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Business News of Tuesday, 11 November 2014

Source: BFT

Food losses level frightening

A study on post-harvest losses in the country has revealed that almost half of food crops produced in the country does not make it to the final consumer.

The research commissioned by Alliance for a Green Revolution in Africa (AGRA) was conducted in 2013 by The Urban Association Limited (TUAL) on post-harvest losses of selected food crops in 11 African countries.

The report said as much as 60 percent of Yam produced in Ghana, for instance, does not make it to the consumer.

According to the study, the level of losses occurring in maize production, for instance, ranges between 5-70 percent, whereas between 11-27 percent of rice cultivated never makes it to the consumer.

The amount of millet/sorghum lost after harvesting ranges from 5-15 percent, with 18 percent of cassava lost after harvesting.

A Senior Lecturer of Agricultural Economics at the Agribusiness Department at the University of Ghana, Dr. Irene S. Egyir, described the loss levels as a “serious issue” that is particularly rampant during bumper-harvest periods.

Post-harvest losses typically occur due to a host of factors, including human activities such as transporting, de-husking, shelling, winnowing, drying and bagging, and during storage. Dr. Egyir, speaking at a workshop on food wastage and spoilage in Accra, attributed the high losses to lack of financing, innovative storage procedures among others within the various value chain of food production.

“Things that we need to do to make sure we are preventing wastage and spoilage is control pests, fungal and other microbial organisms from attacking the produce -- and these must not be inhibited by lack of financing,” she said.

Although banks and other financial institutions provide a means of financing for agricultural activities, she said charges on these credit facilities are usually high and act as a stumbling block to farmers and other key stakeholders within the value chain.

In addition to the financing gap, she said approval of the country’s Medium-Term Agriculture Sector Investment Plan (METASIP) by Parliament will not prevent these huge losses: the private sector must take up an active role, for instance in the manufacture of cheap storage equipment.

“METASIP is heavily reliant on private sector involvement. The private sector is not just about the big industry players, it also includes the artisans. The artisans should invest in the manufacturing of the simple metal silos, whereas big players can focus on the large industrial silos,” she added.

Nevertheless, Dr. Egyir said government equally has an important role in the reduction of post-harvest losses. “Government needs to do more by investing in infrastructure such as good road networks in order to reduce losses arising due to poor road networks,” she said.

The emergence of Buffer Stock Company

The National Food Buffer Stock Company (NAFCO) was set up in 2010 mainly to address the problem of post-harvest losses, ensure food security, and protect farmers from unfavourable prices during bumper harvests.

One of the responsibilities of NAFCO is to mop-up excess produce from all farmers in order to reduce post-harvest losses resulting from spoilage due to poor storage, thereby protecting farmers’ income. But Dr. Egyir, also a Technical Advisor, Real Sector Division, at the Agric Ministry, said NAFCO’s operations are hampered by lack of logistics.

“The company does not have adequate warehouses in all the regions, as well as adequate transport facilities or personnel to be active on the ground. NAFCO needs to grow and meet the expectations of the farmers,” she added.