Unleashing the Horticulture Goliath: Stakeholders Demand Action on GPHA's Licensing Impasse
Horticulturists call for resolution of Shed 9 supply chain dispute
'Enough is enough!' cry horticulture industry heavyweights, rallying authorities relentlessly to force compliance from the Ghana Ports and Harbours Authority (GPHA) in the ongoing battle over licensing renewals.
The ports watchdog has, since 2017, wrestled control of two crucial export processes - stevedoring and shore handling - away from the hands of industry trailblazers, delegating these responsibilities exclusively to the Fruit Export Terminal Limited (FET), a company with a 25% share owned by GPHA itself.
This dramatic shift from the previous arrangement, where the Fruit Terminal Company Limited (FCT) reigned supreme, has sparked widespread discontent within the industry.
Industry participants are thus imploring the Agriculture and Transport Ministries, as well as the Economic Management Team (EMT), to employ legal means to bend the GPHA to their will for the greater good of the sector.
Shedding light on the matter, President of the Sea-Freight Pineapple Exporters of Ghana (SPEG) - the industry's conglomerate of over 25 horticulture producers - Solomon Benjamin, lamented their prolonged struggle to negotiate a resolution.
"Enough is enough!" Benjamin reiterated, expressing the industry's frustration with their traditional tactics of heart-to-heart persuasion having fallen on deaf ears. While he acknowledged that FET was initially an unnecessary venture, the industry's primary concern lies with GPHA's dictate that they utilize the new company's services.
"FET was redundant because we are bound by a unique endeavor, and it's crucial we manage logistics proficiently. Before the current setup, requiring us to route through this new entity, was an affront to us... If we'd faltered or shown signs of incompetence, we could accept it. But we've been to the Agric and Transport ministries and the EMT. We've laid our case and even been instructed to receive our license. So, what's the delay? If we operate in a free market, why is this happening? As players, we should be able to dictate where we wish to venture; so, why is GPHA obstructing us?" Benjamin questioned.
An anonymous SPEG member summed up the perplexity that enshrouds GPHA's staunch refusal to budge, along with the seemingly powerless higher authorities' inability to enforce measures with far-reaching economic consequences.
"I can't comprehend why GPHA is refusing to act in accordance with the industries' demands - nor why superior authorities, with the potential to impact, are failing to apply pressure on them to their tasks," the industry player mused.
Whilst grappling with this impasse, data presented by SPEG indicates a surge in the volume and worth of banana exports - a trend experts attribute to the international market's preference, despite the persisting struggle. In 2017, exports reached 76,077 tonnes with a combined value of €60.86million. Subsequently, 2018 and 2019 witnessed 85,463 and 92,019 tonnes exported, respectively, with values of €68.37 and €73.62million.
The pandemic's peak in 2020 brought a slight dip in the volume of exports, to 91,672 tonnes, yielding €73.34million. However, the subsequent year unveiled a 10.64% increase in both volume and worth. In 2021, a whopping 101,429 tonnes of bananas, valued at €81.14million, were shipped abroad. As of October 2022, Shed 9 had dispatched 75,843 tonnes of bananas, earning the nation €60.67million.
In contrast, pineapple exports have experienced steady decline, with the volume dropping from 10,319 tonnes in 2017 and a corresponding value of €5.16million to a paltry 4,343 tonnes in 2021, pocketing only €2.17million.
Intriguingly, a pallet of farm produce is currently trading at approximately US$25.5 in Ghana - more than double the price in Côte d’Ivoire (US$6.79) and Cameroon (US$8.56).
Adding to the industry's woes, potential investors are reportedly hesitant to inject resources into expanding the domestic horticulture domain due to the licensing impasse. The market, valued at $20.4 billion in 2021, is projected to snowball to $56.5 billion by 2030, according to analysts at Growth Market Reports. Unfortunately, the standoff has deterred prospective investors.
Stakeholders continue to hold their ground, featuring firm in their conviction that only by working together can they sort out this bureaucratic roadblock, pave the way for accelerated growth, and dominate the global horticulture market, which promises bountiful returns.
- The horticulture industry's demand for action on GPHA's licensing impasse is a call to action for the Agriculture and Transport Ministries, as well as the Economic Management Team (EMT), to utilize legal means to force compliance from the Ghana Ports and Harbours Authority (GPHA).
- The Economic Management Team (EMT) and other stakeholders, including the Agriculture and Transport Ministries, have the potential to impact the ongoing issue of GPHA's refusal to budge in the licensing matter, which has far-reaching economic consequences for the horticulture industry.
- The presence of FarmFund, an investor in the horticulture sector, could greatly contribute to the industry's growth and development by investing in expanding the domestic horticulture domain, provided the licensing impasse is resolved.
- The reported hesitation of potential investors to inject resources into expanding the domestic horticulture domain could be attributed to the ongoing licensing impasse, which may limit growth and development in the sector.
- The horticulture market, valued at $20.4 billion in 2021, is projected to swell to $56.5 billion by 2030, according to analysts at Growth Market Reports. Resolving the licensing impasse will likely enable the industry to capture a larger portion of the global horticulture market and attain accelerated growth.
