Tag: Peasant Farmers Association of Ghana (PFAG)

  • NAFCO licenses 14 companies to supply food commodities — CEO

    NAFCO licenses 14 companies to supply food commodities — CEO

    The Chief Executive Officer of the National Food Buffer Stock Company (NAFCO), George Abradu-Otoo, has disclosed that 14 companies have so far been licensed to supply food commodities under the company’s current procurement framework.

    The licensed firms are authorised to procure food directly from farming communities and deliver the commodities to NAFCO warehouses across the country.

    “So far, we’ve licensed about 14 companies. They have their agents. Once you are licensed, you can go to places like Asutsuare to buy rice, deliver it to our warehouse and provide proof,” Mr Abradu-Otoo said in an interview on Face to Face on Channel One TV on Tuesday, 3 February.

    He explained that all commodities supplied by the licensed companies are received and verified at NAFCO warehouses by designated officials, including storekeepers and regional managers, before being accepted into storage.

    Mr Abradu-Otoo said pricing is determined by a Price Determination Committee made up of representatives from key stakeholder institutions, including the Ministry of Food and Agriculture, the Peasant Farmers Association, the Rice Millers Association and NAFCO.

    According to him, the committee relies on research and market data gathered across the country to agree on prices. Once agreed, the proposed prices are submitted to the Public Procurement Authority (PPA) for review and approval.

    “They give the final authority, and based on that, we announce the prices and proceed,” he said.

    Mr Abradu-Otoo stressed that the process is designed to ensure transparency, accountability and strict compliance with procurement regulations, adding that NAFCO’s immediate focus is on managing excess food supply.

    “Our main concern right now is the glut,” he stated.

     

     

     

     

     

     

     

     

     

     

     

     

     

     

  • Delays in granting tax exemptions poses serious risk to agric sector

    Delays in granting tax exemptions poses serious risk to agric sector

    Adnan Adams Mohammed

     

    Key agricultural sector stakeholders have raised alarm over government’s delay in granting tax exemptions saying it poses serious risk to the sector activities in the country.

     

    According to some of the key stakeholders the delay of Minister of Finance in granting tax exemptions for agricultural commodities as requested by Minister of Food and Agriculture is impacting negatively on their activities.

     

    It could be recalled that President of Ghana, Nana Addo Dankwa Akufo-Addo on 12th September 2022 assented to the Tax Exemptions Act 2022, Act 1083 which is meant to regulate the application of tax exemptions and create an exemptions regime for goods imported into the country. While they lauded the attempts by the government to streamline tax exemptions and rake in more revenues to develop the country, agricultural goods and equipment are not included in the list of items exempted from import duties.

     

    “This delay has a dire consequence for the sector which is already fragile due to global price increases in agricultural machinery and agro-inputs leading to high cost of production and could further worsen the food security situation in the country going forward”, Anthony S.K. Morrison, CEO of Chamber of Agribusiness Ghana, addressing journalists in Accra, last week indicated.

     

    “This decision by the government to specifically exclude agricultural goods in the list is shocking and contradicts the government’s own policy of transforming the economy through agricultural transformation.”

     

    Stakeholders present at the press conference included members of CropLife Ghana, Chamber of Agribusiness Ghana, Peasant Farmers Association of Ghana (PFAG), National Seed Trade Association of Ghana (NASTAG) and Ghana Rice Interprofessional Body (GRIB).

     

    Fortunately, to compensate for the omission, the Act allows the finance minister to grant industry-specific exemptions based on recommendations of a given sector Minister with Cabinet approval”.

     

    Given the critical nature of agricultural and agribusiness activities in the country, on 10th January 2023, the Minister of Food and Agriculture applied for exemptions for agricultural commodities.

     

    “Whiles we still await the decision of the finance Minister and government to grant the request, our clients and service providers have their goods currently locked up at the ports due to exorbitant charges slapped on them by way of import taxes”, Mr Morrison stated.

     

    For instance; he said; “one of our service providers that has livestock vaccines valued at GHS 420,000 in import was asked to pay GHS 330,000 as it no longer attracted exemptions. Due to this, the company immediately halted the shipment and asked for an extension hoping that the Ministry of Finance would have granted the exemptions”.

     

    This development has dire consequences for the sector which is already battling with high input and machinery cost partly attributed to the Russian-Ukraine conflict, high cost of shipment, depreciation of the cedi and high transport cost associated with high fuel prices.

     

    On average, most farmers in 2022 produced at a loss, some had to scale down their production and others sought for alternative businesses due to high cost of production, Mr Morrison, flanked by other key stakeholders, told the journalists.

     

    A situation leading to low food supply, high food prices contributing to record high inflation of over 54% in December 2022. This situation will be compounded if taxes are further imposed on agro-based products, they indicated.

