The government prior to the 2024 major mango season in Ghana has set the minimum purchase price of mango to be GH¢4 per kilogram, effective from 1st May 2024.
This decision, aimed at supporting mango farmers, follows a collaborative effort led by the Tree Crop Development Authority (TCDA), in conjunction with the Federation of Association of Ghanaian Exporters (FAGE) and the Mango Association of Ghana.
The minimum floor price model is intricately linked to the US Dollar and is influenced by international commodity market prices, which helps mitigate risks associated with exchange rate fluctuations.
This approach ensures stability and fairness in pricing for mango farmers across Ghana.
According to the TCDA, the pricing mechanism incorporates several factors, including the Free on Board (FOB) average international price of mango per kilogram, factored alongside the average exchange rate of the US Dollar as determined by the Bank of Ghana.
Additionally, considerations such as estimated production costs per acre, expected mango yields per acre, and a markup aimed at benefiting farmers are all integral components in determining the minimum price.
The decision to set a minimum price for mangoes aims to provide a reliable income stream for farmers, safeguarding their livelihoods and encouraging sustainable cultivation practices.
By ensuring a fair return for their produce, the initiative seeks to bolster the mango sector’s contribution to Ghana’s agricultural economy.
Farmers, exporters, and stakeholders within the mango industry have welcomed the initiative, viewing it as a positive step towards enhancing agricultural productivity and market competitiveness.
“This achievement demonstrates our collective efforts to promote sustainable agricultural practices and ensure fair returns for our hardworking farmers and all the other actors within the mango value chain in the country.”
This initiative is not just about setting prices, it’s about supporting our farmers, ensuring they receive fair compensation for their handwork, and giving information to the buyers and processors to plan their business, to foster a sustainable and prosperous agricultural sector”, Deputy Food and Agriculture Minister, Yaw Frimpong Addo said.