Ghana’s Groundnuts

A study of the branding regulations and market

traceability requirements
 The Market Development Programme (MADE)
for Northern Ghana is a seven-year DFID-funded
programme promoting growth and poverty reduction
in the 60 districts covered by the Northern Savannah
Ecological Zone (NSEZ).

Cover photo: Farmers associated with Noyine Maltinga

separating the husks from the kernels in Upper East.
  1

The MADE Groundnut Branding and

Traceability Assessment
The FCDO-funded Market Development for known as peanuts). The primary objective of this
Northern Ghana programme (MADE), which study was to:
launched in March 2014, aims to increase the
■ Outline the purchasing habits of consumers
incomes and resilience of poor smallholder
farmers (SHFs) and small-scale rural enterprises and end-buyers of groundnuts and processed
in the Northern Savannah Economic Zone groundnut products
(NSEZ). MADE has been tackling the constraints ■ Look closely at trading arrangements and key
underlying the substantial variance in agricultural actors in the groundnut value chain, supplying
performance between Ghana’s northern and the end markets
southern regions. A key focus of the programme
■ Develop a feasibility framework for the
has been addressing constraints to smallholder
introduction of branded and traceable
farmer access to input supplies and services
aflatoxin-free groundnuts from Northern
and aligning production and product quality to
Ghanaian suppliers.
meet market demand. To understand better
the constraints facing the small-scale producer The work was carried out by a team of four
to break into high quality, high value markets, consultants led by The Fairtrade Foundation in
MADE funded a study of the branding regulations partnership with Imani Development from July
and market traceability requirements of one of to September 2020. The field team used the
Northern Ghana’s key crops – groundnuts (also following four-stage approach:

FIGURE 1. FOUR-STAGE STUDY APPROACH

Deskwork Consultation Market Drafting

Review and and Feasibility and
Planning Fieldwork Analysis Submission

Take stock Understand Conduct market Draft key

of existing market system analysis and findings and
knowledge base and determine feasibility insights report
and finalise the market demand assessment and prepare
Scope of Work presentation
Stakeholder Market (supply
Literature review consultations and demand) Report writing
Inception Key informant gap analysis Validation
meeting interviews Market systems Final submission
Fieldwork Focus group analysis
planning and tool discussions Feasibility
development De-brief MADE analysis
team Producer payoff
analysis
2

Finally, the team identified and tailored a feasibility

A key focus of the programme has been framework to analyse the markets identified for
addressing constraints to smallholder the sale of aflatoxin-free groundnuts, assess the
strength of the market to pay premium prices, and
farmer access to input supplies and collate recommendations for the transformation of
services and aligning production and the sector and future donor-funded programmes
working in this space.
product quality to meet market demand.
There were some limitations to this study, largely
because of the onset of the coronavirus pandemic
Interviews were held with ten agribusinesses in March 2020 that meant the team had to
supported through MADE and with other import- change both the timing and approach ultimately
ant value chain stakeholders. The team consulted used for the research. For example, the planned
with a number of key institutional buyers to market survey, involving many consumers in
inform the findings of this study, including Nestle, focus group discussions, became impossible
Samba Foods and Project Peanut Butter, as well due to concerns about large gatherings in the
as the Ghana Commodity Exchange (GCX). Burger market centres. This was mitigated by the
Industries, SAVNAB, Snappy and Premium Foods team directly approaching and conducting
were not available for interview at short notice. interviews with as many individuals and small
While most businesses were very forthcoming numbers of consumers as possible, changing
about their commercial information, some were the methodology from a widespread quantitative
reluctant to share sensitive price data – even with analysis in select markets to assessing demand
non-industry consultants. through in-depth qualitative interviews.

