ANALYSIS OF CONSUMERS’ WILLINGNESS TO PAY PREMIUM FOR CERTIFIED ORGANIC CABBAGE IN THE ACCRA METROPOLITAN AREA

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CHAPTER ONE INTRODUCTION

  Background of Study

Agriculture is an important part of a Ghana‟s economy and this consists of two key cropping systems; organic and conventional (inorganic) production. There have been increases in the interest and patronage of organic food production and its products lately. This is due to very important reasons like environmental problems, human health problems, issues related directly and indirectly through food and other biotic mechanisms, and the like, resulting therefore in the shift in preference sequence of food products from the conventional to the organically grown. Additionally, Kleeman (2011) states with organic pineapple as an example that organic products are priced more than the conventional types on the market, resulting in the small-scale farmers moving on from conventional to organic production, which might contribute to reaping increase in profits from their investments. Although the organic sub-sector in Ghana is relatively underdeveloped, the area of land allocated for the cultivation of organic food stuffs augmented from an estimated 13474.66 acres (5,453 hectares) to 47276.20 acres (19,132 hectares) in the 2003 and 2006 years respectively (Yussefi & Willer, 2003). However, the 19,132 hectares accounts for only 0.13 % of the total area under agricultural production in Ghana (IFOAM and FiBL 2006). In spite of that, the conventional method employed in the production of foods is controlled largely by companies or corporations engage in foreign direct investments, have and control chapters of their businesses in other nations, and own large‐scale plantations. There is the incidence of monopoly making small scale farmers suffer in the long run, and are not able to penetrate and compete fairly in the market.

Organic farming is the type that only does not involve using synthetic pesticides, genetically modified foods, large amounts of fertilizer, etc. but a system fashioned to effectively make use of available input resources for productivity and to develop enterprises that are sustainable and beneficial to the environment (Valerian, Domonko, Mwita , & Shirima, 2011). Examples of fruits and vegetables preferred by consumers, when going in for organic products depending on the target group are pineapples, apples, mango, lettuce, oranges, potatoes, carrots and cabbage.

The market for organic fruits and vegetables is a niche not yet monopolized by few large firms in the clear case of pineapple in Ghana, however, demand for these products increase by time, and are becoming more popular among consumers (Kleeman, 2011). This indicates the potential growth and benefits organic farming and consumption of its products has to offer for Ghana if adopted. However, in the trend, increase in the demand of organic foods by the Europeans, the Americans and other countries is more steady. The organic food industry on the international front continue to grow, estimating organic food and drink sales at about 64 billion US dollars in 2012. The demand is mainly concentrated in Europe and North America, comprising of about 90 percent of total sales globally (Sahota, 2013).

In Accra, Ghana, ordinary consumers of uncooked vegetables is estimated to be more than 280,000 apart from the household daily consumption from food purveyors like restaurants, food vendors, fast food outlets, etc. (Obuobie, et al., 2006). Again, the authors forwarded that food vending businesses in the city Accra alone purchase or consume 98 percent of all lettuce brought to market. This has encouraged growing vegetables in the cities and more developed areas in Ghana and Greater Accra region, and now become one business known and accepted. This is evident as farmers‟ can be found in local markets, open areas along water bodies and even

around lanes of airports from production of vegetables in large quantities (Assogba-Komlan F. , 2005; Brock, 1999; Obuobie, et al., 2006).

Records to prove without a reasonable doubt the dangerous risks associated with acute and chronic exposure is limited, but gives all the more reason for uncertainty and anxiety. In Amoah et al., (2006) and Assogba-Komlan and Anihouvi (2007) research, high levels of different pesticides exceeding minimum residue requirements are applied to vegetables in Accra and Cotonou respectively; and a more recent study in Cotonou uncovered illegal pesticides and high residue levels in vegetable samples (Sæthre, Assogba-Komlan, Svendsen, Holen, & Godonou, 2011). In order to also help curb this recurring problem it is worth considering the option of basing the organic products on the assurance system and certification.

A good example is the certification of farms that grow some of Ghana‟s main export products such as fresh fruits, cocoa, cashew, vegetables and oil palm (International Federation of Organic Agriculture Movements (IFOAM), 2003). Traceability and certification with regard to food is particularly important when a food safety triggering event happens. It enables prompt and easy identification, separation and proper disposition of damaged food stuffs from the market, only if practiced fully. The potential number of sicknesses, rate of deaths and damage to the markets can then be diminished or avoided as a positive turnout. Rembiałkowska (2007) in that light agreed that certified organic production with appropriate marketing strategies communicates to consumers a more believable system of safety, ensuring a reduction of risk regarding agro- chemical contamination. Additionally, systems established under certified organic farming have more solid and trusted provisions to keep food safer than conventional production systems (Hansen et al, 2002). This is realized when synthetic pesticides are excluded from production and post-harvest handling activities.

In Benin (Presidence de la Republique du Benin, 1991), Ghana (Parliament of the Republic of Ghana, 1965) and Burkina Faso (President du Faso, 1998) the distribution and use of pesticides are tightly controlled by full functioning regulations. Projects in Benin for instance on integrated pest management (IPM) and sustainable urban farming have focused on formulating strategies to effectively protect plant life in Cotonou and Porto Novo, respectively (James et al., 2006; RUAF Foundation, 2010). In Ghana, the World Bank (2008) and MoFA have drafted the „„Revised Food Safety Action Plan,‟‟ and several institutions involving urban farmers have established projects that included training on integrated pest management, e.g. „„From Seed to Table‟‟ (RUAF Foundation, 2010). Burkina Faso has also taken the bold step by adopting an IPM program which works closely with partners like the Food and Agriculture Organization (FAO) to solve various problems concerning plant protection in urban farming systems (Nacro, 2007, 2008).

  Problem Statement

The health benefits from the consumption of vegetables couldn‟t be overemphasized; risk reduction of heart disease including stroke and heart attack, protection against some types of cancer, lower blood pressure, may reduce the risk of developing kidney problems just to name a few. In a converse perspective, production methods used by vegetable farmers, particularly for this study on cabbage, has amounted to a lot of issues. Part of the reasons why farmers employ the conventional style of production using large amounts of synthetic pesticides and other chemical products is because of the seemly high demand for cabbage in the urban areas. This speeds up the growth levels of the vegetable, consequently affecting environmental quality, food

safety and health of the final consumer. The advocacy to go in for fruits and vegetables is laudable but is a cause to lift eyebrows on its health implications due to the methods used by farmers (Obuobie, et al., 2006). Brempong-Yeboah (1992) observed that large quantities of synthetic chemical pesticides were applied to the crop in high and unknown volumes, and different mixtures by cabbage farmers in the Accra plains to destroy the notorious diamondback moth. Not only were the dosages applied in these high and unknown proportions, but also detected that the growers also sprayed at 2-3 day intervals. Some of the insecticides documented to have been used in Ghana include Permethrin (Brempong-Yeboah, 1992) and chlorpyrifos (Mawuenyegah, 1994). The increased use of insecticides has been compounded by a large number of pesticides on the Ghanaian market. Although organic farming without a shadow of doubt has been considered an effective way to improve food safety and environmental quality (Wang & Sun, 2003) its adoption in most sub-Saharan African countries is highly determined by the market potential (size) and marketing prospects (demand) for organic food products (Hine & Pretty, 2007).