Awutu-Bawjiase (Central Region) -- Vice President Aliu Mahama has urged non-traditional exporters of agricultural produce to network and seek solutions to their common problems through dialogue with relevant public institutions.
Vice President Mahama, who gave the advice after touring some pineapple plantations in the Central Region, reiterated the government's commitment to facilitate the progress of agro-businesses, saying the sector would be pushed to enhance the growth of the economy.
The tour, which was in line with the Rural Development Week, launched by President Kufuor on Monday, also took the Vice President to the Ayensu Starch Company (ASCO) at Bawjiase, where he commended the Company for the progress of work so far and urged the farmers and workers to lend their full support to make it successful.
Vice President Mahama said his visit was to enable him to have a first hand knowledge of problems faced by rural dwellers and workers so that the government would facilitate their resolution.
Local Government and Rural Development Minister Kwadwo Baah-Wiredu, Hajia Alima Mahama, his deputy, Central regional Minister Isaac Edumadze and other officials, accompanied him.
At the pineapple farms at GeorgeFields Farms and Prudent Exports, the proprietors complained about similar problems such as difficulty in accessing credit schemes for expansion, high seas freights, and poor access roads to their farms and the delay by the VAT Secretariat in refunding their taxes.
George Donkor, Managing Director of the 950-acre GeorgeFields Farms, told the Vice President that, while Ghanaian pineapple exporters pay $187 sea freight per pallet, their counterparts in Cote d'Ivoire and Cameroon pay $120, thus giving their competitors an edge on the market.
He said because it was very expensive to buy tractors and other heavy-duty farm equipment, the government should see to the establishment of a plant pool at strategic locations from which farmers could hire the equipment for their use.
For his part, Edward Twum of Prudent Exports, appealed to the government to allow commercial farmers to guarantee loans from the Export Development and Investment Fund for their out-grower farmers to enable them to expand their farms.
Both proprietors said their capitals had been locked up in VAT refunds, which delayed for more than three months, instead of one month. Twum said he had 150m cedis to be refunded.
Vice President Mahama urged them to organize business forums and invite the appropriate Ministers of State, representatives of financial institutions and agencies to find solutions to their problems.
He commended them for using scientific approaches to organize their farms and assured them that infrastructure such as feeder roads, electricity, telephones and water would be extended to their farms in line with the government's vision to develop Ghana as the leading agro-based economy in the Sub-region.
At the Ayensu Starch Company, the first agro-business to be established under the President's Special Initiatives, Vice President Mahama interacted with the management, workers and farmers and encouraged them to work assiduously to make the business one of the best on the international scene.
Vice President Mahama told them that as the owners of the Company, they had a stake in the future of the Company, adding that their quality of life was sure to improve with the gains to be made.
"This initiative is part of the government's effort to generate employment, alleviate poverty and enhance rural development so we would give you all the necessary support to make it," he said. Andrew Quayson, Managing Director of the Company, who briefed the Vice President on the company's activities, assured the Vice President that the factory would be completed by April for the first industrial starch to be produced for export.
The Company, owned by 2,500 farmers from five districts and managed by a Board of Directors was named after River Ayensu, which passes through the districts to the sea. The districts are West Akim, Agona, Gomoa, Awutu-Efutu-Senya and Ga Districts.
Quayson said high standards would be set by the $6.6m Company for the other nine to be formed to emulate. The Company, he said, expects to process 8,000 tonnes industrial starch, which would fetch $1.6m, and increase to 17,000 tonnes in 2004, with $2.4m earnings.
Mr Baah-Wiredu said the industrial starch, which is used in the pharmaceutical, textiles, food and products, had ready market in India, adding that he had discussed the prospects with the Indian Chamber of Commerce. He, therefore, urged the company to send samples of their produce to explore the market there.
