Calls for Vegetable Specific Sector Development Policies in Ghana

The benefits which can be derived from well-conceived participatory vegetable sector development policies which target local markets can be seen in the case of Namibia, an arid land far less suited for vegetable production than Ghana.

When Namibia launched its horticulture sector development initiative in 2005 the country produced less than 5% of the vegetables it consumed. However within 10 years of implementation of this carefully researched and designed stakeholder led initiative Namibian vegetable production was meeting 50% of local consumption needs.

This success was achieved through  a programme which included a number of key elements, namely:

· the establishment of a production data base outlining all horticultural products currently under cultivation (updated every four months),with expected marketable yields, which is open to all traders through use of a designated password protected system administered by a joint government/private sector body known as the Agronomic Board;

· the appointment of Area Horticulture Officers to support producers in developing production and linking up with markets;

· the establishment of a system for easy access to daily price data which provides import parity price guidance;

· the establishment of the Namibian Market Share Promotion Scheme (MSPS) which established local purchasing requirements for horticulture products. For large traders and multiple retailers

The MSPS was backed up by a trade policy which linked the allocation of import licences to wholesalers and retailed to the attainment of realistic and progressively expanded local procurement targets. Where local procurement targets were not met import licences could be withheld, although this seldom occurred.

Where necessary this policy tool was further backed up by seasonal market closures. This policy tool of seasonal market closures has also been used in Senegal, where it has been deployed to good effect, even encouraging European exporters in the affected products to invest in developing local production (see companion epamonitoring.net article ‘Senegal remains major market for Dutch onion exports despite growth in domestic production’, 28 January 2017).

In Namibia the transparent and accountable import licencing policy provided a public policy tool which incentivised changes in the procurement practices of wholesalers and large scale traders. The policy was implicitly aimed at addressing problems arising from the unequal distribution of power along the horticulture sector supply chain (see companion epamonitoring.net article ‘Namibia’s Retail Sector Charter and the Strengthening of Local Supply Chains’, 24 March 2017).

Significantly the MSPS started modestly with an initial target of 5% local procurement by all businesses, with this target being based on the average level of local procurement then prevailing. This was intended to generalise ‘best practices’ in terms of local procurement, with the target level of local procurement being gradually expanded in line with investments in the expansion of local supply capacities.

While initially some supermarkets in Namibia were reluctant to purchase locally grown products, overtime they became enthusiastic purchases of local produce, using it as a badge of corporate social responsibility and a market positioning tool.

Given the production constraints faced in Namibia it is hoped fully 60% of local consumption needs will be met from local production.

Significantly the issue of product quality was left to discussions between supermarkets and growers with only light government supervision of this dialogue. Once the functioning of these commercial relations were strengthened, the issue of investment financing solved itself, with growers being able to get loans from the bank on the basis of the supply contracts in place with supermarkets or large traders.