the pineapple industry revamping project: the case of ghana

8/9/2019 ''The Pineapple Industry Revamping Project: The Case of Ghana''.

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The pineapple industry revamping project; the case of Ghana

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OUTLINE:

1. Introduction

2. Problem Identification

3. Vision

4. Goals and Objectives

5. Solutions

6. Implementation

7. Impact Scaling

8. Financing and Budget

9. Conclusion

10. References


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The agriculture sector began to fall steadily until the services sector took charge as theleading contributor to Ghanas GDP. As at 2012, the services sector was leading with 49.3%contribution to GDP with a growth rate of 8.8%, the industry sector was second with a GDPshare of 27.9% with a growth rate of 7%, leaving the agriculture sector as the third largestcontributor to GDP with a share of 23.1% at a growth rate of 2.6% (Ghana Statistical

Service). The figures are worrying and looking at the major role of agriculture in oureconomy, the sector must be revamped; hence our interest of a Social Enterprise in thatdirection.

Agriculture in Ghana is a very broad scope itself; it includes Fisheries, Forestry, Crops, Cocoaand Livestock, with crops demonstrating the highest subsector growth (66.2%) by GDP asshowed by the diagram below (Ministry of Food and Agriculture).

Our interest is in the crop sub-sector, and more specifically the pineapple industry. Over theyears, fruits and vegetables production, particularly pineapple enjoyed massiveincrement. Between the periods of 1996 to 2004, the production and exports of pineapple

quadrupled reaching a highof 71,858 Metric

(http://www.spegpine.com ).Despite the fact that, thereis huge market for freshpineapples and otherhorticultural produce locallyand internationally,unfortunately, the pineapplesector which once producedGhanas first horticulture


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export product (Danielou, 2005) is now facing challenges that have robbed farmers of theirlivelihood, exporters are out of business and processing companies have folded up.

PROBLEM IDENTIFICATION

The challenges hitting the pineapple business in Ghana have been blamed on the following;

a) lack of financing for cultivationb) low quality inputs (especially pineapple suckers)c) inability of Ghana to adapt quickly to a new pineapple variety, MD2, developed by

Costa Rica, which is now preferred in Europe (Fisher, 2013)

The major problems that have engulfed Ghanas pineapple industry include;

a).Unemployment: The Ghana pineapple disaster as we have coined it, has robbed morethan 500,000 people of their work, mostly farmers (Fisher, 2013); this has contributed torepeating the highest unemployment rate of 12.90 % ever recorded in the country in 2005once again as at 17 th December, 2014 ( http://www.tradingeconomics.com ). The farmershave indicated that they lack the necessary capital to run their farms; the figures are that,an acre of pineapple farm requires between GH8,000 and GH9,000 to cultivate. This hugefigure of unemployed farmers is very disturbing, and it poses economic and socialconsequences to the farmers, their business partners, families and industries.

b).Killing of Industrialization: Fruits processing companies in areas such as Adeiso, Nsawam,Asamankese and Tema all in Ghana have folded up for the lack of raw materials to bolstertheir operations, and their inability to finance the importation of these raw materials.Stronger companies such as Blue Skies, HPW, Peelco and Pinora at a point in time had toimport more than half (50%) of their raw materials such as mangoes, pineapples and papayaas they struggle to source them locally. In the long run, this could be very costly for theprocessing companies and pose a threat to production sustainability. This cannot be goodnews for a country struggling to sustain her middle-income status and possibly improveupon it.

c).Drastic Loss of Foreign Exchange: Smooth cayenne, Queen Victoria andSugar Loaf are three varieties of pineapple produced in Ghana, with the

later concentrated on the local market and the smooth cayenneconstituting about 80% of all Ghanas pineapple export

(http://www.spegpine.com ). Beginning from the year 2003 theEuropean market switched its taste for the MD2 variety developedby Costa Rica. This has paralysed the exportation of pineapples inGhana since, reducing the subsectors contribution to the nations

GDP drastically. Exports dropped from a yearly 71,000 tonnesto 35,000 tonnes; and exporters reduced from 50 to 15 companies (Fisher, 2013). To

Figure 1 Sweet Cayenne


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contrast between the two competing varieties at the international front, smooth cayenne isa sweet, juicy variety that lacks the bright yellow colour that most people associate withgood pineapples. MD2 on the other hand is a variety though not great formaking juice appears more yellow than smooth cayenne, which thehousewives in Europe associate with a good pineapple. Also, it is a little

more square-shaped than smooth cayenne, so it sits on the supermarketshelf better (Weinstein, 2011). MD2 is more costly to grow in Ghana dueto the climate conditions and soil; for smallholders and commercialfarmers alike, it is more expensive to grow an acre of MD2 than it is ofsmooth cayenne. In Costa Rica, on the other hand, which has idealgrowing conditions for MD2 and massive economies of scale, the cost ofproduction is much lower.

