COFFEE REHABILITATION PROGRAMME IN GHANA

Coffee was first introduced into Ghana at the sametime as cocoa by the early missionaries in the mid-eighteenth century.

Coffee is mostly cultivated by small holders and in afew Plantations scattered in the cocoa growing regions.

Background

In the early 1980’s, the Government established 19coffee plantations. These plantations were laterdivested.

Also in 1991, the Government embarked on theAgricultural Diversification Project to revamp the coffeeindustry through:

improved pricing,

liberalized markets

improved research and extension.

Despite these interventions

The low prices and poormarketing system in thecountry resulted incoffee farmers losinginterest in the cultivationof the crop.

Coffee farms were thusabandoned or grubbedand cultivated with othercrops.

A coffee stakeholders meeting to revive the coffeeindustry was held in February 2008.

Coffee Steering Committee was formed to guide theimplementation of the action plan.

Steering committee comprised all major stakeholders

THE COFFEE REHABILITATION PROGRAMME

The Committee developed a proposal and a budget forthe project.

In the 2010 Government budget, an amount of GHC 4.2million (Equivalent to US$ 2.8 million) was allocated tofund a 4-year pilot coffee rehabilitation programme.

The Steering Committee also appointed a five-memberImplementation Committee to execute the planned fieldactivities.

PROPOSAL

Selection of 1,000 ha of existing farms for pilot rehabilitation.

Establish 1,000 ha of new farms

Supply of inputs to farmers

Production and distribution of eliteplanting materials.

Setting minimum farm gate pricesof produce

MAJOR GOALS OF THE PROGRAMME

Streamline activities of licensed coffee buyers, processorsand exporters

Provide extension education to farmers on goodagronomic practices on coffee cultivation

Capacity building of coffee Extension Agents and otherstakeholders.

Increase coffee production for export and localconsumption.

Diversify the rural economy with the view to alleviatepoverty

Country-wide survey of existing coffee growing areas

Recruitment of Extension Agents and provision of logistics.

Rehabilitation of propagators, wood gardens and establishment of nurseries

1. Preparatory phase

2. Supply of planting materials

CroppingYear

Hybrid Seedlings Rooted Cuttings

Total Supplied

2011/12 91,200 32,000 123,200

2012/13 510,000 35,000 545,000

2013/14 326,115 17,000 343,115

2014/15 493,785 9,370 503,155

Total 1,421,100 93,370 1,514,470

A coffee nursery with seedlings ready for distribution

Cropping YearCoppiced Farms New Farms

Area (Ha) Area (Ha)

2011/12 409.1 80.0

2012/13 339.4 423.5

2013/14 159.4 186.8

2014/15 136.6 422.4

Total 1044.4 1112.7

% Target 104.4 111.3

3. REHABILITATED AND NEW FARMS

4. COFFEE EXTENSION MANUAL

A manual for coffee cultivation in Ghana which servesas a source book for Extension Agents and farmerswas developed.

More than 3,000 copiesdistributed to farmers, extensionagents and other stakeholders.

5. LICENSED COFFEE BUYERS, EXPORTERSAND PROCESSORS

The project has helped streamline the activities of licensedcoffee buyers, exporters and processors who are gradually:

complying with submission of reports of their activities

buying produce not below the minimum farm gate price

maintain quality of produce

6. SENSITIZATION OF FARMERS

Farmers have been educated through rallies, group meetingsand radio programmes on the benefits of the project

Other issues discussed include:

Good agronomic practices

Marketing of produce

Supply of inputs

Maintaining good quality produce

Reduced exports in 2014 is due to increase in localprocessing from purchases from farmers which areprocessed and exported to the sub-region by road. Theseexports are generally not captured in port shipments.

Year No. of bags (Thousands of 60kg/bag)

Metric Tonnes

2009 24 1440

2010 27 1620

2011 97 5820

2012 94 5640

2013 85 5100

2014 38 2280

Source: ICO Data on coffee Exports

Ghana Coffee Exports

ICO Average Indicator pricefor robusta

2009 2010 2011 2012 2013 2014

Cents/lb 74.58 78.74 109.21 102.82 94.16 100.43

US$/Kg 1.64 1.73 2.40 2.26 2.07 2.21

Potential revenue generated from coffee produced in US$

2,361,000 2,802.600 13,968,000 12,746,400 10,557,000 5,038,800

Using ICO Average Indicator Prices for Robusta Coffee it is clear that any investment made by Government to support coffee may indirectly result in higher returns

ICO Average Indicator Prices

The Pilot Coffee Rehabilitation Programme has so far gone on quite well.

1045 hectares of old, abandoned and unproductive farmsrehabilitated

1113 hectares of new coffee farms established

Coffee exports increased from less than 2,000 MT in 2010to 5,820 and 5,100 MT in 2011 and 2013 respectively

The value of exports increased over 80% (from USD 2.4million to USD 14 million).

CONCLUSION

In the 2015/16 season, 2 million improved plantingmaterials will be produced and freely distributed tocoffee farmers.

More farmers have accepted the programme due tointensified education and its positive impact on theirlivelihoods.

THANK YOU