FIGURE 2. STUDY COVERAGE

UPPER EAST
Wa Navrongo
Bulenga Gbedema
Tumu
UPPER WEST
• NORTH EAST
Kambakore
Naapal • Sakako
••
• Karaga
•
NORTHERN Kurugu
Tamale
SAVANNAH •

•
OTI
BRONG BONO EAST Techiman
AHAFO

•
Kumasi
AHAFO ASHANTI Ejura
•
EASTERN VOLTA
WESTERN
NORTH
GREATER

CENTRAL
•
ACCRA
Osu
WESTERN Nima
Ashaiman
Makoria
Mallam Attah
Dzorwulu
 3

Female farmers associated with

POGNAA foods sorting groundnuts.

Context of groundnuts in Ghana

Groundnut (Arachis hypogaea L.) is one of the
most important oilseed crops, by virtue of its
contribution to satisfying the protein needs of Aflatoxins are associated with
many households who cannot afford animal acute and chronic toxicities in
protein. It is a staple food crop in Northern Ghana
and is the core ingredient of many local food humans and animals, leading to
recipes. Groundnut cultivation is hampered by stunting, liver cirrhosis, tumours
Aspergillus Flavus and Aspergillus Parasiticus
fungi present in the soil which contaminate and immunosuppressive effects.
groundnuts and some other food crops with
aflatoxins. Aflatoxins are associated with acute
and chronic toxicities in humans and animals, to smallholder farmers. The product is applied
leading to stunting, liver cirrhosis, tumours once a cropping season, 2–3 weeks before
and immunosuppressive effects. Acute doses crop flowering. It protects crops in the field
can result in death in humans and animals1. with additional carry-over effect during storage.
Aflatoxin contamination normally happens before This has been successful, as demonstrated in
the crop is harvested. Rapid and proper grain the testing carried out with the IITA in 2019 3.
drying, sorting and processing help limit aflatoxin However, Aflasafe and the additional control and
build up post-harvest but in themselves cannot testing measures required to monitor levels at
eradicate toxins already present. harvest and during storage come at a cost to
both the farmers and the agribusinesses, which
MADE has encouraged its partner firms to lower currently is not recoverable. In the absence of a
the risk by introducing Aflasafe 2 as part of the quality premium, the continued investment by
bundle of input supplies and services offered firms in Aflasafe is under considerable threat.
4

Domestic production and consumption

Production Ghana’s market for groundnuts is 99% domes-
Ghana is a relatively minor player on the world tic, and of the 1% that is exported (less than
stage with regards groundnut production, 3,500MT), 90% goes to Nigeria.6 Export restric-
representing less than 2% of total production tions on groundnut production are tight and
worldwide. India and China are the two major onerous for producers, given the need to meet
producers together representing over two-thirds stringent international safety standards on afla-
of global output. Other important producers are toxin levels. It is estimated that more than 70%
Nigeria, Senegal, Sudan and Argentina. of farmers in the Upper West, Upper East and
North-East regions of Ghana cultivate ground-
Ghana produced 521,000MT of groundnuts in nuts, accounting for over 90% of national out-
2018, with production more than doubling since put.7 Groundnuts are produced both for home
2010 and with a 51% increase in the harvested consumption and for sale on the local market,
area over the same time period.4 5 with even the poorest farmers reporting that
they grow groundnuts as a cash crop.8 In Ghana,

Unshelled groundnuts being organised.

  5

FIGURE 3. PROPORTIONAL GLOBAL PRODUCTION OF GROUNDNUTS (2017)

