Market Oriented Agriculture Programme (MOAP) in Brief

Programme Description

Title: Market-Oriented Agriculture Programme (MOAP)

Client: German Federal Ministry for Economic Cooperation and Development (BMZ)

Country: Ghana

Lead executing agency: Ministry of Food and Agriculture (MoFA)

Overall term: 2004 to 2016

Context

Agriculture in Ghana is predominantly small-scale and traditionally organised. Over 70% of all farms are smaller than three hectares, and in the programme regions of Volta, Central and Brong Ahafo Region, they are smaller than two hectares. Small farms account for almost 80% of total agricultural production, but have virtually no access to agricultural inputs and financing. Low productivity and market efficiency and heavy post-harvest losses are urgent problems for Ghana’s agriculture. Skilled labour for more advanced agricultural methods, such as mechanics, electricians or extension workers, is hard to find. Agriculture does not enjoy a very high reputation among young people, who regard it as a hard way to earn a living, rather than as an attractive business model with lucrative prospects.

Objective

There are pro-poor, income-raising business models available for competitive agricultural value chains, which are promoted by the Ministry of Food and Agriculture (MoFA) and private sector.

Approach

Together with MoFA, the programme is developing solutions for agriculture’s urgent problems at national, regional and local level. It is advising particularly on developing value chains, providing national and decentralised advice on policy, and developing capacity for service providers.

The programme is operating in the three regions of Volta, Central and Brong Ahafo Region, and promoting in particular the value chains for mangoes, citrus fruits, pineapples and maize (post-harvest improvement). The programme’s activities are intended to achieve the following results:

  • MoFA’s capacity for policy and strategy development is enhanced;

economically viable service systems are available for developing value chains;

  • new and inclusive business models are developed;
  • capacity of decentralised public offices for promoting regional agricultural development with the local private sector is enhanced;
  • actors from the public and private sectors are engaged in productive dialogue. The programme is also supporting the creation of a national policy forum (Agriculture Public Private Dialogue Forum), where private sector actors can present their concerns to the public sector. Placing the political environment and agricultural practice in direct conjunction also creates opportunities for the development of agriculture.
  • At regional and district level, the programme promotes value chain committees, where networks of farmers, processors and other service providers from the individual value chains meet regularly. To finance the meetings, some of these offer services for participants, e.g. storage or drying.
  • All measures are carried out in close cooperation with MoFA and representatives of the farmers’ organisations and the private sector.

The greatest challenge facing the Ministry is shaping its cooperation with the private sector, as there is currently still no concept for promoting attractive business models which could bring in private investment. However, Ghana’s agricultural sector has good economic potential, which can be mobilised through a more favourable agricultural policy environment. Scalable business ideas and models are being identified and promoted by MoFA with the assistance of the programme.

Results

Production in the value chains promoted by the programme to date has become increasingly specialised. It is benefiting from improved access to seed and plant materials, as well as better plant protection and post-harvest protection techniques. A further success is the gradual increase in productivity due to improvements in cultivation techniques. Certifications (Global GAP, organic) play a central role in local and international market access.

The programme’s coherent advice on policy resulted in a tight focus on the value chain approach in policy formulation and implementation. This made it possible to take into account all the actors along the value chain and to develop a holistic model.

The programme has promoted private services, contributing to increasing self-organisation of advisory services and supply and provision of supplies by the private sector in exportable value chains.

An example worth following. A local juice production firm was able to meet international standards after efficient advice. Not content with certification of its processing plant, it went on to train and certify 1,000 farmers on supply contracts in good agricultural practices. Today, the company exports 3,000 tons of certified orange juice a year, with a value of USD 1.5 million. The company also produces 1,000 tons of juice for the local market, worth around USD 2-300,000. The expansion of production has created 150-200 seasonal jobs, mostly for women.

Seasonal job

You may log on to moap.mofa.gov.gh for more information

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