Banker Advises Farmer To Form Cooperatives To get Loans

Legon, Aug 14, - Mr Robert Nyarko, Credit Officer of the Agricultural Development Bank (ADB), has suggested the formation of cooperatives by farmers as a means of getting easy access to credits. He said the bank finds it more convenient dealing with cooperatives than with individuals because it is easier to retrieve loans and provide facilities for common interest at minimum cost. Mr Nyarko was speaking on ''Strategies for financing the livestock industry for increased production'' at a symposium held at the University of Ghana, Legon, as part of the three-day annual general meeting of the Ghana Society of Animal Production (GSAP). The meeting, the tenth of its kind, is on the theme ''Animal Protein for a Healthy Nation''. Mr Nyarko said banks refuse to lend farmers because credit obtained are diverted to projects other than those for which the loans were given. Another reason is the improper keeping of farm and financial records for the banks to assess loan payment capabilities and feasibility study reports to convince financial institutions of the viability of projects for which loans are being sought for. He called for proper training of farmers on good farm management, emphasizing the need for them to operate commercially to attract loans. Professor E. O. Otchere, Director, Animal Research Institute, said for farmers to adopt new technologies, there is the need to recognize their cultures, local beliefs, practices and prejudices before attempting any technical transfer. Otherwise, farmers would reject such technologies however pleasant and beneficiary it would be to them. Speaking on ''Problems and advances of feeding ruminants over the last three decades'', Prof Otchere said the composition of the average diet in Ghana is heavily dependent on starchy staples and cereals. Approximately 95 per cent of per capita food supply is from staple foods and vegetable-based foods while only five per cent comes from animal sources. This trend, Prof Otchere said, has not changed significantly since the 1960's, reflecting in past the weak production performance in the livestock and fisheries sub-sectors. He said the average American consumes 645 kg of food per capita annually of which 273 kg ( 42.30 per cent) are from animal source. Dr Kwame Asafu-Adjei, head of livestock planning and information unit of the Ministry of Food and Agriculture, said addressing the livestock production deficit means that the country should develop those products which can produce efficiently and competitively. He said the issue of restoration of subsidy on agricultural products would be difficult for the ministry to consider. At the moment, he said the government is subsidizing tractor and outboard motors as well as some inputs at a cost of 450 million cedis and wondered who will bear the cost on withdrawal of other subsidies. Dr Adjei, who was speaking on ''policy issues in the production and marketing of livestock products and by-products as well as waste disposal'', however, said the issue of subsidy is under consideration.