North and Other

Central America 4%
8%

Other
25%
Nigeria Africa
43% 18%
Asia
Ghana 70%
8%

Guinea
11%
Senegal
13%

as in the rest of West Africa, groundnut is often groundnuts from the open market.11 Groundnuts
termed ‘a woman’s crop’ due to the major role are a key source of nutrition for young people
women play in its production, marketing and and infants, with many producers supplying
processing, working as farmers, traders and in government school feeding programmes.
some cases labourers in planting, harvesting and
shelling.9 Yields typically range from 0.8 to 1.5MT
per acre of shelled product, with the major pro- Export restrictions on groundnut
duction season taking place from April to July,
production are tight and onerous
and a minor season from August to September.
Two groundnut varieties dominate the domestic for producers, given the need to
market, Chinese (Brown) and Nkatie SARI (Red). meet stringent international safety
The Chinese variety is preferred by consumers
for roasted groundnuts and paste because of its standards on aflatoxin levels.
low oil content. SARI is preferred by producers of
groundnut oil.
Groundnuts are overwhelmingly consumed
as either unprocessed or simply processed
Consumption products. Domestic trade includes both shelled
Per capita annual consumption of groundnuts and unshelled fresh nuts, cooked unshelled
in Ghana is high at approximately 12 kg per nuts, roasted shelled nuts, roasted and coated
capita per year, compared to the US at 3 kg.10 shelled nuts, paste, and other groundnut blends.
It varies across the country, with populations The most commonly consumed product by far
in the north eating more than those in the is groundnut soup, with between 39% and 60%
south. 39% of those who consume groundnuts of the population consuming this product.12
in Northern Ghana grow it themselves. Only Consumption trends differ depending on the
22% of consumers rely entirely on purchasing wealth of the consumer.
6

The importance of grading, branding, and quality

Grading buyers do not pay more for higher grades. As
Grading processes within local markets are groundnuts become scarce, suppliers gain more
based on whether the groundnut is whole power in negotiations and are able to insist on
higher prices for good grades, with market actors
(grade 1), split (grade 2) or broken (grade 3).
reporting prices rising by as much as 80% in
Price differentials between the grades vary from
scarce seasons countrywide. The most widely
GHS15 to 25.13 Similar grading systems were
used quality specifications are physical attributes
found in almost all the major market centres
like colour, size, wholeness, and level of dryness.
across the country.

The importance of grading varies by season and Quality

by the nature of the buyer. At the beginning A key risk to the spread of aflatoxin is that most
of the season, when there is an abundance lower grades end up being used for paste,
of groundnuts, suppliers are price takers, and soups and other processed products. Only a

Groundnut paste retailer with branded products.

 7

Groundnut paste by POGNAA foods, label from Gifts.

few agribusinesses reported that they buy back online platform advertised through social media.
from farmers according to grade. Occasionally, Considerable customer loyalty was witnessed for
market women pay slightly more for higher such products.
quality product, but on most occasions they
either meet the required quality or are rejected.
Rejected product often ends up as animal feed or
as groundnut soup.
As groundnuts become scarce,
suppliers gain more power in
Branding negotiations and are able to insist
There is some, isolated evidence that product
branding, packaging and labelling commands
on higher prices for good grades.
a premium in the market. However, this is
largely only found in high-end supermarkets and Branding is far more common for groundnut
products for export. Branding is not a widespread products exported to indigenous overseas
practice and was not observed on the traditional markets and higher end supermarkets. The
market for shelled/unshelled groundnuts, which better the packaging and labelling, the higher
accounts for approximately 80 to 90% of total the prices. Imported products seem to enjoy a
sales. Shelled groundnuts are largely sold premium and have the highest prices across all
without labels, except sometimes to institutional product categories. The greatest price mark-up
buyers, where agribusinesses simply mark the is on flavoured groundnuts – probably because
bags sold with the company name. Groundnut of the additional flavouring processes required.
paste is largely not branded in the traditional All products sold through supermarkets require
market. However, consultants identified a small FDA certification.
group of processors in Tamale who have had
success targeting middle class consumers via an
8

