Price Determination

The Farm gate prices are determined by the post harvest committee. The main aim of these farm gate prices to protect the Ghanaian farmer by guaranteeing a secured income for them. They take into consideration the production cost to the farmer plus a 10% profit margin. The current farm gate prices are as follows; Maize(100kg)- Gh¢45 , Paddy Rice(85kg) – Gh¢35 and Soya(100kg)- Gh¢75

NAFCO currently has 73 Licensed Buying Companies. Licensed buying companies are mandated by NAFCO to reach out to farmers at the farm gates. Theses LBCs buy the cereals from the farmers on behalf of NAFCO. Most of the farms in Ghana are located in remote areas and it would be difficult for NAFCO to reach them all, which is the reason why NAFCO has employed the services of these LBCs to work on their behalf. A margin is added to the farm gate prices for the LBCs prices. The committee takes into consideration factors like transportation, sacks, drying, bagging, sewing and handling to come up with this margin. The LBC prices are as follows; Maize(100kg)- Gh¢70 Paddy Rice(85kg)- Gh¢45 and Soya(100kg)- Gh¢85

Below is the computation of the LBC prices for the commodities.

FORMAT FOR COMPUTING PRICES (MAIZE GRAIN) 2011 -2012

(A) COMPUTATION OF LBC SALE PRICE FOR MAIZE GRAIN ( PER BAG OF 50 KG)

NO.

COST

QUANTITY

UNIT COST (GHC)

TOTAL COST (GHC)

1

Cost of maize

1

22.50

22.50

2

Bagging, sewing and handling at farm-gate

1

1.50

1.50

3

Sacks

1

1.00

1.00

4

Transport to drying site

1

0.50

0.50

5

Drying

1

4.00

4.00

6

NAFCO sack

1

0.50

0.50

7

Bagging and sewing

1

1.50

1.50

8

Transport to NAFCO Depot

1

0.50

0.50

       

SUB-TOTAL    

32.00

       

8

Margin    

3.00

       

 

TOTAL    

35.00

 

Recommended price of Maize
Farm Gate Price -Gh¢ 45
LBC Price – Gh¢ 70

 

 

FORMAT FOR COMPUTING PRICES (PADDY RICE) 2011 -2012

(A) COMPUTATION OF LBC SALE PRICE FOR PADDY RICE ( PER BAG OF 50 KG)

NO.

COST

QUANTITY

UNIT COST (GHC)

TOTAL COST (GHC)

1

Cost of paddy

1

35.00

35.00

2

Bagging, sewing and handling at farm-gate

1

3.00

3.00

3

Sacks

1

2.00

2.00

4

Drying

0

4.00

5

NAFCO sack

0

0.50

6

Bagging and sewing

0

1.50

7

Transport to NAFCO Depot

1.5

1.00

1.50

       

SUB-TOTAL    

41.50

       

8

5% tax

5%

41.50

2.08

       

       

 

TOTAL    

43.58

Recommended price of Paddy
Farm Gate Price- Gh¢ 35
LBC Price- Gh¢ 45

 

  

FORMAT FOR COMPUTING PRICES (SOYA BEAN) 2011 -2012

(A) COMPUTATION OF LBC SALE PRICE FOR SOYA BEANS ( PER BAG OF 100 KG)

NO.

COST

QUANTITY

UNIT COST (GHC)

TOTAL COST (GHC)

1

Cost of soya beans

1

75.00

75.00

2

Bagging, sewing and handling at farm-gate

1

3.00

3.00

3

Sacks

1

2.00

2.00

4

Transport to drying site

0

0.50

5

Drying

0

4.00

6

NAFCO sack

0

0.50

7

Bagging and sewing

0

1.50

8

Transport to NAFCO Depot

1.5

1.00

1.50

       

SUB-TOTAL    

81.50

       

8

5% tax

5%

81.50

4.08

       

       

 

TOTAL    

85.58

 

Recommended price of Soya Beans
Farm Gate Price- Gh¢ 75
LBC Price- Gh¢ 85

 

No

Commodity

Calculated Price

Farmgate Price

LBC Price

1

Maize (100kg)

70.00

45.00

70.00

       

2

Rice (85 kg)

43.58

35.00

45.00

       

3

Soybean (100kg)

85.58

75.00

85.00