GRi Business, Economics & Finance 15 – 07 – 2003

Awutu-Bawjiase women get assistance under PSI on cassava

Ghana to regain second position in cocoa production

Govt committed to paying 70 percent price to Cocoa Farmers

Trading volumes at Ghana Stock Exchange low

International workshop on cocoa opens in Accra

Farmers threaten to stop Inland Port Project

Inter-bank exchange rates of the cedi

Mining companies provide ¢100bn to support communities

 

 

Awutu-Bawjiase women get assistance under PSI on cassava

 

Awutu-Bawjiase (Central Region) 15 July 2003 - Three hundred and thirty women in and around Awutu-Bawjiase have received financial assistance totalling ¢165m under the President's Special Initiative on Cassava to expand their farms. The money was channelled through the Awutu-Bawjiase Rural Bank.

 

Emmanuel Osei, Chairman of the Board of Directors announced this at an emergency meeting with some board members and management staff of the bank at Awutu-Bawjiase on Monday after the last batch of beneficiaries had been paid their loans of ¢500,000 each.

 

According to Osei, the bank had initiated a number of supportive programmes to raise the socio-economic lives of the people in the area. He said the bank was also organising quarterly orientation courses for the staff to equip them with new banking techniques.

 

Samuel K. Dodd, a member of the Board of Directors and National President of the Ayensu Starch Company Cassava Growers Association commended the women for their enthusiasm and commitment to the work and advised them to maintain the spirit to earn themselves more income and also to ensure the success of the company's objectives.

 

Augustus Yankey, Manager, briefed the meeting on efforts the first batch of the loan recipients were making to repay them. K. Oppey-Abbey, also a board member stressed the need for the farmers to involve their teenage daughters, especially the jobless ones in the cassava project to enable them to earn a decent living.

GRi…/

 

Send your comments to viewpoint@ghanareview.com

 

Return to top

 

Ghana to regain second position in cocoa production

 

Accra (Greater Accra) 15 July 2003 - Ghana is on the verge of regaining her position as the second largest cocoa producer in the world. Sources at the on-going International Workshop on the Utilization of Cocoa By-Products in Accra told the Ghana News Agency (GNA) that a planned and sustained approach by the Ghana Cocoa Board, government and other stakeholders would bring this to fruition probably before the end of the year.

 

Ghana was the leading cocoa producer until 1972 when it lost the position to neighbouring Cote d'Ivoire and dropped further to the third position behind Indonesia last year.

 

Ghana's cocoa production in the last few years stalled at the 400,000 metric tons mark. The figure has, however, hiked to about 430,000 metric tons and is expected to hit the 470,000 metric tons by next year.

 

The Workshop is under the theme: "Enhancing Farmers' Income Through the Processing of Cocoa By-Products," with the objective of discussing the results of the Cocoa By-Products Project in Ghana and its potential benefits for farmers and entrepreneurs.

 

The source however, noted that it was important not to just flood the market through increased production only to become "first producer". "We must be looking at the impact that this would have on our hardworking farmers, who invariably may lose the right prices that they otherwise should have received."

 

Government last October increased the producer price to 8.5 million cedis per tonne (631,259 cedis per bag) ¢6.2m per tonne (387,500 cedis per bag).

GRi…/

 

Send your comments to viewpoint@ghanareview.com

 

Return to top

 

Govt committed to paying 70 percent price to Cocoa Farmers

 

Accra (Greater Accra) 15 July 2003 - Ghana Cocoa Board on Monday restated government's commitment to pay cocoa farmers 70 per cent of the projected free-on-board (FOB) price to cocoa farmers by the 2004-2005 season.

 

Kwame Sarpong, Chief Executive of COCOBOD, told participants at the International Workshop on the Utilization of Cocoa By-Products in Accra that all efforts were on course to arrive at that figure.

 

He said government was working in tandem with the Cocoa Sector Development Strategy Document, which had been accepted by Ghana's development partners and had a key point of increasing the producer price to 70 per cent of FOB by the 2004 - 2005 cocoa season.

 

Sarpong said before the beginning of the 2003 - 2004 season the Producer Price Review Committee made up of representatives from farmers' associations, government, COCOBOD, Universities and other stakeholders would meet to deliberate on a new producer price that would help to attain the target of 69 per cent of the projected FOB price.

 

At present the government is paying just above 68 per cent of the FOB price. Sarpong said when the present government came into power the producer price of cocoa was ¢3,475,000 per tonne or ¢217,187 per bag and later increased it to 3,872,000 in May 2001.

  

In this regard, farmers were paid a bonus of 12,000 cedis per bag between May and September 2001. "Again the price was increased to 4,384,000 cedis per tonne, that is 274,000 cedis per bag in October 2001 as a result of the positive price developments on the world market."

 

The Chief Executive said the government on increasing the price to ¢8.5m, made provision for the payment of a bonus of ¢500,000 per tonne to enable it to maintain the FOB target of 68 per cent. He said the current price reflected a significant improvement in the cocoa farmers' income.