Feasibility frameworks
Production framework receive for growing maize, soybean, rice and
MADE’s ”advanced model”14 has achieved other crops. Both the agribusinesses and the
success in introducing Aflasafe to the input farmers reported that the input subsidy support
supply bundles that farmers receive, with provided for maize and sorghum through the
positive results in reducing aflatoxin levels below government’s Planting for Food and Jobs
the permissible 10pb regulated by the Ghana flagship programme is far greater than that for
Standards Authority.15 With farmers also being groundnuts. This means that a farmer in northern
able to expand production in line with demand, Ghana is likely to sell maize and other cereals but
the feasibility for farmers to meet the required hold on to groundnuts as a form of cash savings.
quantities and quality from the market has been Agribusinesses on the other hand, tend to not
proven by the MADE programme, albeit only up store groundnuts for sale in the off-season, as it
to the point of harvest. would take up valuable storage space that can
be used for other crops. Groundnut sales help
CROP PRIORITISATION agribusinesses with cash flow allowing them to
offset interest payments on credit.
The consultants identified that farmers and
agribusinesses prioritise other crops such
as maize to sell on the market, contrary to LOGISTICS
previous analysis showing groundnuts to be When it comes to logistical feasibility, there
one of the highest value crops to be produced were mixed reports from agribusinesses and
by smallholder farmers.16 This is largely processors on issues of transportation. Some
because of the volume of support farmers stated that there were no major challenges,

Antika’s (farming and distribution of agro-input firm) warehouse

storage for groundnuts in the Upper West Region.
  9

FIGURE 4. GROUNDNUT BUYER TYPES

Market Queens
Market Queens are wholesalers of unshelled, shelled, physical examination for colour, moisture and maturity
roasted and paste groundnuts who sell on the open of pods and kernels. There is also no willingness to
markets to retailers, food outlet operators, home pay premium prices. Buyers in this category ranked
consumers and in rare cases to foreign traders. Some price, quality (colour, absence of pest), oil content,
wholesalers trade only in either unshelled or shelled reliability of supply, relationship to seller/supplier and
nuts, others trade in all nut forms. In general, these ready access to product as the most important features
traders have little knowledge about aflatoxins and no for their buyers. Source of supply/traceability were
interest in traceability. Quality is ascertained through not important.

Retailers
Retailers in this category rank price, quality (colour, traceability and packaging were less important.
absence of pest), oil content, appearance, size Additionally, poor quality nuts are those that have
and reliability of supply as very important in their an uncharacteristic natural taste, visible mould
consideration from whom to buy. Source of supply/ or discolouration.

Institutional Buyers
Institutional buyers generally have knowledge community level. Institutional buyers supplying the
about aflatoxin levels but accept varying levels of export market and GCX must have permissible levels
aflatoxin for their operations, from EU standards to of aflatoxin of less than 10ppb. There is willingness
lower standards, depending on their clients and the to pay for higher or premium grades. Due to the high
existing facilities to sort and eliminate nuts infected quality required, Samba, for instance, pays a higher
by aflatoxin. This buyer type requires some level of premium, to compensate for the resources required to
traceability and this needs to be at least down to the meets its target.

while others cited problems with the high cost release their groundnuts through the controlled
of transportation and bad road networks, which value chain rather than through the traditional
affected their ability to access the southern market channels.
markets. This confirms previous assessments
that have placed the cost of distribution of Sales framework
groundnut products at almost 32% of the final Household consumers account for over 90% of
price to consumers.17 groundnuts produced in Northern Ghana. This
buyer type does not check for the aflatoxin status
In conclusion, in terms of production feasibility,
of products before purchasing, nor do they worry
the assessment found that by continuing to about the source (traceability). The remaining
promote the use of Aflasafe amongst their 10% largely urban-based, college-educated
out-growers and through controlled handling, consumers in Accra, Takoradi and Techiman are
warehousing and transport, agribusinesses concerned about aflatoxin levels in groundnuts
have the capability of providing the market and are willing to pay more for higher quality
with aflatoxin-free and traceable groundnuts. products. The market for branded, high quality
The level of production rests on the contractual groundnuts depends on the willingness
arrangements between producer and enterprise of buyers to pay more for a branded, aflatoxin-
and the incentives received by farmers to free groundnut.
10

