Albe Farms breaks into EU market

 Albe Farms, located in the Akuapem South district of the Eastern Region has through exploration of product development and application managed to become a commercial farm. Ama Amankwah Baafi visited the farms and reports       

Albe Farms began poultry production in 1995and was doing well until the outbreak of bird flu disease which hit badly the poultry sector. Yet, through determination and hard work, owner of the farm Albert Amponsah Atuah diverted to vegetable and fruit farming after thorough research.

From 2002, it has been producing local fruits and vegetables namely mango, pineapple, pepper and garden eggs, as well as Asian vegetables such as, tinder and ravaya (aubergine). It started exporting in 2006.

Specifically, Albe Farms cultivate in Amanfrom and Oboadaka in Akuapem South and Samsam in the Ga West Municipality of the Greater Accra region, while it has out growers for mango production in Obom, Ada, Kpando, Hohoe and Dodowa.    

With its current production capacity, it produces about 1000 metric tonnes of pineapple, 4000 metric tons of mangoes and 1000 metric tons of chili pepper per annum respectively.

Albert told GRAPHIC BUSINESS that the chilli pepper is harvested in its green state as the market demands. “We don’t wait for them to get ripe and when we harvest in that state we get high yields. We are looking at about 5000 with the Asian vegetables,” he said.

Albe Farms has a turnover of about GH₵350, 000, employs five administrative staff and over 100 farm hands, with majority being out growers.

“Our export market distribution channels are for importers and private agencies, am now working to distribute through the large retailers which are most of the supermarkets in the European market”, he stated.

Albe farms exports to Europe (Netherlands and Spain) and has a capital base of US$100, 00.

One needs to get GLOBALGAP certification to get to the market and a contractual agreement. The certification entails good agricultural practices on the farm so that produce will be fit for consumption.

Albert explained GLOBALGAP goes to the extent of knowing the type of chemicals a farmer uses, the active ingredients and then handling of produce among others.

He mentioned the lack of consistent supply of the fruits and vegetables as an obstacle. “Quality is also an issue. It is difficult sometimes to get the volume that you need due to lack of awareness of the demand of fruits and vegetables on the international market. I think it is the responsibility of the Ministry of Food and Agriculture and people like me to educate farmers on the opportunity,” he said.

He is also not happy that there is available funding but it is inaccessible and often times delay. When a farmer applies for a facility, the money becomes available during off season and so there is a delay in supplying for customers. “So by the time you receive the money it does not impact on your activity since orders may have been cancelled,” he stated.

Also, he said the cost of credit is high, there is high shipping cost and experience exchange rate loss, when during negotiation with a buyer one is asked to pay for freight here in Ghana. Transportation to port is also a challenge.

“We need to deepen public private partnership. Now the private sector and government seem to be working separately so at the end of the day the benefit is not realised. There should be consistent visitation to this area. Extension services limited to technical expertise but then when it comes to other services like the Ghana Export Promotion Authority visiting us to know exactly our problems it does not happen. They only try to put up public fora but which is even once a year,” he said.  

Also, he said the value chain system in the sector; the partnership particularly within the private sector needs to be developed. “As a commercial and exporting farmer sometimes I suffer breach in the system. Sometimes I have a contract with small holder producers asking them to give me some kind of fruits and volumes but after signing agreement sometimes the fruits would be ready but they end up selling to other buyers” he explained.

He said there is also a challenge at the port because as a country we do not have vessels but depend on foreign ones that come to transport our perishable produce and so we do not have a control over the perishable items.  

Labour has also become very difficult to get because the youth have all migrated to the cities and left the villages for the older generation to farm. Due to the aging workforce, productivity is low even though resources are available for production.

He recommended that through local government much emphasis should be laid on rural urban drift. Projects must be developed to keep the youth there and if farming is taken seriously we will get the youth back.

Albert said he is looking forward to expand Albe farms but is constrained by the issue of labour saying that there is need to develop the skills of the youth.

He is mostly self-taught and researches extensively to get buyers. To him, it is expensive to be attending fairs always and that there should be specific fairs for each exporter. “Now that I have the market am concerned about how to increase production and improve quality. The demand for pepper and pineapple is now on the increase therefore if Ghana should have about 10 percent of the market share it would benefit immensely”.

Albert has a BSc in agribusiness but read business at the advance level. “I have entrepreneurial spirit in me so I did self studies on these areas because I realised it has a long value chain”.

He hails from Akropong-Akuapem. He advised the youth to seek careers in agriculture saying, “It is lucrative if one invest his time and resources he will have a good pay back. The basic thing is to be well informed”.

Major finance relating to agriculture in Ghana is mostly short term and this Albert said does not boost agricultural production. “We normally have problems with our financiers and this should be addressed. If we could have a medium to long term finance we could have leverage. The Export Development and Agricultural Investment Fund can do more by including transportation, growing, marketing and all others”.   

As a way of giving back to his community, Albert has been facilitating and collaborating with non-government organisations like Essoko to build the capacity of farmers in the area to be able to reach more buyers.    

