SUSTAINING INNOVATIVE FINANCING OF WASTE AND SPOILAGE TECHNOLOGIES:

CONTRIBUTIONS OF LOCAL GOVERNMENT

PRESENTED ON BEHALF OF ING. J. K. BOAMAH BY A. K. B. DEYANG

6TH Nov., 2014 ISSER Conference Room

OUTLINE

• INTRODUCTION• FOOD SECURITY EXPERTS’ VIEWS• GHANA’S LESSONS• GOVERNMENT/DEVELOPMENT PARTNERS

INTERVENTIONS• FOCUS ON AGRI-FINANCE TOOLS• CONCLUSION

INTRODUCTION

• Postharvest loss is collective food loss along the food production chain, from harvest and handling to storage and processing to packaging and transportation up to the fork.

• There is economic loss and decrease throughout the supply chain that leads to reduction of food for its intended use and return on investment.

• The causes of postharvest losses are complex and vary depending on the weather, region and crop, but the challenges faced by farmers and processors are lack of proper storage facilities, appropriate transportation and distribution systems, sufficient processing facilities and detailed information on where and how food is lost along the value chain.

ECONOMIC LOSS

• It is documented that $4 billion is lost every year in Africa including Ghana as a result of postharvest losses and this significantly reduces profit and incomes of farmers and other operators along the value chain (Africa Progress report, 2014 - AfDB).

• Postharvest loss is therefore a major contributor to food insecurity on our continent.

• Food security experts have advocated for reduction of postharvest loss and increase related value addition by using efficient technologies and marketing systems.

• These experts also advocated that investment in agriculture should go beyond improvements in on-farm productivity to address the postharvest sector and complementary areas of agribusiness and agro-industry, whose potential as engines of economic growth is widely acknowledged.

FOOD SECURITY EXPERTS VIEWS

GHANA’S LESSONS

• Lessons learnt in Ghana show that the agricultural sector has struggled to access the needed finances for sustained growth. In part, a perceived combination of high risk and modest returns as well as the costs of extending banking infrastructures in rural areas has deterred many banks and other financial institutions.

• The inherent risk associated with agriculture (such as unpredictable biological, climatic and price variables) result in an under-provision of financial services in rural areas.

• Further, where services are available, products are often designed without considering the needs and capacities of rural households and agricultural producers.

• The inability of farmers and processors to access capital on competitive terms to undertake profitable investments in postharvest loss management

• Without financial products and services to insure against risk, rural households and enterprises may even retreat from profitable projects for which they have adequate liquidity.

• Farmers’ inaccessibility to finance is a key impediment to improving the efficiency of their productions and adopting better technologies

GOVERNMENT/DEVELOPMENT PARTNERS INTERVENTIONS

• For the past decade government through the Ministry of Food and Agriculture (MOFA) intervened by directly acquiring machinery and technologies for onward sale to farmers under subsidy.

• For example:– Drying facilities (mechanical and solar),– Harvesting equipment (combine harvesters, rippers)– Processing facilities (Rice mills, sheanut & oil palm processors etc.) – Storage facilities (metallic silos, grain super bags etc)

• among others were sold on hire purchase basis to farmers and processors.

• The Japanese Government gave Ghana government a grant facility to the tune of US $50 million to procure various agricultural machinery and equipment for sale to the under privilege farmers.

• Italian government, MOFA has set up a tomato processing centre in Techiman in Brong Ahafo region. The main objective of this project is to process tomatoes and other allied commodities in Techiman and its environs to cut down waste and spoilage encountered yearly.

• Additionally, the Millennium Development Authority (MiDA) built five (5) grain cleaning and bagging facilities and warehouses in the Northern region. The facilities are located in Panaa, Savelugu, Karaga, and Walewale where farmers process their produce at a fee instead of acquiring their own machinery which may be costly to individual / unresourced farmers.

• Ghana Grain Council, a private company, too had set up grain cleaning and bagging centre in Tamale for Gundaa Produce Company and another one in Wa for Big Ajar Enterprise and offer farmers confirmed market.

• With the patronage of these facilities, wastage and spoilage are eventually reduced and good quality commodities are sold at premium price.

FOCUS ON AGRI-FINANCE TOOLS

• Building capacity of client financial institutions in agri-finance: conducting diagnostics, improving risk management systems and processes and designing new products;

• Linking financial institutions to sustainable supply chains: promoting access to finance for stakeholders along sustainable supply chains; and

• Linking insurance to agri-finance: bringing insurance products to address postharvest loses and revenue risks.

CONCLUSION

• The aforementioned reasons, we believe that our partnership with the private sector and scientists etc. in the agriculture industry in providing innovative financing in postharvest technologies / machinery and training will go a long way to reduce postharvest losses. We also have to take advantage of the wide ECOWAS and other international market to reduce waste and spoilage.

THANK YOU