The Economics Of Post-Harvest Handling And Marketing Of Legumes In Ghana: The Case Of Cowpea, Groundnuts And Bambara Beans.

ABSTRACT

The study examined the efficiency of the legume market with respect to post -

harvest handling and the structure, conduct and performance of the marketing process.

The legume crops involved in the study are cowpea, groundnuts and bambara beans.

Bambara beans was however studied only at the farm level because of its limited sale at

the wholesale level.

The techniques employed for primary data collection include Rapid

Reconnaissance Survey, Participatory Rural Appraisal, Direct Observation, and Case

Studies. The data from secondary sources consisted of documented information from

institutions. They include wholesale prices collected mainly from the PPMED of the

Ministry of Food and Agriculture.

Methods for the analysis of data include descriptive and inferencial statistics.

Results obtained at the production level reveal that farmers have over the years developed

many storage structures and protection methods as measures to protect legumes, namely,

cowpea and threshed bambara beans, from destruction by insect pests during storage and

to promote food security. The treatment of legumes on farms involve the use of

traditional methods with limited application of chemicals. It was found that farmers store

larger quantities of groundnuts and bambara beans in villages than cowpea, which is

stored mainly in the markets by traders. The major marketing functions performed on

legume markets by middlemen include purchasing, assembling, and distribution.

Transporting, packaging, and storage were found to be important marketing services

supporting the markerting functions. Other functions observed include direct and indirect

financing through the provision of loans to farmers by traders and stock crediting among

traders.

Unlike bambara beans, cowpea and groundnuts were found to have a large

number of intermediaries in the trade resulting in a multi-marketing channel. A situation,

which contributes significantly to high marketing costs with consequent high consumer

prices. Both farmers and traders were found to have limited or no access to market

information on legumes prices and supply situations in the country. Insect pest damage

on markets was found to be high for untreated stocks, ranging from 3.4 to more than 70

percent in some cases, thereby resulting in price discounts. The results revealed annual

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revenue losses to traders ranging from 11.7 — 58.4 percent of net revenue through price

discounts for damaged grades of cowpea, caused by weevils.

The results on pricing policies in the cowpea market give the indication of

collusive pricing policies, with an imperfectly competitive marketing system resulting

from traders’ monopoly of the market. The results also indicated weak associations

between cowpea markets with only 9 out of 56 market pairs being highly associated,

implying the existence of delayed transmission of price changes between cowpea

markets. For the groundnuts market, the results indicate the presence of a higher market

competition and a faster rate of price transmission between markets resulting in 22 highly

associated market pairs

The results of price spread estimations between farmers and wholesalers indicate

that groundnut farmers enjoy a higher share of consumer prices than cowpea farmers.

The study recommends that further study be made to identify simple, durable but

affordable structures for introduction to farmers for legume storage. The use of

underground storage facilities for instance may be additional options for study and

consideration. The study also recommends an aggressive approach to insect pest

eradication from farms and markets to forestall the incidence of seasonal produce damage

and enhance the elimination of revenue losses to traders and farmers particularly in the

cowpea market.

It is recommended therefore that trial experiments be undertaken to select the

most potent plant materials and their recommended dosage of application for

reintroduction to farmers as well as the use of appropriate and affordable solar energy

technologies for insect pests eradication. It is also recommended that the problem of

farmers’ inability to adopt high-yielding varieties be tackled from the market and

consumer levels in addition to the farm level.

Extension services need to be introduced to markets to help in educating traders in

operational practices and record-keeping as well as the formation of trader groups for

linkage to credit institutions for financial assistance.

Pest control and modem storage facilities need to be constructed in the wholesale markets

for the proper handling and marketing of grains, cereals and legumes.