Coffee sector seeks strategic pricing to revive industry
STAKEHOLDERS in the coffee sector are advocating for strategic pricing as pertains in the cocoa sector. This is to help revive the industry and facilitate Ghana's coffee sector to enable it to reclaim its position in the global market.
Advertisement
By implementing strategic pricing measures, they believe the industry can enhance competitiveness, ensure profitability for producers, attract investment, and improve the overall perception of Ghanaian coffee products among consumers.
“Strategic pricing is paramount in this endeavour. By setting prices that ensure profitability and attractiveness to investors, we can create a conducive environment for the coffee industry to thrive. This approach will not only make coffee cultivation financially rewarding for farmers but also encourage new investors to participate in the sector.
The pricing determination will be fixed in such a way that it makes the business of coffee more profitable to make the business of coffee more compensatory enough so that any investor who wants to go into coffee will be able to participate and earn an income from coffee. So this is the opportunity we have as a country and what is required of us is concerted efforts and strategic planning to make sure that we regain our position in the coffee industry,” the Vice President of the Coffee Federation of Ghana, Samuel Adimado, said.
He was speaking in an interview with Graphic Business on the sidelines of a private sector stakeholder forum on coffee pricing scheme and capacity building workshop in Accra last Tuesday.
Workshop
The workshop organised by the International Trade Centre (ITC) brought together key stakeholders from the private sector including farmers, roasters, traders, exporters, and some government regulators to collaboratively develop and propose a pricing scheme for green coffee beans that aligns with global commodity futures while incentivizing quality production to improve farmer incomes.
It served as a country-level continuation of the Regional Coffee Export Techniques and Standard Training for ACRAM Small and medium-sized enterprises (SMEs), which took place last year in December in Lomé, Togo, to further enhance participants' knowledge of key topics such as Coffee Pricing and Trading, by delving into key areas including the determinants of coffee pricing and strategies for market diversification through quality enhancement and geographical identification.
Promoting coffee consumption
Mr Adimado said although the coffee sector has a rich history in Ghana, the collapse of the global coffee market led to a decline in our position.
However, he said the current landscape, particularly with the effects of climate change, presents a prime opportunity for Ghana to reestablish itself in the global coffee market as areas once suitable for cocoa farming are now facing challenges.
He, therefore, said diversifying into coffee production becomes a viable option.
He added that as part of efforts to promote coffee consumption and support local farmers, the Federation would ensure that coffee remains affordable and accessible to all including Ghanaians.
Potential for economic growth
The National Coordinator for Alliance for Action Programmes at ITC, Larry Attipoe, said Ghana’s coffee sector holds immense potential for economic growth and poverty alleviation in the communities where coffee is grown.
However, the sector faces key market challenges related to volatile pricing and limited value addition.
He said addressing these market challenges, Ghana can unlock its coffee sector to drive economic growth and sustainable development in coffee-growing communities across the country.