MEDA Blog - Stories from the Field

How much for a bag of soybeans?

70-80 cedis (roughly $35-$40).

That was the (tentatively) agreed upon price for a 100kg bag of soybeans in Ghana.

b2ap3_thumbnail_PreHarvest-Forum-meeting.gifThe Oct. 24th meeting to decide said price was held in the refreshingly air-conditioned PreHarvest Forum’s Conference Room A – a welcome respite from the sunny and sweaty outdoor booths. The PreHarvest Forum was, from my perspective, a mix of information and networking; sessions on improving yields and strengthening local markets were broken up with snacks and the swapping of business cards. The event was attended by farmers, aggregators, processors, ag equipment manufacturers and more… all hoping to connect with the right people and inform themselves. With these thoughts, MEDA arranged for both the local partners and some lead farmers (from the GROW project) to attend, and set up a booth of its own.

But let’s go back to the soybean pricing. It was perhaps the most interesting event of the day, and it was definitely the most intense. Determining an acceptable price for soy for both buyers and sellers while trying not to price out local chicken farmers (who use the soy for feed and who will, if the price is too high, import soy from neighboring countries), requires a great deal of consideration: conservation, costs, and markets. “Brothers and sisters, let us remember that we are in a global village,” was one sound bite from a persistent refrain. The meeting attendees understood that all parties (soy farmers, chicken farmers, producers, and aggregators) had to benefit if they wanted to protect this “new and fragile crop” from being swallowed up by the global market.

b2ap3_thumbnail_One-of-the-lead-farmers-speaking-to-the-larger-group.gifb2ap3_thumbnail_The-GROW-information-booth.gif

The debate was one part theatre and two parts substance – “[B]etter than daytime television,” I remember thinking, as the man next to me struck the table to emphasize his point. Several people quickly established themselves as authorities, refuting claims of past prices, commanding a presence, and making comments like “I don’t think I need to introduce myself, everyone here knows me.” The crowd was lively – both murmurs of approval and dissent ran thick. It made sense, I supposed later. Everyone in that room’s livelihood was at stake. They had to make a living… and they had to make sure the market would exist in the future.

b2ap3_thumbnail_Monthly-wholesale-prices.pngThe 70-80 cedi price didn’t leave many in the room satisfied – some wanted an exact number, others thought it too high or low. But the schedule called for the next event’s use of the room so the meeting ended. It closed with protest, only quelled by the promise of meat pies and Fanta.

The price of soy fluctuates, but it follows a somewhat consistent yearly pattern. It reaches its highest just before harvest (October), drops to its lowest at harvest (in late October/early November), and slowly rises until the next harvest. If you’re curious, here’s a handy chart (from this study) that shows the history of grain prices in Ghana:

(note that 1000 cedis per MT would convert to 100 cedis per 100 kg bag)

For the farmers MEDA works with, getting a good price is important. During the dry season (November – May), it’s difficult to obtain other sources of income, so the money earned from their harvest now needs to sustain them in the leaner months. During the debate many of the farmer’s market worries were expressed – not breaking even, being priced out by international markets, not having sufficient demand locally. The task of farming seemed daunting, even in discussions from an air-conditioned room.

I expected the worst but found the best
Celebrating our one month anniversary

Related Posts