In conclusion, there is very little knowledge operators, unless there is greater public health
of the risks of aflatoxin among the majority awareness and consumers begin to demand
of buyers. Most are unaware of the issues of aflatoxin-free groundnuts, or there is stricter
aflatoxin, and this is not a guiding aspect of enforcement of the regulations on aflatoxin.
purchasing decisions. Second only to price
was the appearance of groundnuts in terms of Contractual protection
the size of the kernel, colour, and the absence
It is important to acknowledge the importance of
payment terms for farmers and agribusinesses.
Farmers place a high value on being able to store
Trying to charge a premium for groundnuts as a form of commodity saving, so it
aflatoxin-free groundnuts will be is clear that there is a requirement for the price
of branded, “aflatoxin-free” produce to at least
a challenge for current operators, match inter-season prices. If these terms are not
unless there is greater public health met, there is no incentive to change practices to
supply safe groundnuts. Any agreement made
awareness and consumers begin to between traders, agribusinesses and farmers will
demand aflatoxin-free groundnuts, need to fully reflect the additional costs associated
with producing safe, high quality product.
or there is stricter enforcement of
Mutually attractive credit and payment terms
the regulations on aflatoxin. need to be echoed in contractual agreements
between agribusinesses and any buyers of
safe and aflatoxin-free groundnuts. This has
of pests. In terms of traceability, most buyers already been developed through the out-
show little interest in the source of the produce, grower arrangements introduced through the
although the “reliability of supply” was cited as MADE programme. Interviews also revealed
a key component for wholesalers and retailers a reluctance by agribusinesses to work with
when seeking to purchase groundnuts from traders that stored produce in their warehouses
farmers or agribusinesses. until a buyer became available, since this led to
delays in payment.
Institutional buyers are the exception to this
rule, with many, such as Nestle for maize Secondly, fieldwork identified that contractual
and Samba Foods for groundnuts, tracing the agreements surrounding the transparency
source of production down to the community and detail of testing requirements must also
level. However, these larger institutional buyers be agreed up front. Agreements between
purchase less than 10% of total production, so institutional buyers and agribusinesses that have
this is an exception rather than a rule. Unless previously supplied aflatoxin-free groundnuts
traceability is demanded by regulators, most have broken down due to unclear accountability
buyers do not place huge importance on it over a contaminated batch. Clear testing
preferring to purchase groundnuts from the procedures must be agreed at all points of risk.
northern regions, which tend to harvest in the
drier months, rather the southern regions, where Testing should also take place upon arrival of
effective drying becomes a challenge because of goods from the supplier, before it is moved into
the comparatively higher rainfall. storage by the buyer, so as to clearly identify the
accountable market actor and put in place the
Trying to charge a premium for aflatoxin-free relevant protections. Further to this, disposal of
groundnuts will be a challenge for current batches of groundnuts that have not successfully
  11

passed testing must be contractually disposed of and plan their businesses, with great evidence
through processing into oil, which removes the of success once the model with farm enterprise
risk of aflatoxin contamination.18 In conclusion, advisors (FEAs) has been established19. Given
contractual terms and transparency both for the risk profile for agribusinesses entering
farmers and between agribusinesses and this market, with potentially high legal fees for
institutional buyers is critical to the successful setting up formalised contracts, and the cost of
launch of traceable and aflatoxin-free groundnuts. reviewing appropriate testing infrastructure and
ensuring both storage and transportation are up
Finally, with regard to the availability of to standard, investment up front will be required.
investment and the importance of planning
and management in the long term, it is clear in With MADE closing in November 2020, it is
interviews with the agribusinesses that MADE important that support from future programmes
has had a significant impact on how they operate continues to establish these relationships with

Melanie Amikiya, CEO of Noyine Maltinga with

branded products in Upper East Region.
12

institutional buyers, help bring down the risk

associated with entering the market and enable
planning for the future. Once returns start to
come back to the businesses, there is reason
to believe that agribusinesses will be able to
continue to source any needed investment and
plan resources accordingly.

