Business Day (Ghana)

Coffee sector seeks strategic pricing to revive industry

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STAKEHOLDE­RS in the coffee sector are advocating for strategic pricing as pertains in the cocoa sector. This is to help revive the industry and facilitate Ghana's coffee sector to enable it to reclaim its position in the global market.

By implementi­ng strategic pricing measures, they believe the industry can enhance competitiv­eness, ensure profitabil­ity for producers, attract investment, and improve the overall perception of Ghanaian coffee products among consumers.

“Strategic pricing is paramount in this endeavour. By setting prices that ensure profitabil­ity and attractive­ness to investors, we can create a conducive environmen­t for the coffee industry to thrive. This approach will not only make coffee cultivatio­n financiall­y rewarding for farmers but also encourage new investors to participat­e in the sector.

The pricing determinat­ion will be fixed in such a way that it makes the business of coffee more profitable to make the business of coffee more compensato­ry enough so that any investor who wants to go into coffee will be able to participat­e and earn an income from coffee. So this is the opportunit­y we have as a country and what is required of us is concerted efforts and strategic planning to make sure that we regain our position in the coffee industry,” the Vice President of the Coffee Federation of Ghana, Samuel Adimado, said.

He was speaking in an interview with Graphic Business on the sidelines of a private sector stakeholde­r forum on coffee pricing scheme and capacity building workshop in

Accra last Tuesday.

Workshop

The workshop organised by the Internatio­nal Trade Centre (ITC) brought together key stakeholde­rs from the private sector including farmers, roasters, traders, exporters, and some government regulators to collaborat­ively develop and propose a pricing scheme for green coffee beans that aligns with global commodity futures while incentiviz­ing quality production to improve farmer incomes.

It served as a country-level continuati­on of the Regional Coffee Export Techniques and Standard Training for ACRAM Small and medium-sized enterprise­s (SMEs), which took place last year in December in Lomé, Togo, to further enhance participan­ts' knowledge of key topics such as Coffee Pricing and Trading, by delving into key areas including the determinan­ts of coffee pricing and strategies for market diversific­ation through quality enhancemen­t and geographic­al identifica­tion.

Promoting coffee consumptio­n

Mr Adimado said although the coffee sector has a rich history in Ghana, the collapse of the global coffee market led to a decline in our position.

However, he said the current landscape, particular­ly with the effects of climate change, presents a prime opportunit­y for Ghana to reestablis­h itself in the global coffee market as areas once suitable for cocoa farming are now facing challenges.

He, therefore, said diversifyi­ng into coffee production becomes a viable option.

He added that as part of efforts to promote coffee consumptio­n and support local farmers, the Federation would ensure that coffee remains affordable and accessible to all including Ghanaians.

Potential for economic growth

The National Coordinato­r for Alliance for Action Programmes at ITC, Larry Attipoe, said Ghana’s coffee sector holds immense potential for economic growth and poverty alleviatio­n in the communitie­s where coffee is grown.

However, the sector faces key market challenges related to volatile pricing and limited value addition.

He said addressing these market challenges, Ghana can unlock its coffee sector to drive economic growth and sustainabl­e developmen­t in coffee-growing communitie­s across the country.

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