     

    Again, this action defeats government’s own efforts to anchor the country’s developmental agenda on agricultural transformation. The government is investing in input subsidies, extension services; research and market support systems and encouraging the youth and private investors to engage in agriculture.

     

    The current situation will therefore be counterproductive to the government’s own efforts as high costs will scare investors from a sector that is already overburdened with risk and uncertainties.

     

    Furthermore, Mr Morrison and his colleagues said most agro-based industries are shrinking, and others are folding up due to high cost of raw materials; government should rather be interested in policies and actions that reduces cost of doing business in the agricultural value chains rather than counterproductive policies like import duties on agro-products.

     

    They therefore called on the Minister of Finance, as a matter of urgency, to speed up in granting the request by the Minister of Food and Agriculture and grant exemptions to the agricultural commodities as captured in the application letter.

     

    This decision should be taken immediately without any further delay, as international prices of these goods might escalate if we continue to wait, they stressed.

     

    The concerned stakeholders also called the government and Parliament to take a second and swift look at the Exemptions Act and take steps to amend and specifically include agricultural goods and equipment in the list of exemptions.

     

    The decision to have agricultural commodities being considered as general goods and given discretion to a sector minister is a dangerous move which might not augur well for the sector, according to them.

     

  • Agric Minister Should Not Downplay the Living Experiences of Farmers and Ghanaians – Associations

    Agric Minister Should Not Downplay the Living Experiences of Farmers and Ghanaians – Associations

    The Peasant Farmers Association of Ghana (PFAG), Chamber of Agribusiness Ghana (CAG), the General Agricultural Workers Union (GAWU), the Rice Millers Association of Ghana (RMAG), and Food Sovereignty Ghana (FSG) are appalled and disappointed by comments and responses by the Minister of Food and Agriculture, Dr. Owusu Afriyie Akoto, during an interview on the Citi Breakfast Show on Wednesday 16th March 2022.

    In the said interview, the Minister responded to questions relating to his performance as the sector Minister over the past five years. Needless to say that, despite broad efforts by the government to address constraints in the sector through consistent engagement of sector actors, the responses of the Minister for the most part were not only evasive and unaccountable, but clearly demonstrated high levels of intolerance, and an outright disrespect to the living experiences of farmers and other actors in the sector.

    It is this approach to policy making in the sector which has largely negated any serious results (if possible) from major interventions in the sector over the past five years and frankly not necessary in a sector as critical as agriculture with several stakeholders.

    Firstly, the Minister, in his response to the current food security situation manifested by constant spikes in food prices and absence of relevant supplies, chided persons, institutions and data that pointed to this reality.

    In fact, in responding to a question on the state of food security captured in the 2021 Global Food Index where Ghana was ranked 82nd dropping from 76th in 2016, the Minister downplayed the content and significance of the report, disagreed and ‘poohpoohed’ the findings even though he could not provide any alternative report.

    The Minister continues to live in the thinking that all things are rosy in the sector when the reality is that we are saddled with unavailability of food coupled with high food prices. Don’t take our words for it! The government’s statistician, the Ghana Statistical Services (GSS) indicates that food inflation in Ghana has reached an all-time high of 17.40 percent as at February 2022.

    If this is not a reflection of the double whammy of escalating prices and weak food supplies which

    undermine food security, then we are not sure what is. Prior to the consistent reports from the GSS,

    several organisations monitoring food supplies across various markets had confirmed these risks, only

    for the sector Minister to refer to his domestic experience in an interview – ‘my wife has not indicated to me food prices have increased’. How inconsiderate and disrespectful to Ghanaians?

    We hope his responses this morning, and in previous comments such as the reference to his domestic experience are not a reflection of official government position on the developments in the sector. That will be an unfortunate situation! In fact, forecast by analysts and economists suggest that the situation will get worse in the coming months due to existing weaknesses in our systems as well as global pressures.

    Policy makers at the highest level such as the sector Minister cannot be dismissive of these risks and

    reports. At the minimum, such reports should be seen as feedback to enable government and the

    Ministry of Food and Agriculture to examine their policy toolkits to addressing the underlying risks in

    a collaborative manner.

    Secondly, the sector Minister appears not to comprehend issues of fidelity in policy implementation at

    scale, and the cardinal need for generating evidence to improve policy design. The flagship Planting for

    Food and Jobs programme of government has indeed touched on several issues in the agricultural sector,

    which has contributed to the improved performance of the country in recent assessments on progress

    towards the Malabo Declaration.

    However, feedback from farmer associations and other actors in the sector, for the simple reason that the ministry does not have resources to engage all 11.3 million farmers across the country, should be considered seriously and not dismissed nonchalantly as the Minister did this morning.

    Any policy being deployed at scale, will suffer several implementation challenges which only constructive feedback can help manage and rectify. In fact, non-agriculture sector policy decisions can have profound implications on the success of components of the planting for food and jobs programme.

