Republic of GHANA. AgSSIP. Agricultural Services Sub-Sector Investment Program

Republic of GHANA AgSSIP Agricultural Services Sub-Sector Investment Program Horticulture Exports Industry Initiative Detailed workplan 2004 - 2006 ...
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Republic of GHANA AgSSIP Agricultural Services Sub-Sector Investment Program

Horticulture Exports Industry Initiative Detailed workplan 2004 - 2006

February 2004

Agssip – Horticulture Exports Industry Initiative

CONTENTS

FOREWORD ............................................................................................................................1 I. AGSSIP’S HORTICULTURE EXPORT INDUSTRY INITIATIVE ........................................2 1.1 Justification ..................................................................................................................................................... 2 1.2 Main objectives................................................................................................................................................ 3 1.3 Planned activities............................................................................................................................................. 3

II. DETAILED WORK PLAN ....................................................................................................5 100 Post-harvest Infrastructure........................................................................................................................... 5 200 MD2 pineapple sourcing and development.................................................................................................. 7 300 Planting material sourcing & development ................................................................................................. 9 400 Innovative research & development ........................................................................................................... 12 500 Food safety and quality management......................................................................................................... 13 600 Industry ownership and farmer equity ...................................................................................................... 15 700 Strategic support systems ............................................................................................................................ 16

III. IMPLEMENTATION STRATEGY .....................................................................................19 3.1 Implementation objectives............................................................................................................................ 19 3.2 Project management ..................................................................................................................................... 20 3.3 Steering committee........................................................................................................................................ 20 3.4 Technical committees.................................................................................................................................... 21 3.5 Executing agencies ........................................................................................................................................ 21 3.6 Suppliers & Contractors............................................................................................................................... 21 3.7 Associated programs..................................................................................................................................... 22

IV. EXPECTED RESULTS....................................................................................................23 4.1 Immediate outputs ........................................................................................................................................ 23 4.2 Economic impact ........................................................................................................................................... 24 4.3 Environmental issues .................................................................................................................................... 26

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V. PERFORMANCE INDICATORS AND BENCHMARKS....................................................29

ANNEX 1 – SUMMARY TABLE ANNEX 2 – WORK PLAN ACTIVITY TABLES ANNEX 3 – PROCUREMENT DETAILS ANNEX 4 – HORTICULTURAL EXPORT OPPORTUNITIES ANNEX 5 – CURRENT MARKET SHARE OF GHANAIAN EXPORTS ANNEX 6 – POTENTIAL ECONOMIC IMPACT OF HEII

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List of Abbreviations and acronyms

AgSSIP COLEACP CSIR DADU DAES EDIF EPA EurepGAP FAGE FOM GAP GCAA GEPC Gh-PPP GIS GOG GPHA GSB HAG HEII IDA IOM IPM MOFA MRL MSU PFID-F&V PPRSD SME SPEG TIRP VEPEAG USAID

Agricultural services sub sector program Comité de Liaison Europe Afrique Carraïbes Pacifique Council for Scientific and Industrial Research District Agricultural Dissemination Unit Department of Agricultural Extension Services – MOFA Export development and investment fund Environmental protection agency Euro-Retailers produce working group – Good Agricultural Practices Federation of Associations of Ghanaian Exporters Farmer Ownership Model Good Agricultural Practices Ghana Civil Aviation Authority Ghana Export Promotion Council Ghana Private-Public Partnership Program for Food Industry Development Geographic Information System Government of Ghana Ghana Port Handling Authority Ghana Standards Board Horticultural Association of Ghana Horticulture Exports Industry Initiative International development Agency Industry Owned Model Integrated Pest Management Ministry Of Food and Agriculture Maximum Residue Limits (or Levels) Michigan State University Partnership for Food Industry Development – Fruits & Vegetable Plant Protection and Regulatory Services Department (MOFA) Small and Medium Enterprise Seafreight Pineapple Exporters of Ghana Trade and Investment Reform Program – USAID Vegetable Producer and Exporter Association of Ghana United States Agency for International Development

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Foreword The last decade has been a period of tremendous change in the international horticultural export trade. In particular the larger export nations, e.g. South Africa, Chile, Brazil, Kenya have expanded and increased their market share, while the smaller countries have lost ground. Ghana has proved an exception. The total volume of Ghana’s exports has doubled over the five years form 1997 to 2002. In particular Ghana can be proud of her success in being able to make the difficult step into seafreighting produce, largely as a result of the establishment of export farmer owned entity that has managed sea freight logistics for the industry. In the airfreight sector Ghana has diversified its horticultural exports into higher value products such as specialist vegetables and pre-cut/semi prepared products (e.g. fresh pineapples pieces). Today, the Horticultural Export Industry provides income and employment for thousands of Ghanaians, both in rural and urban areas. However, recent studies demonstrate that this situation is fragile and that the industry faces important challenges that cannot be met by the private sector alone. The present document presents an integrated program aimed at supporting the growth and development of Ghana’s Horticultural Export Industry. This program, called the Horticulture Exports Industry Initiative (HEII) will be funded through the restructuring of the Agricultural Services Sub-Sector IDA loan. The HEII program was developed through an iterative process which sought the contribution of the Horticultural Industry stakeholders. Following a preliminary appraisal by MOFA and a study commissioned by the World Bank’s ESSD in May 2003, seven committees were created to cover anticipated areas of intervention: direct support to horticulture (post-harvest infrastructure, MD2 pineapple plantlet sourcing, seed sourcing & propagation, innovative research), food safety and quality management, the development of farmer ownership models and the strategic support for the development of agri-business in Ghana. These committees were tasked to propose work plans that could be integrated into the HEII to be funded under a restructured AgSSIP. The final work plan proposed by the following document has focused on the fresh produce segment of the industry. This strategic choice was made due to the relative short duration of the AgSSIP extension being sought by the current restructuring, which will bring the project’s term to October 2006. This 30 month period should be considered the first stage of an initiative which would extend its reach to the full agribusiness potential of the horticulture sector, to be funded by the subsequent phases of AgSSIP and other funding mechanisms. It is therefore essential that the HEII generate concrete results in terms of improving the capacity of Ghana’s horticulture export industry to compete on world markets. Most activities have been selected for their potential in terms of achieving tangible impacts by the end of the extension period. Funding for strategic studies and market intelligence have equally been included in order to prepare other agri-business focused initiatives which would follow the current phase and build up on the momentum generated by implementing the following work plan.

Agssip – Horticulture Exports Industry Initiative

I. AgSSIP’s Horticulture Export Industry Initiative 1.1 Justification The proposed Horticulture Exports Industry Initiative (HEII) proposed to be funded under a restructured AgSSIP, provides the opportunity and resources to address specific constraints that currently limit the development of this specific growth sector and will increase its potential to achieve higher productivity and added value. The consensus of opinion emerging from numerous studies and industry consultations is that the key constraints in the horticultural export industry are: •

the perishable handling facilities at the airport need to be improved to provide protection against rain, facilitate the holding and handling of produce in a cool chain and improve product logistics;



the development of the sea port facilities to improve ambient temperatures and access to cold storage in the Tema Shed 9, to enable product to be rapidly cooled, transported in a cool chain and to permit the use of refrigerated containers;



the need to move away from in-field packing to shared field packing houses equipped with adequate cold storage, in particular for the smaller export grower;



the need for MD2 cultivar of pineapple to be made rapidly available in Ghana in order to keep abreast with the transformation of the fresh pineapple market requirements;



the capacity to test and propagate elite planting material on an on-going and sustainable basis and, in particular, pineapples, papaya, vegetables, mangoes and citrus;



the ability to innovate and develop new export crops and products on an ongoing basis and, in particular, products like papaya, melons, mangoes, passion fruit and speciality vegetables;



to create a network of enterprises in the horticultural export industry providing products, services, logistics, input supply, technical support;



to raise food safety and quality standards so that Ghana can match the ever-higher demands of the international import market in terms of its capacity to monitor maximum pesticide residue limits and adopt Good Agricultural Practices (GAP) and IPM (Integrated Pest Management) protocols, even at the small farmer level;



to bring additional investment into the horticultural export industry and render dormant private investments in cold storage facilities productive;



to ensure greater transparency, faster exchange of ideas and facilitate the provision of support, technology, services between the companies and operators in the horticultural export sector (i.e. cluster approach);



the need to facilitate a more co-ordinated approach to industry development;



particularly, to ensure that the smaller scale export grower is able to participate in the growth of the industry.

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1.2 Main objectives The central objective of AgSSIP is to increase the income of the farmers, workers and SME’s involved in the horticulture export industry. This will be done by supporting actions that will enable Ghanaian exporters and farmer owned organizations to reposition themselves quickly to higher value growth segments of the market. In terms of industry development, this short term strategy translates into the following key objectives: •

preserve existing market share and give a boost to the industry’s driving force, i.e. the fresh pineapple and papaya industries, by introducing new varieties (MD2 pineapple and Golden papaya), building the cold chain infrastructure necessary for efficient and competitive sea freighting (containerized and reefer) and developing quality management capacities that will facilitate the integration of Ghanaian exporters into modern distribution networks (supermarket driven supply chains);



consolidate the competitiveness of the fresh vegetable sector by improving shipping logistics at the airport (packing and pre-cooling capacities), developing the inland post harvest networks, increasing the yield of growers through improved seed stock and irrigation techniques and prepare the exporters for integration into the mainstream networks by developing extension tools, traceability systems and integrated pest management ;



impel the diversification process on key products such as sweet potatoes, mangoes, vegetables (beans and peas) and melons through specific applied R&D programs focused on identified market requirements in terms of varieties, production timing, cost and productivity objectives;



consolidate the emerging horticultural cluster through strategic information gathering, interpretation and dissemination, and the strengthening of the public-private collaboration;



favour the integration of industry stakeholders and small farmers in industry or farmer owned organisations providing key technical, logistical and managerial services along the supply chain.

1.3 Planned activities Reaching these objectives will require an integrated approach involving interventions in various fields. The main thrust for the development of the horticulture export sector has come from the private sector on the basis of the current infrastructure and skill base. In order to accelerate the industry’s growth rate, the Government of Ghana must invest in a series of actions that will set the basis for future developments: • • • • • •

logistics and post-harvest infrastructure, improved planting material availability, applied research and development programs, quality management and food safety systems, support to industry and farmer owned organizations, strategic information systems.

This action plan does not cover all of the long term needs of a competitive agri-business value chain and must be considered a pilot phase, laying the groundwork for subsequent AgSSIP phases, both in terms of infrastructure and of building up capacities. The approaches tested under HEII will aim to integrate national institutions, the private sector and the small farmers. 3

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It is therefore important that activities be closely monitored and evaluated in order to fine tune the various arrangements that will have been developed.

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II. Detailed work plan 100 Post-harvest Infrastructure Objectives

In order to maintain sustained growth levels in the horticulture export sub-sector, Ghana must develop a post-harvest infrastructure base that will enable: •

the development of high value crops that require a continuous cold chain from field to customer in order to secure maximum selling price levels;



an efficient link of the existing out-grower base to the logistics chain, respectful of current postharvest quality and food safety requirements.

Activities

AgSSIP will contribute to this process by financing the following investments: •

Improvements to Shed 9 at Tema port, currently used by the pineapple industry (SPEG) to handle reefer shipments of pineapple to Europe. This investment will be accomplished in two phases: i) the improvement of ventilation and handling capacities (partitioning from the dry goods area, floor resurfacing, purchase of handling equipment); ii) an investment in the installation of cold storage facilities enabling pre-cooling and an uninterrupted cold chain when loading reefer ships or containers.



Construction of a full-service Perishable cargo center in the Kotoka Airport cargo village which would equally be in a two-phased approach: i) a first phase consisting in ensuring the inclusion of an area for a perishable cargo development zone in the GCAA’s airport master plan, securing access of the cargo area to the present Ghana Fresh cold store facility to the said area and contributing to the installation of a fuel line to the cargo parking area; ii) a second phase consisting in the construction of a full service perishable cargo facility in the perishable cargo zone which would include: a palletizing & repacking zone, a roofed unloading zone for non-cooled produce, a refrigerated shipping zone for highly perishable pre-cooled produce.



Construction of pilot field packing sheds destined to provide post-harvest services (packing, palletizing, warehousing, cold storage, training) to smallholders and exporters and enable consolidation of export shipments through either shipping points (Tema shed 9 or Kotoka perishable center).

These three investments will give Ghana’s horticulture industry the infrastructure base which will induce further private investments upstream and facilitate investment in higher value highly perishable crops such as flowers, fresh herbs and pre-packed/pre-cut produce. The installation of a cold store at Tema shed 9 is especially critical as the major investments in MD2 pineapple currently projected by the GOG will require an effective cold chain in order to ensure effective higher returns to growers. Indeed, MD2’s superior quality and sugar content is as much tributary to a continuous cold chain, efficient distribution and promotion than specific genetic characteristics. Implementation issues

Management issues associated with these infrastructure works should be addressed right from the start of the AgSSIP program:

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Nomination of a MOFA coordinator, dedicated to this component, whose task it will be to ensure the respect of the timelines and conformity to AgSSIP objectives;



Selection of a specialized firm in order to provide technical assistance both in the design phase and the preparation of tender specs for all three projects. The firm’s intervention would begin with the training of stakeholders to post-harvest cold chain concepts associated to air and sea logistics and would include study tours to reputed logistics platforms (Kenya for air freight; South Africa, Costa Rica or Brazil for sea freight; Ivory Coast and Kenya for smallholder packing houses). Based on this know how, final designs would be developed with the stakeholders and subsequently converted to technical plans and specifications which should serve as the basis for an international tender.



Inclusion to development process for all three projects of an activity in order to define and support the creation of an Industry Owned Management structure. This support to the emergence of IOM structures should be contracted to a specialized firm at the outset of the program in order to integrate future management to the actual design and delivery process of the facility rather than upon transfer of a completed work. Further details on this approach are provided in section F.

Specific issues which will have to be addressed by technical assistance and stakeholders are the following: • • • • •

Integration of the Kotoka Perishable Center in the airport master plan project; Legal framework for the transfer of investments to industry; Acquisition of land property rights (lease, purchase or transfer) required for the construction of the infrastructure; Establishing the specific security requirements for all investments at the airport, in particular the Ghana Fresh linkage; Ensuring full compliance of the installations with the HACCP protocol and EurepGAP certification requirements.

Time line

The timeline for investment should aim for immediate adjustments to current constraints as well as provide sufficient time in order to ensure that longer term investments will be of sound design and high quality. Immediate investments which could be carried out within a year would be: •

The renovation of Tema Shed 9: ventilation, partitioning, resurfacing and handling equipment.



The linking of the Ghana Fresh facility to the cargo village by tearing down a portion of the wall separating both areas and installing a paved securing access road – additional investments in terms of security controls and fencing would be required.



The design and construction of basic field packing house prototypes in the vegetable and pineapple producing centers.

The installation of cold storage at Tema Shed 9 as well as the construction of the Kotoka Perishable center should take more time. The design phase should begin in 2004, with close stakeholder involvement and the recourse to specialized design competencies. In parallel, specific studies and consensus building activities should be carried out concurrently to technical design activities in order to define the “Industry Ownership Model” for both investments once they are commissioned. Actual procurement delays should not be underestimated as both investments will be carried out in strategic port areas where many jurisdictions interplay. It is therefore estimated that the

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tender documents for both Tema Shed 9 and the Kotoka Perishable center should be sent out to bidders by october 2004 and actual construction work should begin by the first quarter of 2005, with actual delivery and commissioning by October of that year.

200 MD2 pineapple sourcing and development Objectives

With more than 50.000 tons exported (air, sea, pre-cut), pineapple is still Ghana’s main horticultural export. This industry is currently threatened by competition from Costa Rica’s industry which grows the MD2 cultivar, which is gradually crowding out the Cayenne Lisse, the variety historically produced by Ghana. Further, current market prices indicate that the switch to MD2, given adequate post-harvest and cold chain infrastructure, should translate in a significant increase in export revenues and profitability for the growers. The MD2 pineapple component has three main objectives: •

to assist the Ghanaian pineapple industry in accelerating the conversion process of its export varieties from exclusively Cayenne Lisse cultivar to the now popular MD2 family of cultivars which is rapidly gaining European market share and poses a clear and immediate threat to the Ghanaian industry;



to ensure that the shift of the Ghanaian industry to MD2 does not entail an exclusion from the export industry of smallholders and outgrower based exporters who do not have the resources to acquire MD2 plantlets at current prices;



to promote the development of efficient privately led Ghanaian capacities in tissue culture multiplication techniques that will enable the industry to stay abreast of further developments and, eventually, develop its own innovations.

Activities

The component aims at implementing a sourcing, multiplication and distribution program of the MD2 cultivar. This program will be structured as follows: •

An open tender proposition will be proposed by AgSSIP to certified national MD2 plantlet suppliers, guaranteeing payment for a fixed number of MD2 finished plantlets (weaned, hardened and ready to plant) at a pre-established price and with strict quality assurance rules (traceability of source material, audit of weaning and hardening facilities, DNA testing of planting material). The purchasing formula to be devised will include progressive advances to plantlet suppliers in order to cover the working capital necessary for sourcing and finishing a specific order. Order levels will be based on demonstrated supplier capacity.