4.Lack of Interest in Agriculture by the Youth: The Ghanaian and African youth generally

lack the passion and drive for a career in agriculture. Some perceive a career in agricultureas physically intensive, demeaning and paying off is very prolonging(http://youthinfarming.blogspot.com ).

Figure 2 MD2


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VISION:

In the long term, we look at becoming a major stakeholder in the pineapple business inGhana and across Africa in areas of production, distribution, processing, exportation andresearch in the spirit of excellence, progressive partnership and a high sense of community.

GOALS & OBJECTIVES:

To contribute to revamping the Ghana pineapple industry, we will be registering anorganization to be known as, TYYGA HOLDINGS. The organization will be having a Board,comprising of seasoned professionals who have distinguished themselves in their respectivecareer paths and contributed meaningfully to community, to provide advice and coachingon our technical (core), financial and public relation operations.

We set for our target the following goals and objectives:

1. To contribute to reviving the employability of pineapple farmers and fruit processingfactory workers; and to reduce the general unemployment condition in the country.

2. To progressively revamp pineapple production, processing, exportation and researchin this country through partnership with Government agencies, farmers,multinational organizations, local NGOs, academic and research institutions,corporate bodies and other relevant stakeholders.

3. To contribute to economic growth through steadily increasing raw materials neededby fruit processing companies for their convenience and cost effective operations.

4. To create a platform to stimulate and sustain the interest of the Ghanaian youth inagriculture.

SOLUTIONS AND IMPLEMENTATION PLAN:

Partnerships:We hold the following organizations in highesteem, acknowledge their continuousstruggle to revamp the production, processingand exportation of pineapple in this countryover the past few years of turbulence; and weplan to partner with them for the continualwell-being and common good of the Ghanaian people:

a) Ministry of Food and Agricultureb) Farmers


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c) The General Agricultural Workers Union (GAWU) of the Ghana Trade Union Congressd) Exporterse) Fruit Processing Companiesf) Academic Colleges, Faculties and Departments (Crop Science, Agro-processing)g) International Organizations: USAID, UKaid, Canadian International Development

Agency (CIDA), Food and Agricultural Organization of the UN (FAO), GermanDevelopment Cooperation (GIZ-KfW), World Food Programme (WFP) etc.

h) Local NGOsi) Other relevant Stakeholders

SHORT TERM:What we seek to do within the next five (5) years.

1.Adoptation and Partnership: In this turbulent pineapple business there is hope as

exploration opportunities are being pursued on the MD2 variety cultivation in the country ina cost effective way. In the meantime, with exporting firms shipping big volumes by air,demand for Smooth Cayenne has greatly increased (http://www.acdivoca.org ). Sadly, due tothe earlier shock, farmers do not have the ready capital to take advantage of this newopportunity. The U.S. Agency for International Development under the ADVANCE Programimplemented by ACDI/VOCA, has been supportive distributing 3.5 million disease-freesuckers to 144 smallholder farmers from October 2011 to September 2012. Estimated costof production per acre of land is $2,300 (GHs 7,360.00) at 2014 (http://www.acdivoca.org ).ADVANCE went further to link the farmers to large- and small-scale processors and

exporters so that they can sell the crop promptly and efficiently. There are many farmerswilling to go back to the farm but without capital. For the start, we will adopt two of suchfarms or partner with these farmers by supporting their farm operations with capital.

2.Direct Investment in pineapple production: We have plans to enter into pineappleproduction and farm management. This will be done base on wide consultations andtechnical advice from experts. This will create job opportunities for Ghanaians leading to areduction in the unemployment rate. This will be a great opportunity to demonstrate to theyouth that, as the most vibrant proportion of the population, our commitment is

desperately needed within the agricultural sector. It will also increase the availability of rawmaterials need by fruit processing companies in the country. To see the success of thisproject, all relevant stakeholders will be brought on board.

3.Agriculture Ambassadors: We are sincerely committed to this struggle of revampingagriculture in Ghana, and we will gladly embrace the call of any stakeholder to officiallyrepresent them and lead their agriculture related activities and projects.

