European Tastes Affect Country's Pineapple Exports

The preference of Europeans for a particular variety of pineapple is said to have contributed to a near 30% drop in Ghana's pineapple export earnings in 2005.

According to figures provided by the Sea-Freight Pineapple Exporters of Ghana (SPEG) the non-traditional crop's exports fell from 71,000 tonnes in 2004 to about 50,000 tonnes in 2005 culminating in a reduction of the country's pineapple export earnings by some nine million dollars, down from 30 million dollars in 2004 to about 21 million dollars in 2005.

In recent years, consumers within the European Union, the destination of virtually all of Ghana's pineapple, are said to have shifted preference from Ghana's Smooth Cayenne variety, to the Central American developed MD2 variety, thus significantly affecting the country's export earnings.

These revelations came up on Tuesday at Bomart Farms located at Doboro, near Nsawam in the Eastern Region during the launching of the 'Pineapple Product Norms and Inspections (PPNI)' programme.

In an interview with Public Agenda, the General Manager of SPEG, Mr. Stephen Mintah said the shift in consumer preference implied that the country needed to focus on the cultivation of the preferred variety for export. Accordingly, the switch in cultivation of the MD2 commenced in 2004, with exports of the new variety taking place in 2005.

He said the cultivation of the MD2 has been more challenging because it requires a lot of inputs such as fertilizer and other chemicals. Additionally, the variety needs close attention, which requires well-trained personnel.

However, conditions such as the suitability of the soil and weather have been favourable. Thus, though comparatively expensive to cultivate, the country stands a better chance of earning more since the MD2 could be sold at a higher price due to the fact that it is the preferred choice on the world market, he observed.

Mr. Brahms Achiayao, the Director in Charge of Export Trade Support Services at the Ministry of Trade, Industry, PSI and Private Sector Development (MOTI, PSI & PSD) who represented the sector minister, expressed similar optimism. He said the shortfall in pineapple production that resulted from the switch in the variety accounted for the reduction in export earnings, but the situation would be better in the next couple of years.

Mr. Achiayao disclosed that the rejection of some of the country's pineapple on grounds that they are of inferior quality and have poor safety standards have over the years accounted for about 30% loss in export revenue, since the nation began exporting the commodity.

It is against this backdrop that the umbrella body for pineapple exporters, the SPEG, with a membership of 27 is collaborating with the Ghana Standards Board (GSB) and the USAID's Trade and Investment Programme for Competitive Export Economy (TIPCEE) to improve the quality of Ghana's pineapple to meet the stringent standards of the European market.

With 70% financial assistance from the USAID, SPEG has launched the ¢2.2 billion pilot inspection initiative that would over a 10-month period focus on improving quality control systems to ensure the supply of consistent high quality fruits to the world market.

Under the programme, which will initially involve 10 pineapple farms, the Bureau of Inspection, Valuation, Assessment and Control (BIVAC) Ghana, an international independent inspections agency will carry out inspections and tests at packhouses of the participating farms and also at the Tema Export Shed, prior to shipment to certify that the pineapples are of the highest quality. After the ten-month pilot project, SPEG will solely engage BIVAC to carry out the inspections for a further two years.

Earlier in an address, Mr. Mintah acknowledged the support given by government through the provision of $2 million for the industry in 2005 to acquire the new MD2 variety planting materials for multiplication and planting saying, "this has been of immense help to the pineapple sector."

"Unfortunately, our request for further financial support from the government to consolidate the initial gains and ensure increased volumes to recover lost market shares was not considered," he lamented.

He mentioned that producers/exporters also face problems such as non-availability of essential infrastructure like on-farm cooling facilities; high ocean freight rates and high port handling charges.

To find solutions to some of these pressing issues SPEG has undertaken a number of initiatives including the institutions of the Group Marketing Scheme (GMS) under which ties are strengthened with major European buyers such as Fyffes of UK. Already successful trial shipments have been made to UK and Spain under the scheme, he revealed.

Mr. Mintah was hopeful that SPEG's request to the Export Development and Investment Fund (EDIF) for funding for the design, branding and procurement of quantities of uniform cartons for the scheme would be granted.

But he regretted the inability of the programme to cover all 27 members of SPEG due to insufficiency of funds and pleaded for further financial support from the Millennium Challenge Account (MCA), EDIF and other donor agencies such as USAID and GTZ, a German development agency.

Meanwhile, Mr. Mintah has disclosed that the pineapple industry has created both direct and indirect jobs for the people of the communities where pineapples are cultivated, noting that in 2004 alone, 100,000 jobs were created for various categories of people such labourers, out growers, market women, chemical/input sellers, transporters, artisans, etc.

In a speech read on his behalf, the Minister for Food and Agriculture, Hon Ernest A. Debrah disclosed that since the switch began in 2004 government has provided two million plantlets and will provide another 3.7 million which when multiplied will generate a total of 35 million suckers for cultivation.

The Minister for Trade, Industry, PSI and Private Sector Development, Hon. Alan Kyeremanteng in an address delivered on his behalf commended SPEG for the visionary leadership that has led to the implementation of the initiative describing the programme as a unique one.

He said the PPNI programme would send positive signals to the outside world that "Ghana is committed to providing good quality, hygienic and safe fresh produce for the nutritious needs of all consumers wherever they may be."