A cost sharing program will be developed in parallel to the procurement program in order to ensure full access to the plantlets by smallholders currently involved in the production of pineapple for export. This program, to be agreed upon by industry stakeholders, will define costs to be borne by the growers as well as distribution rules based on existing planted pineapple stock, grower status and farm size.



The distribution program will be monitored by MOFA and could be managed on a day to day basis by an Industry Owned Management company, with management technical assistance. A Geographic Information System database will permit precise ongoing monitoring of participating growers, plantlet distribution and achieved yield performances per plantlet source. This database

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would be updated and managed by the structure in charge of distribution, with a mirror image at MOFA and at SPEG.

Given the importance of the budget allocated to this activity, careful planning must be carried out by MOFA and its technical partners prior to starting plant procurement: •

A technical study will be contracted to an independent body of high scientific and ethical repute (CIRAD, NRI or other) with specific competencies in pineapple tissue culture multiplication in order to: i) define the cost and pricing structures on which the cultivar sourcing and distribution schemes will be based; ii) establish the quality norms and testing procedures required to ensure proper evaluation of the quality output of the suppliers; iii) establish a short list of Ghanaian suppliers of MD2 planting material as well as an evaluation checklist as a basis for a certification process; iii) identify reputable external sources of base culture or planting material and evaluate external sources proposed by Ghanaian suppliers; iv) define the pre/post harvest requirements for a successful production and marketing of MD2 and the changes to be brought to the current husbandry and post harvest practices used for Cayenne Lisse. This study will rely on knowledge already acquired by the industry and its scope will vary depending on the detail and quality of information provided. However this will not preclude the necessity for an independent assessment of the information provided by an independent technical specialist.



A grower database will be created, in partnership with SPEG and other pineapple exporters in order to identify export oriented pineapple production and program plantlet distribution in an equitable and orderly fashion. This database will be based on GPS technology in order to provide the project monitoring team, financiers and auditors with an independent and precise localization of farms and associated MD2 plots.



A clear distribution system must be devised by MOFA in collaboration with stakeholders. It is recommended that an Industry Owned Model be developed and assisted through the FOM component of the HEII. This could take the form of an industry owned input distribution company to which MOFA would contract out the distribution of MD2 plantlets and the management of the GIS database. (see section 600).

Implementation issues

The MD2 program is based on the assumption that the Ghanaian private sector is capable of providing quality MD2 planting material. Existing firms have demonstrated the technical know how to source quality plantlets and to harden them in adequate conditions. In these conditions, weaned plants are imported at an early stage and subsequently grown and hardened on site, thus limiting the cost of shipping full size planting material, generally by air, It is expected that Ghanaian enterprises should develop the capacities to produce source plants from clumps produced by specialized labs in the near future and thus reduce further their production costs. The sourcing strategy will be to have the private suppliers carry the full responsibility of providing true to type finished planting material. It will be the latter’s responsibility to gather the assurance concerning the quality of its planting material sources, which will be part of the information requirements linked with the plant distribution contract with MOFA. It will also be the supplier’s responsibility to bear the full crop risk. In such a framework, MOFA retains a contracting and monitoring role and will at no point in time be involved in direct sourcing of base planting material on behalf of participating suppliers or growers. The management of the distribution of planting material raises management capacity issues that could be best resolved through the creation of a specific entity that would be in charge of

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ensuring distribution in accordance with the program rules. This entity could benefit from the technical assistance to be provided through the FOM section of the AgSSIP program. Upon its conclusion, the MD2 program would leave such a structure with distribution and database management capacities which could serve as the basis of further input procurement and distribution services. Time line

The distribution of MD2 plantlets must begin rapidly, given the competitive environment that currently prevails in the industry. For that matter the following activities should be carried out in the first semester of 2004: •

MOFA should nominate immediately an internal resource dedicated to the MD2 program and a technical committee should be established for the project’s duration;



Both the technical and the distribution management feasibility studies should be launched rapidly by MOFA in order to clarify procurement and distribution rules and permit local enterprises to adapt their capacity in preparation for the AgSSIP program;



Selected suppliers should be identified quickly and be allowed to source weaned plantlets for the first batches procured, leaving them free to develop capacities in clump production and vitro-plant weaning at their own pace. The opportunity of developing a time-sensitive pricing strategy in order to encourage in-country plantlet production will have to be considered in view of the technical study.



The creation of the grower database can begin as soon as MOFA management and the technical committee have been designated. Database design should be contracted out quickly and GPS positioning equipment should be purchased in order to start the surveys.

If these prerequisites are met, AgSSIP could launch the procurement process in the course of the last quarter of 2004, which would produce the first hardened plantlets for distribution by the end of the first quarter of the following year. Distribution would then progress continuously until the end of the program in 2006. The first AgSSIP funded MD2’s should begin to produce fruit by the second quarter of 2006, at which date the cold stores at Tema Shed 9 should be fully operational.

300 Planting material sourcing & development Objectives

The seed selection & other planting material component’s objectives are similar to that of the MD2 program in that it aims to provide Ghanaian growers and exporters with high quality selected varieties that are adapted to market requirements. To this end, AgSSIP will support an industry strategy aimed at developing a sustainable seed selection and planting material introduction/development system: •

the identification of sources of open-pollinated cultivars adapted to Ghana, in conformity with market requirements and can be multiplied locally;



the identification and evaluation of hybrid and proprietary seed material that produce higher economical yields in the Ghanaian environment and are adapted to export market requirements.

The first objective of the AgSSIP program is to focus on a set of produce for which there currently exists a demonstrated need in the short term and provide Ghanaian growers with

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sources for quality seed material: golden papaya (Brazilian varieties), virus resistant okra, disease free passion fruit, orange flesh sweet potato and Asian vegetables. A secondary objective is to develop a sustainable sourcing/development and distribution process that is capable of providing Ghanaian growers with high quality seeds and keep abreast of changing market needs. This process will have to integrate the following contributions: •

Private sector growers and associations will provide information as to market requirements and cost targets in relation with market prices and existing production systems;



National research institutions (CSIR and Universities) would provide trained research personnel as well as the controlled environment (research stations) necessary to carry-out benchmarking tests and to multiply base stock seeds that can be supplied to propagators who would link up closely with PPRSD and Crop services and other relevant MOFA Directorates including DADUs;



Crop services department (Horticulture development and District Units) will be able to process and disseminate technical specs relative to new cultivars to outgrowers and improve the quality of seed material used;



Ghana’s plant protection services should provide norms and quarantine regulations in order to protect the environment and ensure the quality of seed material being propagated.



The planting material inspection unit of the Ghana Seed Inspection division would provide guidelines for quality planting material production.

Activities

To render this process effective and foster collaboration between these groups, AgSSIP will promote the following procedure: •

All trial programs must begin by a quick market assessment by the development team in order to establish development priorities and criteria for the evaluation of cultivars to be tested.



Given the marketing objectives, a specific sourcing study is carried out in order to identify the seed sources and cultivars to be tested, with the best chances of success.



Additional study is carried out to identify the agronomic protocols associated with the new planting material being sourced – new technical spec sheets are produced by the research team.



Seeds or planting material is then procured and submitted to Plant protection services for quarantine testing prior to initial trials.



Field trials are conducted at previously trained certified private member farms, selected for soil compatibility, ability of the personnel to carry out the proposed protocols and to gather the basic data required.



Trials are conducted with close supervision and monitoring by research personnel who build up an extensive database.



Trial results are analyzed and summed up in trial spec sheets that are distributed to industry through workshops and a web site.

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Promising planting material is identified and either procured by industry associations and growers (proprietary hybrids) or multiplied on selected farms, the latter identified and assisted through AgSSIP program.

Implementation issues

In order to achieve sustainability, it is important that the public/private collaborative nature of the program be maintained at all levels: •

The component’s coordination should be attributed to a MOFA resource from Crop services, ideally with both crop service and research experience in order to be able to liaise effectively with both fields. The reason for selecting a resource from crop services to coordinate this component is that the main reason for carrying out the trials is to disseminate the results to growers.



The component should rely on guidance from a technical committee composed of research representatives, crop services PPRSD and the grower-exporter associations. Committee rules should clearly indicate that development priorities are to be set on the basis of export market requirements.



The contractual and management framework for the program should be established beforehand. This framework will ensure that high quality work is performed, that information loss be limited to a minimum and that subsequent dissemination will be facilitated. will define: • • • • • • •

the format of the market analyses, the contracts and protocols between AgSSIP, research institutions, crop services and the private growers engaged in field trials (cost coverage, access to data, certification requirements, propagation regulations etc). the format of the agronomical protocols for production and propagation, the format of data collection charts, the format of the trial spec sheets to be produced, seed supplier evaluation questionnaires, seed testing protocols.

In a sustainability perspective, it could be envisaged to promote seed propagation through FOM-type seed companies, as is proposed for the MD2 program where an Industry Owned company would monitor the distribution of plantlets. Such partners for the seed program would ensure that both hybrid and locally multiplied quality sources would be made available from the same outlet. Such a FOM could contract out production of seed materials through a network of contract growers it will monitor. Time line

It is proposed that full scale testing, propagation and dissemination activities only start when stakeholders in the steering committee agree to a detailed procedure that will provide the framework for professional seed testing and propagation. A consultant should be commissioned to work with the MOFA coordination and the technical committee and produce a coherent product development procedure, complete with a full set of templates and contract models that will be used for each program. Such a study can be launched as soon as the MOFA coordinator is nominated. Completion should take at most two calendar months, after which a first set of field trials may be launched (see product group above).

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400 Innovative research & development Objectives

The innovative research component aims at providing Ghana’s horticulture sector with new technological packages and product diversification options which will enable the industry improve its productivity and open new markets. The component will also aim at developing a horticulture database that will provide growers with crop profiles (type, productivity, yields, pests and diseases) for Ghana’s production areas. As with the planting material component, the innovative research component will set its priorities on the basis of a collaborative partnership with the private sector. Activities

The HEII innovative R&D program will be divided in four groups of activities: •

the creation of a technical and geographical database accessible by all industry stakeholders (web based);



the implementation of field trials concerning specific technologies and know-how acquisition concerning existing crops;



the implementation of field trials for new diversification crops with strong export potential;



the effective dissemination of test results on an ongoing basis.

The sub-committee for innovation has identified a series of domains of investigation for existing products such as mangoes, citrus and papaya: •

mango: improvement of nursery and grafting practices, mapping of the anthracnose prone areas of Ghana, control measures for various pests and diseases (anthracnose, stone weevil, Med fruit fly), definition of adapted fertilization protocols, acquisition of tree pruning techniques, adaptation of existing floral induction methods to Ghana.



citrus: development of virus-free planting material at nursery level, define fertilizer regimes at Ashanti & Central regions, complete research on organic fertilizer for citrus.



papaya: fertilization methods for golden and solo papaya, irrigation method testing (micro-sprinkler, drip, sprinkler).

In terms of crop diversification, the products identified by the committee were melon, passion fruit and cut flowers for which technical acquisition studies would be carried out prior to the launching of actual field trials integrating high value husbandry technologies. The definitive list should be established by the component’s technical committee, which would include a strong industry representation. Implementation issues

As with leading countries in the horticultural export industry, it is essential that AgSSIP foster the emergence of a collaborative public/private innovative R&D process as well as ensure rapid dissemination of actual findings throughout the industry, including smallholders. •

As for the previous subcomponent, component management should be the responsibility of a MOFA officer with crop research experience. The research priorities would be established and monitored by a technical committee composed of private sector grower organizations, crop

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services department and research institutions (CSIR and universities) – and chaired by a private sector cluster organization such as FAGE. •

Actual field trials will be carried out in collaboration with private sector growers selected for their capacity to provide competent follow-up. The trials will be managed by specific research specialists (CSIR and university researchers and technicians in conjunction with relevant MOFA directorates and units ) A sector-wide approach should be encouraged.



The creation of a central horticulture crop database will be the responsibility of crop services who would rely on district units to carry-out crop census and ongoing surveys such as anthracnose and med fruit fly monitoring.

Trial results will be centralized and disseminated by the Directorate of Agricultural Extension Services, DADUs and grower associations through workshops and the development and distribution of printed material such as technical manuals, grower guides as well as web based publishing. Time line

The component’s implementation will require the setting up of the technical committee and an initial priority setting workshop in which the initial one year work program will be defined. Following this event, program coordination will structure the field trial programs and secure the resources to ensure timely procurement in materials and equipment, as well as field monitoring by researchers from CSIR, Universities and crop services, all through AgSSIP funding.

500 Food safety and quality management Objectives

Food safety and quality certification issues pose a serious threat to the Ghanaian fresh produce export industry. The current tightening of pesticide maximum residue limits (MRL) to be respected in order to maintain access to the European Union (Ghana’s main export market for horticultural produce), requires the development of sound monitoring and quality management capacities by industry SME’s and smallholders alike. The challenge for the industry in the short term will be to improve the regulatory framework and ensure compliance to pesticide application norms, as well as develop quality assurance management systems, including traceability, in accordance with specified European industry standards. Existing programs have been set-up to provide support to ACP or specifically Ghanaian enterprises in order to conform to new regulatory requirements. The scope of the challenge warrants multiple contributions but the risk of overlap is substantial and it is therefore critical that AgSSIP focus on providing a complement to existing interventions. Currently many programs cover the quality issue: the PIP program, managed by COLEACP, as well as specific donor initiatives managed by MSU, AMEX, Technoserve, NRI and CARE. These programs are essentially oriented towards technical assistance and training seminars, some have funded the acquisition of lab equipment. The present program is designed to complement these initiatives. Activities

Pesticide regulations: AgSSIP would contribute to a specific study and stakeholder coordination meetings (both private and institutional) that would aim to establish a definitive pesticide list for all fresh produce export crops. The existence of such an industry accepted 13

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list, coherent and up to date with EU regulations, is a prerequisite for the certification of national enterprises and should be produced rapidly. This activity will also entail conducting field trials for those chemicals for which application norms (resulting in the respect of stated MRL’s) have not been developed for the Ghanaian environment. In addition to this activity, AgSSIP should fund a program in which the existing GSB lab would be awarded a contract for a set of spot-checks, over a full year, on actual fresh produce exports. This program would be devised and approved by industry stakeholders. GSB results would be regularly benchmarked against results obtained by ISO 17025 certified labs, in the region (CERES LOCUSTOX/Dakar) or in Europe (TDL Leatherhead/UK). Certified BLP laboratory: Successive grants have permitted GSB to create a pesticide residue detection laboratory. Technical assistance and training is currently being provided to lab staff. However, the laboratory is not yet capable of funding its recurrent costs, particularly the chemical reactants necessary for precise detection work, in accordance with existing MRL. Further, the laboratory is not yet certified to the Best Laboratory Practices (ISO 17025) standard, which means that any analysis produced by the lab will have to be counter-tested by a certified lab to be deemed valid by an importer. This greatly reduces the lab’s ability to market its services and it is recommended that AgSSIP fund actions that would lead towards certification. Activities proposed involve: a trip to Dakar to visit the existing CERES LOCUSTOX lab which recently achieved certification; a full feasibility study evaluating the required steps in order for the GSB lab to reach full BLP certification (in complement of existing FAO and COLEACP studies); a provision for additional equipment that may prove to be necessary to be able to cover the full scope of chemicals used by the industry. It is probable that achieving full BLP status will require the GSB lab to evolve into an independent corporate entity. Resources have been planned to support this process and, eventually, provide for industry involvement in the resulting entity’s capital structure. Pesticide training: AgSSIP would contribute specific funds which would be made available to existing quality initiatives in order to ensure that training material is published and disseminated extensively. Support would be granted by AgSSIP to programs which, through their fieldwork, would be in measure of producing documents such as: best practice guidebooks and posters, traceability management system manuals (specific forms), production and post-harvest guidebooks and posters. This complementary funding would give the opportunity to produce high quality illustrated material which is key to the dissemination of new technical concepts. It would also permit to carry-out regional training events, in addition to their basic programs. AgSSIP resources would also be allocated to the funding of a EurepGAP monitoring initiative, where representatives of this industry body would be involved directly in developing quality and documentation approaches, specifically devised to ensure certification to smallholder systems. Implementation issues

Implementation of the food safety and quality management component would be contracted out by AgSSIP through specific implementation protocols with the executing agencies such as PPRSD and/or the GSB lab. The actions financed by AgSSIP should mesh with existing programs and be discussed at the AgSSIP steering committee set-up to ensure coordination of quality oriented interventions. Direct collaboration from EurepGAP should be sought by stakeholders and supported financially, at least in part, by AgSSIP, in order to get a buy-in from that important certification body.

