[ 2014-12-19 ]

How Ghanaian cassava farmers are saved by a beer
Ghanaians are embracing the use of locally
produced raw materials even though it is seen as
inadequate.

Ghana produces food crops in abundance and in
their raw state, these food items often go waste
due to lack of ready market for consumption. This
is the case with cassava, Ghana’s most highly
produced crop and a staple of the Ghanaian
consumer diet.

Ghana is said to be the 6th largest producer of
cassava in the world in terms of value, with the
commodity constituting 22% of the country’s
Gross Domestic Product (GDP), according to a
Country Case Study of Cassava Development in Ghana
prepared by the Ministry of Food and Agriculture
(MoFA) and published by United Nations Food and
Agriculture Organization (FAO) in 2005.

According to the FAO, about 50% of cassava
produced in the country is lost along the value
chain despite an annual production growth of 6%
over the past six years.

While the crop is cultivated in large enough
volumes to produce an annual surplus of over 5
million metric tons, its commercialization is said
to be significantly limited by rapid spoilage upon
harvest and a lack of processing capacity close to
production areas.

Cassava is most commonly consumed as Gari –
fermented and ground into granules similar to fine
couscous – or pounded into a mashed potato-like
consistency as Fufu – eaten with soups or
sauces.

The crop is now slowly shedding its image as a
“poor man’s crop” or a “home crop” to a
business venture crop for farmers. Some experts in
the agricultural sector are tipping it as a game
changer crop for many local farmers. This is
because of the ready market platform provided by
some multinational brewery firms like Diageo Plc
with its Ghanaian subsidiary Guinness Ghana
Breweries Limited (GGBL). Businesses are now
attracted to cassava, thus the sharp rise in price
of the crop; therefore an attractive proposition
for farmers.

In December 2012, following the introduction by
the Ghanaian government of tax rates that promote
the use of local raw material inputs, GGBL created
Ruut Extra Premium Beer - a well-balanced, premium
clear beer based on cassava.

Through technological developments and close
collaboration with the farming community, GGBL was
able to bring to market Ghana’s first commercial
cassava beer at a price affordable for a broader
number of Ghanaian consumers.

This is Diageo’s first beer brewed using cassava
and also holds the Diageo record for speed of
development: eight weeks from concept to
commercialization. Its introduction was made
possible due to the Ghanaian government’s
progressive policy on local raw materials, which
has resulted in concessions on products containing
a majority of local ingredients. This innovation
also supports Diageo’s ambition to increase
local sourcing in Africa, helping support
agricultural development and benefiting local
smallholder farming communities.

According to the Agric Sector Annual Progress
Report 2013 published by the Ministry of Food and
Agriculture (MoFA), the introduction of the beer
has provided ready market to cassava farmers. This
is partly responsible for the general increase in
the area put under cassava production.

The MoFA report indicated that as of 2013, GGBL
has purchased more than 3,500 metric tons of
cassava from local famers mainly in Atebubu (Brong
Ahafo Region), Ho (Volta Region), Nkwanta (Volta
Region) and Suhum (Eastern Region).

The report noted that a total 4,741 metric tonnes
of cassava purchased for beer brewing in Ghana,
GGBL buys over 74% of them.

The opportunity to make beer by using cassava in
Ghana is unique, perfectly fitting into the 2014
Farmers Day theme “Eat What We Grow”. Cassava
farmers over the years have complained that after
harvest, they are unable find buyers and majority
of the crop goes bad. For this reason most farmers
gave up cultivating cassava.

“But now we are very happy with the introduction
of Ghana’s first beer Ruut Extra many are now
cultivating more cassava,” James Akwetey Moore,
farmer based in Suhum said. During the main crop
season, farmers now cultivate about 100 to 150
acres of cassava and sell it to factories such as
the Ayensu Starch Factory which the government has
partnered GGBL to operate.

“First and foremost, having a local supply chain
that is resilient is important to the business.
Furthermore, you do not have to spend huge amount
of foreign exchange to import raw materials. The
benefits of local sourcing for the community are
extremely obvious. To be connected as a farmer to
a business like Guinness Ghana is absolutely
important,” said Kweku Sekyi- Cann, Marketing
Director of Guinness Ghana Breweries Limited.

According to the beverage company, it is committed
to developing its local procurement in partnership
with the government and the local smallholder
farming community to provide economic opportunity
within the agricultural sector while creating
great products for the Ghanaian consumer.

About 75% of consumers in Africa exist on about $4
a day, a situation that a consumer insight
revealed and that led to the Ruut Extra project.
It was to deliver quality product at a price the
consumer can afford.

Combined with the knowledge in production and
using local material to do something that is
refreshingly unique to the Ghanaian people, the
Ruut Extra project, according to officials was
delivered in record time from idea to market
within weeks.

GGBL’s intention was to significantly expand the
use of locally sourced materials. “We have
developed programs to support farmers and we
intend to invest in this program in further
support of stakeholders including government,”
said Sekyi-Cann.

GGBL approaches its agricultural supply chain
knowing that the future prosperity of farmers,
suppliers and the business is closely linked with
the ability to create partnerships and generate
joint business value in ways that are sustainable,
secure, and mutually beneficial.

The company supports sustainable sourcing and,
where appropriate, local sourcing of raw materials
which meet their quality standards. Increasingly,
it is looks at alternative raw materials which are
more resilient and better adapted to their local
climates.

Source - Joy News

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