LONG TERM:What we seek to add on beginning from the next six (6) years of our operationand beyond, when our company is matured and well positioned.
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1.Increase Partnerships and Investments on other Farms: We will be extending the initialpartnership with two farmers to others who are promising, passionate about going back tobusiness, but unfortunately lacking the necessary funding. This will also bring back to work alot of farm workers who previously loss their jobs.

2.Processing and Exportation of pineapple: We are committed to exhaust the variousopportunities this industry presents to provide employment to many Ghanaians in the longrun. We will be establishing a pineapple processing company, and engage in both theexportation of processed and raw pineapple. The quality of the products will receiveexcellent attention.

3.Training and Capacity Building of farmers: We are committed to contribute towards thecapacity building of smallholder farmers and personnel in the sector in the discharge of theirduties through training programs, workshops and conferences. This we will do inpartnership with relevant stakeholders such as the Extension Department of the Ministry ofFood and Agriculture, Agriculture Faculties and Research Institutions, as well asInternational Organizations. It will be free of charge to attract a lot of farmers. Thesetraining programmes will be organized when necessary.

4.Empowerment of farmers and subsector personnel: We will be initiating an incentivescheme to reward and motivate farmers who distinguish themselves within the subsector.Special allocation will be made for those who work in deprive communities under stressfulconditions. The incentive/award will be made attractive to empower farmers give off theirbest in discharging their duties to promote food security and economic growth.

5.Active participation in research partnership: Research is one area we will be giving greatattention to in the long term, if Ghana wants to reclaim her former glory as a lead exporterto Europe where the nation receives her highest foreign income within the horticulturesector. The MD2 variety was developed out of research, and we must not relent in ourefforts in developing a competitive variety. We will exhibit and sustain a robust interest andsupport relevant research institutions in the pursuit of this goal.

6.State-of-the-art Storage Facilities to preserve crops of farmers: Investing in technology topreserve pineapple and reduce their perishability rate is one of our areas of investment inthe long run. We will like to make farmers hopeful, especially small holders, and reduce therisk they will have to take in this business.

Timeline for Project Implementation:

For the first three months, we will identify promising farmers through collaboration with theMinistry of Food and Agriculture, and perform technical analysis of their farms; this includessoil, irrigation and nature of planting inputs like pineapple suckers.


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By the end of the next month we should have completed signing of contractual agreementswith the two farmers we will be starting with.

From findings, an acre of land can produce between 27000 33000 pineapples. It takesbetween 9 18 months to cultivate and harvest a cycle of pineapple, and we will take allthis in consideration.

The above indicates that we will be using approximately two years to complete our firstcycle.

IMPACT SCALING:Based on the facts and statistics from relevant sources as we have indicated, the proposalshall succeed in a Social Enterprise in terms of profitability, economic and social impacts ;

a) Over 500,000 pineapple farmers lost their jobs due to international switch in taste toa new variety, MD2, developed in Costa Rica. Some local companies like GoldenExotics (http://www.makefruitfair.org.uk ) are already into MD2 cultivation, whileefforts are in place for an alternative competition.

b) Currently, there is an increasing demand for the local variety, Sweet Cayenne, asexportation is being done by air in large quantities which ensures that pineapples getto their destinations timely and perishability rate is reduced as compared to shippingwhich takes a lot of time.

c) Farmers, with the experience and skills are committed to go back into business but

without the needed finance and this is where we come in to partner.The social responsibility component of the project is not misplaced;

a) Thousands of farmers will be brought back into businessb) New employment opportunities will be createdc) Capacity building of farmers through training, conferences and seminarsd) Empowerment of farmers through incentives and awards

SustainabilityTo promote the financial flow for the programmes and projects, these three strategies willbe implemented;

a) Partnership with farmers and other stakeholdersb) Entering into the pineapple production, processing and exportation business

progressivelyc) Investment in the capital market upon technical advice from experts.
http://www.makefruitfair.org.uk/http://www.makefruitfair.org.uk/http://www.makefruitfair.org.uk/http://www.makefruitfair.org.uk/


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BUDGET:

Starting Budget

ITEM/EVENT:EXPECTED REVENUE: QTY GHc GHc

Starting Capital 20,000.00

TOTAL: 20,000.00

ESTIMATED EXPENDITURE:An acre of land cultivation 2 7,360.00 (A) 14,720.00

GENERAL ADMINISTRATION:Communication 200.00Transportation 1,000.00Stationary 500.00Other administrative cost 500.00 2,200.00

CONTINGENCY 2,000.00

GRAND TOTAL: 18,920.00

SURPLUS: 1,080.00

NB: (A):- This represents the estimated cost ($2,300.00) of an acre of pineapple cultivationpresented by the U.S. Agency for International Development under the ADVANCE Programas at 2014 in Ghana cedis.