The world fruit and vegetables market is expected to exceed US$735 billion by 2015, representing 25 per cent growth over five years. By 2015, the market is predicted to reach over 690 million tons in volume, up 5 per cent compared with 2010.

The Food and Agriculture Organization reports the exports of fruit and vegetables generate around $45 billion. The global fruit and vegetables market is concentrated, with the 50 top companies accounting for 70 per cent of revenue. The industry includes goods under various forms like canned, frozen, concentrated and dehydrated products. Fruit and vegetables are processed to make juices, jams, chutneys, pickles and jellies. Vegetables represent almost 65 per cent of the overall market, according to research from MarketLine.

Albert added that food security offers a great business opportunity for Africa as the whole world now looks up to Africa for food.  Albe Farms has received US$9,400 grant from SNV Netherlands development organisation to improve production to be able to reach overseas markets and also help connect them to new local markets including pineapple juice producers.

SNV has been working with pineapple growers in Ghana since 2006, and is active in five regions. SNV’s work in the pineapple sector currently reaches over 5,500 individual farmers, through 184 cooperatives around Ghana.

Attract youth into farming

Story: Ama Amankwah Baafi

A COMMERCIAL farmer and exporter of horticultural products, Mr Albert Amponsah, has called on local government authorities to devise ways of making farming attractive to the youth in their localities since the venture has the solution to the country’s unemployment problem.

Mr Amponsah, who has been farming and exporting a good quantity of pineapples, pepper and other vegetables to Europe and Asia, said farming was a lucrative business which should be supported, and the youth encouraged to engage in it.

He told the Daily Graphic in an exclusive interview on his farm at Amanfrom, near Nsawam in the Eastern Region, that every local assembly should identify crops that grew well in their localities, support their cultivation with research and capital, while re-orienting the youth to take interest in the trade, especially as agriculture had now become the sole preserve of the aged in the communities.

“The local assemblies need to come out with creative ways of making agriculture viable at the district level. There should be projects to attract the youth, and we can only attract them if farming is well supported,” he stressed.

Mr Amponsah prefers that the Youth-in-Agric programme, although laudable, was not limited to maize and a few grains. Rather, every district should identify the crops in which they had comparative advantage so that, with their knowledge and the appropriate soil type, they could make the best use of their resources.

“For example, in Nsawam, we have an advantage of growing pineapples, thus, the youth here will hardly take you seriously if you start a programme here that concentrates on maize,” he advised.

He explained that the country, in general, had enormous potential for growing horticultural products to feed the local market, as well as for export, but that had to be structured to enable each local area to concentrate on their strength.

Mr Amponsah took to farming right after his six form education in mid-1990s. He has gone on to subject his farming practices and procedures to international certification which has now opened the door for him to export directly to buyers mostly in Europe.

Albe Farms, name of Mr Amponsah’s farm, has consequently grown to the point where he employs five administrative assistants and 100 farmers, mostly out-grower farmers.

Mr Amponsah also called for a deepening of public-private partnerships in farming, explaining that such partnerships would help bridge the gap between the differing priorities of the government and the private sector, which in many cases were not aligned for the same direction.

“Mostly, the private sector looks this way, and the government also, elsewhere. When this happens, the shared benefits that should come with the use of national resources does not accrue to all,” the commercial farmer intimated.

He said the partnerships could be developed along the agricultural value chain from inputs to the growing of crops, storage, transportation, processing and marketing, adding that such partnerships would also crush the bureaucracies associated with decision-making on issues that affected farming in the country.

The Albe Farms chief executive also wants regulatory authorities such as officials from the Ghana Export Promotion Authority (GEPA) to pay visits to their farms to familiarise themselves with their challenges, since the exporters forum alone could not address the issues holistically.

CILT awards launched

Story: Ama Amankwah Baafi

THE Chartered Institute of Logistics and Transport (CILT) has launched the Tema 2011 Excellence Awards on the theme, “Driving Efficiency and Innovation to Improve Capacity at the Ports of Ghana”.

The maiden CILT awards being organised in collaboration with Corporative Initiative Ghana (CIG), organisers of the prestigious Ghana Banking Awards, is scheduled to take place in Accra later in the year.

Proposed corporate categories of the awards include freight forwarding, stevedoring and haulage companies, freight consolidators, transit trade, inland container depots, shipping lines agencies and transshipment trade.

There would be special awards for excellent performance outside the above ranges, but related to transport and logistics : overall best transport and logistics organisation of the year.

CILT is the international professional body for logistics and transport professionals and was established in Ghana in 1982. Currently, it has four regional branches in Accra, Takoradi, Tema and, recently, Kumasi.

The Tema branch of the CILT instituted the excellence awards to promote excellence, quality service and efficiency in the industry and it will cover the activities of all industry players in 2011.

The Chairman of the CILT, Tema, Mr Kumi Adjei Sam, outlined the specific objectives of the CILT awards are: “to promote and repackage the industry for better public perception; showcase best performing industry players for improved confidence and business patronage; to formally recognise the contribution of practitioners in the transport and logistics sector to the economic prosperity of Ghana and to sustain the interest of professionals”.

