An effort to ban tomato imports and emerging problems in the new factory

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6.3.2 An effort to ban tomato imports and emerging problems in the new

140 6 KOBBEL Company LTD

7 MOTAY Company ltd

8 VIOKORDAR Company LTD 9 T GATE Enterprises

10 FILEY Enterprise 11 CONY A ENT.

12 WATANMAL

However, an explanation by MoTI that the ban was only meant to allow the importation of tomato paste contradicted a letter sent by them to KOBBEL LTD on the 5^th and to UNIQUE STAR on the 23^rd November 2007. The letters contained the following statement: “The Ministry is of the opinion that KOBBEL LTD should be given a ‘special dispensation’ on the basis of the information provided, consequently, KOBBEL LTD is hereby given approval to resume importation of canned tomatoes, paste, and concentrates into Ghana” (MoTI, 5/Nov/2007). At MoTI they denied TFL had influenced the government’s decision to ban imports and explained that the government took the initiative due to under-invoicing by some importers. In answering the question about why some firms were allowed to continue importing, it was stated that the ban was aimed at tomato paste but at canned tomatoes so they made allowance for the importation of tomato concentrates. This statement still contradicts the contents of the letter to the two importing companies. The difficulty in getting the power source to the factory was also given as a reason why some imports were allowed since the factory could not operate efficiently enough to meet the nation’s demands. The decision to allow the importation of tomato paste gives TFL the only factory in the country that cans paste. They buy all imported paste and complete the processing by canning and reselling it to the importers.

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Photograph 6.2 NSTC processing plants and TFL in Ghana

Source: Picture taken by author during field work in Bolgatanga and Tema (2008)

In 2008, with the help of TFL who provided a transformer, the factory was connected to the national electricity grid. In the same year, new plastic crates were purchased to replace the wooden crates and TFL imported a new tomato variety at a cost of over 100K Euros. The new variety, which is very suitable for processing, was expected to yield 60 tons per hectare. However, due to poor coordination and lack of communication, contracts with farmers about using the new variety were not clearly drawn up so the farmers failed to use the seeds. Nonetheless, processing was carried out on a fair basis at NSTC but, as the factory had no contract with the farmers, competition with the traders was extremely keen. At one, point traders were ready to buy tomatoes at twice the price the factory could afford. In another situation, some farmers contracted with the traders to bring maize while the farmers organised tomatoes for them. On a visit to the field in Doba on the 12^th of March,it was seen that a tomato truck had arrived with bags of maize.

Although tomatoes were scarce at the time, the farmers managed to organise large quantities for those traders. Another problem for the factory was that farmers were not happy with the payment procedures. They do not pay cash on the spot but after buying from a particular community a cheque would be written in the name of a leader who had to distribute payments to the other farmers.

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The factory usually had to go through extensive bureaucratic procedures before it could make payments so it usually took some time before management was able to pay the leader who then had to pay the farmers. These arrangements sometimes resulted in confusion and caused heated arguments. For example, in 2007 most farmers lost money through the process. Apart from these problems, the farmers who are made leaders criticised the management for making them bear the added cost of transportation for the follow-up to the factory. In order to ensure sustainability, the management at NSTC hope to establish a factory farm to produce the necessary raw materials. It will also supplement what the farmers produce and solve the problem of seasonal shortages. Plans at MoTI indicate that sometime in the future the factory will be sold to TFL but with the government retaining a controlling share. The new factory entered into a five year agreement with TFL in 2007 under which they will provide equipment and technical staff as well as training the other staff. Apart from the factory, local processing methods are still practiced but their extent and any potential for commercial purposes are somewhat limited.

6.4 Local agro-processing methods practiced

Local processing methods include milling and drying. The demand for these methods arises because of the many food vendors springing up in Ghana creating the need for bulk purchase and preservation. The most common processing method in Ghana is milling.

Locally manufactured milling machines (see photo in 6.3) are very popular in Ghanaian markets. The machines are electrically powered and mill tomatoes into purée, similar to that from a normal domestic blender. The method remains the only suitable means of preserving tomatoes bought in large quantities by most of the food sellers and during festivals when bulk cooking is required. In many cases the purée is stored in deep freezers or further cooked to evaporate the water content, leaving a thick paste. The paste is then stored in sealed bottles (insert in photo 6.3) or, depending on the quantity, in bigger containers. The product will remain edible for up to a year if it is frozen. In another method, about a one-inch layer of vegetable oil is poured into the top of the filled

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containers to prevent any fungi growth since preservatives are not added. The containers are then sealed and stored in, those not in a freezer staying fresh for up to three months.

Traditionally, the most common method adopted by farmers in the UER is sun drying.

The tomatoes are cut into halves and laid out to dry in the sun. This method is very uncertain because the drying process depends so much on the natural atmospheric temperature and humidity. Fluctuations in either or both of these affect the end product which should be brittle, red in colour and have retained their flavour. There is no technology available to determine allowable water content but they should be dry enough to be ground into powder. Day and night temperatures in the region fluctuate widely making it difficult to achieve consistent results. An example of the process going wrong can be seen in the black colour of the dried tomatoes in figure 6.3. In addition, contamination by insects and dust cannot be avoided since is the tomatoes are dried in the open . Storage also poses a challenge since, due to the high humidity in the rainy season, deterioration is accelerated and the product gets mouldy very quickly. The best way to store the dried product is to package it in special plastic bags, well sealed to keep out moisture and prevent mould growth, as practiced in Burkina Faso (See photo in 5.1). It is also ground to a powder and stored in sealed containers.

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Photograph 6.3 Dried tomato and milling machine

Picture by author during research 2008

The problem in using these methods in dealing with commercial quantities is the high overhead costs incurred in milling. In the first place, somebody willing to go into processing on a commercial basis will have to purchase the milling machine. Secondly, since the puree has so much water content it has to be further processed into paste. Then, in order to store it preservatives have to be added and a storage facility provided. The final challenge is to attract consumers. To do so, the product has to be well packaged. The cost involved in all of this reflected in high prices. Given that the market is already flooded with cheap, imported paste marketing is difficult for the processor.

Furthermore, apart from the unpredictable and laborious processes required in sun drying, dried tomatoes are not commonly used in the preparation of most traditional meals therefore consumption is very low. Consequently, farmers prefer to sell their tomatoes fresh. It is common to see large quantities of ground dried tomatoes in Ghanaian markets.

However, the product is frowned on because the reddish powder is different from the black colour of the dried tomatoes. It is alleged that the powder on the market is not derived from dried tomatoes but is milled cola-nuts or a mixture of other ingredients. In

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addition, the large quantities displayed in all the markets in the country raises questions as it seems to exceed the quantities dried in the country. Marketing is therefore limited to a few road side food sellers who cannot afford canned tomatoes. An attempt by the government to support small scale processing was initiated in 2005 but it did not achieve significant results.

The agricultural engineering services of MoFA and the Italian company collaborated in taking delivery of some processing machines known as ‘Tomato Master’. The objective was to fulfil the Government’s policy of making Ghana an agro-industrial country and supporting small scale agro-processing industries. Accordingly, ten complete lines of the tomato-processing equipment were procured for sale to communities and individuals (ISSER, 2004:104). These are mobile machines for both domestic and small scale processing of tomatoes into paste and puree. According to the regional director of MoFA in the UER, some of the machines were given to women on credit. The ministry also encouraged schools and hospitals to acquire the machines for the institution’s private use.

However, many farmers contacted said they had no knowledge of such machines and those who did know stated they were too expensive for them to buy.