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Attention should be given in ensuring that GSB capitalizes on recent lab implementations, particularly the Dakar based CERES LOCUSTOX which should provide useful first-hand experience in setting up a certified lab in the West African environment. The objective of the GSB lab subcomponent is to aim for long term sustainability of this strategic asset. Supporting programs should therefore require full cost accounting in order to estimate the portion of the labs operation which should be supported by AgSSIP in subsequent phases. Finally, potential synergies should be clearly evaluated in order to ensure that anticipated critical activities planned by other programs will effectively be funded. If not, it would be necessary for AgSSIP to provide for funding of the more critical training or testing activities. Time line

The establishment of a first industry pesticide list should be a priority as this will indicate the scope of field trials to be conducted in order to ensure full coverage of current practices and compliance to EU rules. The fast procurement of the GSB lab equipment and supplies will ensure that subsequent field trials will be able to rely on an in-country testing platform which will have been benchmarked against certified lab counter-analysis, and, eventually, certified against the ISO 17025 norm.

600 Industry ownership and farmer equity Objectives

The HEII proposes investment in infrastructure and plant propagation capacities which are directed towards the industry as a whole. The sustainable provision of such services in an equitable fashion will require that these resources be managed by the industry and that governance systems be developed to be as inclusive as is possible, whilst respecting the exacting industry standards of the fresh produce industry. AgSSIP’s HEII will provide support to the setting up of such industry owned corporate entities which will have the mandate of managing the infrastructure (see section 100) funded by AgSSIP on an ongoing basis. HEII will also provide resources to ensure that well performing farmer organisations are able to take up equity positions in such entities, and thus help secure their participation to further industry developments. AgSSIP investments who will be the object of a IOM program will be the following: • • • •

the Tema fruit terminal; the Kotoka perishable center and the perishable cargo zone; each of the two field post-harvest centers; the MD2 and other propagating materials program.

Activities

HEII will support the creation of corporate entities which will be entrusted with the significant investments in infrastructure and plant propagation capacity funded by AgSSIP. These will be transferred to industry owned individual entities through mechanisms to be determined and which will depend on each project’s specific context (renewable concession, long term leasing, transfer of property and long term loan, granted equity systems). Funding for the actual investments is already provided for through the previously described components. Activities conducted under the present components will cover the following:

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Technical assistance will be provided to industry stakeholders throughout the process: evaluating the IOM options, monitoring the investment project execution, negotiating transfer of ownership, developing the financial architecture, defining governance rules, establishing strategic and operational planning procedures, defining and implementing operations and financial management systems etc.



A specific fund destined to securing farmer organisation equity positions will be managed by a local financial institution on behalf of GOG. Specific technical assistance will be provided in order to ensure the full leverage of the resulting equity by the industry owned entities.

Implementation issues

IOM technical assistance will be contracted out to technical assistance firms capable of provided the full range of design and management services required by each individual project. Individual bids will therefore be initiated by MOFA in order to select the firms who will be required to provide ongoing support to each IOM during the design, creation, implementation and start-up phases. IOMs will be created through a participative process, starting with the creation of an Interim Management Committee (IMC) consisting of the TA firm, MOFA and the key industry stakeholders to the project. This committee will be required to propose an IOM structure agreeable to all. It will also assume project management functions in conjunction with MOFA during the procurement phases of the infrastructure projects the resulting IOM’s are set to manage. AgSSIP will select a local financial institution to manage the granted equity fund. Specialized technical assistance in VC funding may be required in order to maximize equity leverage and develop sound bankable business plans. Time line

Given the HEII’s 30 month period, it is expected that the creation and consolidation of the proposed industry owned entities should cover the full program duration. In order to achieve concordance between the infrastructure and planting material procurement process and the creation of the industry owned management structures, it will be necessary to launch the recruitment of the TA firms in the earliest stages of the HEII program. The issue of having to secure actual AgSSIP extension could be circumvented by splitting the contracts in two parts: the feasibility and the actual implementation process in a form of design-and-deliver procurement format.

700 Strategic support systems Objectives

AgSSIP will encourage the formation and strengthening of cluster dynamics among the stakeholders of the horticulture export industry. This can be achieved by providing existing structures with greater capacity for gathering and disseminating strategic information. The end result is to ensure that critical market and technological intelligence is shared and discussed by all industry stakeholders, including MOFA services and farmer organizations. This component equally aims at providing the Strategic support committee with the means of carrying out a forward looking reflection on the future of Ghana’s agri-business sector and

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identify new development opportunities and sustainable investment strategies which will contribute to promoting the sector’s growth. Finally, by fostering active industry involvement in the steering of the HEII program, this component will help create and consolidate true collaborative action between a diversity of structures, be they government or private sector led. Activities

The component resources will be allocated to a four tiered program comprising: •

The contracting and monitoring of strategic studies targeted at specific commodities or agribusiness sectors which present a potential for supplementing current developments in the Ghanaian horticulture export industry, for both fresh and processed produce.



The development of an agri-business information hub integrating current capacities at MOFA, GEPC, FAGE, SPEG etc into a dynamic portal guaranteeing full access by industry members, however remote, to up to date market and technical data and trends. The proposed action plan will include a project feasibility study aimed at taking stock of current initiatives to be integrated and the evaluation of competency levels to be reinforced in order to ensure full participation in content management. Investments in networking equipment, necessary for fast access, are planned at key content development points, as well as in remote farm areas in order to facilitate access by district extension and local farmer organizations.



The development of an array of market intelligence tools comprising: • • • •



the collection of strategic market information: subscription to weekly price and trend newsletter, contracting of tailored market monitoring services with on-market consultants; the collection and analysis of trade statistics: Eurostat database review (quarterly basis), Swiss imports, country specific databases (central market activity); the monitoring by an independent correspondent of weekly arrivals at various strategic ports (especially for the pineapple trade); the development of a competitiveness benchmarking database establishing Ghana’s position relative to competing origins on key performance indicators for the world horticulture industry;

Support to monitoring through the production of an HEII industry newsletter, industry workshops and the provision of technical assistance and expertise covering project implementation as well as the monitoring of socio-economic and environmental benchmarks.

Implementation issues

In order to keep with the “open-ended” and collaborative approach true to competitive clusters, HEII will build on existing horizontal competencies developed within a private federation such as FAGE and the government’s own GEPC which, each on its own, have demonstrated promising skills. The Strategic support committee should encourage further cooperation by asking both structures to collaborate with other organization (other departments and ministries as well as relevant private sector organizations) in the realization of the proposed activities. Time line

The strategic studies program will be implemented by the Strategic support committee on a continuing basis. The Hub design phase should be carried out in HEEII earliest phases in order to ensure the prompt transfer of knowledge generated by HEII to the information

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system. The Newsletter should be published at minimum on a quarterly basis in order to maintain industry interest and awareness on HEII activities.

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III. Implementation strategy 3.1 Implementation objectives The following chart illustrates the proposed implementation framework for AgSSIP’s HEII. The framework aims to: •

maximize stakeholder involvement and guidance both at the strategic and implementation levels;



outsource the implementation of activities to Ghanaian private, institutional and public entities in order to give them the opportunity to develop their capacities for autonomous intervention in the future;



maintain synergies with other major initiatives providing support to the horticulture export industry;



ensure a close monitoring of the HEII by a specific implementing team and a control of contract award and disbursements by the MOFA AgSSIP coordination and procurement.

Chart: Horticulture Export Industry Initiative – Implementation framework

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3.2 Project management The HEII will be managed by the AgSSIP coordination unit through close stakeholder collaboration and reliance on sub-contactors for actual implementation. This decentralized approach, however, will still require the AgSSIP coordination to bear the full responsibility of managing the actual procurement of goods and services required for the actual implementation of the HEII. A specific management team, answering directly to the AgSSIP Coordinator, will be brought together by MOFA to oversee the actual execution of the HEII initiative and ensure due process linked to the various activities to be conducted by executing agencies and contractors. It is recommended that this team be composed of one team leader and three specialised coordinators who would monitor the execution of the specific components. The team leader would report progress of initiative and discuss key decisions with the AgSSIP Coordinator. Components to be monitored by the team leader and each coordinator will be grouped along common thematic lines: •

the HEII team leader, responsible for the component oversight should take direct supervisory responsibility for the strategic support systems component, which is designed to ensure full stakeholder input and progress monitoring of HEII.



post harvest infrastructure and Industry ownership & Farmer equity would be grouped in order to merge the construction projects with support of the final industry-owned structures;



the MD2 sourcing and dissemination as well as the other planting material component should be the responsibility of a single individual, who would equally oversee the creation of an eventual industry owned organization.



innovative R&D could be monitored by a MOFA resource with strong technical and research credentials which could equally be useful in supervising the Food safety & quality management component;

The team would be responsible for getting the terms of reference of the various interventions and contracts prepared and validated by the stakeholder technical committees. It would oversee and monitor the execution of the components by the contractors and will ensure that AgSSIP procurement and management procedures do not generate excessive delays. It will be the responsibility of the HEII team to gather the data from the various initiatives and to report progress indicators to the AgSSIP coordinator.

3.3 Steering committee An HEII steering committee will be created in order to ensure proper monitoring by stakeholder groups as well as to inform them of progress achieved by the various executing agencies and contractors. This steering committee would be composed of the current Strategic support committee, augmented with other entities which are directly linked to the HEII’s success: the exporter associations (SPEG, VEPEAG, HAG) and public oversight authorities such as the GCAA (airport) and the GPHA (Tema port). This steering committee has no direct say in the execution of the various components of the HEII. However its members will be fully informed of the initiative progress reports and will advise AgSSIP and MOFA management on implementation strategies.

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3.4 Technical committees The preparation of the HEII demonstrated through the various technical committees entrusted in devising and validating the present work plan, the high quality of stakeholder contributions to the design of each component. These committees will be maintained in the implementation phase and will provide guidance to the HEII team as well as the selected executing agencies.

3.5 Executing agencies The actual execution of the program will be entrusted to executing agencies which will monitor the performance of the various contractors and participating beneficiaries. These agencies will be pre-existing entities, either from the public or the private sector: •

specific MOFA departments with technical attributions in the selected fields such as PPRSD (food safety and quality management), Crop services, DAES or DADU’s (information dissemination and training of extension personnel);



industry federations and associations such as FAGE, SPEG and HAG will be involved in the supervising closely the delivery of strategic information systems, the setting up of information databases (market, technical and GIS) as well as supervise the planning process of the innovative research component;



interim management committees and subsequent industry owned enterprises (IOM’s) will be entrusted partly in monitoring technical assistance and construction contracts for the design and delivery of the infrastructure they are destined to manage;



other government departments or agencies such as the GSB, the EPA or the GEPC will be involved in supervising the execution of specific project components.

In all these cases, the role of the executing agency must be understood in terms of steering and monitoring the actual technical work being carried out by a third party: a contractor, a consultant, an NGO or a participating grower (in the case of field trials). This will entail the preparation and/or approval of terms of reference or technical specifications as well as participation in the technical review of ensuing bids. In all cases, the actual contracts and disbursements will be managed directly by AgSSIP’s central coordination and administration.

3.6 Suppliers & Contractors Actual delivery of services will be contracted to specialised service providers. These will include: •

construction entrepreneurs (civil works), industrial equipment suppliers (cold stores and handling equipments, analytical lab equipment and supplies) and computer/network technology providers;



specialized technical assistance in logistics and post harvest systems and infrastructure design, management of industry owned organizations (legal, financial and operational management), pineapple propagation technical specialist and other crop specialists, quality management specialists and certification bodies, technical expertise in web portal designs and communication strategies, project monitoring, socio-economic and environmental impact monitoring;



local planting material suppliers and finishers (MD2 program) as well as farmers willing to participate in the various trials and propagating programs;

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local communication and printing agencies (training and communication materials design and dissemination) as well as software/internet design, training, and service providers (agribusiness hub, various Geographic information systems).

The provision of these goods and services will follow current AgSSIP procurement rules. These contractors will report technically to their assigned execution agency as well as the HEII coordinating team, and, contractually, to MOFA’s AgSSIP coordination unit.

3.7 Associated programs AgSSIP is not the only program supporting horticulture. Several national, bilateral and multilateral funded initiatives coexist and focus on specific aspects of the industry’s development. The main organisations are the following: •

The Pesticide Initiative Program (PIF) funded by the European Union supports industry efforts to improve pesticide management and regulatory practices. It is a demand driven project which answers to requests formulated by users. A National Task Force for the Ghanaian export sector was created in January 2004 in order to coordinate support to private sector initiatives. The HEII team and the Strategic support committee will keep abreast of the Task force’s work and collaborations with PIP and other donors in order to avoid duplications and rather contribute positively to the work being carried out.



The Ghana Private-Public Partnership Food Industry Development Program (Gh-PPP) aims to create synergies between Michigan State University’s PFID-F&V program, Royal Ahold (a Dutch supermarket and food service company), and the NGO’s currently involved in USAID’s TIRP program (Amex International, Technoserve, USDA and CARE). The Gh-PPP will act as a sounding board to address major obstacles to production and trace within the horticultural subsector critical issues affecting performance. The goal is to link Ghanaian producers with global distributors by assisting them in meeting the safety, quality, environmental and labor standards demanded by consumers. The HEII team will make contact with this technical assistance program in order to avoid duplications in the endeavors being carried out, particularly as pertains to the dissemination of IPM and GAP systems to smallholders.



The Joint Integrated Technical Assistance Program (JITAP) is an ITC (International Trade Center - WTO) supported program aimed at assisting the formulation of trade strategy. To this date, the JITAP program has produced a strategic framework for the development of the horticulture export sector. It would be necessary that the HEII team ensure that the JITAP program is aware of current work being carried, particularly the specific agri-business studies which will be monitored by the Strategic support committee. This committee should be brought to the attention of JITAP so that strang synergies be developed in the following stages of the program.



The Export Development and Investment Fund (EDIF) provides both seed money and capital funding (loans) to export ventures. The HEII team should keep itself informed of the EDIF portfolio in order to avoid duplications, particularly in the MD2, propagating material and innovative research components where EDIF has been active in the past.

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IV. Expected results 4.1 Immediate outputs AgSSIP’s Horticulture Exports Industry Initiative is focused on achieving clear improvements of Ghana’s infrastructure and capacity base, this over the relatively short 30 month period it will encompass: •

The post harvest infrastructure component will improve greatly the infrastructure at the airport and seaport, providing existing exporters with the possibility to access cold storage and improved handling services which should translate into improved quality and higher returns. Further, the design of the projects will have taken into account the potential for potential extensions which, in time could be funded by private or public projects, when the sector’s growth requires it. More indirectly, these investments will induce private exporters to invest in field-side cold storage capacity, further improving produce quality and opening the way for diversification into higher value perishable items.



The MD2 program will translate into the rapid conversion of a sizeable proportion of the existing cayenne lisse production base to the more profitable cultivar. With its smallholder focus, the program will contribute to ensuring that this vulnerable group will remain in the pineapple export sector and participate in further sector growth and improvement in profitability.



HEII will have achieved the introduction and mainstreaming of export oriented cultivars of several strategic crops such as golden papaya, sweet potato, okra, melons and other Asian vegetables. These crops and the development of an industry owned propagation/sourcing capacity will ensure sustainability and lay the building blocks of a dynamic continuous innovation capacity within the industry cluster, involving both private and public competencies.



The support to the GSB lab through the acquisition off complementary equipment, training and support to certification should translate into this organization reaching BPL or ISO 17025 certification. Reaching this benchmark will mean that the Ghanaian industry will have access to an in-country certified testing capacity for pesticide residues which, through the strict and timely monitoring capacity it provides, will greatly improve the industry’s reputation in terms of food safety. Further, work conducted in terms of pesticide trials and registration will provide a regulatory framework for the full implementation of safe and enforceable pesticide application norms.



The development and dissemination to both growers and extension services of a small farmers’ GAP/IPM system should provide the basis for gradually improving the food safety practices of export production. This should lead to certification of smallholder schemes and secure their position in the horticulture exports industry.



The support to Industry Owned service entities, based on past Farm Ownership Model experiences, should secure access to the Ghanaian export industry, smallholders and SME’s alike, to quality services at a competitive price. Basing the IOM initiatives on logistic service infrastructures valued by the industry as a whole (airport handling, seaport handling, field post harvest, seed and plant material sourcing) should facilitate reaching sustainability in the very near term.



The HEII components each bear strong stakeholder involvements and capacity building activities. The initiative will foster the development of a strong industry knowledge base in terms of postharvest export logistics, tissue culture multiplication, plant propagation, crop techniques for specific products, irrigation techniques as well as operations management systems. The Geographic databases that will be generated through the activities (MD2 pineapple GIS, vegetable

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GIS for field shed locations, tree crop GIS in the research component) will greatly improve industry knowledge and its capacity to monitor its development. •

The development of a web based decentralized information portal should improve capacities of both private and public stakeholders, by facilitating access to the industry’s market and technical knowledge base. It should also greatly improve the industry’s dissemination capacity, limit duplications of effort and favour collaboration amongst industry structures.



Strategic studies funded under HEII should improve the industry’s and the GOG’s strategic visions about the sector’s development and improve the convergence of various support programs to the industry.