The individual categories are Customs, Excise and Preventive Service (CEPS officer), Ghana Ports and Harbour Authority(GPHA)/Port Manager, logistics and transport woman and shipper of the year, and best haulage driver.

Mr Sam said as a novel concept and to ensure fair play and the participation of key industry players, an awards technical committee has been constituted to come out with the modalities and relevant rules and regulations to govern the successful organisation and participation in the event.

“As a novel idea we expect a number of teething problems with funding, deriving data and reliable data. We are, therefore, fine tuning the ideas for continuous improvements. It is also expected that the scope will be expanded based on where verifiable data and feedback will be generated,” he said.

The Executive Secretary of CIG, Mr Afotey Odarteifio, assured CIG would bring its expertise to promote efficiency through competition in the transport and logistics sector, after 11 years as a distinguished performance enhancement organisation, venturing into insurance and rural banking to promote efficiency.

Exporters unhappy with banks disbursing EDAIF facility

Story: Ama Amankwah Baafi

EXPORTERS in the country are unhappy with the Enterprise Development and Agricultural Investment Fund (EDAIF) for entrusting its credit facility to banks to disburse to them and other interested institutions.

They said such an arrangement caused delays and increased the cost of the facility to their beneficiaries.

The exporters raised the issue at the 73rd national exporters’ forum in Accra yesterday. It was organised by the Ghana Export Promotion Authority (GEPA), in collaboration with EDAIF, on the theme: “Enhancing Performance of the Export Sector for Economic Development.”

The exporters also wondered why the designated banks and other non-bank financial institutions were lending EDAIF’s credit to them at 12 per cent as against the fund’s 1.2 per cent rate.

The exporters said some of the banks intentionally delayed their applications for credit from EDAIF.

Reacting to their concerns, a Manager at the Export Development Programmes Directorate at EDAIF, Mr Frank Obeng, said the fund as a public sector organisation had no choice than to advance credit to the businesses, especially those that needed it most.

“We at EDAIF do not have the capacity to lend credit and recover. We pass it through the banks and that it is because, experiences have showed that most people hardly pay back their loans,” he explained.

He admitted that there were challenges but said the management and board of the fund were working to address them.

He urged the exporters and other beneficiaries of the fund’s credit facility to remain calm while those challenges were sorted out.

The Deputy Minister of Trade and Industry, Dr Joseph S. Annan, acknowledged the concerns of the exporters and promised to look into it.

“It is not encouraging that government makes efforts to find funds only for it to go through so many hooks. That can defeat the objectives of the entire thing,” he said.

The EDAIF was set up to provide financial support to businesses as part of measures aimed at boosting exports. The fund currently disbusrses facilities to businesses in two forms; in grants and credit component.

Unlike the credit facility which supports businesses to expand their operations, the grant is aimed at boosting the infrastructure network of businesses.

Turkey cashes in on Ephesus

By Ama Amankwah Baafi


Courtesy, Turkish Airlines

Ephesus is considered one of the great out-door museums of Turkey, perhaps in the world. Reading stories about Ephesus in the bible sounds like a myth, but a visit to Izmir, the third largest city in Turkey, proves that everything said in the book of Ephesus is real.

Ephesus, which is in the western part of Asia Minor, also called Anatolia and which today forms part of the Republic of Turkey, was one of the places Apostle Paul delivered his famous speech aimed at turning the people away from the worship of Diana, a Greek goddess. Though the city is in ruins, it still attracts lovers of archaeology and tourists, especially Christians.

About 10,000 tourists visit the ruins of Ephesus daily, especially during summer holidays. Each visitor is made to pay €11 and by extension €110,000 is amassed daily.

Ephesus could be described as one of the cash cows of the tourism industry in Turkey, with about 5000 people employed directly and indirectly. This is helping the economy of Turkey to stand on its feet while neighbouring economies are under pressure from the Eurozone debt crises.

People, particularly Catholics from countries such as Mexico, United States, France, Germany, and Korea, among others, come in droves to Ephesus. “Visiting Ephesus makes me understand what the bible says,” said Oscar from Mexico.

High on the list of places to visit in Ephesus is the bronze statue of Mary, the mother of Jesus, which was erected by the American society of Ephesus. The name Ephesus does not only remind one of the city itself, but also calls to mind Artemis (the goddess of hunting and the chase), the Church of St. John and the Church of St. Mary.

No visitor to Ephesus neglects to visit the remains of the Church of St, Mary, which is interesting not only from the spiritual point of view, but also for its architecture.

“Ephesus reminds us of great Christian leaders like St John and St, Mary who lived a life of meditation and it further brings Christianity into the mind of the modern believer,” said Amanda Clark from US.

However, the distance between St John and St Mary is about 10 kilometres and if you wish to see the monuments you should spend a whole day there. When you spend a night in Seljuk, you will not only be able to see the history and the wonders of centuries past and house of Virgin Mary which was discovered through the vision of a pious Bohemian woman, but you will also enjoy the hospitality and customs of the Turkish people.

