Ghana 2017-09-19T16:55:00+00:00

Map of Ghana indicating AFAP activities sites

Introduction

The project supported the construction of 10 fertilizer warehouses for 10 hub-agrodealers under APC matching grants. The warehouses have contributed an additional 48,900 tons of capacity space in inland storage facilities in Ghana. Hub-agrodealers assisted by AFAP now have facilities with a total of 68,950 tons of storage capacity (see Table 1). This assistance contributes significantly to the timely availability of fertilizers during the peak demand period.

Table 1: Fertilizer storage by assisted APCs

Name of the APC and location of businessCurrent storage capacity
Total20,05048,90068,950
Original storage capacity before AFAP assistance (tons)New storage capacity with AFAP assistance (tons)Total storage capacity after AFAP assistance (tons)
18th April Agro, Wa1,0004,0005,000
Northgate, Techiman45015,00015,450
Sakant, Nkawkaw1,0003,0004,000
Seed Shop, Awudome6001,0001,600
Wumpini, Tamale5,2005,00010,200
Apus Ent, Techiman1,5003,0004,500
Ekudank, Kasoa5009001,400
Dansman, Tamale5,80010,00015,800
Agyaaku Farms, Techiman2,5004,0006,500
K Duah, Kumasi1,5003,0004,500

Sales by hub-agrodealers

Since 2014, the volume of fertilizer sold through hub-agrodealers has increased exponentially. The project contributed significantly to the timely availability of fertilizer as hub-agro­dealers were able to store large volumes of fertilizer during the peak-demand periods. The Ministry of Food in Agriculture estimates that fertilizer use has increased from 8 kg per hectare to 12 kg per hectare in Ghana, AFAP made a contribution to this.

A total of 39,213 tons were sold, valued at over $16.7 million This was an increase of about 30,000 tons over the 2015 sales volume and an increase of over 32,000 tons from 2014 figures when AFAP assisted hubs were at full implementation.

Under guarantee facility, 21,336 tons valued at over $11.3 million were recorded under two full seasons of implementation.

Number of fertilizer importers and blenders supported

AFAP has been providing support to fertilizer-importing companies and blenders in Ghana. The support includes the provision of supplier credit, the development of a network of hub-agrodealers and rural-agrodealers through capacity building, and the provision of market linkages services. AFAP’s aim is to professionalize both the hub-agrodealers and rural-agrodealers to be able to respond to the needs of upstream and downstream actors. AFAP has been working with seven[1] of the main fertilizer-importing companies and/or blenders directly or through hub-agrodealers. For example, the provision of fertilizer storage capacity allowed the hub-agrodealers to stock large volumes of fertilizers ahead of the peak demand periods. This ensured the timely supply of fertilizers to their retail network, thereby enhancing last-mile delivery of fertilizers to smallholder farmers.

Number of rural-agrodealers reached

The hub-agrodealers added 183 new rural-agrodealers to their network during the course of the project, bringing the number of rural-agrodealers served by the 10 hub-agrodealers to 545 (see Table 2).

Table 2 : Number of rural-agrodealers reached

Name of APCNumber of rural-agrodealers served by the hub-agrodealers
Total362183545
Before AFAP assistanceAdditional rural-agrodealers with AFAP assistanceTotal rural-agrodealers served by the hubs
18th April Agro35742
Northgate473986
Sakant302252
Seed Shop30535
Wumpini45853
Apus Ent35338
Ekudank22931
Dansman483280
Agyaaku Farms451863
K Duah254065

Number of smallholder farmers reached

More than 400,000 smallholder farmers were reached through hub-agrodealers and their networks of over 500 rural-agrodealers through direct sales (see Table 3). Organized farmers’ groups pool their demands and make arrangements with hub dealers to purchase what they need on credit through agribusiness service providers (produce aggregators). These arrangements have not only helped farmers gain access to fertilizers on time, they have also ensured fertilizers are delivered to their doorsteps, so farmers do not have to travel long distances to big commercial towns to purchase them. Some hub-agrodealers are making plans to construct warehouses in the farming communities, which will also help to shorten the distances some farmers travel to purchase fertilizers.

Table 3: Number of new farmers reached

Name of APCFarmers reached per annum
Total144,459294,401438,860
Farmers reached before AFAP assistanceAdditional new farmers reached with AFAP assistanceWith AFAP
18th April Agro30,00020,40050,400
Northgate 19,70028,32548,025
Sakant9,05053,35062,400
Seed Shop4,50027,02031,520
Wumpini21,20014,84063,600
Apus Ent12,0059,27521,280
Ekudank5,30412,69618,000
Dansman21,00036,60057,600
Agyaaku Farms9,70025,89535,595
K Dua12,00066,0078,000

Support for out-growers

As a pilot activity to increase market access with buyers, AFAP Ghana facilitated a contractual agreement between FYSSO Ghana and Pure & Perfect Enterprise (see Box 1) to supply 15 tons of fertilizer to smallholder farmers cultivating rice in the Volta region under an out-grower scheme. AFAP Ghana drafted the contract and facilitated the signing by all parties. Sinapi Aba Savings and Loans, a local bank, guaranteed the agreement. The arrangement allowed FYSSO Ghana to pay 50% of the total cost of the fertilizers and pay the remaining 50% after harvest on behalf of the farmers.

Awareness creation

Awareness creation activities were organized to help farmers learn how the use of improved seeds and fertilizers act in concert to increase farmers’ productivity. These activities included showcasing fertilizers and improved seeds to farmers by establishing demonstration plots, as well as organizing field days and input fairs. Awareness was also generated through radio advertisements and talk shows.

Over 187,200 smallholder farmers were reached through awareness-creation activities organized by the hub-agro­dealers. In 2014, 52 demonstration plots were established and, in 2015, another 25 were added. According to the hub-agro­dealers, the various awareness programs, which included field-days and talk shows, contributed to an increase in the use of fertilizer among smallholder farmers.

According to Ms. Elizabeth Dwamena, the CEO of Northgate, “the use of demonstration plots is one of the surest ways to help farmers appreciate any new technologies”. The principal applies that: “Demonstrations stick better in the minds of farmers than when it is told.

Table 4: Awareness creation activities organized

APCDemonstration plots establishedField days and input fairsRadio programs broadcastEstimate of farmers reached
Total52253223102162187.2
201420152014201520142015
18th April Agro105102566075
Northgate5134-105.2
Sakant7346-1510
Seed Shop30-15---5
Wumpini-4-4-3518
Apus Ent-2-2--2.5
Ekudank-3-1--3.2
Dansman-2-1--8.3
Agyaaku Farms-5-3464260
K Dua-------

Business management training

AFAP organized training for 27 rural-agrodealers/retailers and 13 hub-agrodealers. A one-day session in Techiman was conducted for distributors operating in the Northern, Upper-West, Upper-East, and Brong Ahafo, Ashanti and Volta regions. A second training session took place in Accra for distributors operating in the Western, Eastern, Central and Greater Accra regions. Some of the training modules covered were as follows:

  • business planning;
  • cash-flow projection;
  • challenges facing hub-agrodealers;
  • management expertise;
  • profit and loss projection;
  • understanding working capital for hub-agrodealers; and
  • drafting a balance sheet.

Under the AFAP Volunteer Program (AFVP), 35 rural-agrodealers operating within the retail networks of hub-agrodealers Northgate and Sakant received training from a US-based business development expert.

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