The domestic citrus industry in Ghana is facing potential contraction due to liquidity constraints and delayed payments, impacting both farmers and processors. In 2024, the annual production is projected at 440,000 tons of citrus, yet only 40 percent is economically utilized, with the remainder either wasted or sold at a loss.
Stakeholders attribute the crisis to a financing gap that hinders farmers from sustaining operations while awaiting payments from juice processors. During a meeting between the Orange Growers Association (OGA) and the Ministry of Food and Agriculture (MoFA) in Accra, industry representatives highlighted structural weaknesses in the supply chain, advocating for a government-backed financial mechanism.
"We are talking about a sector with immense potential… By volume, citrus production now exceeds cocoa, yet we have only tapped into 40 percent of its economic value," stated Theodore Tsidi Kloba, Business Development Manager of OGA. "The problem is that we do not have the working capital to wait 45 to 60 days to get paid," he added.
The global citrus industry value surpassed US$17 billion in 2023, according to the Observatory of Economic Complexity (OEC). Despite the availability of raw materials, inadequate financing mechanisms constrain processors' purchasing capacity. "By the time payments are made, farmers are already in financial distress, unable to reinvest in their farms," Kloba explained.
Processors confirm that payment delays stem from lengthy export processes and international buyer terms. "When I buy the fruit, it takes one day to process, another five days to store, three weeks to ship, and 45 days for my customer to pay," said Ben Brown, Managing Director at SONO Ghana. "That means it takes up to 65 days before I receive funds, but farmers cannot afford to wait that long," he added.
The Ministry of Food and Agriculture acknowledged the financing challenge and pledged structured support. Minister Eric Opoku emphasized the government's commitment to transforming the citrus industry into a major economic pillar. "The citrus sector represents one of our most promising agricultural frontiers... We will work on a comprehensive support package that will bridge the payment gap currently crippling the industry," he stated.
Stakeholders argue for direct financial intervention to address the liquidity crisis. "What we need is a revolving working capital fund that allows us to pay farmers upfront… The money does not even have to come to processors—it can go straight to farmers as part of a structured contract," the OGA representative explained.
Beyond financing, concerns about farm abandonment and an aging farmer population were raised. "The reality is that many of our farms are being abandoned because younger generations do not see citrus farming as a viable livelihood," Kloba noted. "Without immediate financial support, we risk losing a significant portion of our production base," he added.
Source: GhanaWeb