Africa Region Working Paper Series No. 93

Abstract

In the last 10 years, Ghana has made considerable progress in the development of its horticulture export industry. Today, the country has the potential to become a world leader in horticulture production, being already a champion in pineapple exports. Between 1990 and 2004, pineapple exports grew from virtual inexistence to 68,000 tons, becoming Ghana’s first horticulture export product. However, this success was not a predicted achievement. After positioning its production in the low-end European market, where Ghana defied its competitors with a low-cost approach, the country was soon losing ground against new competitors and market changes. The industry had to face this serious crisis and take on these new challenges. A new market strategy was thus adopted by the industry founded on adaptability, diversification, and innovation. Ghana diversified toward other high-demand horticultural produce, such as fresh papaya, mango, and Asian vegetables, and facilitated the development of processed goods for export, in particular, sliced pineapple for fruit salads. These events have dramatically transformed the lives of growers and inversely contributed to the development of a new segment of the agricultural sector, whose dynamism now attracts significant investment. The country now faces important market changes, led in particular by the quick adoption in global markets of the new pineapple market variety, the MD2.

This paper analyzes the strategies Ghana has adopted to develop its horticulture sector, gain greater market access, and become a leader in global markets. It presents the protagonists and their respective roles and focuses on the production and marketing innovations that were adopted at different moments to remain competitive and adapt to the new market context. Finally, it proposes lessons to be learned from Ghana’s initial success and suggests new challenges the country will have to face to maintain its performance and position.

Full text of paper (491KB, In Adobe Acrobat format. Requires Acrobat PDF viewer.)