Commodities exchange to excite farmers

Hannah Tetteh, Minister of Trade and Industry, says the establishment of a commodity exchange and development of a regulated warehouse receipt system, to create immense opportunities for the agricultural sector and ensure price-stability, will be ready by 2012.

The exchange, when fully operational, will raise the hopes of millions of farmers -- especially large-scale farmers -- and make their lives more meaningful.

It will provide for market transparency, efficient price discovery and standardisation; and the attendant improvement in quality standards will assist them to gain easy access to ready markets, both local and international.

“It is my hope that, by next year, the operations of the commodities exchange will commence to allow farmers receive appropriate prices for their produce. This will as well ensure that the agricultural sector becomes an exciting venture.

“Government will embark on a nationwide roadshow to source views from farmers, which will form the input for implementation of the exchange next year.

“Ideally, by 2012 the operation of the commodities exchange should take-off -- if we are able to complete the regulatory framework and the implementation of the strategies within the timelines set,” Ms. Tetteh disclosed.

B&FT has gathered that government has set up a special body made up of officials from the Ministry of Finance and Economic Planning, Food and Agriculture, Trade and Industry as well as the Securities and Exchange Commission (SEC) to design models that will be adopted into the country’s business environment.

SEC, the lead promoter of the commodities exchange and warehouse receipts system in the country, is mandated to develop the needed regulatory framework to facilitate establishment of the exchange once government accepts the recommendations.

Ms. Tetteh made this disclosure at a programme organised to officially launch the Agricultural Trade Fair (AGRIFA) 2011, held in Accra.

AGRIFA 2011, themed ‘Promoting local Agric Produce with Appropriate Technology: Key to Ghana’s Socio-conomic Development’, will be held at the Ghana International Trade Fair Centre, La, between October 14 and 22 this year.

AGRIFA is an initiative designed by the Agricultural Trade and Investment Promotion Centre with the aim of promoting and marketing local agricultural produce for both the domestic and the international markets.

AGRIFA 2011 is being organised under the auspices of the Ministry of Food and Agriculture in collaboration with Agricultural Trade and Investment Promotion Centre, the National Farmers and Fishermen Award Winners Association of Ghana (NFFAWAG), National Poultry Farmers Association, Coalition of Agricultural Media Organisations, Ghana, and other farmer-based organisations.

The 15-member national planning committee of AGRIFA 2011, chaired by Mr. Philip Abayori, President of NFFAWAG, has representatives from the Ministry of Agriculture, Ghana Investment Promotion Centre, and Ghana National Chamber of Commerce and Industry as members.

The rest are Ministry of Tourism, Ministry of Trade, Ghana Export Promotion Council, Association of Ghana Industries, Fisheries Commission, Ghana Trade Fair Company, Ghana Standards Board, Ghana Tourism Federation, and the Food and Drugs Board.

AGRIFA will be an annual event that will basically seek to bring together agricultural producers, service providers, manufactures and other stakeholders under one umbrella to share ideas, showcase agricultural produce, and also project local foods and learn improved modern and innovative methods of production.

AGRIFA 2011 will also provide a platform for conferences and seminars to highlight specific key areas of the agricultural sectors.

Notable among them are the Agricultural Finance & Insurance Seminar; Agricultural Mechanisation & Irrigation Seminar; Value Chain & Export Seminar; Fisheries, Aqua Culture & Livestock Seminar; and Post-Harvest Management Seminar.

AGRIFA 2011 intends to bring on board stakeholders from various institutions such as policymakers, dealers in agricultural machinery & irrigation equipment, agricultural producers and fishermen, farmer-based organisations (FBOs), buyers of agro-produce, financial institutions, exporters, investors, donors, leasing companies, ingredient suppliers, research institutions, dealers in post-harvest equipment, agricultural faculties (Universities), restaurant owners, dealers in processing & storage equipment, among others.