AGI boss calls for off-taker pricing in grains sector to curb price imbalances
The President of Association of Ghana Industries (AGI), Dr. Humphrey Anim-Darke has proposed to government to set an off-taker price for the grains sector -rice, soghum in a bid to curb market infiltration, price imbalances and ensure a harmonized price market.
There is already a 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, 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.
His comments comes on the back of the role of the MasterCard Foundation’s in the grains sector and according to Dr.Anim-Darke , 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.
Speaking as one of the panelists on MTN Business Executive Series, he suggested that “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 5ghc , 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 and I believe we have all heard why the cost of feed is expensive, because we do not have a guaranteed price for maize.”
Further, he 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.
We expect 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 90percent 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.
She 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 change 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.
The CEO of Ghana Stock Exchange, Abena Amoah on her part urged businesses to take advantage of the stock market, disclosing that there is 35bn cedis pension funds available for investment.
This year’s Business Executive Series was on the theme “Building a Resilient Business in Challenging Economic Environment”.