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CONCLUSION: Indeed, no man is an island; we stand connected by social forces and are mutually affectedby our actions and inactions. The problem of one becomes the problem of all. It is veryimportant that we demonstrate sense of community; care for the dejected, support theweak and shelter the homeless. We share in the humanist conviction, and believe in the

goodness of live. We say there is hope, when all others begin to dwindle in faith. Our coursefor agriculture is a sincere and just one and we are gladly embracing it. We foresee the daywhen Ghana will rise again on the international market as a major leader in the production,processing, and exportation of quality pineapple; the day when majority of Ghanaianpineapple farmers will go back into business and sustain them; that day will surely come.Until then, we will not relent in our efforts; we shall continually shout the warriors name,Team TYYGA and the response shall forever remain, Redefining Smartness. .


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REFERENCES

15 Major Reasons Youth in Africa Do not Like a Career in Agriculture.http://youthinfarming.blogspot.com/2011/12/15-major-reasons-youth-in-africa-do-not.html

A study on the pineapple industry in Ghana.http://www.makefruitfair.org.uk/sites/default/files/a_study_on_the_pineapple_industry_in _ghana.pdf

Breisinger C, Diao X, Thurlow J, & Al- Hassan R M. (2008). Agriculture for Development inGhana.http://www.ifpri.org/sites/default/files/publications/ifpridp00784.pdf#page=9&zoom=auto,-169,533 . Retrieved 15 th December, 2014.

Danielou M & Ravry C. (2005). The Rise of Ghanas Pineapple In dustry: From SuccessfulTake- off to Sustainable Expansion. Africa Region Working Paper Series. (96). http://www.worldbank.org/afr/wps/wp93.pdf . Retrieved 16 th December, 2014

Fisher M. (2013). Ghana endures major pineapple slump.http://www.fruitnet.com/fpj/article/159652/ghana-endures-major-pineapple-slump

Ghana Agriculture.http://www.photius.com/countries/ghana/economy/ghana_economy_agriculture.html

Ghana Statistical Service. (2012). Provisional Gross Domestic Product:2012.http://www.statsghana.gov.gh/docfiles/GDP/provisional_gdp_2012.pdf . Retrieved 17 th December, 2014.

Ministry of Food and Agriculture. http://mofa.gov.gh/site/?page_id=56

Pineapples production in Ghana.http://www.spegpine.com/speg/index.php?id=9&n=86f865cf57d01cc77823d4a350b2d32a . Retrieved 16 th December, 2014

Renewing Smooth Cayenne Pineapple Production in Ghana.http://www.acdivoca.org/site/ID/success-Ghana-Renewing-Smooth-Cayenne-Pineapple-Production .

