Source: Graphic Business
THE maiden Minimum Producer Price (MPP) for mango per kilogram is GH₵4.00 for the 2024 main mango season (May to July).
This price applies to second-grade mangoes, while first-grade mangoes can fetch higher prices through negotiation. Mangoes below second grade should either be discarded or sold at scrap value.
This pricing model is indexed to the US Dollar and based on international commodity market prices, providing protection against exchange rate losses.
The development of the MPP was facilitated by the Tree Crops Development Authority (TCDA) in partnership with the Federation of Association of Ghanaian Exporters (FAGE), mango stakeholders, and with financial support from the German Agency for International Cooperation (GIZ).
This was announced in a speech read on behalf of the Minister of Food and Agriculture (MoFA), Dr Bryan Acheampong, by the Deputy Minister of MoFA (Crops), Yaw Frimpong Addo at a media launch in Accra on Friday.
He said the implementation of the MMP for mango marks a significant step toward securing the future of Ghana’s mango industry and enhancing the overall sustainability of the country’s agriculture.
Highlighting the collaborative efforts behind this achievement, he said the development demonstrates collective efforts to promote sustainable agricultural practices and ensure fair returns for hardworking farmers and all other actors within the mango value chain in the country.
“The board of TCDA approved the MPP formula on March 27, 2024, and forwarded it to the Minister for final approval. The Minister painstakingly evaluated the formula and all the processes leading to the approval by the Board of TCDA and was particularly satisfied with the extensive stakeholder engagement involved,” he stated.
Reducing wastage
He indicated that despite this positive development, the mango industry in Ghana continues to face several challenges, including inadequate processing facilities, poor transportation infrastructure, fluctuating market prices, and limited access to advanced farming techniques.
These issues, he said, often result in lower prices for farmers due to the perishable nature of the fruit.
However, he mentioned that the Ministry, together with the TCDA board and other stakeholders, are diligently working to address these issues adding that a new programme is being developed to enhance the processing capacity for mangoes, aiming to reduce wastage and mitigate the recurring gluts that have plagued the industry over the years.
“This initiative is not just about setting prices; it is about supporting our farmers, ensuring they receive fair compensation for their hard work, and providing information to buyers and processors to plan their business, fostering a sustainable and prosperous agricultural sector,” Dr Acheampong said.
Potential
The Chief Executive Officer (CEO) of the TCDA, William Agyapong Quaittoo, disclosed that currently,
Ghana boasts approximately 200,000 hectares of mango plantations, producing between 300,000 to 400,000 metric tons annually, with the potential to reach three million metric tons per year.
He indicated that establishing the minimum price was crucial for transparent negotiations with buyers and local process, in building trust among value chain participants.
He added that the price would serve as the benchmark for compensating production costs and resolving commercial disputes, ensuring a universal reference across the production-market-consumption chain.
THE AUTHOR: Elizabeth Nyaadu Adu
