30_institutions to dev agri_emmanuel abokyi
TRANSCRIPT
OUTLINE OF PRESENTATION
�The rationale for the programme
�The concept, structure and operations of the programme
�Key outcomes of the programme�Key outcomes of the programme
�Sustainability of the programme
�Policy options
RATIONALE OF THE PROGRAMME� Ghana’s agricultural policy of adopting value chain
approach in the agricultural sector
� Lack of efficient produce markets for small holderfarmersfarmers
� The 2008 world food price crisis, food securitypreparedness and the continues pressure onGovernment to control the high prices of food
� Anticipated increases in cereals as a result of theimplementation of other programmes by theMinistry of Food and Agriculture, these are:
Rationale continues� The introduction of Block Farms Program which has
made it possible for mechanization and extension services to be spread out to cover a large acreage and a large number of farmers.large number of farmers.
� Increased subsidization of fertilizers and improved seeds.
� The injection of more tractors and other farm machinery and equipment at subsidized prices for increased mechanization.
Objectives of the programme� To guarantee farmers an assured income by
providing a minimum guaranteed price and ready market
� To mop up excess produce from all farmers in � To mop up excess produce from all farmers in order to reduce post harvest losses resulting from spoilage due to poor storage, thereby protecting farm incomes
� To purchase, sell, preserve and distribute food stuff
� To employ a buffer stock mechanism to ensure stability in demand and supply
Objectives continue� To expand the demand for food grown in Ghana by
selling to state institutions such as the military, schools, hospitals, prisons, etc
� To manage government’s emergency food security� To manage government’s emergency food security
� To facilitate the export of excess stock
Log frameOutputs
ActivitiesParticipatio
n
What NAFCO does• Buy
products from farmers
Who NAFCO Reach• HHs• Institut
ions• Schools
Inputs
What NAFCO Invest• Money• Equipment• Stock (Food
inventory)• Technology
Outcomes -- Impact
Short Medium Long
Short Term Results of NAFCO Interventions• Stabilize
Prices of food
Medium Term Results• Create
Employment
• Incentive
Long Term• Improve
emergency food reserves
• Stable supply of
farmers• Store
product
• Schools• Prisons• Private
farmers
• Technology• Equipment
food produce
• Stabilize food grain supplies
• Increase in acreage
• Incentive to farmers
• Supply of raw materials
• Technology adoption
supply of raw material for agro processing industries
• Jobs creation
CONCEPT, STRUCTURE AND
OPERATIONS�Started operations in 2010�Buffer stocks for price stabilization and
emergency food security (maize and rice now, soybean planned)now, soybean planned)
�Limited Liability Company, with initial GHS 15 million from government
�Currently operating in 5 regions with plans to expand nationwide; using LBCs to do purchases
Operations Continue
�Price setting: floor price via post-harvest committee (crop budget plus 15% margin); ceiling price by NAFCO based on market ceiling price by NAFCO based on market trends)
� 34,000 MT capacity warehousing (transferred from government and rent)
�MOFA staff for supervision of regional warehouses
Key outcomes of the programme
� Based on price trends, more stable prices
� Maize: wholesale regional (Brong-Ahafo and Northern) and national
� Rice: wholesale regional (Northern) � Rice: wholesale regional (Northern)
� Caveat:
� NAFCO share in national market less than 5%
� Increased supply from other interventions (e.g. fertilizer)
Achievement continues� Employment generation and private-sector development,
reported� 52 LBCs and 800 agents on commission basis (maize: GHS 8
per 100 kg bag for transport and handling and margin)� At least 3 women groups and 5,000 women in Northern
region in parboiling (GHS 216 per month for 8 months)� At least 3 women groups and 5,000 women in Northern
region in parboiling (GHS 216 per month for 8 months)� Rejuvenated NASIA rice milling (35 permanent employees)
� Positive financial viability in the short run (IRR 38%)� Viable with cost increase by 10%; Not viable with revenue
decrease 10%
� Consumer surplus of 30%( for the lean periods)
SUSTAINABILITY OF THE
PROGRAMME� Ministry of Food and Agriculture in 2010 gave GHS15
million ($10 million) for the set up and operations of NAFCO which is estimate at 7% of expenditure on agriculture agriculture
� NAFCO has been working with this amount since
� Witt positive financial viability in the short run (IRR 38%)
� The programme is sustainable
POLICY OPTIONS
�Transparent information system about NAFCO prices and identification of LBCs
�Strengthen capacity in warehousing system and logisticsStrengthen capacity in warehousing system and logistics
� Improving management and operational efficiency (e.g. link to regional market and information system) and quality control (measurements and standards)
Thank you