 

"But this cannot serve as a justification for us to rest on our oars," adding; "any opportunity to add to the improved lot of the farmer must be exploited." He said when cocoa by-products were commercialised the farmers would begin to receive supplementary income from cocoa by-products or wastes that they have hitherto thrown away.

 

Sarpong noted that only 37 per cent benefit was derived from a pod of cocoa with the remaining 63 per cent of cocoa products going to waste. He said about 800,000 tonnes of cocoa by-product go to waste.

 

Sarpong noted that COCOBOD had not only followed the development of the Cocoa-By Products Research with great interest, "but has been fully involved in the provision of infrastructure and other inputs to the Cocoa Research Institute of Ghana (CRIG) for the Pilot Plants Project from its inception in 1992.

 

The Project, which cost $1.4m, is in consonance with the Common Fund for Commodities and the International Cocoa Organisation (ICCO). ICCO is the supervisory body while the CRIG is the project-executing agency. The Project started with the production of cocoa gin, cocoa pectin, animal feed and soft soap, known locally as alata samina from cocoa pod ash.

 

Sarpong said at present 12 products had been derived by CRIG under the Pilot Plants Project Programme ready for commercialisation. They are cocoa butter toilet soap, cocoa butter body pomade, cocoa jam and marmalade, cocoa jelly, cocoa gin and cocoa brandy.

 

The rest are cocoa vinegar, cocoa wine, animal feed, soft soap, liquid soap and cocoa soft drink. Hope Sona Ebai, Secretary-General of the Cocoa Producers' Alliance (COPA) expressed the Alliances' gratitude to CRIG and the government, ICCO and CFC for financing and the project.

 

He called for more funding for continuing research towards more alternative uses of cocoa and its by-products to make farmers to derive maximum benefit from their activities.

 

Joseph Henry Mensah, Senior Minister, who chaired the function, said it was sad that 60 years after the introduction of cocoa into Ghana, the confectionaries industry was at its infancy. He condemned the practice of substituting other substances for cocoa in the confectionary industry, saying the fight by some European Union companies must be supported to make the use of cocoa and cocoa by-products meaningful.

 

He also urged huge multinationals such as Nestle, Unilever and Cadbury to take up the commercialisation of some of the research findings by CRIG and put them on the international market.

GRi…/

 

Send your comments to viewpoint@ghanareview.com

 

Return to top

 

Trading volumes at Ghana Stock Exchange low

 

Accra (Greater Accra) 15 July 2003 - Another big gain by Standard Chartered Bank (SCB), the highest-priced equity on the Accra bourse, pushed up the main stock gauge on Monday, but trading volumes were at another low.

 

SCB gained ¢3,600 at ¢52,000 after selling only 400 shares. The Ghana Stock Exchange (GSE) All-Share Index leaped by 35.98 points at 2,196.40 points while change for the year was 57.41 per cent.

 

Total shares traded were mere 24,900 from 240,000 with only six of the 24 listed equities making sales. There were only three price changes, all positive. SCB was ¢3,600 richer at ¢52,000, Guinness Ghana Limited was ¢200 better ¢3,500 and Ghana Commercial Bank ended four cedis better at ¢6,326.

 

Market capitalisation improved at 8,923.95 billion cedis from ¢8,836.46bn. The following are the last prices of listed equities in cedis:

ABL              460    

AGC             28,600 

ALW             4,000   

BAT              1,914 

CFAO           73 

CPC              630 

EIC               6,000 

FML             2,510 

GBL              552   

GCB             6,326      +4

GGL             3,500      +200

HFC             2,600 

MGL            268      

MLC            467   

MOGL         21,505 

PAF             750

PBC             530 

PZ                2,057    

SCB             52,000     +3,600 

SPPC           390

SSB              7,305 

SWL             285

TBL              6,000 

UNIL            7,307 

CMLT          460

GRi…/

 

Send your comments to viewpoint@ghanareview.com

 

Return to top

 

International workshop on cocoa opens in Accra

 

Accra (Greater Accra) 15 July 2003 - President John Kufuor on Monday asked stakeholders in the Cocoa Industry to assess whether entrepreneurs were ready to buy and process cocoa research products for both domestic and international markets.

 

He said such an assessment would demonstrate the practical extent of the benefits to all stakeholders within the industry from the farming community through the industrialists, the merchants, the consumers and government. President Kufuor was opening a three-day International Workshop on the Utilisation of Cocoa By-Products in Accra.

 

The Workshop was jointly organised by the Ghana Cocoa Board (COCOBOD), the International Cocoa Organisation (ICCO) and the Common Fund for Commodities (CFC). Under the theme: "Enhancing Farmers' Incomes Through the Processing of Cocoa By-Products" the workshop would discuss the results of the Cocoa By-Products Project in Ghana and its potential benefits for farmers and entrepreneurs.

 

The Pilot Plant Project began at the Cocoa Research Institute of Ghana (CRIG) at Akim Tafo in 1992 among other things to develop and transfer technology for the commercial production of cocoa by-products and non-traditional products from cocoa.

