Business News of Saturday, 19 October 2002

Source: gna

Israelis to revamp tomato industry

An Israeli Technical Partner is to assist in launching Ghana's tomato industry to a higher level of performance through a high technological production and techniques in agro-procession.

The processing plant would have the capacity to process on a two-shift basis, some 18,000 tonnes of fresh tomatoes into tomato paste for both domestic market and for export to ECOWAS member countries that are being currently served by imports from European Union countries.

Dr. Kofi Konadu Apraku, Minister of Trade and Industry said this on Friday when Mr. Stephen Adoma, NPP-Dormaa East on behalf of Mr Prince Oduro-Mensah asked when work on the proposed Tomato factory intended to serve tomato farmers in the Akomadan-Techiman catchment area would be started.

The second phase of the project relates to the cultivation of improved tomato seedlings for export whose produce is expected in both fresh and processed forms. Dr. Apraku said a 50-acre plot of land has been acquired for the proposed Tomato factory intended to serve farmers in the Akomadan-Techiman catchment area by a private limited company- Splendid Industries Limited.

Apart from the plot of land, a farming land of 4,000 acres has been acquired at Akomadan and 6,000 acres at Adinkra for the cultivation of tomatoes to feed the processing plant.

Dr. Apraku said even though the project is community-based, the Israeli Company - Hovey Agricultural Limited has been identified and they are ready to take 20 per cent equity stake in the project and to provide technical, management and marketing support for the project.

He said it was envisaged that the current post harvest loses due to seasonal surpluses and shortages would be minimised through the opportunity that the processing plant would offer.

Dr. Apraku said this was expected to provide direct employment and active market to farmers in the area and enhance the living conditions of the people. He said preliminary arrangements have been put in place for the project funding of equity and loans, while feasibility studies have been prepared and the Export Development and Investment Fund (EDIF) has provided financial support for the preparation of the business plan.

Mr. John Tia, NDC-Talensi asked what plans has been put in place to revamp the Pwalugu Tomato factory and the Minister said the Government has been involved in aggressive investment search and sourcing of funds from Italy and the Ministry of Women's Affairs and Children with support to support the project.

Dr Apraku added that priority attention was being given to the Pwalugu Tomato factory to enable it to process the annual glut of tomato production by small-scale producers in the area pending the reactivating process.

Mr. Tia also asked the Minister what plans were being made in the interim to assist the small -scale farmers pending the reactivation and the Minister said there are plans to, at least provide each region with a processing plant while the small-scale farmers would be assisted with funds.

Mr. Isaac Kwadwo Adjei-Mensah-NDC- Techiman North asked what additional effort was been made to rehabilitate the Wenchi Tomato Factory and whether small -scale farmers would also benefit from any form assistance.

Dr Apraku said additional efforts are being to rehabilitate the Wenchi Tomato Factory, in addition to the Akomadan procession plant as well as the small-scale farmers. Mr John Mahama, NDC- Bole asked whether the Minister was aware that direct foreign investment in Ghana was falling and what accounted for that and the Minister said it was a global case, especially to African countries, but recently Ghana has seen a major increase in investment missions.