    Take the current increases in fuel prices as a caveat, transportation costs will not only increase in the value chain as a direct consequence, but a pass-through effect which will chip away incomes of farmers and other actors will be threatened, and given the objective of the PFJ, a feedback on this should be considered. One of the main objectives of the PFJ was to ensure immediate and adequate supply of selected food crops across the country.

    A survey of markets and consumers do not imply that there is adequate availability of these food crops. Prices of some of these selected food crops have more than doubled in real terms (when we adjust for inflation) since 2016, and this has nothing to do with how sexy or otherwise, the PFJ programme looks in the eye of the sector Minister. It is the acknowledgement of the problem and consistent engagement with stakeholders that can produce outcomes desirable for both government and Ghanaians. The Minister’s resort to ‘window dressing’ the facts and simply disrespecting the experiences of farmers will not fix the problem. Again, we have more than doubled our maize production from 1.8 million to 3 million tonnes, according to the Minister, but market price of 100 kg of maize has risen from GHS100.00 in 2016 to almost GHS290.00 in 2022.

    Unless the Minister doesn’t have price points such as this or simply does not acknowledge the

    experience of Ghanaians and farmers, both results are not desirable for development of the sector. How

    come poultry farmers continue to lament on the price and availability of corn for their feed? How come

    prices of vegetables such as tomatoes and onions are rising daily and why do we keep importing them

    from our neighbours? It is not smallholder farmers and other sector players that issued a directive to

    ban the export of food to neighbouring countries due to existential risks a few months ago, is it? The

    government acting through the Minister did! It is for this reason that the undersigned organisations as

    key actors in the sector have long called for a shift in the country’s strategy to organic methods of

    farming, most of which will rely on safe domestic agroecological techniques, to insulate the country

    from some of the current external geopolitical pressures. Sadly, we have a Minister who happens to

    have some ‘holy grail data’ manufactured by him, which runs counter to the real experiences of

    Ghanaians and farmers as well as the government’s statistician.

    Lastly, the President of the Republic called for Ghanaians to be citizens not spectators! The approach

    of the sector Minister – a complete disregard for real living experiences and credible data from

    institutions operating in the sector including the government’s statistician, we are afraid suggests the

    contrary. The sector Minister is well within his rights to disagree with the views, data and experiences

    of actors in the sector. But to do that from an uninformed position, while not providing evidence, but

    vituperations and invectives for the simple reason of disagreeing and the insatiable desire to hear the

    sound of his own voice is simply untenable in a sector as important as Agriculture and particularly at

    this time with such risks in the sector. He can do better and frankly should do better! The undersigned

    institutions have at different forums acknowledged the work of the Ministry in the sector, and proceeded

    to point out blinds spots, and areas of weaknesses which can be addressed given the varied experiences

    of different actors in the sector. The Peasant Farmers Association of Ghana for instance has in times

    past worked with the Ministry and created platforms for the leadership therein to engage with its

    community of more than 1.3 million smallholder farmers across the country on modalities for

    implementation of the fertiliser subsidy programme. This is significant, and comments such as that

    made by the Minister on CitiFM this morning that PFAG and other groups in the sector are “people

    who hide behind big names to pretend that they are speaking for a certain group of people” is very

    unfortunate. It is important to remind the Minister that while acting as the Ranking Member of the

    Food, Agriculture and Cocoa Affairs Committee of Parliament in opposition, these same organisations

    collaborated with him and the committee to advocate for several issues in the sector, which the then

    Mahama-led government had to address. We are simply interested in getting the attention of policy

    makers to critical issues that must be addressed to ensure sustainable food production and improvement

    in the livelihood and living experiences of Ghanaians. Our position has not changed! That of the

    Minister has changed and perhaps, a bit more openness and receptive engagement with the 11.3 million

    farmers and key stakeholders across the country represented by the undersigned organisations and their

    allies, will be better for the Ministry and the government!

    2We remain ever committed to working with government and other stakeholders in ensuring some respite

    is brought to farmers and Ghanaians, despite the unfortunate comments of the sector Minister. We are

    in no position to suggest to the Minister how to do his job – take feedback on his policies, adjust to

    fidelity in policy scalability during implementation and certainly conduct of public interviews when the

    living experiences of Ghanaians are in question, but we sure know that this current approach could

    generate negative externalities which are anti-collaborative to turn the fortunes of the sector around.

    Perhaps, the kitchen is too hot? Well, the Minister may well know what to do.

    Sincerely,

    1. Peasant Farmers Association of Ghana (PFAG) – 0203035672

    2. Chamber of Agribusiness Ghana (CAG) – Anthony Morrison – 0540742111

    3. General Agricultural Workers Union (GAWU) – Edward Kareweh – 0244529484

    4. The Rice Millers Association of Ghana (RMAG) – Yaw Adupoku – 0554024137

    5. Food Sovereignty Ghana (FSG) – Edwin Baffour – 0244333095