4.2 Economic impact The above results and transformations to the horticulture exports industry should bear significant mid term impacts, both in terms of increasing export revenues and securing redistribution of the resulting added value. 4.2.1 Export revenues

Significant increases in export volumes will result from the following: •

Securing the transition of the pineapple sector to the MD2 cultivar and the improvement of the post-harvest shipping conditions (improved handling, ventilation and cold stores at the seaport) will permit Ghana to continue its penetration of the pineapple export market at its former pace.



The development of the Golden papaya and other seafreight cultivars will permit Ghana to reposition itself on this market and resume growth along the current double digit figures experienced by Brazil in the past years.



The diversification of the product base through the sourcing/propagation and innovation components should open the way for the full development of the sweet potato, okra, melons and mango opportunities (see annex 4).



The improvement of the knowledge base on mango production should facilitate investment decisions leading to the creation of mango orchards and the eventual positioning of Ghana on a November - June period.

Increase in volumes will be accompanied by an increase in the added value ratio of the industry: •

The successful conversion to MD2 and Golden papaya should improve margins significantly for all of the industry.



The improvement of the cold chain at the airport should induce the development of highly perishable and high value items such as pre-cut produce (pineapple, mango, melon, papaya, herbs).



The improved cold chain should also give a boost to the vegetable sector by improving quality and opening the possibility for pre-pack exports.



Improvement in quality monitoring capacities should help Ghanaian producers secure more direct and profitable partnership with the European produce distribution industry.

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Annex 6 proposes a table for a global estimate in terms of volume increase and added export value to the industry. This puts the total increase achievable over the next five year in yearly CIF export revenue at 80 million euro, which would bring the total CIF export figure for Ghana to more than 140 million euros, from the current revenue base estimated at 64 million euros (annex 5). 4.2.2 Farmer income

The objective of AgSSIP is to ensure that the expected growth in the export revenue base is equally shared by all levels of the industry, with a particular focus on increasing the profitability of the small farmers and agricultural SME’s involved. This impact will materialize in the medium term along the following lines: •

The introduction of improved cultivars, innovative research on crop intensification techniques, the introduction of good agricultural practices and integrated pest management techniques will translate into higher yields and tighter farm management practices, which should raise the volume marketed per acreage, bring down the unit cost of goods sold and improve margins significantly.



The promotion of equity participations in Industry and Farmer Ownership models should translate in a reduction of transaction and input costs, as well an improvement in the utilization of overall existing capacity. Further, the global improvement of the industry’s profitability will improve every farming unit’s equity position by generating a “goodwill” linked to an efficient supply chain and skill base which should, in time, be valued by venture capital and commercial banks.



The introduction of quality management practices will introduce a certain predictability to small farmer and SME output which will contribute to increasing the value of the produce, reduce opportunity costs associated to waste, post harvest losses and importer claims, all translating into higher revenues.

4.2.3 Urban and rural employment

A buoyant export sector is equally an important source of employment, both in urban, periurban and rural regions. •

Increased activity and diversification towards the higher value items which require greater care in carrying out agricultural tasks will translate into job opportunities both for on-farm workers with improved skills as well as for middle management involved into production, quality and marketing management.



In parallel , jobs will be created in the support services such as crop extension services, logistics and handling, training and plant propagation (nurseries, in vitro labs) etc.

4.2.4 SME & Agro-enterprise creation

The HEII program should further structure the sector by contributing to the creation of SME’s and industry owned structures. •

The project will develop alternate models of the Industry and Farmer Owned models which, if proven successful will serve as models for subsequent applications in new sectors or regions.



Through cluster effects, a successful HEII will contribute to the development of the service sector as a whole, for example transport services, packaging, quality monitoring, forwarding, financial and banking services, electrical and mechanical maintenance, local commerce in high value production etc.

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4.2.5 Investment •

HEII in itself will represent a significant investment in industry infrastructure ($ 3.5 millons) and planting material capital ($2.3 millions) .



These investments should help rehabilitate previous private sector investments, particularly field side and airport cold stores which could not secure continuous temperature controlled logistics. Such investments as the J. Lawrence and Tack farm pack houses and the Ghana Fresh perishable center at the airport represent millions of dollars of dormant investments which should benefit from HEII’s downstream investments at the port and the airport.



The improved infrastructure as well as investments in quality management capacities and identification of new crop opportunities should trigger national and foreign direct investments and partnerships, both in productive and service activities.



The extension of new cultivars, in particular pineapple, mango and papaya, as well as the introduction of higher intensity irrigation technologies should trigger investment at the farmer level, translating in the creation of orchards, improved land preparation and acquisition of irrigation equipment.

4.2.6 Sustainability

Finally, HEII will contribute to developing the sustainability of the sector through the promotion of industry collaborative mechanisms such as a central web portal and a private/public research and innovation procedure. HEII will also ensure the durable integration of Ghana to dominant marketing channels which will protect the industry from the volatile wholesale market and ensure a more stable growth.

4.3 Environmental issues Due to its growing importance, it will be important that the potential environmental impacts of the horticulture exports industry be adequately monitored. The following are a series of points to be taken into consideration by environmental assessments, both prior and during HEII implementation. 4.3.1 Global environmental coverage

Export oriented horticulture represents an important acreage that is expected to grow significantly over the coming years. •

Existing acreage is not well known but can be estimated at 5000 acres under cultivation for pineapple alone. In the case of Asian vegetables and chillies, this figure can be estimated at more than 2000 acres. Current mango and citrus coverage is not well known.



The diversification of production and the strong urban pressure in the immediate Accra radius will call on a diversification of farming areas. It can be expected that the Eastern and Lower Volta Region will call for fast developments because of its specific climate, access to irrigation and the possibility of an off-season mango fruiting period starting in November, which is unique in all West Africa. The northern areas will equally be solicited for mango and other tree crops as well as for high value vegetables, once the cold chain is secured at the point of shipment.

4.3.2 Identified risks

The fast development of the horticulture industry bears certain environmental risks, the most important being the following:

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The diversification process requires the introduction of new cultivars at an accelerated pace. This carries with it the risk that private entrepreneurs, either pressed for time or unaware of potential risks, will circumvent prudent quarantine practices and may introduce pathogens and viral strains that can prove damaging to the environment. •

The intensification of agricultural practices and the quest for higher yields and lower unit costs will induce a higher use of pesticides and other agricultural inputs. If not adequately managed through informed pesticide management as well as proper drainage and irrigation practices, significant contamination of surface and well water and other adverse effects could result in the growing areas.



The progressive recourse to irrigated production system will result in the creation of surface water retention systems and other means of accessing available resources. Pressure will be put on irrigation schemes which will need to be adapted to new types of cultivation such as intensive tree crop husbandry. Wetlands and easily accessible surface water will gradually be put to irrigation use, putting wildlife habitats at risk.



An increase in cultivated acreage will create risks of deforestation and soil erosion if improper soil preparation techniques and insufficient crop rotation practices are carried out by outgrowers.

4.3.3 Compensative measures & Beneficial impacts

Today, access to the export market is linked with compliance to sustainable and equitable production practices. An important part of HEII will be devoted to such issues as an intrinsic part of its investment and capacity building strategy: •

HEII will promote the use of rational intensification technologies such as drip irrigation and other crop husbandry techniques which should limit the water requirements to a minimum and limit the recourse to extensive low yield slash & burn agricultural practices.



A central part of the plant propagation program is devoted to the development of a rational plant introductions and propagation system involving the private sector and the national quarantine services, aiming to develop a practical methodology designed to enforce quarantine rules whilst remaining time and cost efficient for entrepreneurs pressed by a competitive environment.



HEII will support industry efforts to register its pesticide list and develop adapted guidelines to the local environment through tightly monitored trials. The establishment of a definitive pesticide list will provide an enforceable normative framework which should limit the use of unauthorised substances.



At the basis of the introduction of the GAP system which will be promoted by HEII is the large scale dissemination of Integrated Pesticide Management techniques through the training of both the national extension services and the industry leaders.



The investment in equipment and certification of a national MRL monitoring capacity at the GSB laboratory will facilitate surveys and investigation in usage of unregulated pesticides.



The development of tree crops for export should prove useful in fighting deforestation, particularly in Northern areas bordering the Sahel.



The introduction of MD2 a self yellowing variety would ensure the elimination of the use of one more chemical in pineapple production – ethephon a chemical used to enhance the yellow skin colour of pineapples.

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It is envisaged that the better margins that would be obtained by farmers for the MD2 variety would obviate the need for putting more new land into production. Rather it would encourage the use of improved practices.

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Agssip – Horticulture Exports Industry Initiative

V. Performance indicators and benchmarks The immediate evaluation of the HEII’s performance will be based on a set of indicators designed to measure implementation success. Specific environmental indicators will remain to be determined by the global environmental assessment of the AgSSIP restructuring. Economic impact indicators will be based on statistics determining actual export growth and the composition of the corresponding export supply chain: smallholders, SME’s, vertically integrated industrial concerns.

Component / Activity Indicator at Project end 100 Post harvest infrastructure Tema shed Industry design available and validated. Shed renovated. Cold storage installed and operational. Kotoka centre

perishable Industry design available and validated. Perishable freight zone delimited and inclusive of Ghana Fresh. Kotoka perishable Center constructed (civil works and cold stores) and functional.

Field pack houses

200 MD2 development

Industry design available and validated. Two (pineapple and vegetale) regional field pack houses built and operational.

Pineapple Pineapple GIS functional and audited. Documented program distribution procedure available to industry. More than 10 million plantlets distributed and in production. 70% of plantlets financed by AgSSIP go to pineapple growers defined as smallholders. 95% of plantlets are true to type MD2. Number of Ghanaian propagation units.

300 Propagation

Field trials and propagation of adapted cultivars for 5 specific products. Number of certified private propagators. Propagating guidebooks available in print and on the Web.

400 Innovative research

GIS database designed and functional for horticulture export base. Baseline survey conducted. Anthracnose and Med Fruit Fly survey conducted. Development of a collaborative framework with industry. Number of field trials conducted. Crop guidebooks and specsheets available in print and on the web. Training workshops for industry and crop extension held. 29

Agssip – Horticulture Exports Industry Initiative

500. Food safety & Quality Industry pesticide list available. GSB lab technically functional. management Number of pesticide analysis conducted by GSB lab both AgSSIP and third party funded (donor and private). GSB lab certified ISO 17025. Number of field trials conducted. Number of documented pesticide registration files. GAP/IPM guidebook available for Asian vegetables (Web & print). Smallholder protocol for EurepGAP certification. Training workshops with crop extension. 600. IOM/FOM

IOM created and functional for Tema shed, Kotoka airport, field packhouse and propagating material distribution: corporate statutes, financial statements and activity report.

700. Strategic support

4 opportunity studies conducted. Central agri-business web portal accessible by industry and remote regional users. Market intelligence material available (stats). Industry workshops. Quarterly AgSSIP newsletter.

30

Agssip – Horticulture Exports Industry Initiative

ANNEX 1 – Summary table

Agricultural Services Subsector Investment Program Horticulture Export Industry Initiative SUMMARY INVESTMENT PLAN

100 POST HARVEST INFRASTUCTURE └→

Tema port fruit terminal Kotoka Airport cargo village Field packing sheds

Program preparation studies (technical specs, database, program contractual framework) MD2 planting material sourcing & distribution (procurement, quality checks, audits)

Public/Private trial procedure Planting material trials (quick market profiles, trial farms selection & training, cultivar trials) Dissemination & extension (specsheets & training)

Crop geographic database Technical & crop innovation Dissemination & extension (specsheets & training)

Pesticide regulations (pesticide trials and accreditation) Monitoring of minimum residue limits (lab analysisand equipment of GSB lab) Good agricultural practices Certification

Tema Fruit Wharf Management Co. (IOM) Kotoka Airport Perishable Center Mgmt Co. (IOM) Field Post Harvest Services Mgmt Co. (FOM) Ghana High Value Horticulture Seed & Plant Sourcing Co. (IOM) HEII Granted Equity Fund

Strategic studies (agri-business commodities) Horticulture/ agri-business information Hub (cluster portal) Market intelligence tools Monitoring studies

TOTAL HEII INVESTMENT COSTS COMPONENT MANAGEMENT COSTS TOTAL COMPONENT

Services & supplies

3 538

1 100

1 960

366

112

2 126

40

131

5

1 850

100

358

55

138

26

139

672

145

204

187

136

960

400

277

35

248

1 207

50

651

6

829

175

438

111

500

169 169 115 115 639

700 STRATEGIC SUPPORT SYSTEMS └→

Cost share funds

226 490 130 114

600 INDUSTRY OWNERSHIP & FARMER EQUITY └→

Training

184 367 121

500 FOOD SAFETY AND QUALITY MANAGEMENT └→

Consultancy & Tech. Ass.

26 307 25

400 INNOVATIVE RESEARCH AND DEVELOPMENT └→

Equipment

126 2 000

300 PLANTING MATERIAL SOURCING & DEVELOPMENT └→

Civil works

1 197 1 965 376

200 MD2 SOURCING & DEVELOPMENT └→

TOTAL

105

216 298 80 235

9 690

1 100

2 825

2 205

482

2 350

728

203

0

124

0

10

0

69

9 893

1 100

2 949

2 205

492

2 350

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Agssip – Horticulture Exports Industry Initiative

ANNEX 2 – Work plan activity tables

Agricultural Services Subsector Investment Program Horticulture Export Industry Initiative 2004 Task

Activity

1

2

3

4

DETAILED INVESTMENT PLAN 2005 2006 Resources 1 2 3 4 1 2 3 4

Executing Agency

Total cost ('000 US$)

Output

100 POST HARVEST INFRASTRUCTURE

3 538

110 TEMA PORT FRUIT TERMINAL (Shed 9)

1 197

111 TEMA Fruit terminal design a) Industry study tours: RSA & Brasil

122 05/0407/04

b) Technical design/ Legal study

08/04 10/04

c) Industry Ownership Agreement

09/0410/04

112 Phase 1: Ventilation, resurfacing, handling equipment 10/04a) Tendering and contracting process

02/0508/05

c) Project monitoring and commissionning

01/0510/06

MOFA + FAGE/ SPEG/ VEPEAG

i) Lessons learned: design, management ii) Converging stakeholder objectives

41

MOFA + FAGE/ SPEG/ VEPEAG

i) Adapted technical master plan for the creation of a fruit terminal at Tema Shed 9 ii) Industry management framework iii) Stakeholder input/buy-in iv) Full set of drawings v) Specifications for handling equipment vi) Tender package estimates

81

Legal counsel

MOFA + GPHA

i) Contractual framework for access to the facilities and the financing/ transfer of ownership of the Fruit Terminal project

See S Comp. F

Procurement specialist Architect/ Engineer (counsel on technical bid evaluation) Independent supervision Civil works Equipment

MOFA/ SPEG

i) National tender document ii) Tender evaluation by industry iii) Contract award

IOM support

MOFA/ SPEG

441

02/05

b) Construction

Travel & subsistance: party of 7 Phvst logistics consultant Training workshops Stakeholder workshops Phvst logistics consultant Local architect & engineer

1

MOFA/ SPEG/ i) Renovations completed to CONTRACTOR standards S ii) Equipment installed and functionning i) Reception of works ii) Property transfer to industryowned terminal operator

41

400

See S.Comp.F

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113 Phase 2: Cold storage and handling facility 10/04a) Tendering and contracting process

04/0510/05

c) Project monitoring and commissionning

04/0510/06

Total cost ('000 US$)

Output

634

03/05

b) Construction

Executing Agency

2

Procurement specialist Architect/ Engineer (counsel on technical bid evaluation) Independent supervision Civil works Equipment

MOFA/ SPEG

IOM support

MOFA/ SPEG

i) International tender document ii) Tender evaluation by industry iii) Contract award

34

MOFA/ SPEG/ i) Works completed to standards CONTRACTOR ii) Cold stores installed and S functionning

600

i) Reception of works ii) Property transfer to industryowned terminal operator

See S.Comp.610

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120 KOTOKA AIRPORT PERISHABLE FREIGHT HANDLING 121 Phase 1: KOTOKA Perishable Center design 05/04a) Industry study tours: Kenya, Zambia, 07/04 Senegal

Executing Agency

Total cost ('000 US$)

Output

1 965 147 Travel & subsistance: 7 Phvst logistics consultant

MOFA + FAGE/ SPEG/ VPEAG

i) Lessons learned: design, management ii) Converging stakeholder objectives

41

b) Technical/ Legal study & integration to GCAA plan

05/0409/04

Stakeholder workshops Phvst logistics consultant Local architect & engineer

MOFA + FAGE/ GCAA

i) Technical master plan for a perishable handling compound in Kotoka freight zone ii) Industry management framework iii) Stakeholder input & buy-in iv) Full set of drawings v) Specs for security eq. vi) Tender package estimates

106

c) Industry Ownership Agreement

08/0411/04

IOM support

IOM support

i) Contractual framework for access to facilities and the financing/ transfer of ownership of the AgSSIP financed infrastructure.