 

Others were to promote farm level production and local use of the by-products, promote the use of cocoa butter for the production of cosmetics, pharmaceuticals, soap and also identify and develop by-products and new products from cocoa and other related crops such as sheanuts and coffee.

 

President Kufuor said such an evaluation, should set the pace for the needed diversification within the industry to enhance maximum returns from cocoa. He said the bonus to the economy would also be in employment generation, income growth and re-distribution and industrialisation.

 

President Kufuor said government would expect from the workshop inputs that would enhance its policy objectives for the cocoa and manufacturing sectors of the economy.

 

On the workshop, President Kufuor said the close interaction and cross-fertilisation of ideas generated through such dialogues should expose to the full, the many unexploited opportunities existing in the various sectors of the economy. "This multi-sectoral approach should produce new strategies to invigorate productive activities for the betterment of the industry", he said.

 

Joseph Henry Mensah, Senior Minister, who chaired the function, said there was the need for Ghana to join in the crusade against the use of other oils other than cocoa butter in the manufacture of chocolates. He said the producer price of cocoa should be reviewed to benefit the cocoa farmers, while efforts were made to establish more manufacturing companies to utilise the by-products as a means to stabilising the producer price.

GRi…/

 

Send your comments to viewpoint@ghanareview.com

 

Return to top

 

Farmers threaten to stop Inland Port Project

 

Kumasi (Ashanti Region) 15 July 2003 - About 100 farmers who lost their farms following the acquisition of the land for the Boankra Inland Port project have threatened to violently stop the implementation of the project, citing, cheating in compensation payments made to them by the Ghana Shippers Council (GSC).

     

They warned that they would chase out anybody who would construct any structure on the lands. The farmers led by Nana Yaa Frimpomaa of Boankra, gave the warning when she and some of the farmers called at the Kumasi office of the Ghana News Agency (GNA) on Sunday.

 

They alleged that while those who had food crops, oil-palm plantation and other cash crops on the land received paltry sums ranging from ¢31,000 to ¢4m, "ghost and faceless farmers" who neither had farms nor owned any parcel of the acquired area were paid between ¢14m and ¢20m.

 

They said they had already sought audience with the Ashanti Regional Minister, Sampson Kwaku Boafo on the matter. Again, a team of investigators from the police Criminal Investigations Department (CID) headquarters had been to Boankra following their petition to the President.

 

They, however, expressed misgivings about the manner the investigators were handling the matter. "We find it a bit odd that the police officers should quietly invite the very people who we insist do not qualify to be paid compensation and ask them to show the location of their farms without our notice and presence."

 

They said since they were the people who operated on the land they were in a better position to tell the real farmers and owners of farmlands in the area by graphically showing common farm boundaries and expose the fraudsters.

 

''In the circumstances we have every reason to be suspicious of the outcome of the investigations'', they said.

GRi…/

 

Send your comments to viewpoint@ghanareview.com

 

Return to top

 

Inter-bank exchange rates of the cedi

 

Accra (Greater Accra) 15 July 2003:

 

Currency                         Buying                 Selling

U.S. Dollar                     8,603.00              8,763.00

Pound Sterling                13,973.85            14,240.75

Swiss Franc                    6,238.61              6,354.36

Canadian Dollar              6,240.56              6,354.36

Danish Kroner                1,303.13              1,327.41

Japanese Yen                  73.18                   74.53

South African Rand         1,135.64              1,152.41

Euro                                9,691.95              9,869.53

CFA Franc                     14.78                   15.05

Naira                              68.14                   69.41

ECOWAS WAUA         12,380.82 

GRi…/

 

Send your comments to viewpoint@ghanareview.com

 

Return to top

 

Mining companies provide ¢100bn to support communities

 

Kumasi (Ashanti Region) 15 July 2003 - Mining companies provided more than ¢100bn towards the development of communities within which they operate between 2001 and 2002. Mrs Joyce Wereko-Brobby, Chief Executive of the Ghana Chamber of Mines, said the contributions were made as part of the industry's corporate social responsibility activities.

 

She made this known during interactions between members of the Chamber and journalists in Kumasi at the weekend. Mrs Wereko-Brobby said very little of the royalties paid by the companies actually went to the host communities as the state appropriated the bulk of it for development.

 

The minimal portions that were returned to the district assemblies were not used for visible development projects but rather for recurrent expenditure. She said the chamber was also active in its support for the Presidential Special Initiative (PSI) on forestry. The companies, she said, had donated over 20,000 seedlings and are ready to direct more resources to help improve forest reserves.

 

"We are committed to providing support for the reforestation of degraded forests, in addition to reclaiming mined-out areas." Mrs Wereko-Brobby said out of the country's land area of 240,000 square kilometres, 31,273 square kilometres or 13 percent has been granted to large scale mines for reconnaissance, prospecting and active mining.

 

Indeed the actual mining operations in the country cover only 4,304 square kilometres or less than two percent. She said, that notwithstanding, the chamber was much concerned about the preservation and sustainable management of the environment.

GRi…/

 

Send your comments to viewpoint@ghanareview.com

 

Return to top