Ghana Grains Partnership (GGP)

Overview

The Ghana Grains Partnership (GGP) is a cutting edge private-public partnership that aims to strengthen the Ghanaian grain market, allowing farmers to increase production while supporting  the development of local and regional markets.

Prorustica has provided strategic and technical input since 2007 with specific support in partnership mediation along the value chain, development of business plans/financial proposals and negotiation in other finance needs with banks.

Background

The assumption underpinning the GGP is an agreed national shortfall of 300,000 ‐ 400,000 metric tones (MTS) of maize and other grains in Ghana.   This shortfall can be met through improved efficiencies in the grain value chain if undertaken with a professionally coordinated and market‐led value chain development approach. The aim is to take a grains development programme to scale by contracting smallholder farmers (minimum 5 acres) to grow maize  that is purchased by a farmer association.

To attain the stated aims of the partnership in terms of maize production requires the use of additional  and appropriate fertilizers, seeds and chemicals.  From the commercial players’ perspective such a partnership provides both clear market opportunities and an ability to diversify markets while mitigating risk. Taking such a programme to scale also creates efficiencies in the value chain and enhanced competitiveness.

The GGP gives commercial partners  (including farmers and their associations, seed and chemical companies, transporters and  extension agents) with the opportunity to increase sales and for  suppliers to diversify their sales portfolio. It also provides the companies with the opportunity to replicate the project in other commodities.

Partnership

The GGP requires a coordinated and focused approach to increased production of food grains. Key partners are undertaking this through a systematic and planned approach to inputs distribution and finance all along the value chain.

One of the central components of the GGP is the newly established Maize Association, Mazara N’Arziki, that manages the farmer activities, purchases inputs for and on behalf of the farmer members, supports the operation and provides accessible finances to members. The aim is to create a sustainable and profitable association which covers its running costs by purchasing and storing maize and the margin earned by on-lending.

Masara Aziki is dedicated solely to developing the project, through which the commercial partners and the farmers expect to realize their turnover and profit figures. Yara and Wienco are co-founders and providers of the inputs, with each making significant cash contributions to the Association.

Achievements

• There is a harmonized and risk-sharing approach to establishing the Association.
• A comprehensive marketing strategy has been developed and awareness campaigns were launched in the local press.
• Commercial short term loans secured by the Association for on lending to farmers to purchase inputs
• Prorustica has also worked with the partners to secure “matching grant” funding from the Africa Enterprise Challenge Fund that has been used to develop and expand the Association.
• The newly established Association, provides support for farmer training and extension, to purchase small-scale infrastructure and machinery, provide short term credit and purchase maize from farmers at harvest.
• Farmers are assured of a guaranteed maize price, good technical support (correct seeds and fertilizers), financial support and access to reliable markets.