Though Ghana’s fruit and vegetable value chain has a revenue potential of up to US$900 million annually, this opportunity largely remains untapped due to the need for cold chain solutions, the United States Department of Commerce has said.
The Department noted that cold chain solutions within the fruit and vegetables value chain through cold storage and refrigerated trucks when harnessed, could trigger job creation and employment opportunities for many young people in the country.
A market intelligence report on cold chain opportunities in Ghana by the Department indicated that Ghana and many West African countries represent an enormous opportunity for growth of the cold chain and integration of post-harvest loss management solutions.
However, the Department disclosed several reasons – including a lack of local understanding of need for cold storage, inadequate financing options and poor electricity – as to why cold storage is underdeveloped in many sub-Saharan African countries.
Cold chain refers to preserving the temperature required by perishable products to maintain their quality and food safety from the point of origin through the distribution chain to the final consumer.
Post-harvest losses remain an albatross
Every year, Ghana loses some US$600 million in overall post-harvest losses according to the Chamber of Agribusiness Ghana (CAG).
Post-harvest losses from tomatoes alone, according to the Chamber, average some US$60 million each year.
But CEO-CAG Anthony Selorm Morrison has consistently blamed the problem on neglected rural infrastructure, inadequate cold chain and storage facilities and limited research support, among others.
He argued that the government has not prioritised the development of essential infrastructure in rural areas, as poor road networks and lack of a reliable transportation system hinder the efficient movement of tomatoes and other vegetables from farms to market centres.
Situation in the sub-region and impact on farmers
Indeed, the United Nations’ Food and Agriculture Organisation (FAO) estimates more than 40 percent of food in sub-Saharan Africa spoils before it reaches a consumer. This can be as high as 60 percent for fresh fruit and vegetables, pointing to unmet demand for temperature-controlled cold-storage warehouses and transportation services.
The impact of this food waste is not only on consumer preferences and health. It negatively impacts the incomes of farmers, wastes critical environmental resources such as water and soil used to grow food and produces methane.
Seventy percent of Africa’s food is supplied by smallholder farmers. These farmers face significant losses due to the high rate of post-harvest losses in the fresh food and vegetables sector.
Indeed, the majority of Ghanaian farmers in rural communities have little access to electricity with which to power cold chains – which are not even available.