A shift in demand for Ghana's smooth Cayenne pineapples to the MD2 variety has resulted in a fall of the country's pineapple exports.

Export volumes fell from 71,158 tonnes in 2004 to 40,000 last year. This shows a decline of 44 percent and is considered to be the highest decline.

The problem began when the European Union (EU), which is Ghana's traditional market, shifted its demand from Ghana's Smooth Cayenne produce to the South America-developed MD2 variety which involves high cost of inputs such as planting materials and appropriate chemicals and fertilizers.

In 2005, pineapple growers lost their Smooth Cayenne fields and their entire working capital. Since then, it has been difficult for growers to obtain the needed capital to commence commercial production of the MD2 variety.

Mr. Stephen Mintah, General Manager, Sea-Freight Exporters of Ghana (SPEG), has predicted a further downward trend this year due to declining numbers of exporters - from a high of 42 in 2004 to only eight as at the end of 2007.

Mintah, at an inspection tour to some three pineapple farms at Bawjiasi in the Central Region explained that Ghana's increasing growth rates over the years suffered a major setback in 2005, when for the first time in a decade Ghana experienced a decline in export volumes.

Officials of SPEG have therefore proposed a special scheme to provide a grant that enables operators to access funding to produce at a commercial volumes for export.

The scheme will through Export Development and Investment Fund (EDIF) enable the large number of producers, exporters and out-growers to develop the financial muscle to meet global market demands.

The grant, they suggested, should be strictly utilised for production and must be in the form of equipment and agricultural inputs as well as technical assistance.

The greatest challenge now facing the county's pineapple sector is the inability of producers and exporters to increase production, mainly due to lack of financing for expansion, Mintah said.

The production inputs and facilities require long-term and reasonably priced capital for investment by growers and exporters, he said.

Kwesi Korboe, General Manager of Jei River Farms, indicated Ghana has comparative advantage due to its proximity to the European market and high fruit quality.


Source: B&FT