Management framework
A key aspect of introducing aflatoxin-free and
traceable groundnuts are the testing costs,
facilities and procedures required at all stages of
the supply chain, and the contractual procedures
involved. The fieldwork identified various options
for testing that are available to agribusinesses, as
Shelled groundnuts at Mallam Atta Market.
shown below:

■ Send samples to KNUST in Kumasi which

■ Estimates based on the price for 100 bags
costs GHS 45 (£6.15) per sample (3 samples
of aflatoxin-free nuts given by Samba foods:
per 100 bags). Agribusinesses reported doing
GHS650 per bag, compared to GHS250 on the
this when required by buyers. Takes 1 day to
turn around. traditional market. This has not been verified
with other buyers.
■ Purchase own equipment which would
incur a one-off cost of £5,000 for kit plus ■ Seasonal price increases in the off-season
recurrent costs for consumables and of 63% on the traditional market, with the
reagents. No agribusinesses reported owning institutional pricing remaining constant.
their own testing equipment. ■ Aflatoxin levels in batches can lead to a
■ Set up regional, accredited testing 30-40% failure rate, based on interviews with
facility/ies able to test consignments prior to agribusinesses.20 Compensation for failed
despatch with the view to promoting produce batches priced in at this % chance of batches
from Northern Ghana, with initial investment will then have to be diverted to the traditional
met by Government. market. This represents a high risk when
supplying to institutional buyers.
ESTIMATED POTENTIAL RETURNS ON ■ The cost of providing farmers with required
INVESTMENT
inputs for groundnut production and payment
From information gathered from interviews, it for produce is 40% of the market price.21
is possible to construct a rudimentary model
For institutional buyers, an additional cost of
estimating potential returns on investment
GHS8 per bag is applied for the application
to agribusinesses investing in aflatoxin-free
of Aflasafe (4kgs of Aflasafe used on an acre
groundnuts. The scope, in the absence of
costs GHS40).
regulation and enforcement, is only 5 to 10%
of the market, predominantly focussed around ■ Farmers need to be paid for their groundnuts
a selection of institutional buyers and the at off-season levels when providing to
supply of premium branded groundnuts to institutional buyers, to compensate for
supermarkets. The model is based on the their lost chance to keep the groundnuts
following assumptions: as savings.
  13

■ Testing costs are based on agribusinesses

using KNUST sampling at GHS45 per bag,
with three bags needing to be tested per It is possible to construct a
100 of each batch supplied to the institutional rudimentary model estimating
buyer.
potential returns on investment
■ Transport and distribution costs are assumed
as constant at 32% of pricing achieved on the to agribusinesses investing in
traditional market.22 aflatoxin-free groundnuts.
When the risk of losing a batch of groundnuts
is taken into consideration, the returns on
investment when supplying to institutional
buyers are not much greater than when selling The market holds potential if a steady and
to the traditional market in the off-season. This safe supply of aflatoxin-free groundnuts can
helps explain why some agribusinesses have be provided, as some institutional buyers are
not pursued relationships with institutional currently underserved and actively seeking
buyers and have let their commercial trading partnerships in this area.
relationships elapse.
It should also be noted that school feeding
However, the return on investment of pursuing a programmes widely source groundnuts as a key
relationship with an institutional buyer still has a ingredient, funded by government and other
potential to offer greater returns than supplying local actors in a similar fashion to Project Peanut
the traditional market in both peak and off- Butter23. Fieldwork indicated there is little or no
seasons, and with agribusinesses being able to testing carried out on groundnuts being sourced
secure a steady safe supply of produce, the risk by these actors, although Project Peanut Butter
of losing a batch to testing reduces substantially uses electronic sorting to reduce aflatoxin
– allowing agribusinesses to make a significant contamination to within “acceptable” limits
margin once practices are tried and established. (below 20ppb).

