In a landmark decision, the Ministry of Food and Agriculture has announced the maiden minimum producer price (MPP) for mangoes in Ghana.
Effective for the 2024 main mango season, spanning May to July, the minimum price has been set at GHS 4.00 per kilogram. This move aims to ensure fair compensation for mango producers and foster a sustainable agricultural sector.
Dr. Bryan Acheampong, Minister of Food and Agriculture, highlighted the significance of this announcement. In a statement read by Mr. Yaw Frimpong Addo, Deputy Minister of the Ministry (Crops), during a media launch in Accra, Dr. Acheampong emphasized the achievement as a milestone for the agricultural sector. “This achievement demonstrates our collective efforts to promote sustainable agricultural practices and ensure fair returns for our hardworking farmers and all the other actors within the mango value chain in the country,” he stated.
The determination of the minimum producer price was a collaborative effort. According to Dr. Acheampong, the pricing formula was developed by the Tree Crops Development Authority (TCDA) in partnership with the Federation of Associations of Ghanaian Exporters (FAGE), mango industry stakeholders, and with funding from Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ). This process involved three different workshops to ensure a comprehensive and fair pricing formula.
Addressing Challenges in the Mango Industry
Despite the progress, the mango industry in Ghana faces several challenges. These range from trading difficulties and inadequate processing facilities to transportation issues and limited access to advanced farming techniques. The perishable nature of mangoes often forces farmers to sell their produce at lower prices. However, the Ministry and the TCDA Board are working diligently to develop programs aimed at enhancing the current processing capacity for mangoes, ensuring that the fruits do not go to waste due to recurring gluts.
The initiative to set a minimum producer price is more than just about establishing prices. It is about supporting farmers, ensuring they receive fair compensation for their hard work, and providing crucial information to buyers and processors to help them plan their businesses effectively.
“This initiative is not just about setting prices; it is about supporting our farmers, ensuring they receive fair compensation for their hard work, and giving information to the buyers and processors to plan their businesses, to foster a sustainable and prosperous agricultural sector.”
Dr. Acheampong
Building Trust and Transparency
Mr. William Agyapong Quaittoo, Chief Executive Officer of the TCDA, underscored the importance of establishing the minimum price for transparent negotiations with buyers and local processors.
“Currently, Ghana boasts approximately 200,000 hectares of mango plantations, producing between 300,000 to 400,000 metric tons annually, with the potential to reach three million metric tons per year,” he noted. The minimum price will serve as a benchmark for compensating production costs and resolving commercial disputes, ensuring a universal reference across the production-market-consumption chain.
The establishment of the TCDA by Act 1010 in 2021 has played a crucial role in regulating and overseeing the production, processing, and trading of six major tree crops: oil palm, coconut, mango, shea, rubber, and cashew. Mr. Quaittoo expressed gratitude to GIZ for its support in creating sustainable employment through agribusiness programs.
The announcement was well-received by industry stakeholders. Mr. Davies Narh Korboe, President of FAGE, and Mr. Kwaku Yeboah Asuamah, President of the National Mango Growers Association of Ghana, expressed their gratitude to the Ministry for setting the minimum price for mangoes. They believe this initiative will motivate farmers to produce higher quality mangoes for both domestic consumption and export.
