Samuel Borlu, Gold Coast Fruits
Ghana: "Minimum pineapple price on markets is quite bad."
Ghana’s pineapple trade to its North is experiencing tough times this season. There’s a lot of competition in the market. This is ultimately bringing down the prices of pineapples and causes unfair market pricing for Africa (Ghana), making it difficult for producers and traders of the fruit.
According to Samuel Borlu of Gold Coast Fruits in Ghana, "Where as in other parts of the world there is a price quotation before the fruits leave the country of origin, in Ghana, prices are full of uncertainty when selling to the European market because the buyer in Europe will have to determine how much he or she is going to pay for the products, based on his profit margin after sales in the retailers. Meaning, after the buyer determines his profit margins he then communicates to the producer in Africa (Ghana) how much he has to pay and this unfair market pricing is not negotiable once the buyer in Europe comes out with his price."
Samuel also added that right now the market is not good. The minimum guaranteed price in conventional markets is quite bad. There is too much competition in the market. The cost of production together with packaging and transport is making it difficult to break even. Gold Coast Fruits sells a box of pineapples for approximately 3 – 4 euros where the packaging, transportation to port and forwarding already costs 1.70 euros per box.
In Ghana pineapples grow year round. “There are a lot of pineapples coming out of our country. These fruits go to Europe and North Africa. Right now North Africa and the Gulf have more stable prices. Switzerland acts as a hub to other European countries, while Morocco acts as the hub for North Africans.”
“Given the current margins I'm making, it is really difficult to survive in the industry. So I hope that prices will go up soon – if not I will have to sell more to Morocco and North Africa,” concludes Borlu.
For more information:
Gold Coast Fruits (Ghana)
Publication date: 11/17/2017
Author: Yzza Ibrahim
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