See S Comp. 610

10/0412/04

Procurement specialist Architect/ Engineer (counsel on technical bid evaluation) Independent supervision Civil works Equipment

MOFA + i) National tender document SPEG/ VEPEAG ii) Tender evaluation by industry iii) Contract award

24

MOFA/ SPEG/ i) Works completed to standards VEPEAG/ ii) Access to freight zone secured CONTRACTOR S MOFA/ SPEG i) Reception of works ii) Property transfer to industryowned terminal operator

300

122 Phase 1 - Integration of PACH a) Tendering and contracting process

324

b) Construction

01/0506/05

c) Project monitoring and commissionning

01/0512/05

IOM support

3

See S.Comp.620

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1

2

3

4

DETAILED INVESTMENT PLAN 2005 2006 Resources 1 2 3 4 1 2 3 4

10/0403/05

b) Construction

04/0503/06

c) Project monitoring and commissionning

04/0510/06

4

Executing Agency

Procurement specialist Architect/ Engineer (counsel on technical bid evaluation) Independent supervision Civil works Handling equipment Cold stores

MOFA/ SPEG/ VEPEAG

IOM support

IOM support

Total cost ('000 US$) 1 494

Output i) International tender document ii) Tender evaluation by industry iii) Contract award

MOFA/ SPEG/ i) Works completed to standards CONTRACTOR ii) Perishable handling facilities S installed and functionning

i) Reception of works ii) Property transfer to selected industry equity companies.

44

1 450

See S.Comp 620

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130 FIELD POST-HARVEST CENTERS a) Production mapping and location study

1

2

3

4

DETAILED INVESTMENT PLAN 2005 2006 Resources 1 2 3 4 1 2 3 4

Executing Agency

Total cost ('000 US$)

Output

376 05/0409/04

Technical assistance FAGE/ VEPEAG/ Geographic Information SPEG/MOFA System (maps, GPS, GIS software) Industry workshops

i) Production mapping of asian vegetable and pineapple farms ii) Location recommendations for prototype sheds

21

b) Prototype design

05/0409/04

Study tours (I Coast & Other) Phvst & Logist consultant Architect/Engineer

VEPEAG/ SPEG/MOFA

i) Prototype design ii) Ownership and management model iii) Stakeholder buy-in iv) Detailed plans and specs v) Procurement estimates

32

c) Tendering and contracting process

10/0402/05

Procurement specialist Architect/ Engineer

MOFA

i) National tender document ii) Tender evaluation by industry iii) Contract award

23

d) Construction

02/0509/05

i) Works completed to standards ii) Perishable handling facilities installed and functionning

300

e) Commissionning & Transfer

01/0510/06

Independent supervision VEPEAG/ SPEG/MOFA Civil works Handling equipment Cold stores IOM support IOM support

i) Reception of works ii) Property transfer to selected industry equity companies.

See S.Comp 630

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Total cost ('000 US$)

Output

200 MD2 SOURCING AND DEVELOPMENT 210 Project preparation a) Technical study on planting material sources, evaluation of existing companies, quality standards and costing benchmarks b) Geographic Pineapple Grower Database

2 126 126

04/0409/04

Technical Assistance

MOFA

i) Technical specifications & procurement standards ii) Unit cost per plantlet iii) List of national suppliers

45

04/0409/04

Geographic DBMS platform Training Field surveys & census

SPEG/ IOM/MOFA

i) Eligible grower census ii) Evaluation of acreage to be converted iii) Geographic database

56

04/0409/04

Technicl assistance (IOM support) Legal counsel

MOFA/ IOM

i) Detailed contractual framework ii) Quality control and enforcement procedure

25

10/0410/06

Cost share procurement IOM contracts with suppliers.

i) Conversion of 400 ha ii) Development of plantlet propagation capacity

b) DNA analysis on sample production to test true to typeness of lots.

01/0510/06

Independent quality control agency

MOFA

i) True to type plantlets ii) Identification of quality suppliers

c) IOM support

01/0510/06

IOM management assistance

IOM support

i) Input distribution monitoring capacity in an industry-owned structure ii) Training in MD2 husbandry & post harvest

d) Independent program monitoring and audits

03/0509/05

Specialized control agency

Auditor

i) Prevention of plantlet diversion ii) Garantee as to inclusion of outgrowers into the MD2 production pool

c) Program management system, contractual framework and cost sharing scheme. 220 MD2 planting material distribution a) Procurement contracts for 15 million plantlets

2 000

6

1 850

100

See S.Comp 640

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Total cost ('000 US$)

Output

300 PLANTING MATERIAL SOURCING & DISSEMINATION 310 Public/Private trial procedure a) Trial framework study and stakeholder validation

358 26

04/0409/04

Technical assistance Workshop

MOFA

i) Trial framework and procedure for the introduction of new cultivars ii) Data collection, storage and retrieval system for new crop trials

07/0412/04

Marketing consultants External databases

Crop services + FAGE

i) Market profiles ii) Tested market profiling procedure

44

b) Design of propagation unit/ product

09/0412/04

Prototypes

Crop services + PPRSD

i) Prototypes and specs available for crop propagation

10

c) Trial farm selection, training and equipment

10/0403/05

Farm evaluation team Training manual Training workshop Specific trial equipment

Crop services + PPRSD

i) Certified and trained trial farms ii) Equiped trial farms

53

d) Trial implementation, data collection and analysis, propagation

04/0510/06

Inputs, seedstock, Crop services supplies + PPRSD Field visits and reporting

i) Trial reports ii) Test database

140

e) Production and distribution of stock planting material to propagators

07/0610/06

Seedstock acquisition and production unit

Crop services + PPRSD

i) Pure base seedstock production unit operational ii) Base seedstock available to propagators

50

07/0603/07

Farm audits Seed and plant stock testing and analysis

PPRSD Quarantine

i) Quality control protocols defined ii) Audit reports

10

06/0603/07

Trial database design Web Access District extension training

Crop i) Trial data available to industry services/DAES/D ADU

320 Planting material trials a) Quick market profiles

f) Quality control and monitoring 330 Dissemination & extension a) Propagation guidebook dissemination

26

307

25

7

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Total cost ('000 US$)

Output

400 INNOVATIVE RESEARCH AND DEVELOPMENT 410 Crop geographic database a) Technical feasibility and design

672 184

04/0409/04

Technical assistance

b) Implementation and training

10/0412/04

c) Baseline survey

d) Anthracnose/ Med Fruitfly survey

Crop services/ SRID

i) Database structure ii) Management procedure

20

Geographic Information Crop services/ System software SRID Computer hardware GIS platform (GPS units) Database programming Training guides Regional workshops

i) Equipment and software platform installed and database shell programmed ii) Personnel trained in maintenance, data entry and data collection

90

01/0512/05

Field surveyors Crop services/ Data entry and analysis SRID Workshop

i) Survey results

40

01/0610/06

Field surveyors Crop services/ Data entry and analysis SRID/PPRSD Workshop

i) Survey results

34

07/0409/04

Industry/Research committee

FAGE

i) 2 year workplan

b) Trial design and study tours

10/0412/04

Study tours,seminars & training Desk research Specialized database

CSIR/ SPEG/ HAG/ VPEAG/MOFA

i) Lessons learned report ii) Thematic recommendations

111

c) Field trials - Technologies and cultivars

01/0510/06

Technical assistance Pilot technology platforms Field trials

CSIR/Crops services

i) Equipped technology demonstration platforms ii) Field trial reports

250

420 Technical innovation a) Research priorities set

367

8

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430 Dissemination & extension a) Research Newsletter and Website

1

2

3

4

DETAILED INVESTMENT PLAN 2005 2006 Resources 1 2 3 4 1 2 3 4

Executing Agency

Total cost ('000 US$)

Output

121 03/0510/06

Newsletter format Desktop publishing Website design and maintenance

FAGE

i) Newsletter ii) Web based open access version

16

b) Specsheets: New products, New technologies - First edition

12/0503/07

Specsheet format Hardcopy Farmer edition

Crop services

i) Specsheets disseminated ii) Farmer versions iii) Web based open access version

30

c) Training of Growers and Crop Extension district level personnel in new crops and technologies

01/0610/06

Regional workshops

Crop services

i) Workshops ii) Training aids

75

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Total cost ('000 US$)

Output

500 FOOD SAFETY AND QUALITY MANAGEMENT 510 Pesticide regulations a) Technical assistance to EPA to develop the pesticide registration process

960 226

07/0409/04

Technical assistance (EPA)

EPA

i) Published pesticide registration procedure available to the industry

to be funded by PIP

b) Establishment of national pesticide list and recommendations for main export crops

07/0409/04

Local consultant Exporter associations

SPEG/ HAG/ VEPEAG + EPA/ PPRSD

i) Published list with current EPA status, recommended use and EU MRL levels ii) iii)

6

c) Field trials to determine pesticide recommended use in the (Ghanaian) context (in synergy with PIP trials)

10/0410/06

Regional trial sites Trial inputs, equipment Trial farm team training District crop extension training

PPRSD/ SPEG/ i) Tried and tested pesticide trial HAG/ VEPEAG procedure involving exporter associations ii) Trial site evaluation procedure and experienced trial sites iii) Trial reports for 20 crop/product pairings iv) Recommended doses associated ith recommended MRL's

100

d) Pesticide residue analysis linked with field trials to be conducted concurrently by GSB and certified labs.

05/0510/06

GSB analysis BLP certified lab analysis Field sampling

PPRSD

i) Test results database for 20 crop/pesticide couplings ii) Benchmarking of GSB lab results against certified labs

100

e) Pesticide Registration

03/0610-06

Local consultant Exporter associations

SPEG/ HAG/ VEPEAG

i) Fully documented pesticide listing request for update ii) Amended EPA and industry pesticide list

20

07/0409/04

PIP technical assistant

PIP/GSB

i) Defined training and performance objectives ii) Business plan for unit sustainability

to be funded by PIP

06/0403/05

PIP trainer PIP/GSB Ceres Locustox or other lab

i) Trained personnel and management ii) Technical partnership with regional lab

to be funded by PIP

520 Monitoring of Maximum residue levels a) Feasibility study of steps to be taken to bring the current GSB lab to BLP status

b) Training of GSB lab personnel to BLP requirements and pesticide residue testing (Ceres Locustox DKR).

490

10

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1

2

3

4

DETAILED INVESTMENT PLAN 2005 2006 Resources 1 2 3 4 1 2 3 4

Executing Agency

Total cost ('000 US$)

Output

10-0403-05

Analytical equipment Supplies

GSB/MOFA

i) GSB lab is functional for carrying out analysis ii) Streamlined supplies procurement procedure

400

d) Benchmarking analysis with other certification labs

06/0512/05

Sample analysis Sample shipping

GSB

i) Benchmarking reports ii) Test result convergence

20

e) BLP certification process

06/0512/05

Audit

GSB

i) Audit report ii) ISO 17025

40

10/0510/06

Consultant

IOM support

i) Development of a business plan for the transfer of the GSB facility to an Industry Owned corporation

30

10/0403/05

Crop consultant Grower/ Exporter roundtable Design Printing & Web publishing

PPRSD

i) IPM Asian veg production guide published ii) Web availability iii) Simplified farmer version

b) Training of Crop services, Extension district level personnel in GAP, IPM and EurepGAP concepts.

01/0510/06

Training material for trainers (design & print) Training material for users (design & print) Training workshops Web publishing

PPRSD/Crop services/DADU

c) GAP dissemination systems.

01/0509/06

Communication plan Print & re-prints Web based publishing CD Rom's Thematic posters Pocket guidebooks Adaptation of manuals for direct farmer use

f) IOM support to the Ghana pesticide residue testing lab: design, management, accounting, marketing 530 Good Agricultural Practices a) Development of IPM production guides for Asian Vegetables.

130

11

Crop extension personnel i) understand GAP, IPM and EurepGAP issues ii) have access to printed and Web based training material iii) have access to printed and Web based dissemination material FAGE GAP documentation and know-how +PPRSD/ SPEG/ is readily available: at farm level HAG/ VEPEAG i) at farm level ii) at pilot district extension centers iii) at industry resource centers iv) on the Web

30

50

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540 Certification a) Development of a EurepGAP protocol for outgrower systems: norms, audit questionnaires and paper traceability system. b) Pre-certification of smallholder based networks.

1

2

3

4

DETAILED INVESTMENT PLAN 2005 2006 Resources 1 2 3 4 1 2 3 4

Executing Agency

Total cost ('000 US$)

Output

114 10/0406/05

EurepGAP Consultant Validation workshops

04-0610/06

Certifying body

12

FAGE +EurepGAP/ PPRSD/ SPEG/ HAG/ VEPEAG/Crop services PPRSD

i) Outgrower EurepGAP protocol ii) Outgrower traceability system iii) Systems obtain EurepGAP approval

60

i) Pre-certification reports ii) Certification

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Total cost ('000 US$)

Output

600 INDUSTRY OWNERSHIP AND FARMER EQUITY

1 207

610 Tema fruit wharf management company (IOM) 07/04a) Feasibility study and business plan for 09/04 company

b) Support to the Interim Management Committee for the creation of the company: ownership & legal structure, financial engineering, construction project monitoring c) Implementation support: strategic planning, management systems, training

169 Specialised technical assistance Financial engineering Industry workshops

i) Feasibility study (B. Plan) ii) Stakeholder buy-in

30

10/04/ 09/05

Legal counsel IOM support Technical assistance: agency management, technical, financial.

i) IOM company created ii) Startup financing secured iii) Facilities built to specs iv) Property transferred to industry

49

10/0510/06

Legal counsel IOM support Startup operational agency management Systems implementation Software acquisition & development Computer equipment

i) Facility is functionning to industry standards ii) Maintenance plan respected iii) Financial obligations are met

90

Specialised technical assistance Financial engineering Industry workshops

i) Feasibility study (B. Plan) ii) Stakeholder buy-in

30

620 Kotoka Airport Perishable Center management company (IOM) 07/04a) Feasibility study and business plan for 09/04 company

b) Support to the Interim Management Committee for the creation of the company: ownership & legal structure, financial engineering, construction project monitoring c) Implementation support: strategic planning, management systems, training

MOFA

169 MOFA

10/0409/05

Legal counsel IOM support Technical assistance: agency management, technical, financial.

i) IOM company created ii) Startup financing secured iii) Facilities built to specs iv) Property transferred to industry

49

10-05/ 10/06

Legal counsel IOM support Startup operational agency management Systems implementation Software acquisition & development Computer equipment

i) Facility is functionning to industry standards ii) Maintenance plan respected iii) Financial obligations are met

90

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630 Field post-harvest management services companies (FOM) 07/04a) Feasibility study and business plan for 09/04 companies

b) Support to the Interim Management Committee for the creation of the company: ownership & legal structure, financial engineering, construction project monitoring c) Implementation support: strategic planning, management systems, training

Total cost ('000 US$)

Output

115 Specialised technical assistance Financial engineering Industry workshops

MOFA

i) Feasibility study (B. Plan) ii) Stakeholder buy-in

15

10/0403/05

Legal counsel IOM support Technical assistance: agency management, technical, financial.

i) IOM company created ii) Startup financing secured iii) Facilities built to specs iv) Property transferred to industry

30

04-0506/06

Legal counsel IOM support Startup operational agency management Systems implementation Software acquisition & development Computer equipment Farmer & user training

i) Facility is functionning to industry standards ii) Maintenance plan respected iii) Financial obligations are met

70

Specialised technical assistance Financial engineering Industry workshops

i) Feasibility study (B. Plan) ii) Stakeholder buy-in

15

640 Ghana High Value Horticulture seed & plant sourcing company 04/04a) Feasibility study and business plan for 06/04 company (linked to the B.MD2 and C.Propagation programs) b) Support to the Interim Management Committee for the creation of the company: ownership & legal structure, financial engineering, construction project monitoring c) Implementation support: strategic planning, management systems, training

Executing Agency

115 MOFA

07/0411/04

Legal counsel IOM support Technical assistance: agency management, technical, financial.

i) IOM company created ii) Startup financing secured iii) Facilities built to specs iv) Property transferred to industry

30

11/0403/06

Legal counsel IOM support Startup operational agency management Systems implementation Software acquisition & development Computer equipment Farmer & user training

i) Facility is functionning to industry standards ii) Maintenance plan respected iii) Financial obligations are met

70

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650 Granted Equity Fund a) Fund feasibility study

1

2

3

4

DETAILED INVESTMENT PLAN 2005 2006 Resources 1 2 3 4 1 2 3 4

Executing Agency

Total cost ('000 US$)

Output

639 07/0409/04

VC Fund specialist Legal counsel

Financial institution

i) Fund contribution scheme ii) Management procedures iii) Investment monitoring iv) Exit strategies

40

b) Legal & contractual framework and funding

10/0406/05

Legal counsel Banking services

Financial institution

i) Fund management contract with banking partner ii) Funds disbursed

525

c) Venture capital/ Investment banking/ Financial engineering support

07-0506/06

Investment banker

Financial institution

i) Bankable IOM/FOM business plans ii) Timely fund release iii) Awareness of terms by equity partners

54

d) Fund audit

01/0610/06

Auditor

MOFA

i) Audit reports ii) Improved procedures

20

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Total cost ('000 US$)