TABLE 1. ESTIMATED FINANCIAL MODEL INDICATING FEASIBILITY OF SUPPLYING INSTITUTIONAL BUYERS

  Traditional market: Traditional market: Institutional buyer

Peak season (GHS) Off-season (GHS) (GHS)

Revenue Price per 80kg bag 250.00 407.50 650.00

Costs Failed batches 0.00 0.00 -163.00

Payment to farmer and

-100.00 -163.00 -171.00
agricultural input costs

Transport costs -80.00 -80.00 -80.00

Cost of testing 0.00 0.00 -6.75

Revenue less costs 70.00 164.50 229.25

14

Farmers associated with Noyine Maltinga separating

the husks from the kernels in Upper East
 15

Looking ahead
There are early signs of growth potential that create links with export markets through
must be carefully considered alongside the the GCX.
presence of a much larger market that does
not demand aflatoxin-free groundnuts and is Recommendations to achieve
comparatively easy for agribusinesses and transformation in the groundnut sector
farmers to sell into. Hence sector transformation
will also need to target the demand of this Overall, more work is required to build on the
much larger segment of the market, enhancing initial findings of this report especially around
understanding and building demand for aflatoxin- consumer demand and institutional commitment
free groundnuts gradually and over a much to the reduction of aflatoxin in foods that were
longer period. These opportunities are: limited in this study.

1
Pursue relationships with processors PROSPECTIVE MARKET
seeking to supply supermarkets and While this report has found that the majority
middle-class consumers through online of the market does not demand aflatoxin-free
platforms. groundnuts, there is an important 5-10% of
Small-scale processors are entering the market the market that can be pursued in itself, with
with branded groundnut paste products, premium pricing and the promise of expansion by
substituting groundnuts imported from Burkina
both for sale in supermarkets and through
Faso and the US.
retailers to reach a growing market of middle-
class consumers concerned with the quality
Immediate prospective partners would be
(adulteration). This group of consumers tend the GCX and Samba Foods. We recommend
to order from credible processors so they can that donor-led programmes work with these
be sure their paste is pure; and they have paid partners to develop a strong supply of aflatoxin-
prices up to 40% higher than market value to free groundnuts from smallholder farmers
secure this unadulterated paste. to supply this segment of the market. This

2
intervention will require the development of
Replace imported products
formalised agreements, clear testing procedures,
in supermarkets with branded
products. and commitment from a small group of
agribusinesses willing to move into this space,
The fieldwork identified a huge price differential along with a smaller and reliable group of
between imported branded products in smallholder farmers. Specific attention will be
supermarkets and locally produced brands. FDA required on the following:
certification would be required but the price
differential represents an opportunity to pursue ■ Pricing for groundnuts will need to remain
an end-market with a highly branded product by competitive against off-season pricing.
an established processor. ■ Clear contractual agreements need to be in

3
place surrounding the responsibility of testing.
Supply the export market.
■ Timely payment is needed for the supply of
Europe remains the largest market
groundnuts.
internationally for groundnuts, and with
the establishment of an aflatoxin-free supply ■ Safe disposal of contaminated batches should
chain, it may be possible for agribusinesses to be ensured.
16

