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Business News of Sunday, 27 June 2010

Source: GNA

Survival of Northern Star Tomato Factory depends on resource support- Report

Accra, June 27, GNA - A report on the Tomato Value Chain in the Upper East Region, has suggested the need for collaboration between stakeholders to provide the initial support needed for effective operations of the Northern Star Tomato Factory (NSTF).

The report asked the Savannah Accelerated Development Authority and the Ministry of Trade and Industry (MOTI) and Ministry of Food and Agriculture (MOFA) to facilitate the relationship between the company, farmers and the private sector.

The report produced by the Ghana Trades and Livelihood Coalition, a farmer advocacy group, said at current levels the tomato value chain in the Upper East Region is beset with problems of human resource, finance and innovation, which are not combining well enough to create a competitive tomato enterprise.

The quantity of fresh tomato presently produced in the region is very inadequate, and may not be enough to supply traders and the NSTF. The report called for expansion in production in the dry season through managed irrigation of farm lands along the White Volta from the Upper East through the Northern and Brong Ahafo regions. Other means of increasing supply to the market, such as contract and block farming should be considered. There is also the need for MOTI to provide the autonomy needed by the NSTC to run efficiently. The report called on the ministry to take immediate steps to facilitate and put in place an independent board and management for the NSTF. It said the factory should be resourced and expanded to full capacity and should have a canning facility and buy tomatoes at good prices from farmers.

The role of the board and management should include facilitating a better relationship in the value chain in the Upper East Region initially and incrementally in the Upper West, Northern and Brong Ahafo regions. The report said MOTI and Ministry of Foreign Affairs should facilitate the creation of a joint enterprise with Burkina Faso for the production, processing and marketing of tomato. "The success of a joint venture evolves on an efficient management of the NSTC to create and sustain effective forward and backward linkages within the production chain.

"Clearly, the absence of efficient management at the NSTC is a serious threat to the growth and sustenance of the tomato value chain in Ghana." The report called on the Savannah Agriculture Research Institute (SARI) of the Council for Scientific and Industrial Research to research into the seeds used by farmers in the Upper East Region. A uniform variety of certified seed that could be cultivated during the rainy and dry seasons in large quantities should be researched into by SARI to guarantee a good source of seed. Adequate extension service delivery by the MOFA should be stepped up periodically, for example after every three years, to ensure transfer of knowledge that improves yield, chemical application and other farm practices. Besides, existing groups of farmer organisations require strengthening by MOFA to be able to participate and contribute to growing the tomato industry through well functioning clusters and value chain relationships.