Ghana poised to boost tomato export revenue with potential for £200 million in earnings
Ghana is eyeing a potential £120m ($166m) in annual revenue from tomato exports to the UK, as climate change-induced production slowdowns in Morocco, Spain and the Netherlands trigger shortages in one of the UK’s favourite vegetables.
According to Anthony Morrison, the Chief Executive of the Chamber of Agribusiness Ghana, the West African nation has the potential to generate even more revenue from its tomato exports, which could rise to £200m depending on the quantity and varieties it is able to export to the UK.
Speaking in an interview, Mr. Morrison said that the Chamber is partnering with the British High Commission to identify and engage prospective buyers of Ghanaian tomatoes for the UK market. Discussions are expected to conclude within the week, with exports to commence shortly thereafter.
This comes at a time when the UK is facing tomato shortages due to disruptions in the traditional supply chain caused by extreme weather events that have led to production slowdowns in key exporting countries. The UK relies on Morocco, Spain and the Netherlands for its tomato supply, but a climate change-induced drought has hit production levels, pushing up prices and causing shortages.
The UK’s fresh tomato imports currently stand at around £524m, with a total of one billion pounds of assorted vegetables imported into the country. As such, Ghanaian producers are eyeing the opportunity to not only fill the tomato gap but also provide other critical vegetables that the UK consumer market demands.
“Even though our initial projected earnings from the tomatoes is at £120m, this could rise to £200m depending on the quantity and other varieties that we’ll engage them on,” said Mr. Morrison.
Ghana is an ideal location for tomato production, but the country has struggled with post-harvest losses due to inadequate storage and transport infrastructure, as well as insufficient processing capacity. However, the country’s authorities and business leaders have been taking steps to address these challenges in recent years, with a focus on boosting production and increasing exports of the crop.
Mr. Morrison believes that this new development could help address these challenges, as the revenue generated from tomato exports could help to fund improvements in the country’s agribusiness infrastructure, particularly in the areas of storage, transport and processing.
The move also aligns with Ghana’s efforts to reduce its reliance on traditional exports such as cocoa and gold, which have historically made up the bulk of the country’s foreign earnings. The Ghanaian government has identified agribusiness as a key sector for diversification and economic growth, with a focus on increasing the production and export of non-traditional crops such as fruits and vegetables.
However, Ghana’s agribusiness sector has faced challenges such as inadequate financing, infrastructure, and training, as well as weak regulatory and policy frameworks. These challenges have hindered the sector’s growth potential, despite the country’s favourable agro-climatic conditions and rich natural resources.
To overcome these challenges, the government and industry stakeholders have been taking steps to promote agribusiness development, including the implementation of policies and programmes aimed at increasing access to finance, building infrastructure, and improving the regulatory and policy environment.
The success of Ghana’s efforts to tap into the UK tomato market could serve as a model for other African countries looking to diversify their economies and boost agribusiness exports. With the right policies and investments, the continent has the potential to become a major global supplier of high-quality fruits and vegetables, contributing to food security and economic growth.