EXPLORE A BRANDING PILOT WITH THE INTRODUCING THE COMPULSORY

AGRIBUSINESSES FOR BRANDED TRACEABLE APPLICATION OF AFLASAFE
GROUNDNUTS ALONGSIDE FERTILISER
With a small segment of the market demanding A key problem reported by agribusinesses
aflatoxin-free groundnuts, and a key focus from and farmer groups is the lack of evidence
consumers on higher quality groundnuts by of the success of producing aflatoxin-free
size, shape and colour, there is an opportunity groundnuts for the farmers themselves. Unlike
to work with agribusinesses to create branded the application of fertiliser, farmers do not see
groundnuts that can meet the needs of both an increased yield resulting from the application
institutional buyers and processors supplying of Aflasafe, nor do they see returns on their
to supermarkets with FDA certification. The investment of effort through increased price
target growth areas for this intervention would or by passing a testing procedure, at least until
be to expand the market of the GCX and provide market linkages are established.
market linkages to processors which would then
be enabled to achieve FDA certification for sale Future donor-led programmes can promote the
into supermarkets. combined provision of phosphate and Aflasafe
to farmers as a bulk bundle from agribusinesses,
so farmers can see immediate results from
A key problem reported by farming aflatoxin-free groundnuts. However,
greater success can be achieved with regulatory
agribusinesses and farmer commitment from the Government of Ghana,
groups is the lack of evidence with the introduction of policies requiring
fertiliser distributors to only sell fertiliser blends
of the success of producing that include Aflasafe.
aflatoxin-free groundnuts for the
LAUNCH A WIDESPREAD PUBLIC
farmers themselves. HEALTH COMMUNICATIONS CAMPAIGN
Given the current lack of awareness and
therefore the lack of concern among the majority
The fieldwork found that there are emerging of consumers about the dangers of aflatoxin,
innovators in the market, including processors there is a need for a widespread public health
that have identified a gap in the market for communications campaign to build demand for
groundnuts of higher quality with middle-class safe groundnuts and to ensure the effectiveness
consumers, using methods such as social media of any future widespread interventions involving
platforms. Such consumers are prepared to pay government-led testing.
prices up to 40% higher.
These campaigns should be organised alongside
The pilot would need to be carefully monitored state regulatory authorities and interested
to ensure that the cost of the introduction of a agencies, to ensure the direct connection with a
branded groundnut that is aflatoxin-free is not government regulation body. Implementers could
transferred directly to the consumer and does utilise the current focus on public health resulting
not have a negative effect on the sales of non- from the Coronavirus pandemic to turn attention
branded groundnuts. The intervention would also to this issue.
need to have a specific approach for ensuring
the financial feasibility for the agribusinesses to
invest in testing infrastructure.
Endnotes
1 Standards for aflatoxins in food exist in most countries, including Ghana, to protect
consumers from excess exposure but regulation and enforcement, particularly of local
trade is often limited. The Ghana Standards Authority (GSA) sets the limit at 15 and 10ppb
respectively for maize and groundnut.
2 Aflasafe is a biological pesticide for aflatoxin mitigation in maize, groundnut and sorghum.
It contains harmless strains of Aspergillus flavus that can be found growing naturally in
local soils but in very low concentrations. The product was cleared by the Environmental
Protection Agency for commercial distribution in Ghana in April 2018.
3 Yeleviebayire, J. (2019)
4 SPRING, (2017) and Meng, T. et al (2017)
5 It should be noted that the literature identifies discrepancies in the data captured between
FAOSTAT, MOFA and UNComtrade. Figures discussed here are in line with past analysis
conducted by the MADE Programme using FAOSTAT.
6 FAOSTAT (2020)
7 TechnoServe (2009) and FCDO (2014)
8 SPRING (2017)
9 Dokurugu, Z. (2015)
10 FCDO (2014)
11 Ibid.
12 Ibid. and Jolly. M. et al (2008)
13 For example, on the Tamale market, the prices for the grades were grade (A): GHS14 –
GHS16, (B): GHS13, (C): GHS9 whereas Navrongo market had grade (A) - GHS15, grade (B):
GHS14, grade (C): GHS13.
14 https://ghana-made.org
15 Yeleviebayire, J. (2019)
16 FCDO (2014)
17 Ibid.
18 Flowkowski, W. J. and Kolavalli, S. (2013)
19 https://ghana-made.org/rc/farm-enterprise-advisory-services-business-case/
20 Interview with Farmer Pride, Gifts Kyortaare company ltd, Antika
21 SPRING (2017)
22 Ibid.
23 Project Peanut Butter seeks to advance the treatment of severe acute malnutrition, the
single largest cause of child death in the world today, using effective, locally produced
ready-to-use therapeutic foods. This non-profit is formed to provide needed nutritional and
medical support primarily to children suffering from severe acute malnutrition in sub-Saharan
Africa and beyond. We make our impact by producing ready to use therapeutic foods (RUTF)
in factories located in Malawi, Sierra Leone, and Ghana.

This material has been funded by UK aid

from the UK government; however the
views expressed do not necessarily reflect
the UK government’s official policies.