Transcript Edayatu Lamptey, CUTS International

Competition Reforms in the Maize sector
National Advocacy Plan (CREW Project)
Edayatu Lamptey , CUTS International Accra
CREW NRG-IV Meeting, 23rd April, Accra
Outline
CREW Advocacy Issues in the Staple Food Sector:
• Issue I: Anti-competitive practices in the transport of fertilizers from the ports to the farmers.
- Current situation as informed by research evidence
- Suggested advocacy work plan
- Envisaged outcome and delivervables
• Issue II: Role of ‘market queens’ in procurement of maize and experience of farmers
- Current situation as informed by research evidence
- Suggested advocacy work plan
- Envisaged outcome and deliverables
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Anti-competitive practices in the transport of fertilizers from
the ports to the farmers
CURRENT SITUATION
• Government of Ghana introduced the fertilizer subsidy scheme in 2008, to help farmers increase
production. However, prices of fertilizers remain high in Ghana.
• Cost towards port handling, clearance and internal transportation have been identified to
contribute considerably towards the retail prices in fertilizers.
• The government is forced to absorb these costs thus increasing the cost burden (increasing
government expenditure).
• Such high costs placed on the government contribute to delays in the announcement of subsidy for
fertilizer (e.g., in the year 2015 the subsidy has been announced but the fertilizers are not being
sold at the announced subsidized cost which is 21% off the original cost)
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Advocacy Work Plan & Envisaged Outcome
KEY QUESTION: What factors contribute to high costs of clearance and transportation of
fertilisers in Ghana? Is there a way of reducing the cost by addressing these factors?
Suggested advocacy work plan
1. Focus Group discussions with stakeholder: Discussions with Ghana Institute of Freight
Forwarders; and other stakeholders like port-handlers and clearing agents, Ministry of Transport and
other key stakeholders/experts
2. Investigative Research Study Objectives:
- To investigate if anti-competitive practices are prevailing in port-handling and inland
transportation of fertilizer.
- What are the possible effect of such anti-competitive practices on the retail cost of fertilizers in
Ghana
Envisaged Outcome: Facilitate government actions to deal with anti-competitive practices that will
result in reducing the price of fertilizer
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Role of ‘market queens’ in procurement of maize and
experience of farmers
CURRENT SITUATION
• The maize wholesale market is dominiated by a group of women private traders reffered to as :
Market Queens.
• CREW Research reveals that these market queens procure ~ 95% of produce from the farmers.
• The market queens through their networks sometimes control the supply of maize into the market to
avoid excess supply thereby creating an artifical shortage.
• The DCR report reveals that the maize farmers are happy selling their produce to these market
queens- About 62.9 per cent of the farmers sold their product to the market queens and 21.4per cent
sold to the local traders, 13.6 per cent of them sold to any available buyer, while 2.1 per cent sold to
agro-firms.
• The reliance on the market queens by the farmers raises some major concerns , expecially, since
there is the possibiliy that they may abuse their dominant ( near monopoly) position in the market.
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Advocacy Work Plan & Envisaged Outcomes
KEY QUESTION: What are some of the challenges farmers face in dealing with Market
Queens and how can they be mitigated?
Suggested Advocacy Work Plan:
1. Focus Group discussions with stakeholder: – Farmers, Market Queens, Ministry of Food and
Agric and other key Stakeholders/Experts
2. Investigative research study Objectives:
• The historical background of maize trade in Ghana: Factors leading to women in the procurement
of maize and their dominance in the sector.
• To investigate the price received by farmers as they sell their produce to “market queens’. What
are some challenges faced by the MQs
• Understand how the introduction of the commodity exchange will have an effect on the maize
market
Envisage Outcome: Further strengthening the system of maize procurement in Ghana by addressing
some of the weaknesses/loopholes in the system
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THANK YOU
[email protected]
http://www.cuts-ccier.org/CREW
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