Ghana exports pineapples to European supermarkets

Farmers throughout this West African nation find it hard to export their produce because they lack cheap transport, appropriate technology, infrastructure, and knowledge of market demands.

Unable to export their products, most of the fruits and vegetables are sold locally - and fetch lower prices than they would have in wealthier markets outside the country.

Five years ago, Kwabena Okwesi, a farmer from Ekumfi, was one of the thousands of smallholder farmers in Ghana who dealt with the frustrations of low prices and limited markets. A small producer of Sugarloaf pineapple, Okwesi once received a meager five cents per kilo at the local market and had no idea his pineapple's taste was popular in Europe.

Through food company Royal Ahold, however, Okwesi has discovered a way to expand his market and deliver his fruit to consumers in Europe.

Royal Ahold's partnership with USAID/Ghana began in 2002 after some of its company members traveled to Africa to discover ways the food firm could help farmers in developing countries increase income. After meeting with mission officials, Royal Ahold agreed to work with farmers in Ghana to supply its European supermarkets with fresh produce.

"Our alliance with Royal Ahold is a very powerful tool in assisting farmers to access markets," says Carol Wilson of USAID's Bureau of Economic Growth, Agriculture, and Trade. "Farmers get direct market information from buyers, so they understand exactly what they have to produce. Importers get a reliable supply of diverse products and the world benefits because these communities can thrive by taking advantage of trade opportunities."

The Royal Ahold deal is improving Ghanaian farmers' abilities to produce quality products and leading other firms such as Blue Skies Limited to join USAID/Ghana and Royal Ahold's collaborative efforts.

Blue Skies, established in 1998, specializes in the export of pre-cut, ready-to-eat fruit, which must be certified to meet good agricultural practices for food quality and safety. Blue Skies was a logical partner in the program because it already followed international standards to deliver locally produced pineapples to consumers at Royal Ahold supermarkets in Europe .

In March 2005, an opportunity opened up for fresh-cut, fair-trade Sugarloaf pineapples to be marketed by a Dutch supermarket chain. To meet demand, rural farmers had to comply with organic, good agricultural practice, and fair-trade certification requirements. For farmers like Okwesi, the fair-trade label would mean a five-fold increase in income. Certification promised that Ghanaian pineapples would sell for 20 cents per kilo with an extra five cent premium going to community projects to provide clean drinking water and build classroom expansions.

USAID/Ghana, through its Trade and Investment Program for a Competitive Export Economy, trained farmer groups on fair-trade principles. By April that same year, the farmers' groups were assessed and certified. Immediately, Blue Skies shipped 1,200 boxes of fruit to Holland under the fair-trade label.

With an annual order of 234 metric tons of Sugarloaf pineapples, the Ghanaian farmers now get premium prices, and have raised over $7,000 annually in community development funds.

"This alliance continues to evolve, bringing in new agribusiness partners. We now have a more viable alliance based on the growing agribusiness connections within Ghana and their international market buyers. In the near future, this alliance will not be dependent on USAID support," says Ron Stryker of USAID/Ghana.