Download the MiDA Newsletter, 8th Edition - MiDA Ghana

Millennium Development AuthorityQuarterly Newsletter | Eighth Edition June, 2011MiDA and the Integrated Tamale Fruit Company(ITFC) Collaborate for Greater ProductivityBackgroundLocation: Gushie, Savelugu Nanton District, Northern Region,Ghana; but operations cover all 5 MiDA Districts.Incorporation• Private Limited Liability Company Incorporated in1999 under Ghana Company code, Act 179 of 1963.• Commenced business in Year 2000.Business Model• Cultivates certified organic mangoes for local (10-20%)and export (80-90%) markets.• Operates a nucleus farm - 600 acres of 1,363 acres(44%) of acquired lands under cultivation• Cultivates about 60,000 mango trees (i.e. 100 trees/acre)• Deals with 1,200 small-scale outgrowers against a2007 target of 2,000 (60%).• Outgrowers cultivate about 120,000 mango trees (i.e.100 trees/acre/outgrower)• Goal of Outgrower Program: To alleviate poverty inNorthern SectorShareholding Structure• 70% Ghanaian- Wienco, 50%- The Nanton chief, 10%- African Tiger Mutual Fund, 5%- Tamale Investments, 5%• 30% DutchA Generator & Accessories hitherto used to generate powerThe Problem• Poor roads to outgrowers’ farms – High VOCs of water& haulage trucks• About 74% loss of annual export volumes to roadcondition bruises – low packout rate (proportionmeeting standards)• Diesel cost for operating 3 Generators at Packhouse,Office and Staff bungalows was about GH¢28,090.50• Ancillary cost to get diesel and operate Generators• Could not take offers from producers outside to dryMango, Okro and Tomatoes due to high cost associatedwith running generators• Operated only 1 oven to process 180 tones per seasonThe MCA Ghana Intervention• Construction of 9 feeder roads along outgrowers’ farms• Construction of 25km High Voltage (HV) TransmissionLines• Provision and installation of 315KVA TransformerTransformer on thepremises of ITFCOutputs So Far• On the average 81.4% physicalworks on 110.5km of feeder roadscompleted• 25km High Voltage (HV)Transmission Lines and 315 KVATransformer constructed and functionalPackhouseImmediate Outcomes• 0% loss to bruises – 65% packout rate. Losses due toother factors• Travel times to farms reduced - Quick response to fireoutbreaks on farms during dry season• Cost savings of GH¢ 25,952.50 (Gh¢28,090.50 -Gh¢2,138) per month since March 25, 2011 whenconnected to the national grid.• Operating 2 ovens to meet increased demand for driedfruits from both local and international markets• Extended product line and operations to include mangopuree, okro and tomatoes dryingImpact/Expected Impact• More than doubled employees at Packhouse –increased from 84 employees to 195 (132%); 180 ofwhom are females• Reduce mango losses due to bruises – high packoutrate to Organic Mango Outgrowers Association(OMOA)• OMOA to get better price for their produce since ITFCoperational cost reduced• Cost savings for OMOA members due to increasedtraffic volumes eradicating monopoly by few transportowners in the past; reduced travel times; and reducedtransport fares• Expects significant increase in annual profit marginsas a result of cost savings from14