People of different backgrounds especially Catholics, go there to pray in the house that mother Mary was believed to have lived with St Joseph after the death of Jesus.

Also at Ephesus can be found the tomb in which St John was buried. It is now known that there are five small graves around the tomb of St John. It is supposed that upon his wish, the other graves formed the shape of a cross with his tomb.

Other notable sites in Ephesus are a baptism pond and holy water pipes from which people fetch to their destinations for various uses. Hanging on the wall are millions of prayer requests by visitors to the site.

The Gate of Pursuit is on the southern tip of the slope of the castle of Ayasuluk, situated on a hill to the right of the Izmir-Ephesus highway. The chapel, with frescoes, is a small, wooden roofed chapel to the north of the tomb, dating from the 10th century.

When you look at the west over Ayasuluk hill, you face the Isa Bey Mosque erected in 1375 by Isa Bey, the son of Mehmet Bey from the Aydinogullar dynasty of Seljuk. The stadium occupies an area of 229metres by 295 metres and was built in the time of Emperor Nero in the first century A.D. (54–58).

You come across the harbour baths, the remnants of these buildings constructed with huge stones and gracefully carved marble, between the Double Churches and the Harbour Street.

There are those selling souvenirs ranging from handicrafts, books, clothes, etc, all made in Turkey. It is about six kilometres from the house of Mary to the old city of Ephesus, which is 13 kilometres square.

Notable things at the city include the fig tree and a handmade pipe system that carried water to various parts of the city. The old time technology that was used showed the prowess of the people.

“It is exciting to see the fig tree for real,” stated Sarah Maaku Tetteh from Ghana. From all indications, Turkey is making efforts as a nation to maintain its tourist attractions, knowing that is where the money comes from currently.

Though most tourist sites are old, a visit there gives one a feeling of how the place used to be.

Transport and logistics operatos must be up and doing

By Ama Amankwah Baafi


The Director General of the Ghana Ports and Harbours and Authority (GPHA), Mr R.A.Y Anamoo, has urged stakeholders in the transport and logistics industry to work hard to promote efficiency in the discharge of their duties and provide customer satisfaction.

He said the maritime industry for instance is facing tough times as ports are always congested and asked “Is it artificial or are we contributing to the situation. Shipping lines refuse to pay stevedoring companies swiftly. How fast are customers served and what are companies doing to ensure that shippers are at peace that their goods would arrive safely”, he asked.

Speaking at the launch of the maiden Chartered Institute of Logistics and Transport (CILT) award for Tema, he charged CILT to do thorough evaluation to ensure that professionalism and efficiency is achieved through the awards.

The theme for the awards is “Driving Efficiency and Innovation to Improve Capacity and Performance at the Ports of Ghana”. CILT Tema is organising the awards in collaboration with the CIG.

Experts say the gains that could be derived from improvement in the logistics and transport industry is a vital component of trade.

Research has shown that the cost of logistics pose a greater barrier to trade than import tariffs and make up a larger part of the delivered cost of food products, increasing food price, and thus has large impact on poverty.

Logistics involves the management of the flow of resources, not only goods, between the point of origin and the point of destination in order to meet the requirements of customers, while transport is the movement of products and people from one point to another via air, sea, road and rail.

According to the Executive Secretary of Corporate Initiative Ghana (CIG), Mr Afotey Odarteifio, it has become imperative for Ghana to work to improve further the efficiency in the transport and logistics industry since the gains can be quite significant.

“I believe the transport and logistics sector is doing fine but it could do better because studies attest to the potency of competition in driving improved performance in the transport and logistics sector,” he stated

He said for most countries that are pursuing export led growth strategies, a key component is an effective and efficient logistics framework that addresses the full spectrum of the value and production chain to reduce distribution and processing costs.

A logistics framework, he said includes hardware, which is the physical infrastructure needed to move goods effectively, and software which is the associated and processes needed to move and trade goods effectively.

The National President of CILT, Mr Godwin Mensah said as a measure to ensure professionalism in the industry and maximize its role to economic development, professional programmes are being run at the Ghana Institute of Management and Public Administration (GIMPA), Kwame Nkrumah University of Science and Technology (KNUST) and Takoradi Polytechnic.

Proposed corporate categories of the awards include freight forwarding, stevedoring and haulage companies, freight consolidators, transit trade, inland container depots, shipping lines agencies and transshipment trade.

GEPA adopts new marketing modules

THE Ghana Export Promotion Authority (GEPA) has adopted a strategy to promote and find markets for targeted sectors of the country’s non-traditional export commodities.


The authority has, therefore, indicated that it would henceforth not lump all commodities from different industries for promotions and marketing. Instead, it will identify specific commodities each year for promotion and marketing.

This means that the authority will now identify specific markets or countries that demand for any commodity in the non-traditional sector before export.

Consequently, the authority has therefore prepared some guidelines for Ghanaian exporters in conducting sales in targeted markets.

