Dr. Humphrey Anim-Darke, the President of Association of Ghana Industries (AGI), has suggested to government to set an off-taker price for the grains sector to curb market infiltration, price imbalances and ensure a harmonized price market.
According to the President of Association of Ghana Industries, grains such as rice and sorghum have unstable prices on the market because of infiltration of the products. He indicated that guaranteeing an off-taker price will harmonise the raw material market and give room to the One District One Factory (1D1F) to buy at a harmonized price.
Dr. Humphrey Anim-Darke noted that there is already Grains and Legumes Development Board to produce and distribute good quality foundation seeds of cereals, legumes and vegetable seeds, as well as vegetatively propagated planting materials of cassava, plantain, yam and citrus seedlings.
However, he disclosed that government plans to set up a Grains Development Authority (GDA) to further the development and regulation of the market for domestically produced grains and legumes. “It is expected to be the panacea for the various identified bottlenecks associated with domestic grain and legume production, marketing, and trade”.
“Our appeal is that when you form a Grains Authority, and then you could guarantee an off-taker price for the grains product, it stops the market infiltration, price imbalances, undercutting, and it straightens the off-taker price and the farmer who is in the space of grains is confident that if I produce 12 acres at an off-taker price of GH¢5, it harmonises the raw material market and then gives room to the 1D1F and to buy at a harmonized price, then the efficiency of your factory, your marketing skills then gives you the market to distribute and make your margin.
“So, we can step up the raw material base, that is one of the biggest challenge in the grains, and we can see that in the poultry industry too. I believe we have all heard why the cost of feed is expensive, because we do not have a guaranteed price for maize.”
Dr. Humphrey Anim-Darke
Dr Anim-Darke Urges MasterCard Foundation to Influence Gov’t
Furthermore, Dr Anim-Darke added that if MasterCard Foundation with its muscle can influence government and policy through the agric ministry to set off-taker price for grains, rice, sorghum, and that ecosystem is regulated in the off-taker price, “you create storage facilities and farmers get comfortable, you need such a model so the regulator becomes dominant”.
Dr Anim-Darke said he expects further discussions with the new Agric Minister and government in that space to transform the sector of the agric value chain.
Rosy Fynn, the Country Director of MasterCard Foundation indicated that 90 percent of their work is in the agricultural space and they are focused on working to support smallholder farmers to essentially reduce the import bill that exist for food.
The Country Director added that the country’s agricultural practices has more room for improvement as it comes down to quality of seeds, when and how raw materials are stored, “there is so many things in the value chain that require understanding and skill of our small holder farmers.”
The Mastercard Foundation and IDH last year announced the launch of an innovative partnership, dubbed Grains for Growth, to transform Ghana’s grains market.
The program aims to develop inclusive, and economically viable grain-supply chains that will offer employment and entrepreneurship opportunities, contribute to better incomes, and improve livelihoods of farmers, especially women and youth.
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