Competition Reforms in the Maize sector National Advocacy Plan (CREW Project) Edayatu Lamptey, CUTS International Accra CREW NRG-IV Meeting, 23 rd April, Accra

Outline CREW Advocacy Issues in the Staple Food Sector: Issue I: Anti-competitive practices in the transport of fertilizers from the ports to the farmers. -Current situation as informed by research evidence -Suggested advocacy work plan -Envisaged outcome and delivervables Issue II: Role of ‘market queens’ in procurement of maize and experience of farmers -Current situation as informed by research evidence -Suggested advocacy work plan -Envisaged outcome and deliverables 2

Anti-competitive practices in the transport of fertilizers from the ports to the farmers CURRENT SITUATION Government of Ghana introduced the fertilizer subsidy scheme in 2008, to help farmers increase production. However, prices of fertilizers remain high in Ghana. Cost towards port handling, clearance and internal transportation have been identified to contribute considerably towards the retail prices in fertilizers. The government is forced to absorb these costs thus increasing the cost burden (increasing government expenditure). Such high costs placed on the government contribute to delays in the announcement of subsidy for fertilizer (e.g., in the year 2015 the subsidy has been announced but the fertilizers are not being sold at the announced subsidized cost which is 21% off the original cost) 3

Advocacy Work Plan & Envisaged Outcome KEY QUESTION: What factors contribute to high costs of clearance and transportation of fertilisers in Ghana? Is there a way of reducing the cost by addressing these factors? Suggested advocacy work plan 1. Focus Group discussions with stakeholder: Discussions with Ghana Institute of Freight Forwarders; and other stakeholders like port-handlers and clearing agents, Ministry of Transport and other key stakeholders/experts 2. Investigative Research Study Objectives: -To investigate if anti-competitive practices are prevailing in port-handling and inland transportation of fertilizer. -What are the possible effect of such anti-competitive practices on the retail cost of fertilizers in Ghana Envisaged Outcome: Facilitate government actions to deal with anti-competitive practices that will result in reducing the price of fertilizer 4

Role of ‘market queens’ in procurement of maize and experience of farmers CURRENT SITUATION The maize wholesale market is dominiated by a group of women private traders reffered to as : Market Queens. CREW Research reveals that these market queens procure ~ 95% of produce from the farmers. The market queens through their networks sometimes control the supply of maize into the market to avoid excess supply thereby creating an artifical shortage. The DCR report reveals that the maize farmers are happy selling their produce to these market queens- About 62.9 per cent of the farmers sold their product to the market queens and 21.4per cent sold to the local traders, 13.6 per cent of them sold to any available buyer, while 2.1 per cent sold to agro-firms. The reliance on the market queens by the farmers raises some major concerns, expecially, since there is the possibiliy that they may abuse their dominant ( near monopoly) position in the market. 5

Advocacy Work Plan & Envisaged Outcomes KEY QUESTION: What are some of the challenges farmers face in dealing with Market Queens and how can they be mitigated? Suggested Advocacy Work Plan: 1. Focus Group discussions with stakeholder: – Farmers, Market Queens, Ministry of Food and Agric and other key Stakeholders/Experts 2. Investigative research study Objectives: The historical background of maize trade in Ghana: Factors leading to women in the procurement of maize and their dominance in the sector. To investigate the price received by farmers as they sell their produce to “market queens’. What are some challenges faced by the MQs Understand how the introduction of the commodity exchange will have an effect on the maize market Envisage Outcome: Further strengthening the system of maize procurement in Ghana by addressing some of the weaknesses/loopholes in the system 6

THANK YOU 7