Output

700 STRATEGIC SUPPORT SYSTEMS

829

710 Strategic studies - Agri-business commodities a) Strategic studies and industry strategic 07/0410/06 workshops

216

720 Horticulture Agribusiness Information Hub 07/04a) Feasibility study

Consultants Workshops

FAGE/ GEPC

i) Studies ii) Project proposals for AgSSIP 2 or other initiatives in the AgBusiness sector

Web based agric-info systems consultant

MOFA/ FAGE/ GEPC

i) Design for a web based Agribusiness info hub ii) Hub implementation plan iii) Capacity building & training program

35

216

298

09/04

b) Portal design & implementation

10/0409/05

Web programmers MOFA/ FAGE/ Computer/ Network GEPC equipment High Speed connectivity equipment

i) Web portal programmed and operational ii) Connectivity to main information providers (FAGE, GEPC, Crop serv, PPRSD, GSB) iii) High speed connexions functionning

150

c) Support to regional connectivity

07/0506-06

Web programmers Crop services Computer/ Network equipment High Speed connectivity equipment

i) Connexion of Pilote extension centers to network ii) Portals adapted to farmer use iii) High speed connexion functionning

63

d) Network capacity building

10/0410/06

Stakeholder training in MOFA/ FAGE/ advanced Internet skills GEPC

i) Main information providers trained ii) Regional pilot extension centers trained

50

16

Version 2004-03-18

Agricultural Services Subsector Investment Program Horticulture Export Industry Initiative 2004 Task

Activity

730 Market intelligence tools a) Access to specialized databases and production of market intelligence reports

1

2

3

4

DETAILED INVESTMENT PLAN 2005 2006 Resources 1 2 3 4 1 2 3 4

Executing Agency

Total cost ('000 US$)

Output

80 10/0410/06

Technical assistance Registration fees Industry training & workshops

FAGE/ GEPC

i) Statistical analysis ii) Database extractions iii) Online availability to cluster

30

10/0410/06

On-market correspondents

FAGE/ GEPC

i) Weekly commodity reports ii) Online availability to cluster

50

07/0412/05

Consultant

MOFA

i) Implementation plan ii) Monitoring reports

150

07/0410/06

Consultants

MOFA/ FAGE/ GEPC

i) Base competitiveness indicators ii) Periodic indicator reports

20

c) Strategic Support Committee workshops

07/0410/06

Workshops

MOFA/ FAGE/ GEPC

i) Agri-business strategy ii) Improved collaboraton in the agribusiness cluster

25

d) HEII Newsletter

10/0410/06

Communication consultant

MOFA/ FAGE/ GEPC

i) Bi-monthly newsletter ii) Web version iii) Improved national and international visibility of Ghanaian horticulture

40

b) Real Time Market monitoring (pilot)

740 Project monitoring a) On-going implementation technical assistance: project management, environmental assessments, socioeconomic assessments b) Benchmarking studies

235

17

Version 2004-03-18

Agssip – Horticulture Exports Industry Initiative

ANNEX 3 – Procurement details

Agricultural Services Subsector Investment Program

Task

Activity

Type

Horticulture Export Industry Initiative PROCUREMENT PLAN

Desc

Delivery

Contract amount Proc ('000 US$) Deadline

Unit

Unit Qty

Unit cost US$

participants

7

5 000

35

beg

end

Executing Agency

05-2004

06-2004

07-2004

Tema-IMC

Activity subtotals

100 POST HARVEST INFRASTRUCTURE 110 Tema Fruit Wharf (Shed 9) 111 Tema design

a) Industry tours

Study tour

Brasil/ South Africa

a) Industry tours

Workshop

PHvst logistics training

workshop dys

2

3 000

6

06-2004

06-2004

06-2004

Tema-IMC

b) Tech study

Consultant

P.Harvst logistics firm

man-dys

50

1 100

55

05-2004

06-2004

10-2004

Tema-IMC

b) Tech study

Consultant

Architect/Engineer firm

man-dys

50

400

20

05-2004

06-2004

09-2004

Tema-IMC

b) Tech study

Workshop

PHvst logistics design

workshop dys

2

3 000

6

08-2004

08-2004

08-2004

Tema-IMC

b)

81 122

a) Tender/supervision

Consultant

Procurement spec

man-dys

20

300

6

09-2004

10-2004

02-2005

Tema-IMC

a) Tender/supervision

Consultant

Technical supervisor

man-dys

100

350

35

01-2005

02-2005

11-2005

Tema-IMC

b) Construction ph1

Civil works

Ventilation/Partition/Surface

lot

1

300 000

300

01-2005

02-2005

08-2005

Tema-IMC

b) Construction ph1

Equipment

Ventilation/Partition/Surface

lot

1

100 000

100

01-2005

02-2005

08-2005

Tema-IMC

a)

41

b)

400

441

Subtotal 113 Tema phase 2

41

122

Subtotal 112 Tema phase 1

a)

441

a) Tender/supervision

Consultant

Procurement spec

man-dys

30

300

9

09-2004

10-2004

03-2005

Tema-IMC

a) Tender/supervision

Consultant

Technical supervisor

man-dys

70

350

25

01-2005

02-2005

11-2005

Tema-IMC

a)

34

b) Construction ph 2

Equipment

Cold storage & handling

lot

1

600 000

600

03-2005

04-2005

10-2005

Tema-IMC

b)

600

634

Subtotal

1 197

SUBTOTAL

1

634 1 197

Version - 2004-03-18

Agricultural Services Subsector Investment Program

Task

Activity

Type

Horticulture Export Industry Initiative PROCUREMENT PLAN

Desc

Delivery

Contract amount Proc ('000 US$) Deadline

Unit

Unit Qty

Unit cost US$

participants

7

5 000

35

beg

end

Executing Agency

05-2004

06-2004

07-2004

Kotoka-IMC

Activity subtotals

100 POST HARVEST INFRASTRUCTURE 120 Kotoka Airport Perishable Center 121 Kotoka design

a) Industry tours

Study tour

Kenya/ Zambia/ Senegal

a) Industry tours

Workshop

PHvst logistics training

workshop dys

2

3 000

6

06-2004

06-2004

06-2004

Kotoka-IMC

b) Tech study

Consultant

P.Harvst logistics firm

man-dys

70

1 100

77

05-2004

06-2004

10-2004

Kotoka-IMC

b) Tech study

Consultant

Architect/Engineer firm

man-dys

50

400

20

05-2004

06-2004

10-2004

Kotoka-IMC

b) Tech study

Workshop

PHvst logistics design

workshop dys

3

3 000

9

08-2004

08-2004

08-2004

Kotoka-IMC

b)

106 147

a) Tender/supervision

Consultant

Procurement spec

man-dys

20

300

6

09-2004

10-2004

12-2004

Kotoka-IMC

a) Tender/supervision

Consultant

Technical supervisor

man-dys

50

350

18

11-2004

12-2004

06-2004

Kotoka-IMC

b) Construction ph1

Civil works

Access road & gates

lot

1

200 000

200

12-2004

01-2005

06-2005

Kotoka-IMC

b) Construction ph1

Equipment

Lighting & security & weighing

lot

1

100 000

100

12-2004

01-2005

06-2005

Kotoka-IMC

a)

24

b)

300

324

Subtotal 123 Kotoka phase 2

41

147

Subtotal 122 Kotoka phase 1

a)

324

a) Tender/supervision

Consultant

Procurement spec

man-dys

30

300

9

09-2004

10-2004

03-2005

Kotoka-IMC

a) Tender/supervision

Consultant

Technical supervisor

man-dys

100

350

35

11-2004

12-2004

11-2005

Kotoka-IMC

b) Construction ph2

Civil works

Perishable center

lot

1

450 000

450

03-2005

04-2005

10-2005

Kotoka-IMC

b) Construction ph2

Equipment

Cold stores and handling

lot

1

1 000 000

1 000

03-2005

04-2005

10-2005

Kotoka-IMC

Subtotal SUBTOTAL

2

a)

44

b)

1 450

1 494

1 494

1 965

1 965

Version - 2004-03-18

Agricultural Services Subsector Investment Program

Task

Activity

Type

Horticulture Export Industry Initiative PROCUREMENT PLAN

Desc

Delivery

Contract amount Proc ('000 US$) Deadline

Unit

Unit Qty

Unit cost US$

man-dys

15

350

5

beg

end

Executing Agency

05-2004

07-2004

09-2004

Phvst-IMC

Activity subtotals

100 POST HARVEST INFRASTRUCTURE 130 Field Post Harvest Centers a) Location study

Consultant

GIS Technical assistance

a) Location study

Equipment

GPS/Computers/Software/Maps

lot

1

10 000

10

05-2004

06-2004

09-2004

Phvst-IMC

a) Location study

Workshop

Industry design/ location select

workshop dys

2

3 000

6

08-2004

08-2004

08-2004

Phvst-IMC

b) Prototype design

Study tour

Ivory Coast/Kenya

participants

3

3 000

9

05-2004

06-2004

06-2004

Phvst-IMC

b) Prototype design

Consultant

P.Harvst logistics firm

man-dys

21

1 100

23

05-2004

06-2004

09-2004

Phvst-IMC

c) Tender/supervision

Consultant

Procurement spec

man-dys

15

300

5

09-2004

10-2004

03-2005

Kotoka-IMC

c) Tender/supervision

Consultant

Technical supervisor

man-dys

50

350

18

11-2004

12-2004

11-2005

Kotoka-IMC

d) Construction

Civil works

Alpha & Beta sheds

lot

2

75 000

150

03-2005

04-2005

10-2005

Kotoka-IMC

d) Construction

Equipment

Cold stores and handling

lot

2

75 000

150

03-2005

04-2005

10-2005

Kotoka-IMC

376

SUBTOTAL

TOTAL 100 POST HARVEST INFRASTRUCTURE

3 538

3

a)

21

b)

32

c)

23

d)

300 376 3 538

Version - 2004-03-18

Agricultural Services Subsector Investment Program

Task

Activity

Type

Horticulture Export Industry Initiative PROCUREMENT PLAN

Desc

Unit

Unit Qty

Unit cost US$

Delivery

Contract amount Proc ('000 US$) Deadline

beg

end

Executing Agency

Activity subtotals

200 MD2 SOURCING AND DEVELOPMENT 210 Project preparation

a) Technical feasibility

Consultant

Specs/Stds/U.Cost/Suppliers

man-dys

30

1 500

45

04-2004

05-2004

09-2004

MOFA/IOM

b) Pinegrower Dbase

Consultant

GIS Technical assistance

man-dys

30

350

11

06-2004

07-2004

09-2004

MOFA/IOM

b) Pinegrower Dbase

Equipment

GPS/Computers/Software/Maps

lots

2

20 000

40

05-2004

06-2004

09-2004

MOFA/IOM

b) Pinegrower Dbase

Workshop

Surveyor team training

workshop dys

3

1 500

5

07-2004

07-2004

08-2004

c) Mgmt system

Consultant

Plantlet distribution framewk

man-dys

50

500

25

05-2004

06-2004

09-2004

45

MOFA/IOM

b)

56

MOFA/IOM

c)

25

126

SUBTOTAL 220 MD2 distribution

a)

a) Plantlet purchase b) DNA testing d) Procedure audit

plantlet

14 800 000

0

1 850

10-2004

11-2004

10-2006

MOFA/IOM

a)

1 850

True to type sample tests

plantlet

2 000

50

100

10-2004

11-2004

10-2006

MOFA/IOM

b)

100

Audit of distribution system

man-dys

125

400

50

10-2004

11-2004

10-2006

MOFA/IOM

d)

50

Cost share fund AgSSIP% of MD2 plant cost Services Consultant

126

SUBTOTAL

2 000

2 000

TOTAL 200 MD2 SOURCING AND DEVELOPMENT

2 126

2 126

4

Version - 2004-03-18

Agricultural Services Subsector Investment Program

Task

Activity

Horticulture Export Industry Initiative PROCUREMENT PLAN

Type

Desc

Unit

Unit Qty

Unit cost US$

man-dys

20

1 000

workshop dys

2

3 000

Delivery

Contract amount Proc ('000 US$) Deadline

beg

end

Executing Agency

Activity subtotals

300 PLANTING MATERIAL SOURCING & DISSEMINATION 310 Public/Private proc

a) Trial Fmwk

Consultant

Framework study

a) Trial Fmwk

Workshop

Stakeholder input & Buyin

05-2004

06-2004

09-2004

MOFA

6

07-2004

07-2004

08-2004

MOFA

a)

26

SUBTOTAL 320 Trials & propagation a) Mkt profiles a) Mkt profiles b) Unit design

Consultant Services Consultant

Market cultivar requirements Database access Unit design & plans

c) Trial farms

Consultant

Farm evaluation

c) Trial farms

Equipment

Cultivation & Irrigation equipmt

d) Trials/ propagation

Consultant

d) Trials/ propagation

Services

d) Trials/ propagation

Equipment

Computer & database

d) Trials/ propagation

Consultant

Evaluation/Manuals/Workshops

d) Trials/ propagation

Workshop

Training of propagators

e) Stock material f) Quality monitoring

Services Consultant

Data collection & analysis Inputs & supplies

Inputs & supplies Monitoring of seed units

26

profiles

10

4 000

40

07-2004

07-2004

09-2004

subscription

5

800

4

07-2004

07-2004

09-2004

Crop Serv + FAGE

a)

44

12-2004

Crop Serv + PPRSD

b)

10

c)

53

5

units

2 000

10

09-2004

10-2004

man-dys

10

300

3

10-2004

11-2004

01-2005

Crop Serv + PPRSD

farm

5

10 000

50

12-2004

01-2005

03-2005

Crop Serv + PPRSD

man-dys

175

200

35

03-2005

04-2005

10-2006

Crop Serv + PPRSD

trial

50

1 500

75

03-2005

04-2005

10-2006

Crop Serv + PPRSD

station

1

5 000

5

12-2004

01-2005

03-2005

Crop Serv + PPRSD

man-dys

100

200

20

09-2005

10-2005

12-2005

Crop Serv + PPRSD

workshop dys

3

1 500

5

09-2005

11-2005

12-2005

Crop Serv + PPRSD

d)

140

e)

50

f)

10

farm

5

10 000

50

12-2005

01-2006

10-2006

Crop Serv + PPRSD

man-dys

50

200

10

12-2005

01-2006

10-2006

PPRSD

307 a) Trial specsheets

Services

a) Trial specsheets

Workshop

Print & Web publishing District extension training

26

Crop Serv + FAGE

SUBTOTAL 330 Extension

20

307

specsheet

10

1 000

10

12-2005

01-2006

10-2006

Crop Serv

workshop dys

10

1 500

15

12-2005

01-2006

10-2006

Crop Serv

SUBTOTAL

TOTAL 300 PLANTING MATERIAL SOURCING & DISSEMINATION

5

a)

25

25

25

358

358

Version - 2004-03-18

Agricultural Services Subsector Investment Program

Task

Activity

Type

Horticulture Export Industry Initiative PROCUREMENT PLAN

Desc

Unit

Unit Qty

Unit cost US$

Delivery

Contract amount Proc ('000 US$) Deadline

beg

end

Executing Agency

Activity subtotals

400 INNOVATIVE RESEARCH AND DEVELOPMENT 410 Crop Geo. D Base

a) Technical feasibility

Consultant

Database structure & mgmt

man-dys

20

1 000

20

06-2004

07-2004

09-2004

Crop Serv

b) Implement/ Training

Equipment

GPS/Computers/Software/Maps

platform

3

15 000

45

11-2004

12-2004

01-2005

Crop Serv

b) Implement/ Training

Consultant

Dbase programming & maint

man-dys

100

300

30

11-2004

12-2004

10-2006

Crop Serv

b) Implement/ Training

Workshop

Regional workshops

workshop dys

10

1 500

15

11-2004

12-2004

12-2005

Crop Serv

c) Baseline survey

Consultant

Field survey monitor

man-dys

100

200

20

11-2004

12-2004

12-2005

Crop Serv

c) Baseline survey

Consultant

Regional surveyors

man-dys

600

20

12

11-2004

12-2004

12-2005

Crop Serv

c) Baseline survey

Workshop

Industry workshops

workshop dys

5

1 500

8

11-2004

12-2004

12-2005

Crop Serv

d) Anthrcnse/MFFly

Consultant

Field survey monitor

man-dys

100

200

20

11-2004

03-2005

03-2006

Crop Serv

d) Anthrcnse/MFFly

Consultant

Regional surveyors

man-dys

300

20

6

11-2004

03-2005

03-2006

Crop Serv

d) Anthrcnse/MFFly

Workshop

Industry workshops

workshop dys

5

1 500

8

11-2004

03-2005

03-2006

Crop Serv

20

b)

90

c)

40

d)

