Profitability of organic mango production in northern region of Ghana - case study of Integrated Tamale Fruit Company (ITFC).
Adu-Gyamfi R., Fearon J., Addo B.
Author Affiliation: University for Development Studies, P. O. Box TL 1882, Tamale, Ghana.
Ghana Journal of Horticulture 10 : 107-117
Abstract : The profitability of organic mango production was investigated at the Integrated Tamale Fruit Company's (ITFC) out-grower scheme located in the Savelugu-Nanton district of Northern region, Ghana. ITFC out-growers scheme was purposively selected because of its strategic importance to the pomology industry in Ghana. The company is playing a major role in the implementation of Millennium Challenge Project on mango production. Five communities were randomly selected from a list of all the participating communities and a total of fifty farmers from these communities interviewed using semi-structured questionnaires. Secondary data on Out-grower's yield, input and producer prices as well as other costs for services provided by the company were collected from ITFC. Profitability analysis was done using 10 years yield data of the out-growers recorded and kept by ITFC. Sensitivity analysis was performed on the profitability of the venture. The study showed that ITFC's operations have been beneficial to participating communities. Mango production under ITFC out-grower scheme was found to be profitable. Farmers who cultivate 1 acre (0.405 ha) of mango could earn between GH cedi 9,416 and GH cedi 27,154 for the first 10 years and break even at the 5th year after harvesting depending on prevailing market conditions. However, considering the relatively high dependency ratio in the study communities, farmers could better maximise gains if they are assisted to increase their holdings above the average size of 1 acre (0.405 ha) and thereby impact more positively on the poverty reduction agenda.