The Chief Executive Officer of GEPA, Dr Kwadwo Owusu Agyeman said all these interventions were geared towards improving efficiency.

Speaking to the GRAPHIC BUSINESS on the sidelines of a national exporters forum in Accra, Dr Agyemang said the authority is providing technical assistance and facilitating market linkages to help individual firms to maximise market opportunities.

He said the Export Development and Agricultural Investment Fund (EDAIF) was giving three times the amount previously given to exporters to process their goods.

“The money EDAIF gives us is now being used for better programmes. It is not an indictment on previous management but just new ways to improve efficiency. Not only are we making more revenue by our activities but the name of Ghana is being held high outside the country”, he said.

He said GEPA was ready to work towards the achievement of US$5 billion target in non- traditional exports (NTEs) revenue by 2016.

The 2011 NTE statistics revealed that exports of non-traditional products amounted to US$2.423 billion against a target of US$1.8 billion, representing an increase of 48.74 per cent over the 2010 earnings of US$1.629 billion.

Dr Agyeman attributed the success to the hard work and ingenuity of exporters.

The Deputy Minister of Trade and Industry, Dr Joseph S. Annan said the impressive growth in NTEs was significant, saying “it is an indication that we are on course to achieve our target and even exceed it.”

Most of the traders at the forum said they still encountered problems sending goods to West African countries despite the presence of the ECOWAS Trade Liberalisation Scheme (ETLS).

In view of the challenges exporters face in accessing the ECOWAS market, the World Bank has approved US$90 million grant to finance the Abidjan-Lagos Trade Facilitation Project to reduce trade and transportation barriers within the ECOWAS sub-region.

The national exporters’ forum is aimed at finding on the spot solutions to challenges exporters face in business and to create platform to educate them on new programmes by GEPA and partners involved in export trade.

When hobby becomes business

Mr Osumanu Mohammed Ali has defied his childhood odds to nurture his hobby for handicraft into a full business venture now call WABEMBA Handicrafts. Ama Amankwah Baafi writes of his humble beginnings


In the early 1990s, financial constraints forced then young Mr Osumanu Mohammed Ali out of school.

The drop out, however painfully it was gave Mr Ali the opportunity to nurture his passion for art work into a business institutions that today boasts of a manufacturing unit at Mamobi and a sales outlet at Tetteh Quarshie , both in Accra.

He had started making nurturing his family trait and hobby for handicrafts arts at age 15. At the time, he made artifacts for friends and family.

Given that handicraft business was the main occupation in his family, he had fewer difficulties learning the art of making craft.

After acquiring the relevant skills from family members, Mr Ali said he entered into a partnership with a friend and together, they started their trade from the Arts Centre in Accra.

Although the young and enterprising entrepreneur is thankful to some government and institutions and NGOs for imparting basic handicraft knowledge in him, he said his family roots had the greatest say in his career today. His own imagination and market dictates inspires him to design and make craft.

“I have taken some basic courses through the initiative of some government and non-government organisations. But I still think I am a self-taught person. I learnt this skill on myself,” he said, winking a smile.

Over the years, Mr Ali has spiced his home-gowned appetite and skill for art work with formal trainings by participating in lots of training programmes in and around the Greater Accra region, where his WABEMBA Handicrafts shops is located.

From those training programmes came several certificates which he happily displays at his manufacturing shop at Mamobi, a suburb of Accra.

“To improve your knowledge (in the business) you need to be abreast with new information,” he stated.

Recounting the beginnings of his WABEMBA Handicrafts’, Mr Ali said he set up his current sales outlet shop at the Tetteh Quarshie craft market in 1999 to deal in antique figures, beads, brass and masks.

“I believe that to keep myself in business I need to always develop new designs. Every year, I add new designs to my existing ones,” he said adding that such designs are often the results ideas he picks from the market.

“I study the market to know what it wants, the expectations of clients and all that and that informs the designs I make,” he said.

For new designs, Mr Ali said it takes about two or more days for to get them in shape “but just a day to produce an existing one.

His WABEMBA Handicrafts currently employs four permanent staff. He, however, employs as much as 10 persons whenever there is an order to produce.

Through his participating in several trade shows and exhibitions, home and abroad, Osumanu said he has had more business opportunities which had earned him meaningful income.

On average, Mr Ali said he earns about US$8,000 from his trade owing to the volatile nature of demand for his products.

His handicraft business has since trained about seven people in craft making. Several others, he said have also being going to him sharpen their skills.

He commended the government for its support to the handicraft sector through the various initiatives and opportunities offered the sector by the Ghana Export Promotion Authority (GEPA).

He appealed to the government to help waive excise duty on handcrafts that exported from the country as a bait to help grow the sector.

He believes that if they as people who make handicrafts are supported in the area of product development it will strengthen their knowledge base and open up new frontiers for them.

Although Mr Ali is aiming big for himself and his shop, lack of funds is denying the realization of such dreams.

“My major regret is when I have orders but do not have the capital to produce,” he said.

Osumanu set sights on setting up a large workshop, equipped with up-to date machinery to be able to produce a wide range of products, including useable household products which are currently on high demand.

“Gone are the days when people just bought craft solely for decoration. Now they want to make use of whatever they buy,” he said.

He advised the youth to develop interest in learning vocations such as handicrafts as there are available resources for almost everyone interested in learning about handicrafts.

“Start slow with the tools. Making a few projects will give you a really good idea of what you want to try out next,” he advised.

He was also unhappy with people who steal his designs to produce substandard products. Mr is married with two children and said he enjoys surfing the internet when he is not making handicrafts.

Mr Ali is on: wabemba2004@yahoo.com

Aviation catering experiences growth

Aviation catering has picked up and already employs close to 1000 people directly. Ama Amankwah Baafi reports

Meal time on board an aircraft is more than just culinary pleasure. Experts contend it is also relaxation, entertainment, a good use of time and a denominator of quality for the best airlines of the world.

This is why airlines invest in getting the best catering companies to prove them with the finest catering services, in most cases with the best cuisines sampled from across the world.

Since people find it difficult to grope around new tastes, airlines go great lengths to ensure that their mouth-watering menus include delicacies familiar to the areas they are flying to or flying from.

Some of the companies delivering sumptuous dishes to airlines operating from the Kotoka International Airport are Newest First Catering Limited and Servair Ghana.

The industry is experiencing remarkable growth in tandem with increasing activities in the airline industry. Catering industry players are anticipating a 15 per cent a year growth rate.

The aviation sector in Ghana is undergoing tremendous growth and recorded an increase in frequency of airlines operating in Ghana.

Reports said the number of scheduled and non-scheduled careers flying in and out of Ghana doubled from 13 to 38 in 2011.

Indeed, with this increase in flights comes the need for quality catering on board the flight. Servair, a leading French airline caterer and cleaning services provider also launched its operations in Ghana about a year ago.

Newrest First Catering Limited is one of the oldest such companies to operate in the country. Located on the Spintex Road in Accra, Newrest First was established in Ghana in 1998 and began full operations in general catering, including servicing the airlines. The company also renders outdoor catering services.

The General Manager, Ms Maud Lindsay-Gamrat, explained that the company services 12 airlines, including KLM, Lufthansa, Emirates, South African Airways, British Airways, Afriquiyah Airways and Air Namibia.

It also serves charters flights such as Air Ghana, Aero Gem Aviation, SA Presidential Flights, Thai Oriental Airlines and Vim Airlines (UN) as well as Diplomatic missions including Australian High Commission, Swiss, Netherland and German embassies, and Czech Republic.

Ms Lindsay-Gamrat said they produced 400 meals a day for an average of 11 airlines, and employs 320 persons. Newrest showcases the variety of meals available to the airlines to choose from.

“We try to package local products so our meals are a blend of continental and local food. Gradually we have introduced ‘red red’ (ripen plantain and beans sauce) and jollof rice. So far the results are very good and passengers are enjoying them, particularly on African routes,” she explained.

She said they often try to source ingredients locally. However, the challenge had been quality and availability, for instance with apples, grapes and some dairy products, which sometimes compel them to import.

As a response, Newrest periodically organises seminars for some of these vegetable famers to train them on good agronomic practices to ensure that their produce met quality standards.

She expressed the hope that the acclaimed expansion project at the Kotoka International Airport by the airport authorities would be able to accommodate the boom yet to be witnessed.

Ms Lindsay-Gamrat said products from Newrest Catering met the highest quality criteria.

The company’s systems and standards are constantly being monitored and supported by a number of systems: the internationally recognised Hazard Analysis and Critical Control Points (HACCP), a systematic preventive approach to food and pharmaceutical safety.

“HACCP concept provides structural controls to prevent any food health risk. We attach a lot of value to stringent cleanliness controls and hygiene in all our production facilities and those of our suppliers. Moreover, all our employees take part in internal and external training”, she stated.

The premises of Newrest Catering has an in-house Microbiological Laboratory that is fully equipped for bacteriological analysis of food and water samples, in-house industrial laundry facility, in-house bakery for the proofing and baking of bread and pastries, a fruit processing unit and a bonded airline store and maintenance workshop.

Due to the high standard of service provided to its customers, the company was awarded Silver Quality Service by Lufthansa Airways in 2002 and 2003. British Airways awarded it the Service of Excellence award in 2008.

Currently, the company operates in 46 countries worldwide, 24 in Africa.

Servair, a leading French airline catering and cleaning company, also set feet in Africa in 1998 and started operating in Ghana in 2011. The company is ranked third in the world and incidentally the third in-flight catering service to set up in Ghana.

It operates through 60 establishments and the new Servair Ghana centre is the first Servair modular centre in Africa which meets international standards in food hygiene and safety. The company also operates in Asia, the United States of America, Italy, the Caribbean and India.

The company has, therefore, deployed its expertise the full range of company namely, strict compliance with standards of food safety and hygiene and cutting edge production technology.

The Chairman and Chief Executive Officer of Servair Ghana, Mr Patrick Alexandre, has pledged his company's commitment to make Servair Ghana successful to contribute to the development of the airport.

He said that they would also help to drive Ghana's economy by giving preference to local suppliers and also incorporate Ghanaian cuisines into their food line-up, as well as provide employment for Ghanaians. GB

Break duopoly on cement production - World Bank

The recent hike in the prices of cement has reignite debates on the impact of the Ghana Cement Company (GHACEM) on prices of cement and the building and construction industry in general. Ama Amankwah Baafi and Maxwell Adombila Akalaare report


The World Bank is uncomfortable with the continuous dominance of the Ghana Cement Company (GHACEM) and the Diamond Cement Company in the construction and sale of cement in the country.

The bank is worried that GHACEM and Diamond Cement’s more than 80 per cent hold of the market suppresses competition in the sector with dire consequences on prices and the supply of the product to the building and construction industry.

It has thus called for urgent steps that would liberalise the market “to engender competition and drive down prices.

“I do not see any justification for a ‘monopoly’ in the cement market in Ghana. It makes no economic sense,” a World Bank Lead Economist in the country, Mr Sebastien Dassus, said in a recent interaction with financial journalists in Accra.

The Association of Building and Civil Engineering Contractors of Ghana (ABCECG) recently expressed similar misgivings on the matter.

The Chairman of the association’s Technical Committee, Mr Rockson Dogbegah, had earlier said in an interview with the GRAPHIC BUSINESS that the government needed to break GHACEM and Diamond Cement’s de facto duopoly in the cement business or leave the nation’s construction and building sector to the whims and caprices of the company.

“We need a conscious effort to get other cement factories into the system because where you have only Diamond Cement and GHACEM controlling the market, it means that we (builders and contractors) will continue to be at their whims and caprices,” he said. The recent increase in prices of the product partly as a result of the weakening cedi has since reignited that debate over the impact of the two companies’ actions on the building and construction industry as far as prices and supply of cement was concerned.

Currently, GHACEM comfortably controls close to 60 per cent of the market share. Diamond Cement, on the hand accounts for about 35 per cent of total cement sale and production bringing to over 90 per cent the stake of the two companies in the industry.

Fears are that the dominance of the two companies in the sector, however accidental it was, makes it possible for them to ‘technically’ determine prices of the product nation-wide.

Concerns over artificial shortages created by key distributors aligned to these market leaders in favour of price hikes also abound, allegations GHACEM and Diamond Cement have often denied knowledge of.

Given these companies’ dominance in the sector, their actions with regards to pricing and supply of cement have become more of a roll-over effects on competing cement producers and suppliers like Greenview, and the other cement companies which all together account for less than 20 per cent of cement production and sale in the country.

According to the World Bank’s Lead Economist, having a de facto duopoly in the manufacturing and sale of an essential commodity like cement is not good for the country, especially given the rising housing and infrastructural deficit.

With Ghana’s status as a developing nation and undertaking lots of infrastructure and housing projects, Mr Dassus said “liberalising the cement sector will help drive down prices and create more jobs for the teaming youth.

“The more there is competition in the sector, the better for consumers,” he added.

On fiscal and monetary issues, Mr Dassus also advised the government to double up on tax collections and pull back on unprofitable expenditures or risk missing its fiscal targets for the year and subsequently pushing the entire economy into disarray after the December 2012 general elections.

But while that happens, World Bank’s Lead Economist said the government, policy makers, development partners and all political parties in the country also needed to find a long-term solution to the classic destabilisation of the economy in and after every election years.

He said such actions were necessary to help save the country the cost of rebuilding the economy after every other election year. He was however optimistic that the country will achieve its fiscal targets for 2012 despite having to surmount some risks in the months to come.

The government is aiming to achieve an overall growth rate of 9.4 per cent, end-period inflation of 8.5 per cent, overall budget deficit equivalent to 4.8 per cent of GDP and not less than three months of import cover in 2012.

Many analysts and economic watchers are however skeptical about the government’s ability to attain those targets given the current depreciation in the cedi, rising government expenditure and the decline in the country’s foreign reserves from U$5.4 billion in December 2011 to US$4.3 billion as at June 8, 2012. This is equivalent to 2.5 months imports cover of goods and services.

To Mr Dassus, however, those targets are achievable provided the government exhibits the needed political and economic discipline.

“I think Ghana can definitely meet the fiscal targets for 2012, but it is the question of will.

He said the recent fluctuations in gold, cocoa and crude oil prices in the commodity market also posed “real risks to the government and the economy” hence the need to “accelerate tax collections and spend wisely” in this election year.

Turkish Airlines to increase capacity in Africa

By Ama Amankwah Baafi, Courtesy Turkish Airlines


TURKISH Airlines would introduce daily flights from Accra to Istanbul, Turkey, beginning July 5, 2012. The airline currently flies four times in a week.

The Managing Director of the airline’s Accra office, Mr. Engin Akbas, who disclosed this in an interview, said the decision to fly daily in Ghana to Istanbul was informed by the good business climate in the country.

The MD spoke to the paper after the airlines’ travelling and tour agents had completed a five-day familiarization tour to Turkey aimed at exposing them to the country.

Mr Akbas said the decision to fly daily from Ghana Istanbul was also in line with the company’s desire to increase its coverage of the African continent.

“Our target now is to cover Africa. We have chosen Africa over other continents because we have realised that Africa is now growing and that it is the best place to do business now because you see returns,” he said.

The airline presently flies to 20 destinations in Africa, while hoping to increase to 23 by the end of the year.

In line with that objective, Mr Akbas said Turkish Airlines will introduce new flights to Abidjan beginning from July 3, 2012 all aimed at increasing its flight capacity and brand presence in Africa.

Its latest destination in Africa – Kigali, Rwanda, – began about two weeks ago.

It was also the first airline to fly in Mogadishu, Somalia few months ago.

“We have plans to increase our plans to increase capacity in Abuja and Kano, both in Nigeria,” he added.

He disclosed further that the airline was making arrangements to introduce cargo flights following high demand for such services on the continent and added that Accra would be one of the desired destinations.

The airline which began operations in the country in 2011 currently has about 155 international destinations in addition to its 40 domestic flights 179 aircrafts.

Receipts from non-traditional exports exceed target

Non-traditional exports have demonstrated once again why attention on it can spur shared growth. Ama Amankwah Baafi reports

Receipts from non-traditional exports (NTEs) in 2011 recorded US$2.423 billion against the targeted US$1.8 billion.

The figure marks a 48.74 per cent growth over the 2010 earnings of US$1.629 billion, the Ghana Export Promotion Authority (GEPA), has reported.

Announcing the performance of the 2011 NTE in Accra, the Chief Executive Officer of the GEPA, Mr Kwadwo Owusu Agyeman, mentioned the 10 leading NTE products as cocoa paste, canned tuna, cocoa butter, cashew nuts and articles of plastics.

The rest are natural rubber sheets, veneers, freshly cut fruits, plywood and fertilisers.

A breakdown of sub-sector performance showed that receipts from agricultural products were US$296.97 million in 2011, US$164.93 million in 2010 and a change of 80.06 per cent.

Revenues from handicrafts grew its 2010 performance by 28.42 per cent from US$2.78 million to US$3.57 million during the period under review, while processed/semi processed exports yielded US$2122.79 million in 2011, US$1461.48 in 2010 and a growth of 45.25 per cent.

For the second time running, earnings from the NTE sector exceeded set targets. Export earnings for 2011exceeded set targets by 33 per cent, while 2010 earnings exceeded targets by 12.3 per cent, rising from a base of US$1.45 billion.

Earlier in 2011, the Ministry of Trade and Industry (MOTI) through the GEPA introduced a five-year strategic plan to rake in US$5 billion receipts from NTEs by 2015.

Mr Agyeman cautioned that in spite of the growth, the contribution of the NTE sector to the country’s total export fell from 27 per cent in 2010 to 18 per cent in 2011, mainly due to higher gold and cocoa prices on the world market, and the export of crude oil.

“We have now started exporting oil and we need not lose concentration on NTEs to only oil. In fact, it is the wish of the President (Prof John Evans Atta Mills) that it will not happen with our oil find. We must continue to assist GEPA to ensure NTEs do not die after oil discovery. We are doing more but the entire trade sector is also doing better,” he stated.

On the average, the NTE sector has been growing steadily at an annual rate of about 16.4 per cent from 2001 to 2008. In 2009, the sector was hit by the global economic crunch which made earnings to fall by a negative 9.38 per cent from US$1.340 billion in 2008 to US$1.215 billion in 2009.

According to him, the sector contributed 25 per cent of total export revenue and must be taken seriously.

According to the GEPA CEO, Ghana’s non-traditional produce was exported to 146 countries in 2011 and those had been divided into five groups, namely, the European Union (EU), other developed countries, ECOWAS, other African countries and other countries. The performance of the NTE sector by markets indicated that the EU and ECOWAS markets absorbed 45.72 per cent and 27.04 per cent respectively, as those two markets continue to be the leading markets for Ghana’s NTE products.

Mr Agyeman explained that the Export Development and Agricultural Investment Fund (EDAIF) would provide funds to the GEPA to obtain air-conditioned containers to store exhibits, so that goods could be better preserved.

He appealed for a percentage of the oil revenue to go into supporting the development of NTEs.

The Minister of Trade and Industry, Ms Hannah Tetteh, who graced the launch ceremony, acknowledged the impressive growth in the NTEs, saying this “goes to show that as a government the various interventions and programmes we have embarked on since 2009 are working towards the Better Ghana agenda”.

She said though the production of oil and gas needed much investment in infrastructure, few Ghanaians would benefit from it, hence the need to concentrate on NTEs.

Ms Tetteh charged the GEPA to begin to think of developing a national logistics strategy to reduce bureaucracy of exporting NTEs to the barest minimum.

“We can also demonstrate quality assurance by looking at warehousing for instance. We need more of those to improve export performance,” the trade minister stated.