Weinstein J. (2011). A Brief History of Fresh Pineapple Exports in Ghana .http://developeconomies.com/development-economics/a-brief-history-of-fresh-pineapple-exports-in-ghana/
http://youthinfarming.blogspot.com/2011/12/15-major-reasons-youth-in-africa-do-not.htmlhttp://youthinfarming.blogspot.com/2011/12/15-major-reasons-youth-in-africa-do-not.htmlhttp://youthinfarming.blogspot.com/2011/12/15-major-reasons-youth-in-africa-do-not.htmlhttp://www.makefruitfair.org.uk/sites/default/files/a_study_on_the_pineapple_industry_in_ghana.pdfhttp://www.makefruitfair.org.uk/sites/default/files/a_study_on_the_pineapple_industry_in_ghana.pdfhttp://www.makefruitfair.org.uk/sites/default/files/a_study_on_the_pineapple_industry_in_ghana.pdfhttp://www.ifpri.org/sites/default/files/publications/ifpridp00784.pdf#page=9&zoom=auto,-169,533http://www.ifpri.org/sites/default/files/publications/ifpridp00784.pdf#page=9&zoom=auto,-169,533http://www.ifpri.org/sites/default/files/publications/ifpridp00784.pdf#page=9&zoom=auto,-169,533http://www.worldbank.org/afr/wps/wp93.pdfhttp://www.worldbank.org/afr/wps/wp93.pdfhttp://www.fruitnet.com/fpj/article/159652/ghana-endures-major-pineapple-slumphttp://www.fruitnet.com/fpj/article/159652/ghana-endures-major-pineapple-slumphttp://www.photius.com/countries/ghana/economy/ghana_economy_agriculture.htmlhttp://www.photius.com/countries/ghana/economy/ghana_economy_agriculture.htmlhttp://www.statsghana.gov.gh/docfiles/GDP/provisional_gdp_2012.pdfhttp://www.statsghana.gov.gh/docfiles/GDP/provisional_gdp_2012.pdfhttp://mofa.gov.gh/site/?page_id=56http://mofa.gov.gh/site/?page_id=56http://mofa.gov.gh/site/?page_id=56http://www.spegpine.com/speg/index.php?id=9&n=86f865cf57d01cc77823d4a350b2d32ahttp://www.spegpine.com/speg/index.php?id=9&n=86f865cf57d01cc77823d4a350b2d32ahttp://www.acdivoca.org/site/ID/success-Ghana-Renewing-Smooth-Cayenne-Pineapple-Productionhttp://www.acdivoca.org/site/ID/success-Ghana-Renewing-Smooth-Cayenne-Pineapple-Productionhttp://www.acdivoca.org/site/ID/success-Ghana-Renewing-Smooth-Cayenne-Pineapple-Productionhttp://developeconomies.com/development-economics/a-brief-history-of-fresh-pineapple-exports-in-ghana/http://developeconomies.com/development-economics/a-brief-history-of-fresh-pineapple-exports-in-ghana/http://developeconomies.com/development-economics/a-brief-history-of-fresh-pineapple-exports-in-ghana/http://developeconomies.com/development-economics/a-brief-history-of-fresh-pineapple-exports-in-ghana/http://developeconomies.com/development-economics/a-brief-history-of-fresh-pineapple-exports-in-ghana/http://www.acdivoca.org/site/ID/success-Ghana-Renewing-Smooth-Cayenne-Pineapple-Productionhttp://www.acdivoca.org/site/ID/success-Ghana-Renewing-Smooth-Cayenne-Pineapple-Productionhttp://www.spegpine.com/speg/index.php?id=9&n=86f865cf57d01cc77823d4a350b2d32ahttp://mofa.gov.gh/site/?page_id=56http://www.statsghana.gov.gh/docfiles/GDP/provisional_gdp_2012.pdfhttp://www.photius.com/countries/ghana/economy/ghana_economy_agriculture.htmlhttp://www.fruitnet.com/fpj/article/159652/ghana-endures-major-pineapple-slumphttp://www.worldbank.org/afr/wps/wp93.pdfhttp://www.ifpri.org/sites/default/files/publications/ifpridp00784.pdf#page=9&zoom=auto,-169,533http://www.ifpri.org/sites/default/files/publications/ifpridp00784.pdf#page=9&zoom=auto,-169,533http://www.makefruitfair.org.uk/sites/default/files/a_study_on_the_pineapple_industry_in_ghana.pdfhttp://www.makefruitfair.org.uk/sites/default/files/a_study_on_the_pineapple_industry_in_ghana.pdfhttp://youthinfarming.blogspot.com/2011/12/15-major-reasons-youth-in-africa-do-not.htmlhttp://youthinfarming.blogspot.com/2011/12/15-major-reasons-youth-in-africa-do-not.html


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APPRECIATION:Our sincere and deepest gratefulness goes to all the industrious and committed individualsand organizations connected to the success of the Challenge Season 6 :

1. The British Council Ghana and its Management team for this life changing initiative2. The Board (Mr. Albert Ocran and Dr. Joyce Aryee) for their mentorship and superb

coaching.3. The Selection Team (Mr. Kojo Oppong Nkrumah, Ms. Ama Daaku and Mr. Paul Adom

Okyere) for their constructive criticism and advice during the selection process.4. Mr. George Quaye of Charter House and Mr. Sydney Tetteh-Hushie of the British

Council for their brotherly attention and care for our well- being throughout theshow.

5. Madam Larko of Charter House and Ms. Dorothy, our chaperone for being there forus and attending to our needs.

6. The entire crew of GhOne; we love you. Working with you was fun and veryeducative, we learnt a lot about TV production.

7. The Sponsors (Tigo Ghana, Robert Gordon University, University of Salford,Northumbria University, UMB and Vita Milk) for gracing the program; without youthis would not have been possible.

We will dearly keep you in our hearts.

THANK YOU!!!

the pineapple industry revamping project: the case of ghana

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