184

SUBTOTAL 420 Tech & crop innov

a)

workshop dys

2

3 000

6

06-2004

07-2004

08-2004

FAGE

man-dys

30

200

6

09-2004

10-2004

12-2004

Crop Serv

Study tours, training seminars

units

25

3 000

75

09-2004

10-2004

12-2005

Crop Serv

Desk research & Dbase extr

units

5

6 000

30

09-2004

10-2004

12-2005

Crop Serv

a) Research priorities

Workshop

Industry workshops

b) Test design/Study

Consultant

Test technical supervisor

b) Test design/Study

Study tour

b) Test design/Study

Services

c) Field trials

Consultant

Technical assistance

man-dys

50

1 000

50

12-2004

01-2005

10-2006

Crop Serv

c) Field trials

Consultant

Test monitoring

man-dys

200

200

40

12-2004

01-2005

10-2006

Crop Serv

c) Field trials

Services

Inputs & supplies

lots

20

3 000

60

12-2004

01-2005

10-2006

Crop Serv

c) Field trials

Equipment

Pilote technology

lots

20

5 000

100

12-2004

01-2005

10-2006

Crop Serv

367

SUBTOTAL

6

34 184

a)

6

b)

111

c)

250 367

Version - 2004-03-18

Agricultural Services Subsector Investment Program

Task 430 Dissemination

Activity

Horticulture Export Industry Initiative PROCUREMENT PLAN

Type

Desc

Unit

Unit Qty

Unit cost US$

Delivery

Contract amount Proc ('000 US$) Deadline

beg

end

Executing Agency

Activity subtotals

a) Research Newslett

Services

Print & Web publishing

Newsletters

8

2 000

16

12-2005

01-2006

10-2006

Crop Serv

a)

16

b) Specsheets

Services

Print & Web publishing

specsheet

10

3 000

30

12-2005

01-2006

10-2006

Crop Serv

b)

30

15

06-2004

07-2004

08-2004

Crop Serv

60

06-2004

07-2004

08-2004

Crop Serv

c) Industry training

Workshop

Industry workshops

workshop dys

5

3 000

c) Industry training

Workshop

Extension training

workshop dys

20

3 000

c)

75

SUBTOTAL

121

121

TOTAL 400 INNOVATIVE RESEARCH & DEVELOPMENT

672

672

7

Version - 2004-03-18

Agricultural Services Subsector Investment Program

Task

Activity

Type

Horticulture Export Industry Initiative PROCUREMENT PLAN

Desc

Delivery

Contract amount Proc ('000 US$) Deadline

Unit

Unit Qty

Unit cost US$

man-dys

15

200

3

workshop dys

2

1 000

beg

end

Executing Agency

06-2004

07-2004

09-2004

FAGE

2

06-2004

07-2004

09-2004

FAGE

Activity subtotals

500 FOOD SAFETY & QUALITY MANAGEMENT 510 Pesticide regul

b) Nat. pesticide list

Consultant

Establish Hort Exp pest list

b) Nat. pesticide list

Workshop

Industry meetings

b) Nat. pesticide list

Services

Print & Web pub. Indust. List

list

1

1 000

1

08-2004

09-2004

09-2004

FAGE

c) Field trials

Consultant

Design/Monitoring/ Training

man-dys

200

175

35

10-2004

11-2004

10-2006

PPRSD

c) Field trials

Services

trial

50

1 200

60

10-2004

11-2004

10-2006

PPRSD

c) Field trials

Workshop

workshop dys

5

1 000

5

10-2004

11-2004

10-2006

Samples

1 000

100

100

10-2004

11-2004

filings

20

1 000

20

03-2006

04-2006

d) Residue Analysis e) Pesticide certification

Services Consultant

Inputs & supplies Trial farm/Crop ext training Residue analysis Pesticide listing update filings

c) GSB lab equipment d) Benchmarking

PPRSD

c)

100

10-2006

PPRSD

d)

100

10-2006

FAGE

e)

20 226

Equipment

Analytical equip/basic supplies

lot

1

400 000

400

10-2004

11-2004

03-2005

GSB

c)

400

Services

Comparative residue analysis

Samples

100

200

20

10-2004

11-2004

10-2006

GSB

d)

20

audit

1

40 000

40

06-2005

07-2005

12-2005

GSB

e)

40

man-dys

100

300

30

09-2005

10-2005

10-2006

GSB

f)

e) BLP certification

Consultant

ISO 17025 audit

f) IOM support

Consultant

Industry Ownership Model

490

SUBTOTAL 530 Good Ag. Practices

6

226

SUBTOTAL 520 MRL monitoring

b)

a) IPM guide: Asian Veg

Consultant

a) IPM guide: Asian Veg

Services

a) IPM guide: Asian Veg

Workshop

b) IPM/EurepGAP/GAP

Workshop

b) IPM/EurepGAP/GAP

Services

c) GAP dissemination

Consultant

c) GAP dissemination

Services

man-dys

50

300

15

10-2004

11-2004

03-2005

PPRSD

guide

1

7 000

7

01-2005

02-2005

03-2005

PPRSD

Crop extension & Industry

workshop dys

10

800

8

01-2005

02-2005

03-2005

PPRSD

Crop extension & Industry

workshop dys

25

800

20

01-2005

02-2005

10-2006

PPRSD

guides

4

7 500

30

01-2005

02-2005

10-2006

PPRSD

man-dys

20

1 000

20

03-2005

04-2005

06-2005

FAGE

lot

1

30 000

30

01-2005

02-2005

10-2006

FAGE

IPM guide content & design Guide Print & Web publishing

Guide Print & Web publishing Communication plan Posters/Videos/CD/Pocket Bk

130

SUBTOTAL

8

30 490

a)

30

b)

50

c)

50 130

Version - 2004-03-18

Agricultural Services Subsector Investment Program

Task 540 Certification

Activity

Horticulture Export Industry Initiative PROCUREMENT PLAN

Type

Desc

Unit

Unit Qty

Unit cost US$

Delivery

Contract amount Proc ('000 US$) Deadline

beg

end

Executing Agency

a) EurepGAP/Sholders

Consultant

Adaptation of EurepGAP

man-dys

50

1 200

60

10-2004

11-2004

03-2005

FAGE

b) Pre-certification

Consultant

Pre-certification tech. Assist.

man-dys

20

1 200

24

03-2005

04-2005

10-2006

FAGE

b) Pre-certification

Consultant

Support to Sholder Nwks

man-dys

150

200

30

03-2005

04-2005

10-2006

FAGE

Activity subtotals a)

b)

60

54

SUBTOTAL

114

114

TOTAL 500 FOOD SAFETY & QUALITY MANAGEMENT

960

960

9

Version - 2004-03-18

Agricultural Services Subsector Investment Program

Task

Activity

Horticulture Export Industry Initiative PROCUREMENT PLAN

Type

Desc

Unit

Unit Qty

Unit cost US$

Delivery

Contract amount Proc ('000 US$) Deadline

beg

end

Executing Agency

Activity subtotals

600 INDUSTRY OWNERSHIP AND FARMER EQUITY 610 Tema FW mgmt co.

a) Feasibility

Consultant

Bplan, Financial eng, Stkhldr Buyin

man-dys

100

300

30

06-2004

07-2004

09-2004

FOM

b) Support to IMC

Consultant

Finance/HR plan/Tema project

man-dys

80

300

24

09-2004

10-2004

10-2005

FOM

b) Support to IMC

Consultant

Legal

man-dys

20

500

10

09-2004

10-2004

10-2005

FOM

b) Support to IMC

Consultant

Short term Tech Ass

man-dys

15

1 000

15

09-2004

10-2004

10-2005

FOM

c) IOM implementation

Consultant

Strategy/Govern/Ops/Finance

man-dys

150

300

45

10-2005

11-2005

10-2006

FOM

c) IOM implementation

Consultant

Short term Tech Ass

man-dys

30

1 000

30

10-2005

11-2005

10-2006

FOM

c) IOM implementation

Equipment

Computer & software

platform

1

15 000

15

10-2005

11-2005

10-2006

FOM

30

b)

49

c)

90

169

SUBTOTAL

169

Consultant

Bplan, Financial eng, Stkhldr Buyin

man-dys

100

300

30

06-2004

07-2004

09-2004

FOM

b) Support to IMC

Consultant

Finance/HR plan/Kotoka project

man-dys

80

300

24

09-2004

10-2004

10-2005

FOM

b) Support to IMC

Consultant

Legal

man-dys

20

500

10

09-2004

10-2004

10-2005

FOM

b) Support to IMC

Consultant

Short term Tech Ass

man-dys

15

1 000

15

09-2004

10-2004

10-2005

FOM

c) IOM implementation

Consultant

Strategy/Govern/Ops/Finance

man-dys

150

300

45

10-2005

11-2005

10-2006

FOM

c) IOM implementation

Consultant

Short term Tech Ass

man-dys

30

1 000

30

10-2005

11-2005

10-2006

FOM

c) IOM implementation

Equipment

Computer & software

platform

1

15 000

15

10-2005

11-2005

10-2006

FOM

620 Kotoka PC mgmt co. a) Feasibility

a)

30

b)

49

c)

90

169

SUBTOTAL 630 Field PHvst Serv.Co

a)

169

a) Feasibility

Consultant

Bplan, Financial eng, Stkhldr Buyin

man-dys

50

300

15

06-2004

07-2004

09-2004

FOM

b) Support to IMC

Consultant

Finance/HR plan/Alpha,Beta

man-dys

50

300

15

09-2004

10-2004

03-2005

FOM

b) Support to IMC

Consultant

Legal

man-dys

10

500

5

09-2004

10-2004

03-2005

FOM

b) Support to IMC

Consultant

Short term Tech Ass

man-dys

10

1 000

10

09-2004

10-2004

03-2005

FOM

c) IOM implementation

Consultant

Strategy/Govern/Ops/Finance

man-dys

150

300

45

03-2005

04-2005

06-2006

FOM

c) IOM implementation

Consultant

Short term Tech Ass

man-dys

15

1 000

15

03-2005

04-2005

06-2006

FOM

c) IOM implementation

Equipment

Computer & software

platform

2

5 000

10

03-2005

04-2005

06-2006

FOM

115

SUBTOTAL

10

a)

15

b)

30

c)

70 115

Version - 2004-03-18

Agricultural Services Subsector Investment Program

Task

Horticulture Export Industry Initiative PROCUREMENT PLAN

Delivery

Contract amount Proc ('000 US$) Deadline

Type

Desc

Unit

Unit Qty

Unit cost US$

Consultant

Bplan, Financial eng, Stkhldr Buyin

man-dys

50

300

15

b) Support to IMC

Consultant

Finance/HR plan/Alpha,Beta

man-dys

50

300

b) Support to IMC

Consultant

Legal

man-dys

10

b) Support to IMC

Consultant

Short term Tech Ass

man-dys

c) IOM implementation

Consultant

Strategy/Govern/Ops/Finance

c) IOM implementation

Consultant

c) IOM implementation

Equipment

Activity

640 GHVH Seeds & Plnts a) Feasibility

beg

end

Executing Agency

04-2004

05-2004

06-2004

FOM

15

06-2004

07-2004

11-2004

FOM

500

5

06-2004

07-2004

11-2004

FOM

10

1 000

10

06-2004

07-2004

10-2004

FOM

man-dys

150

300

45

10-2004

11-2004

03-2006

FOM

Short term Tech Ass

man-dys

15

1 000

15

10-2004

11-2004

03-2006

FOM

Computer & software

platform

1

10 000

10

10-2004

11-2004

03-2006

FOM

Activity subtotals a)

15

b)

30

c)

70

115

SUBTOTAL

115

650 Granted Equity Fund a) Fund feasibility

Consultant

Venture Capital Fund specialist

man-dys

20

1 200

24

06-2004

07-2004

09-2004

ADB

a) Fund feasibility

Consultant

Legal framework

man-dys

20

500

10

06-2004

07-2004

09-2004

ADB

a) Fund feasibility

Workshop

Stakeholder training/Buy-in

workshop dys

2

3 000

6

06-2004

07-2004

09-2004

ADB

b) Funding

Consultant

Legal: Contract framework

man-dys

50

500

25

09-2004

10-2004

06-2005

ADB

lot

1

500 000

500

09-2004

10-2004

06-2005

ADB

b) Funding

Cost share fund Fund

a)

40

b)

525

c) VC banking support

Consultant

Fund mgmt/ Financial eng.

man-dys

20

1 200

24

06-2005

07-2005

10-2006

ADB

c) VC banking support

Consultant

Fund mgmt/ Financial eng.

man-dys

100

300

30

06-2005

07-2005

10-2006

ADB

c)

54

d) Fund audit

Consultant

Audit

man-dys

50

400

20

06-2005

07-2005

10-2006

ADB

d)

20

639

SUBTOTAL

TOTAL 600 INDUSTRY OWNERSHIP AND FARMER EQUITY

1 207

11

639 1 207

Version - 2004-03-18

Agricultural Services Subsector Investment Program

Task

Activity

Horticulture Export Industry Initiative PROCUREMENT PLAN

Type

Desc

Unit

Unit Qty

Unit cost US$

Delivery

Contract amount Proc ('000 US$) Deadline

beg

end

Executing Agency

Activity subtotals

700 STRATEGIC SUPPORT SYSTEMS 710 Ag.Business studies a) Studies & Wshops

Consultant

Commodity studies

studies

4

50 000

a) Studies & Wshops

Workshop

Stakeholder buy-in

workshop dys

8

2 000

10-2004

10-2006

SSC

16

09-2004

10-2004

10-2006

SSC

25

1 000

25

06-2004

07-2004

09-2004

workshop dys

2

5 000

10

06-2004

07-2004

09-2004

Systems design & programming

man-dys

100

250

25

09-2004

10-2004

09-2005

Equipment

Computer/Netwk/Hspeed linkage

platform

5

25 000

125

09-2004

10-2004

09-2005

c) Regional connectivity

Consultant

Systems design & programming

man-dys

50

250

13

09-2004

10-2004

09-2005

c) Regional connectivity

Equipment

Computer/Netwk/Hspeed linkage

platform

5

10 000

50

09-2004

10-2004

09-2005

d) Nwk Capacity build

Workshop

Advanced Internet skills

workshop dys

10

5 000

50

09-2004

10-2004

09-2005

Consultant

Web hub feasibility/basic training

a) Feasibility

Workshop

Stakhldr training: Web portals

b) Portal implementation

Consultant

b) Portal implementation

MOFA/ FAGE/ GEPC MOFA/ FAGE/ GEPC MOFA/ FAGE/ GEPC MOFA/ FAGE/ GEPC MOFA/ FAGE/ GEPC MOFA/ FAGE/ GEPC MOFA/ FAGE/ GEPC

35

b)

150

c)

63

d)

50 298

lots

10

1 500

15

09-2004

10-2004

10-2006 FAGE/GEPC

workshop dys

2

2 500

5

09-2004

10-2004

10-2006 FAGE/GEPC

Training in Mkt Intelligence

man-dys

10

1 000

10

09-2004

10-2004

10-2006 FAGE/GEPC

a)

30

On market correspondents

weekly reports

50

1 000

50

09-2004

10-2004

10-2006 FAGE/GEPC

b)

50

a) Databases

Services

a) Databases

Workshop

Industry awareness

a) Databases

Consultant Services

b) Real Time Monitoring

216

a)

298 Access to specialized Dbases

80

SUBTOTAL

80

a) Monitoring support

Consultant

Implementation tech. Assistance

man-dys

75

1 000

75

04-2004

05-2004

12-2005

MOFA

a) Monitoring support

Consultant

Environmental monitoring

man-dys

100

300

30

04-2004

05-2004

10-2006

MOFA

a) Monitoring support

Consultant

Socio-Economic monitoring

man-dys

100

300

30

04-2004

05-2004

10-2006

MOFA

a) Monitoring support

Study tour

HEEI staff training

training session

3

5 000

15

04-2004

05-2004

10-2006

b) benchmarking studies

Consultant

Base and periodic studies

man-dys

100

200

20

04-2004

05-2004

10-2006

c) SSC workshops

Workshop

Quarterly monitoring reviews

workshop dys

10

1 500

15

04-2004

05-2004

10-2006

c) SSC workshops

Consultant

SSC secretariat

man-dys

50

200

10

04-2004

05-2004

10-2006

d) HEII Newsletter

Services

Newsletters

8

5 000

04-2004

05-2004

10-2006

SUBTOTAL

40 235

MOFA MOFA/ FAGE/ GEPC MOFA/ FAGE/ GEPC MOFA/ FAGE/ GEPC MOFA/ FAGE/ GEPC

TOTAL 700 STRATEGIC SUPPORT SYSTEMS

829

740 Project monitoring

a)

216

man-dys

a) Feasibility

SUBTOTAL 730 Market Intelligence

09-2004

216

SUBTOTAL 720 Hort. Info Hub

200

Newsletter Print & Web

TOTAL Horticultural Export Industry Initiative

9 690 12

a)

150

b)

20

c)

25

d)

40 235 829

9 690 Version - 2004-03-18

Agricultural Services Subsector Investment Program Horticulture Export Industry Initiative COMPONENT MANAGEMENT COSTS

EQUIPMENT Pick-up trucks Computer stations Office equipment (filing) Office equipment (various) RECURRENT COSTS Fuel & mantenance Monitoring of activities (field visits) Office running incl supplies TRAINING Management training

4 units 4 units 4 sets

20000 5000 1000

80 000,00 $ 20 000,00 $ 4 000,00 $ 20 000,00 $

4 units

12750

51 000,00 $ 10 000,00 $ 8 000,00 $

5000

10 000,00 $

2

TOTAL MANAGEMENT UNIT COSTS NB office equipment various include photocopiers, digital cameras, LCD, Fax machine telephones etc

203 000,00 $

Agssip – Horticulture Exports Industry Initiative

ANNEX 4 – Horticultural Export Opportunities

(exerpt of ESSD study)

Agssip – Horticulture Exports Industry Initiative

Market Opportunities

The future of Ghana’s horticulture depends, in part, in the successful repositioning of its existing leading exports: fresh pineapples (whole and pre-cut), papayas, chillies and Asian vegetables. However, given a series of basic improvements both in infrastructure and technical capacities, Ghana’s horticulture could experience dramatic growth by redefining its product mix and looking beyond its existing core offer. This means that it must review its marketing strategy, currently focused on single product offerings and go the way of the supply chain requirements by integrating multiple product lines. This means that Ghana must consider its product lines as a “product portfolio” that it is diversifying over time. In accordance with this “portfolio approach”, the diversification effort should not be solely focused on near term results but also include endeavours that could yield important returns over time. Predictably, the latter are the ones who present the highest barriers of entry and, in some cases the higher or the more stable returns. The idea is to diversify Ghana’s horticultural base in order to extend its market share, and increase importers’ and distributors’ fidelity by helping them streamline their supply chain. The objective will therefore be for Ghana not to diversify for diversification’s sake but to define a series of complementary products that share synergies on a logistical and marketing perspective. Some indication of the scale of opportunities is indicated in Table 3-1 overleaf. Immediate opportunities

These opportunities are achievable in the near term and are based on products for which the technical aspects are either well mastered or sufficiently well known in Ghana to facilitate dissemination and rapid results: -

Pineapple: the conversion to MD2 should permit a quick repositioning of the origin on the high value segments, at least for the remaining years where competition will not have driven prices back down to their present levels – pending the next innovation. However it must be said that the successful conversion to MD2 will require improved and adapted crop husbandry, the implementation of quality assurance systems, the implementation of field level continuous cold chain logistics, predictable marketing programs and improved product promotion aides (attractive branding and individual fruit labelling). A successful conversion would yield additional revenues which could fuel diversification to new opportunities. It would also send strong signals to industry majors which could invest in the country, thus strengthening its critical mass.

