The agricultural sector of Ghana has been suffering from an intense drought. The dry season lasted for over three and a half months. Temperatures on average have been between 39 to 40 degrees Celsius, while the lack of rain impairs the irrigation of the fields.
“The current situation is very bad due to the climatic conditions,” says Basan George of Eve-Lyn Farms. His company grows and exports papaya, with a main focus on the Solo variety. The papaya production in Ghana is currently in its low season, which lasts from April until August.
“The local demand for papaya is rising. Papaya as a commodity has become just as important for Ghana as other fruit like mangoes, pineapples and oranges. The consumption is good, but depends on the spending power of the consumers. Our main consumer base is the middle and upper class consumers who are able to spend at retailers. The lower class is often able to pick the fruit themselves, as papayas also grow in the wild. However, the middle class that we’re providing for reside in urbanised areas without any access to wild papayas.”
In the last season there hasn’t been any major expansion of acreage. The cause of this is in large part due to the adverse climatic conditions, but according to Basan George a more pervading issue is the lack of support of the government of Ghana.
“Our government isn’t doing anything to develop the Ghana’s agricultural sector. For instance, the major ports of Ghana are used to bleed the exporters of their meagre earnings. When logistics are concerned, this country has all the means for export. But for every step in the bureaucratic process, exporters need to pay. They need to pay for each and every service, even if the service isn’t really necessary of if the service has already been provided at a previous stage.”
“Some growers are independently looking for ways to meet global standards for export. But for most growers this is a huge impediment. The government isn’t investing in Ghana’s farmers, even if it says it does. Sometimes equipment for certain projects is provided by the government, but this is usually because of the short-term benefits for the government itself. This prevents exporters from achieving their potential. As long as there isn’t any support, there won’t be any progress at all.”
According to Basan George, the phytosanitary regulations for export are also woefully inadequate. “There are services for this in place, but they are undermanned and under financed. The main problem is that these services only exist on paper, but aren’t actually applied. They exist only as red tape.”
This also has a negative effect on the papaya trade between the European Union and Ghana. “We used to export to Europe, over eight years ago. But most farmers and exporters lack the financial means to export in a financially viable way. A large problem is the lack of a proper way to secure financing. Ghana’s compound interest stands at an enormous 40%. In practice, this means that taking out a loan is the equivalent of putting your business up for sale. Another consequence of this interest rate is that Ghana can’t hope to compete with other African countries in the export to the European Union. The EU is a common market for African produce, which means that the EU treats all exporting countries equally. But how are we supposed to export as equals when we have to deal with a 40% interest rate?”
In spite of all this, Basan George is still optimistic about the potential of the papaya sector in Ghana. “The papaya could be very successful. Trading papayas could free poor families from poverty and make them self-sufficient. But this will only happen if they are supported properly and if systems for handling, logistics and export are readily available. Despite everything, there are big opportunities here. The majority of the population of Ghana is involved in agriculture.”
