Programme (CAP) business support scheme. That is why we are calling for industry-specific stimulus package to support firms in the export industry.”
