The Ghana citrus industry is facing severe payment delays and funding gaps, risking contraction. In 2024, production is projected at 440,000 tons, but only 40% is economically utilized. Stakeholders request a government-backed financial mechanism to address these challenges and support farmers.
The citrus industry in Ghana is currently experiencing severe challenges due to delayed payments and liquidity constraints, impacting both farmers and processors. In 2024, annual production is estimated to reach 440,000 tons of citrus, but only 40 percent of this quantity is economically utilized, with much being wasted or sold at a loss.
Stakeholders have identified a financing gap as the primary issue, which prevents farmers from maintaining operations while waiting for payments from juice processors. During a recent meeting between the Orange Growers Association (OGA) and the Ministry of Food and Agriculture (MoFA) in Accra, industry representatives stressed the necessity for a government-supported financial framework to strengthen the supply chain.
Theodore Tsidi Kloba, Business Development Manager of OGA, mentioned, “We are talking about a sector with immense potential… By volume, citrus production now exceeds cocoa, yet we have only tapped into 40 percent of its economic value.” He further emphasized, “The problem is that we do not have the working capital to wait 45 to 60 days to get paid.”
According to the Observatory of Economic Complexity (OEC), the global value of the citrus industry was over US$17 billion in 2023. Despite having sufficient raw materials, processors face financial constraints that limit their purchasing ability. Kloba noted, “By the time payments are made, farmers are already in financial distress, unable to reinvest in their farms.”
Processors attribute payment delays to extended export procedures and international buyer agreements. Ben Brown, Managing Director at SONO Ghana, explained, “When I buy the fruit, it takes one day to process, another five days to store, three weeks to ship, and 45 days for my customer to pay,” adding that this results in a waiting period of up to 65 days for funds, which is unsustainable for farmers.
The Ministry of Food and Agriculture has acknowledged these financing challenges and has vowed to offer structured support. Minister Eric Opoku has committed to transforming the citrus industry into a significant economic sector, stating, “The citrus sector represents one of our most promising agricultural frontiers… We will work on a comprehensive support package that will bridge the payment gap currently crippling the industry.”
To alleviate the liquidity crisis, stakeholders are advocating for direct financial interventions. An OGA representative stated, “What we need is a revolving working capital fund that allows us to pay farmers upfront… The money does not even have to come to processors—it can go straight to farmers as part of a structured contract.”
Moreover, concerns about the aging population of farmers and the abandonment of farms were raised. Kloba pointed out, “The reality is that many of our farms are being abandoned because younger generations do not see citrus farming as a viable livelihood.” He cautioned that without prompt financial support, a significant portion of the citrus production base may be lost.
The Ghanaian citrus sector is grappling with critical payment delays and funding gaps that threaten its sustainability and growth. The financing challenges have led to economic losses for farmers and processors alike. A proposed solution involves establishing a revolving working capital fund aimed at providing upfront payments to farmers. Immediate action is essential to prevent farm abandonment and support the industry’s potential to become an economic pillar for the country.
Original Source: www.freshplaza.com
