Annex II: Summary of the Results of the Ghana Country Study
Commodities, Study Team and Period
The study focused on the post-production and marketing systems for yams and tomatoes in Ghana. The individual chapters were contributed by eight specialised authors. The report was prepared by a core team of two editors who were assisted by an expert panel. The study was compiled between May 1997 and March 1998.
Production of yams and tomatoes
In Ghana yams and tomatoes are important food crops. Production has increased steadily during the past decade. The supply can satisfy domestic demand and - in the case of yams - export demand. Yet, there are significant regional differences. In many regions yam and tomato production cannot keep pace with rapid population growth despite surplus production in some regions. Annual production of yam tubers was estimated in 1996 at 2,274,789 tonnes, making Ghana one of the major yam producing countries in the world. Planting time is in January and February, and harvesting takes place in July continuing until January/February. The supply decreases between March and June resulting in an increase in price. Tomatoes are grown continuously throughout the year but the production during the dry season depends on irrigation facilities, resulting in short supplies and high prices from March to June. Price fluctuations over the year for both crops are more than 100% in most years. Annual production of tomatoes was estimated in 1995 at 63,900 tonnes.
Post-production operations at farm and village level
In the Northern and Brong Ahafo Regions most of the harvested yam tubers (80%) are stored by the farmer for some time (2 to 4 months). The length of storage depends mostly on the variety. Water yam can be stored for up to twelve months. On an average, farmers stored 5,200 tubers valued at USD 1,500.- per year. Seventy-six per cent of tubers are stored for sale. The most common way to store yams is to put them under a tree and cover them with yam vines or in a simple shed in the field. Only a small number of farmers (8%) carry the yams from the field to the house for storage. Farmers estimate losses during storage at 13%. They identified rodents, bacterial and fungal rot and theft as the major causes of these losses. Discarding of damaged and rotten tubers before and during storage and the breaking off of sprouts from germinating tubers are common measures to control losses.
The transport of yams from the field to the house or the assembling point where wholesalers come to buy is done by headloads (mainly by women) and by bicycle (mainly by men). Market-oriented farmers with more tubers sometimes hire tractors or trucks. Farmers sell their yam tubers to wholesalers either directly from the field and/or at the local market. Whereas production and storage is the domain of male farmers, the marketing involves more women than men.
The highly perishable tomatoes are harvested and packed into wooden boxes or baskets. Then they are carried by headload to the selling point, mainly the roadside, where itinerant wholesalers come to buy. These activities take place in the space of one day.
Processing of both yams and tomatoes is insignificant in Ghana.
Marketing of yams and tomatoes
There are basically two different marketing systems for yams and tomatoes, the redistributive and the two-level system respectively. Yams are assembled from farms and small markets at a relay market in the producing areas. From there they are transported to a second relay market in the consuming area from where they are redistributed to retailers and consumers (redistributive system). In the two-level system for tomatoes, relay markets do not exist. The produce is transferred directly from the centres of supply to the centres of consumption. This guarantees a much faster supply to the consumer areas than in the redistributive system. However, it creates a much more fragmented commodity market and impedes the flow of market information.
The market structure for both commodities consists of different markets and sale points and different types of market participant. The products are sold at the farm gate, at the roadside, at village household stalls and by hawkers (tomatoes), at village markets, urban street markets, large and small urban markets. Participants in the market chain are urban-market-oriented farmers (more men) and consumption- and local-market-oriented farmers (more women). Some farmers sell their produce directly at the different markets (producer-sellers). Farmers sell from the farm gate to assemblers and itinerant wholesalers. In the case of yams the urban itinerant wholesalers often work hand in hand with agents who identify purchase locations and inspect the quality and size of the yams. Sedentary yam wholesalers based in village markets link up producer-sellers with itinerant wholesalers. There are retailers and porters in every market. The transporters are drivers and assistants of lorries and vans who are mostly organised under the Ghana Private Road and Transport Union (GPRTU) and handle the long-distance transport (main producer to main consumer areas).
Access to yam markets is basically unrestricted. However, lack of capital and the transport of the bulky produce from remote production sites is a barrier for many people. Access to tomato trading is more restricted. The market associations for tomatoes and other vegetables allow only a limited number of registered members to trade in markets in the consumer areas. In some markets, those from outside have to sell through commission agents and in others they have to accept lower prices for their product. Itinerant traders justify these barriers to entry on the grounds that they reduce the risks involved in dramatic fluctuations in supply. That can result in large physical losses at times of over-supply and the bankruptcy of some traders from sudden falls in price. Restricted access to markets may have negative impacts on the farmers as they may not be able to bring in their own produce. Furthermore, there may be fewer buyers and therefore lower farm gate prices at certain times due to lack of competition.
Trader associations exist in the main urban markets for both tomatoes and yams, as for most other commodities. The associations' role is to settle disputes between members and to negotiate with outsiders such as local authorities and other markets. They also facilitate the fixing of daily prices between buying and selling traders. Some farmer associations exist for tomatoes. Their responsibility is to fix the price with the itinerant wholesaler. However, this only works if farmers are in a good bargaining position. In times of glut farmers will sell for the price the trader is ready to pay.
Marketing involves a lot of informal arrangements between stakeholders. Farmers who have been growing a certain crop for several years will develop close trading relationships with individual traders or agents. Both farmers and traders refer to each other as `customers' and this reflects the two-way flow of benefits. Traders value their customers as an important resource in their marketing. In times of scarcity, farmers will guarantee to sell some of their produce to their customers, even if the price offered by other traders is higher. When there is a glut in the market, the trader will give preferential treatment to their customers. The prices offered to farmers by customers can be lower as they often give credit or inputs to farmers at the beginning of the season and are then repaid at harvest time. In many cases farmers will let the customer sell the produce and bring the money back after the sale. This is very common among rural based traders and farmers in their village or town. This allows a trader to start trading without a large amount of capital. For this reason traders value their customer relationships and are keen to maintain their good reputation with the farmers so that they can continue. The price may be set beforehand but traders can give a lower price on their return if they have received a lower price at market due to poor quality or a fall in the market price. The rural based itinerant traders may maintain similar relationships with the commission agents in the market. Trustworthiness is a very important security measure for traders as it can help them build up their capital when they have made a loss. It appears that it is quite common for a trader to make large losses when the market prices drop, especially in the tomato market where prices can change dramatically in a single day. In such cases traders may rely on their customers to give them credit.
Conclusions and recommendations
The following intervention priorities are suggested:
Post-production and marketing systems involve a range of disciplines, sector ministries and organisations. In the interests of a co-ordinated system approach, the establishment of a secretariat or working group is recommended for post-production and marketing systems mandated by the relevant governmental authority at national, regional or district level.
The tasks of the secretariat should be: