Cocoa price increase

The producer price of cocoa for the 2012 / 2013 season has been increased from GH¢3,280 per tonne to GH¢3,392 per tonne.


Thus, 64 kilogrammes of cocoa will now sell at GH¢212 and not the GH¢205 that it was in the previous cocoa season.

The new price represents about 78.42 per cent of cocoa prices free-on-board (FOB), estimated at about GHc4,325. The prices take effect from Friday, October 12.

This is the fourth consecutive time since 2009 that the producer price for cocoa has been increased. The price rose from GH¢75 per a 64 kilogramme bag of cocoa in the 2007/2008 cocoa season to the present GH¢212 per bag in the 2012/2013 season.

The Minister of Finance, Dr Kwabena Duffuor, announced the new price at a news conference in Accra today (12/10/112).

Dr Duffuor said the upward review in the price comes at the back of falling cocoa prices in the world market. Cocoa prices have fallen from US$3,000 in the 2011/2012 cocoa season to currently average at a little over US$2,300.

Dr Duffuor, who is also the Chairman of the Producer Price Review Committee (PPRC), said the government remained committed to ensuring that the welfare of cocoa farmers is continuously enhanced.

“In fulfillment of this commitment, government has decided to reduce its share of the 2012/2013 cocoa export duty in order to raise the producer price paid to our hardworking cocoa farmers. This decision was taken to increase the earnings of farmers so as to enhance their welfare,” the minister said.

He emphasised that government would continue to support interventions in the cocoa sector, including the pests and disease control (mass spraying) for farmers and Hi-Tech programmes to ensure that the envious record of the Ghanaian cocoa industry is sustained.

Although global prices of cocoa has been unstable over the past four years, the producer price of the crop in the country has been consistently, a move government said is in line with his desire to fairly reward cocoa farmers in the country.

In the 2007 / 2008 cocoa season, the producer price of cocoa was GH¢75 per bag of 64 kilogramme. This was increased to GH¢102 per bag in 2008 / 09. In 2010/11, the producer price was increased from GH¢102 per bag of 64 kg to GH¢200 per bag of 64kg.

However, by 2011 / 2012 the price per bag had risen to GH¢205, representing over a 100 per cent increase in three years.

Also, during the 2008/09 crop year, government set up a Stabilisation Fund with annual contributions from the FOB price as a risk mitigating mechanism against a fall in international cocoa prices.

The primary objective of the fund was to apply it to sustain the earnings of cocoa farmers in challenging times like it is being witnessed during this 2012 /13 cocoa season. Meanwhile, Dr Duffuor said the Stabilisation Fund (SF) has been applied accordingly.

Other rates and fees for stakeholders in the cocoa sector include the buyers’ margin, haulers’ rate, warehousing and internal marketing costs as well as fees for disinfestations, grading and sealing.

The margins rates and charges were maintained at least year’s levels as a demonstration of the commitment of other key stakeholders towards sustainable cocoa industry.

The President of the Ghana Cocoa, Coffee and Sheanut Farmers Association, Alhaji Alhassan Bukari, told the Daily Graphic, shortly after the increment that farmers were happy about the increment, which for them was a pleasant surprise.

According to him, the trend has always been a reduction in their prices, hence a decision to increase the local prices in spite of reducing world market prices was a laudable initiative by government.

“We thank the government for his efforts in the cocoa sector,” Alhaji Bukari said.

He, however, advised cocoa farmers along the Cote d’Ivoire border “not to allow the farmers from the country to bring their cocoa here with their bad prices to come and spoil our quality cocoa.”

Finding success through determination

She resolved to work on her own and overcame obstacles to get to where she is. At the 22nd National Awards for Export Achievement 2011, held recently in Accra, her company “Ebenut Ghana” was given a special honourary award. Ama Amankwah Baafi had a chat with her and reports

When she returned to Ghana in 1998 with her family from the United Kingdom (UK), Mrs Paully Apea-Kubi had a dream to work on her own. Then, one of her aims was to have a flexible work schedule to be able care for her family, especially when her younger child was just four years.

Upon a visit to a friend at Dodowa in the Dangme West district of the Greater Accra Region she realised that mangoes were in season (June / July) but there seem to be no buyers. “In fact I saw one pregnant woman seated behind a heap of mangoes and until three o’clock in the afternoon no one asked how much they were selling, except some school children who tried to take some and she chased them about.”

She told the GRAPHIC BUSINESS that she conceived the idea to do something about it. It was not until June 26, 1998, that a friend requested her to prepare a birthday cake with coconut flavor. After grating the coconut she dried in her oven and realised it had dried so beautifully white and crispy. She took the quantity needed but was left with more.



Her alliance with GEPA

She took the rest to the office of the Ghana Export Promotion Authority (GEPA) to find out if she can be assisted. She was received warmly and was told there was market for it in the United Kingdom but it would take some time because it had to be developed.

“In fact GEPA was the first institution that helped me do a business plan which by then was expensive. But their effort to help me get funds to start was not fruitful.”

She took the initiative to research on line for market. Eventually, she chanced upon the Danish International Development Agency (DANIDA), the official development cooperation agency of the Government of Denmark which gave her GH₵400 equivalent then, and that was how “Ebenut Ghana” started.



Ebenut Ghana

The factory at its current site, Ghana Industrial Commercial Estate (GICEL) at Weija in the Ga West District began with a worker and just one mini drier, developed through the assistance of the Food Research Institute (FRI).

She doubled as the producer, distributor and sales person. Later, Ebenut signed contracts with ten confectionary companies. From an initial capacity of 25 kilogrammes (Kg) in a month, production shot up to half a tonne (500 kg).



Impact of Chinese imports

By 2002, Ebenut was producing two tonnes a month and so bought a big drier as well as increased its staff to 12. It was expanding until 2004 when these Chinese imports begun coming in and the women who hitherto kept vigil at confectionary companies for confections started going to china to bring in such products.

Consequently, she decided to diversify by drying pineapple, mangoes, banana and pawpaw. During that time the German Technical Cooperation (GTZ) had been contracted by government to assist the sector so they helped look for market for my products. In 2007, through GTZ, Ebenut participated in fruit and logistics fair in Germany, where she had three customers from Italy, Switzerland and Germany who expressed interest in her work. Upon return, she began exporting.

Ebenut also dries vegetables like kontonmire, tomatoes, garden eggs, buma (green leafy vegetable and okra.

“We try to dry most of the things that are seasonal because we know that most our foods are very seasonal. We sell our goods at Koala, Shoprite and other notable supermarkets. All these foods if we had money to promote them will do well in the local market also.



At the factory / production

The raw materials, fruits and vegetables are weighed, sent to fresh fruit room, stuck them in plastic baskets and processors begin their work. After peeling the fruits spread and put in the drier. It important to note that here record taking is done seriously, including even the peeling.

After drying throughout the night, the products are put in containers, sorted out and packaged to customer preference.

Ebenut adhere to the Hazard Analysis and Critical Control Point (HACCP) standard, recognized as an international food safety program.

It works with 10 mango farmers in Dodowa and Akosombo, 10 pineapple (MD2) farmers in Bawjiase, 10 coconut farmers and 45 sugar loaf farmers in Ekumfi. The farmers are being assisted by the GTZ to certify them in organic and fair trade value chains that link producers, processors, traders, retailers and service providers from field to the consumer, in a way that all involved stakeholders benefit.



Her motivation

She has a passion for what she does. “I have a lot of ideas as to how to preserve our local meals and we have done a lot of research on that. I love my country but first of all as an entrepreneur I get my money, employ people, market Ghana and put it on the world map. I want to preserve what we call waste here and add value to it for export.” She tries to attend most exhibitions.



Major achievements

She received a special honourary award at the 22nd National Awards for Export Achievements 2011 held recently. In 2009, she was among 10 women in Africa selected for the United Nations Conference on Trade and Development (UNCTAD’s) second Empretec Women in Business Awards.

Again in 2006, at a fair in Senegal, Ebenut Ghana won the Best Packaged Product in West Africa. She has since been made the coordinator and occasionally entrepreneurs visit her factory for inspiration.

Funding is however a major challenge to expanding her business. She is sometimes compelled to depend on clients to pre-finance which she said is not helpful.



Future of Ebenut

The company has acquired a new site at Bawjiase seeking for financial breakthrough to develop into a modern factory. “We are looking for a good partner. If we move there we will be producing 15 tonnes monthly and which means workers are going to double.”

Meanwhile, Ebenut in collaboration with FRI and USAID’s West Africa Trade Hub have worked on the development of jollof rice and gari futo but need money to implement.

Ebenut normally takes on Senior High School graduates who stay on me for about two years to be able to save some money and then go back to school.

At the moment, two of such people are pursuing programmes in agri-business and administration at the University College of Winneba, University of Ghana, Legon and University of Development Studies and hope to return to the company.

It offers in-service HACCP training for those in the food industry. She is also a guest lecturer at the Food Processing Department of the University of Ghana. Students also get the chance to do practical internship at Ebenut.



Lessons learnt

She said most Ghanaian foods can be packaged and exported if we go by the standards; that is food safety aspects. Consumers in Europe are waiting to taste exotic food. She suggested the Ministry of Food and Agriculture can nurture people interested in the processing sector and assist them to achieve their dreams.

She appealed to government to institute an incubation fund to help potential entrepreneurs to turn their ventures into serious moneymakers. She added private-owned businesses may represent a big source of potential growth for the Ghanaian economy.



Her advice to women entrepreneurs or potential entrepreneurs

She said food processing has been in the country for some time; processing of koobi (salted fish) and other things but there have been new developments and new technologies.

Therefore, Ghana needs a lot of people to come into the industry which though capital intensive is lucrative. Yet, the person should have the flair for it because it is demanding.



Education background

She obtained secondary education at Oda Senior High School, proceeded to Accra Polytechnic to read a Catering and Institutional Management and then to Thomas Denby in Leeds, United Kingdom where she studied Hospitality.

She also has a certificate in Financial Management from Benchmark Capital Group.



Hobby

When she is not at the factory processing fruits and vegetables she exercises at the gym and likes to walk a lot. She is married with three children and loves spending time with them by visiting places of interest.

Ghana showcases products in Liberia

OVER 40 Ghanaian companies with a wide range of products are exhibiting their wares at a fair exclusively organised for Ghanaian products in Monrovia, Liberia.

The Ghana Export Promotion Authority (GEPA), in collaboration with the Association of Ghanaian Industries (AGI) and the Ghana Embassy in Liberia, organised the solo-exhibition, which is on the theme: “Deepening Ghana-Liberia Relations through Trade.”

The one-week exhibition which will end on October 31, 2012 is to enable manufacturers and artists from Ghana showcase a variety of products, including pharmaceuticals, household disinfectants, detergents, herbal products, shea butter, soaps, textiles and garments, woodcraft, straw baskets and beaded items to the market in Liberia.

Other products are footwear, cosmetics, hair products, plastic packaging, lubricating oils, animal health products, aluminiums cook wear as well as roofing sheets.

The Acting Chief Executive Officer of the GEPA, Mr Stephen Normeshie, said the exhibition was a follow-up to a series of Ghana trade and investment missions that had been held in Monrovia in the recent past.

He said Ghana considered Liberia a strategic trading partner with whom not much had been achieved so far. As a result, Mr Normeshie said it was GEPA’s desire to intensify trade between the two countries as well as other ECOWAS member states.

The exhibition also seeks to increase trade relations between the two countries and offer businesses, particularly the small and medium scale enterprises, the opportunity to strike inter-country partnerships for growth.

“Ghana is interested in the stability and economic growth of Liberia. We believe that events such as this exhibition will enable the private sectors of our two countries to get closer. It is also intended to showcase the products and services that Ghana has to offer Liberia to cement our bilateral trade,” the acting GEPA chief executive said.

Mr Normeshie emphasised that Ghanaian enterprises were currently not in Liberia to compete with those in Liberia but to seek partnerships and joint ventures that will draw the two countries together.

Ghana’s Ambassador to Liberia, Mr Kenneth Asare Bosompem, said the global economic crisis and its effects such as the decline in remittances and aid had necessitated the sub-region to come up with initiatives for its economic growth.

He said there was the need to integrate economies to be able to minimise the negative impacts.

“Although a number of countries in the region are emerging out of conflict, these are characterised by unbroken peace and stability. It is, therefore, incumbent on us to collaborate effectively to ensure that this exhibition is a modest step in this direction,” Mr Bosompem stated.

The Vice President of the AGI, Mr Samuel Agyapong Appenteng, called on governments in the sub-region to give the private sector the necessary support by addressing the challenges facing them and creating an environment conducive for businesses to thrive and expand beyond borders.

“The number of road blocks, the uncooperative attitude of some custom officials, and corruption at our border posts, among others, are the problems facing the development of West African trade,” he added.

Ghana showcases products in Liberia

OVER 40 Ghanaian companies with a wide range of products are exhibiting their wares at a fair exclusively organised for Ghanaian products in Monrovia, Liberia.

The Ghana Export Promotion Authority (GEPA), in collaboration with the Association of Ghanaian Industries (AGI) and the Ghana Embassy in Liberia, organised the solo-exhibition, which is on the theme: “Deepening Ghana-Liberia Relations through Trade.”

The one-week exhibition which will end on October 31, 2012 is to enable manufacturers and artists from Ghana showcase a variety of products, including pharmaceuticals, household disinfectants, detergents, herbal products, shea butter, soaps, textiles and garments, woodcraft, straw baskets and beaded items to the market in Liberia.

Other products are footwear, cosmetics, hair products, plastic packaging, lubricating oils, animal health products, aluminiums cook wear as well as roofing sheets.

The Acting Chief Executive Officer of the GEPA, Mr Stephen Normeshie, said the exhibition was a follow-up to a series of Ghana trade and investment missions that had been held in Monrovia in the recent past.

He said Ghana considered Liberia a strategic trading partner with whom not much had been achieved so far. As a result, Mr Normeshie said it was GEPA’s desire to intensify trade between the two countries as well as other ECOWAS member states.

The exhibition also seeks to increase trade relations between the two countries and offer businesses, particularly the small and medium scale enterprises, the opportunity to strike inter-country partnerships for growth.

“Ghana is interested in the stability and economic growth of Liberia. We believe that events such as this exhibition will enable the private sectors of our two countries to get closer. It is also intended to showcase the products and services that Ghana has to offer Liberia to cement our bilateral trade,” the acting GEPA chief executive said.

Mr Normeshie emphasised that Ghanaian enterprises were currently not in Liberia to compete with those in Liberia but to seek partnerships and joint ventures that will draw the two countries together.

Ghana’s Ambassador to Liberia, Mr Kenneth Asare Bosompem, said the global economic crisis and its effects such as the decline in remittances and aid had necessitated the sub-region to come up with initiatives for its economic growth.

He said there was the need to integrate economies to be able to minimise the negative impacts.

“Although a number of countries in the region are emerging out of conflict, these are characterised by unbroken peace and stability. It is, therefore, incumbent on us to collaborate effectively to ensure that this exhibition is a modest step in this direction,” Mr Bosompem stated.

The Vice President of the AGI, Mr Samuel Agyapong Appenteng, called on governments in the sub-region to give the private sector the necessary support by addressing the challenges facing them and creating an environment conducive for businesses to thrive and expand beyond borders.

“The number of road blocks, the uncooperative attitude of some custom officials, and corruption at our border posts, among others, are the problems facing the development of West African trade,” he added.

Export Authority promotes services sector

The Ghana Export Promotion Authority (GEPA) is to market key professional institutions in the country to the outside world as part of efforts aimed at generating more revenues from non-traditional exports (NTEs) and the services sector in particular.


The idea is to help attract patronage from foreigners for services such as financial and the business processing and outsourcing (BPO), medical tourism, consultancy and education being run in the country.

The Acting Chief Executive Officer of the GEPA, Mr Stephen Normeshie, who disclosed this to the Daily Graphic in Lagos, Nigeria, added that the authority was mainstreaming professional services exports into the existing 400 NTEs portfolios.

He spoke to the paper on the sidelines of the international trade fair which ended in Lagos, Nigeria.

The fair brought together over 40 businesses from Ghana to showcase their products and services to the Nigerian market.

“Ghana’s educational system is considered one of the best within the sub-region and has become gravitating points for students from many countries. The medical centres of excellence have also been categorised as some of the best, including the Cardio and Reconstructive Plastic Surgery units (in Accra and Kumasi) and the forensic (genetic) laboratory in addition to existing centres of excellence,” the GEPA Acting CEO said.

The export authority which is mandated to promote exports has over the years contributed to the growth of the export sector through the promotion of four main cardinal areas, which cover all non-traditional products. The strategic areas are manufactured products, agribusiness, home décor/handicrafts and professional services.

The professional services have, however, received less attention despite the immerse contributions the services sector brings the country’s Gross Domestic Product (GDP).

“We have identified professional services as one with lot of export potential,” Mr Normeshie said.

He said the authority had made conscious efforts to promote the services export sector, especially in the tourism, financial and the business processing and outsourcing (BPO), medical tourism, consultancy and educational sectors.

At the fair, which ended on Saturday, Africa Eco Tour, a professional organisation with diverse interests in tourism and education, provided the platform for several education institutions and students in Ghana to exchange ideas on matters of mutual consent.

A representative of the organisation, Mr Clifford Selasie, said his organisation received good responses. “Before we participate in fairs, we try to get on board schools that are interested in recruiting students from the sub-region. In Lagos, it is a big market so we decided to take advantage of it and we made an impact. We advertised on the national television and distributed brochures. Indeed, we had lot of good response,” he said.

The Forestry Commission also participated in the fair. The Grading and Inspection Manager of the commission, Mr Baba Ibrahim Ahmed, said Nigeria was the biggest importer of timber products in Ghana, importing about 56 per cent value of Ghana’s product, “thus the decision to be present at the fair to protect our market share.”

He said plans were underway to set up an office in Lagos so the commission could compete favourably.

Ghanaian businesses invade Nigeria

ABOUT 45 Ghanaian businesses and entrepreneurs are participating in the annual Lagos International Trade Fair currently underway in the Nigerian Capital, Lagos.

The fair, which is on the theme ‘Promoting Trade for Sustainable Economic Transformation’ started on November 2 and will end on Sunday, November 11.

Local businesses in the services, export sector, especially those in medical tourism and education are represented at the fair. Other products showcased include pharmaceuticals, household disinfectants, detergents, herbal products, shea butter and soap.

Businesses in the production and sale of textiles and garments,handicraft, beaded items, footwear, hair products and aluminium cook ware were also present at the Lagos International Trade Fair, one of three exhibition platforms on which Ghanaian businesses use to market their products to the Nigerian people.

The others are the Abuja and Lagos International Trade Fairs and the Arts and Crafts Fair.

The fairs are the initiatives of the Ghana Export Promotion Authority (GEPA), the Ghana Investment Promotion Centre (GIPC), and their counterparts in Nigeria as well as the Ghanaian Embassy in Nigeria.

Some exhibitors told the Daily Graphic that the fair continues to provide the platform for them to showcase their products and to seek business partnerships in Nigerian market. The Nigerian market is considered the largest and most strategic one in the West African sub-region given the population of the country.

A ‘Ghana Day’ on business and investment forum was held at the sidelines at the fair to expose Nigerian investors and businesses to the various business opportunities they could take advantage of.

Participants in the forum included some members of the Lagos Chamber of Commerce and Industry and representatives from the Nigeria Ministry of Trade. It was on the theme ‘Promoting Ghana-Nigeria Trade Fair for Sustainable Economic Development.’

Ghana’s High Commissioner to Nigeria, Alhaji Baba Kamara, said although the economies of the two countries had been growing in the last two decades, the growth had not translated into the economic development required to lift citizens from poverty.

That, he said, was because the “growth in our gross domestic product (GDP) was largely attributed to the growth in the oil and gas sector and other extractive industries. Therefore, for the needed economic development and transformation, we need to create the enabling environment that will see government and the private sector invest in the productive sectors of the economy where quality goods and services will be produced at competitive prices for domestic consumption and export,” he added.

He bemoaned the little economic successs chalked by the ECOWAS Trade Liberalisation Scheme (ETLS), nearly 20 years into its establishment.

“Little has been achieved by way of significant increase in trade among member states. While trade among European Union members stand at 60 per cent, that among ECOWAS members is below 10 per cent due to challenges such as exorbitant transit fees and extortion at the numerous check points in the various countries,” Alhaji Kamara said in a speech read on his behalf by the Ghana Consul General in Lagos, Alhaji Abdulai Abubakhar.

The Acting Chief Executive Officer of the GEPA, Mr Stephen Normeshie, said Ghanaian businesses were not only seeking to market their quality products in the Nigerian market, but were also looking for genuine business partners.

“Since trade is reciprocal, we have also been encouraging our companies to consider investing in the non-oil, non-traditional export sectors (NTEs) of Nigeria. We are much aware that opportunities in these sectors are huge and so it will take the goodwill, determination and transparency by the private sectors of both countries to exploit for our mutual benefits and in fulfillment of our sub-regional integration agenda,” he added.