-

Papaya: the conversion to the Golden variety and the development of sea freight logistics, based on a field-to-door continuous cold chain could dramatically improve volumes so that Ghana could take back its once more than 10% share of the papaya market, which should top 30.000 tons (60 million US$) in 2004 – and grow from there.

-

Sweet potato: current tests are focused on the Bosbok variety (red skin and white flesh) which holds 10% of the market. Tests of the “American cultivars” and their Israeli derivatives (pink skin and orange flesh) should be carried out in order to develop sea shipments of this fast growing item, well adapted to outgrower conditions. Attention will have

Agssip – Horticulture Exports Industry Initiative

to be put on product cleanliness, sizing and packaging, which, for the higher end varieties, are critical (Israeli sweet potatoes have individual stickers…). Sea freight protocols should evaluate the compatibility of Sweet potato and papaya, which would facilitate the development of shipments for both products with economical 40’ mixed container logistics. Given adequate varieties and post-harvest management, Ghana could, over time, take a sizeable part, in the region of 5000 tons annually, at a CIF value of more than 1000$ per ton. -

Okra: It is ironic that given Ghana’s presence on the asian vegetable market, it has not developed the most important ethnic vegetable of all. The reason for this is that achieving satisfactory okra yields of export quality requires a more sophisticated production system than the extensive techniques developed for other produce. Further, adequate crop performance usually requires the use of hybrid cultivars which show some resistance to viral infections. Finally, okra, a green vegetable picked at an immature stage, requires quick cold storage to prevent heat build-up. If these basic requirements are met, the vegetable industry could double its present volume and value over a very short period of time. Ghanaian exporters would then strengthen their position on the market with a full asian vegetable line.

-

Passion fruit: This product is currently being tested by various exporters, attracted by this product’s high unit import price (in the range of 4.00 US$ per kg). Currently, the passion fruit market is divided amongst Kenya and Zimbabwe (traditional suppliers), South Africa (more recent entry with larger fruit) and Israel – these being of the purple variety. A specific niche for “Golden maracuja” is occupied by Colombia. It must however be noted that the EU market for passion fruit does not exceed 3.000 tons and that it is a market that has remained stagnant over the years. Nevertheless, given the absence of the fruit on the local market place and the existence of a substantial juicing industry, the development of passion fruit, spearheaded by experienced exporters, could have an impact that would go well beyond an achievable export volume of 500 tons annually.

Mid term opportunities

Beyond immediate opportunities there is a range of products whose introduction requires the acquisition of specific technical knowledge and extensive testing before export-grade quality and yields warrant a full extension. The know-how acquisition phase for these products may prove to be the most costly and frustrating for entrepreneurs. Without exterior research support, technical benchmarking and expertise, failures will be numerous and could result in the industry’s adopting false conclusions that could be detrimental to further development. -

Melons: The melon segment has much evolved over the past years and is now segmented in numerous product categories – yellow honey dew, white honey dew, galia, cantaloupe, charentais, netted charantais, watermelons (seedless, yellow fleshed). New long shelf life hybrids now make it common to ship formerly fragile varieties such as galia and charantais by sea, which has increased the market share for these high value products. With their growing export volume, melons are an ideal high value complement to sea freighted banana and pineapple and, predictably, leading developers are the large fruit multinationals such as Del Monte and Chiquita. In the pre-cut business, the “melon

Agssip – Horticulture Exports Industry Initiative

medleys” (a mix of honey dew, cantaloupe, galia and watermelon) have become a standard item. Consequently, private melon production tests are being carried out by Ghana’s pre-cut fruit exporters. But predictably they are encountering problems associated with the fruits great vulnerability to fungal and insect pathologies, as well as the necessity for a finely tuned fertilization and irrigation program. Acquiring a Ghanaian know-how for melon production will require serious applied research as well as the development of drip irrigation and fertilization techniques. Without these the export yields (25-30 tons/ha), required to cover the high cost hybrid seeds and associated inputs, may never be achieved, even though Ghana, with its developing seafreight logistics and ample irrigated land supply, should be able to capture a significant share of this € 186 million market (60% of the total EU pineapple market).

-

Specialty vegetables: Sugar snaps, snow peas, baby corn, sweet corn, asparagus, green beans all have in common the need for sophisticated crop husbandry techniques, a precise post-harvest system with field to fork cold chains and … high item value. Collectively, these products represent a market value well in excess of the pineapple industry (valued at € 320 million CIF), with much higher profit margins. They also represent an important source of field and packhouse employment opportunities as the pre-packing associated with these product lines is labour intensive. However Ghanaian exporters must cross the technical barrier by developing expertise in irrigation/fertilization techniques as well as integrated pest management methods associated with these products. The dry coastal savannah climate should prove to be favourable for the development of these crops and the improved road links with Accra should permit swift transit of pre-cooled produce. Given adequate cold chain infrastructure at the point of shipment, Ghana should be able to achieve market penetration on these segments, particularly since market leadership for these product lines is essentially held by UK multiples with which Ghana should be able to develop commercial ties fairly easily.

-

Cut flowers: Ghanaian entrepreneurs, in partnership with Zimbabwean producers, have initiated cut-flower production for export. Although these are at an experimental stage, cut flowers is an important segment that cannot be omitted. However, given its capital intensive nature, focus should rather be put on flower varieties that are adapted to the tropical climate. Basic research and market review should be carried out to single out the cultivars where Ghana has the most chances to achieve a successful market entry. Heliconia and ginger varieties would be the easiest to develop given their adaptation to open-field cultivation. Emphasis should then be put on developing low cost protected shade house systems that could lead to an extension of the product range. Given the quality requirements of the industry, the development of cutflower exports remains a mid-term objective but could, in time, prove to be, as in Côte d’Ivoire, a successful export segment for specialty entrepreneurs and small growers.

-

Cuttings, foliage and semi-finished plants: This product range requires the development of an extensive rootstock base from which to harvest the cuttings and foliage. Further, the quick multiplication of new “in-fashion” cultivars requires tissue culture capacities so exporters are able to reach market with sizeable orders. With its

Agssip – Horticulture Exports Industry Initiative

cheap freight, coastal climate and extensive land availability, Ghana could try to position itself on this high value segment. To achieve this, a significant amount of skills should be developed, both through the training of plant specialists and the migration of foreign ventures interested in diversifying their supply base. -

Mangoes: The development of mango exports out of Ghana will require extensive fieldwork in order to develop the knowledge base necessary for devising sustainable export programs. Existing research, both private and public funded, should be merged in order to answer very specific technical questions before any crop extension program should be launched: zones prone to anthracnose and other fungal infestations, seasonality of major export cultivars (tommy atkins, kent, keitt as well as popular asian cultivars) according to climatic zones, identification of quality rootstock and grafting material, smallholder production methods, nursery and grafting etc. It must be remembered that the Côte d’Ivoire’s 15.000 T+ industry (including exports to South Africa), is based on extensive field research carried out over several decades in research stations north of the country. If these preconditions are met, Ghana would be in a good position to capture an important part of the market, particularly in the UK and in Northern Europe where the Ivorians are not as present.

Long term opportunities

Some opportunities never get tested because much of research funding come from donor or multilateral programs which seldom exceed the 5 year horizon. This means that for countries such of Ghana, opportunities to be developed will be those yielding immediate results in the projects’ duration and therefore only short term to mid-term opportunities ever get funded. Even though such funding constraints are real, it would be interesting to develop funding and research mechanisms that would permit the initiation of work on crops with longer term perspectives. -

Tree crops: These crops fall into the long term category. Since today export crops require more sophisticated production methods (drip and microjet irrigation and fertilization for instance), they are seldom tested. However there exists significant opportunities for produce such as grapefruit (yellow and pink fleshed), lime, avocado and asian fruits such as litchi, longan and rambutans. Most of these products are being produced in an artisanal or small holder fashion in Ghana, with local varieties that cannot meet export standards. The inclusion of these crops in a “venture” experiment to be conducted in partnership with local exporters could open the industry to new diversification opportunities. Once again, the EU market for these export crops presently dwarf the pineapple export market, both in value and in volume. They also present significant synergies with the juicing and eventually the canning industry.

-

Grapes: Long seen as an impossibility for West Africa, table grapes are being tested in countries like Senegal with encouraging results. This very lucrative market warrants the setting up of testing programs to identify adapted cultivars and adapt growing techniques to Ghana’s specific climatic zones. Such a program would have to be designed in a very modest way, focused on gathering technical

Agssip – Horticulture Exports Industry Initiative

data rather than achieving immediate commercial results. However, the achievement of acceptable yields in export cultivars will have an immediate effect in terms of investment and the development of horticultural exports.

Agssip – Horticulture Exports Industry Initiative

ANNEX 5 – Current market share of Ghanaian exports

Agssip – Horticulture Exports Industry Initiative

EU Market Share Evaluation for Various Export Crops EU Imports 2002 2002 PRODUCE

(Tonnes)

2002 CIF - ('000)

Market leaders

Ghana Market share 5yr growth 2002 vs 1997 (volume)

Tons

CIF '000

% share

1,598,705 1,854,900 € 368,458 320,800 € 26,588 47,300 € 2,532 11,200 € 35,051 29,400 € 175,111 186,000 € 134,627 167,600 € 320,149 547,500 € 29,905 44,200 € 387,695 321,800 € 115,033 165,600 € 3,556 13,500 €

25.3% 41% 166% 23% 104% 57% 77% 32% 109% -12% 17% 29%

37,856 36,129 1,410 2 265 0 49 0 0 0 1 0

41,901 € 39,221 € 2,609 € 8€ 0€ 0€ 64 € 0€ 0€ 0€ 0€ 0€

2.3% 12.2% 5.5% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Costa Rica, Côte d'Ivoire, Ghana Brazil Zimbabwe, Kenya, S Africa, Israel Ecuador, Colombia, Costa Rica Brazil, Costa Rica, Morocco Brazil, South Africa, Côte d'Ivoire S.Af, Chile, Arg, Br, USA, India, Egypt Brazil, Mexico Israel, USA, South Africa Israel, South Africa, Kenya, Mexico Malaysia

473,227 189,694 104,299 12,114 35,064 12,810 67,988 14,437 18,905 17,916

813,200 € 210,400 € 239,900 € 46,200 € 70,700 € 26,000 € 144,800 € 41,400 € 18,900 € 14,900 €

43.2% 18.0% 84.3% 10.2% -24.2% #DIV/0! 87.2% 66.1% 148.4% 474.6%

14,839 0 0 0 0 650 5947 0 353 7889

19,794 € 0€ 0€ 0€ 0€ 1,482 € 11,775 € 0€ 226 € 6,311 €

2.4% 0.0% 0.0% 0.0% 0.0% 5.7% 8.1% 0.0% 1.2% 42.4%

Moroccco, Israel, Senegal Morocco, Egypt, Kenya, Senegal Kenya, Guatemala, Zimbabwe Israel, Morocco Morocco, Dominican Rep Kenya, Ghana, Bangladesh Thailand, Israel, USA USA, Israel, South Africa, Egypt Ghana, Brazil, Costa Rica, Jamaica

FRUIT JUICES Orange concentrate - Frozen Orange concentrate Orange single strength Grapefruit concentrate Grapefruit single strength Other citrus Pineapple concentrate Pineapple single strength Others (Passion, Guava, Mango)

1,061,611 94,729 559,033 117,451 46,440 60,622 24,236 116,684 22,256 20,161

816,200 € 75,800 € 391,300 € 58,700 € 46,400 € 60,600 € 24,200 € 116,700 € 22,300 € 20,200 €

391 0 0 0 0 0 64 178 143 6

391 € 0€ 0€ 0€ 0€ 0€ 64 € 178 € 143 € 6€

0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.3% 0.2% 0.6% 0.0%

TOTAL

3,133,543 3,484,300 €

61.8%

53,086

62,086 €

1.8%

Banana

3,280,916 1,476,400 €

3.9%

3181

1,750 €

0.1%

TOTAL incl. Banana

6,414,459 4,960,700 €

25.9%

56,267

63,836 €

1.3%

FRESH FRUIT Pineapple Papaya Passion Fruit Plantain Melon Mango Table grapes Limes Grapefruit Avocado Carambola FRESH VEGETABLE Tomatoes French beans Peas Capsicum Chillies Oher vegetables Sweet/Baby corn Sweet potato Yams & other tubers

Ecuador, C Rica, Colombia

Agssip – Horticulture Exports Industry Initiative

ANNEX 6 – Potential economic impact of HEII

Agssip – Horticulture Exports Industry Initiative

Potential Impact of the AgSSIP Investment Program (in '000 Euros)

A. EXPORT REVENUES (Increase in yearly export sales - 2004-2008) A.1 Increase in operating margins in pineapple sales value through the conversion to higher value MD2 A. CIF price of MD2: B. CIF price of Cayenne C = A-B Difference D Current seafreight volume: Mid term impact ('000 Euro)

1.10 € 0.65 € 0.45 € 30,000 13,500

per kg per kg per kg tons 13,500

A.2 Increase in volume for existing and new products

Expected mid term increase in sales volume ( Tons )

Pineapple - MD2 Papaya (seafreight) Mangoes Melons Okra Sweet potato Fresh cut produce

Unit CIF value

30,000 5,000 3,000 5,000 3,000 3,000 3,000

1.10 € 1.40 € 1.10 € 1.00 € 2.20 € 1.00 € 4.00 €

per kg per kg per kg per kg per kg per kg per kg

33,000 7,000 3,300 5,000 6,600 3,000 12,000

Total increase in yearly import revenues from horticulture produce (in '000 Euros)

83,400

B. PRIVATE INVESTMENT B.1.New farms and extension in planted area

Expected mid term increase in sales volume Pineapple - MD2 Papaya (seafreight) Mangoes Melons Okra Sweet potato Fresh cut produce

30,000 5,000 3,000 5,000 3,000 3,000 3,000

(tons per ha)

Land utilisation ratio

40 50 3 25 6 20 20

2.5 2.5 1.0 1.5 1.5 1.5 2.5

Export yield

Investment Total hectares ('000 Euro/ha)

Sub total: Investment in increased farm area ('000 Euros)

1,875 250 1,000 300 750 225 375

5.0 6.0 1.5 5.0 3.0 3.0 5.0

9,375 1,500 1,500 1,500 2,250 675 1,875 18,675

B.2 Post harvest capacity and working capital

Expected mid term Investment in increase in post-harvest sales volume ('000 Euro/1000 T) Pineapple - MD2 Papaya (seafreight) Mangoes Melons Okra Sweet potato Fresh cut produce

30,000 5,000 3,000 5,000 3,000 3,000 3,000

400.0 500.0 350.0 500.0 300.0 250.0 1000.0

Sub total: Investment in post harvest and working capital ('000 Euros) Total increase in private investment in horticulture (in '000 Euros)

12,000 2,500 1,050 2,500 900 750 3,000 22,700 41,375

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