Ahead of the 2024 major mango season in Ghana, the minimum purchase price of mango is set at GHS 4 per kg effective 1st May 2024.
The minimum floor price model is indexed to the US Dollar and based on international commodity market prices, protecting against exchange rate losses.
The price was fixed by the Tree Crop Development Authority (TCDA) in collaboration with the Federation of Association of Ghanaian Exporters (FAGE) and the Mango Association of Ghana .
The Free on Board (FOB) average international price of mango per kilo factored in the average Bank of Ghana exchange rate for US Dollar (USD), estimated cost of production per acre, estimated yield (mango) per acre, markup for farmers and cost per kilo of fresh mango fruit.
This price will serve as the benchmark for compensating production costs and resolving commercial disputes, ensuring a universal reference across the production-market-consumption chain.
“This achievement demonstrates our collective efforts to promote sustainable agricultural practices and ensure fair returns for our hardworking farmers and all the other actors within the mango value chain in the country.” This initiative is not just about setting prices, it’s about supporting our farmers, ensuring they receive fair compensation for their handwork, and giving information to the buyers and processors to plan their business, to foster a sustainable and prosperous agricultural sector”, Deputy Food and Agriculture Minister, Yaw Frimpong Addo said at the announcement on behalf of sector minister, Bryan Acheampong.
This pricing model considers production costs, transportation expenses, and market demand, reflecting our commitment to transparency and value creation for both farmers and buyers.
Established by Act 1010 in 2021, the TCDA regulates and oversees the production, processing, and trading of six major tree crops: oil palm, coconut, mango, shea, rubber, and cashew. Mango, the second-largest tropical fruit in Ghana, is highly popular in various forms such as fresh cuts, juice, and dried products, both domestically and internationally.
Currently, Ghana boasts approximately 200,000 hectares of mango plantations, producing between 300,000 to 400,000 metric tons (MT) annually, with the potential to reach 3 million MT per year.
The mango sector faces several challenges, notably the lack of a minimum floor price at the farm gate.
Establishing this minimum price is crucial for transparent negotiations with buyers and local processors, and for building trust among value chain participants.
Stakeholders acknowledge the valuable support from our partner Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) through the sustainable employment through Agribusiness Programme (AgriBiz).
About FAGE
The Federation of the Associations of Ghanaian Exporters (FAGE) is a non-profit organization dedicated to promoting and supporting the interests of Ghanaian exporters with a focus on enhancing the competitiveness of Ghana’s export sector.
About TCDA
Tree Crops Development Authority (TCDA) was established in 2021 with an overall mandate to regulate and govern the production, processing and trading of six major tree crops namely oil palm, coconut, mango, shea, rubber and cashew in a sustainable manner.
