African Business

USAID-MFA grant empowers smallholder pineapple farmers for sustainable livelihoods

Kwasi Wiredu harvests pineapples on his farm.
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Pineapple production initiative in the Ashanti Region is a testament to the potential of agribusiness as a vehicle for economic growth and community resilience. With the support of USAID-funded Ghana Mobilizing Finance in Agriculture (MFA) Activity and local partner Bodukwan Farms and Multi Fruit Processing Factory, farmers are not only enhancing their livelihoods but also contributing to the broader economic growth of their communities.

For over two decades, Kwasi Wiredu, a smallholder farmer in Brofoyedru, near Effiduase in the Ashanti Region, cultivated cocoa, a cash crop, for a living. But with limited resources to properly maintain his farm, Wiredu was no longer able to grow much cocoa, leading to a reduction in income that consequently affected his livelihood.

“The yield from my six-acre cocoa farm decreased from 24 bags (1,536 kg) to six bags (384 kg) per harvest within a period of 10 years,” lamented Wiredu. “My income dropped, making it difficult for me to take care of my family.”

The decline in cocoa yield led Wiredu to cultivate staple crops such as cassava, plantain, and vegetables for sale and to feed his family. But here also, 57-year-old Wiredu faced challenges with post-harvest losses and non-competitive market prices, which consequently led him to enroll in the Government of Ghana’s Livelihood Empowerment Against Poverty (LEAP) program. LEAP seeks to increase consumption and nutrition, as well as promote access to social services and opportunities among the extreme poor and vulnerable. As a LEAP beneficiary, Wiredu received a stipend to cater to his needs and worked as a farmhand to supplement his income.

The opportunity to earn more income came in October 2022 when the Sekyere East District Directorate of the Department of Food and Agriculture selected Wiredu to participate in a pineapple production project supported by Bodukwan Farms and Multi Fruit Processing Factory with funding from USAID. Bodukwan Farms, together with 12 other intermediaries, accessed $2.77 million in grants from the COVID-19 Relief and Resilience Challenge Fund administered by the USAID-supported Feed the Future Ghana Mobilizing Finance in Agriculture (MFA) Activity to support agribusinesses mitigate setbacks suffered as a result of the COVID-19 pandemic and build resilience against future shocks.

The grant allowed Bodukwan Farms to launch an outgrower scheme, boosting pineapple and mango production to meet processing needs. Wiredu and 282 other smallholder farmers received support, including agri-inputs, farming equipment, and extension services. They cultivated over 120 acres of pineapple, processed by the factory for sale locally and internationally.

With 5,000 suckers planted on a quarter acre of farmland, Wiredu embraced pineapple production as a new livelihood opportunity. “I’m pleased to be part of the outgrower scheme producing pineapples for Bodukwan,” says Wiredu. “The income from the first harvest was encouraging, and I plan to use some of it to rehabilitate my cocoa farm. Bodukwan’s guaranteed market encourages me to increase production for a better livelihood,” he added.

The success of Wiredu’s first harvest motivated him to expand production by planting an additional 20,000 pineapple suckers on another acre of land. This renewed his interest in agriculture after years of declining cocoa yields, which was his primary source of income.

As Wiredu thrives in pineapple production, other smallholder farmers in Brofoyedru and nearby communities are preparing to enroll in the outgrower scheme in the upcoming 2024 season. This not only boosts their income but also ensures a steady supply of raw materials to Bodukwan’s processing plant, promoting exports and reducing post-harvest losses. Management at Bodukwan Farms plans to expand production capacity to accommodate the anticipated increase in pineapple production by smallholder farmers. To achieve this, smallholders under the outgrower scheme will receive support with agri-inputs on credit, to be repaid after harvest with pineapple fruits.

According to Prof. Joseph Cobbinah, Group Chief Executive Officer of Bodukwan Farms and Multi Fruit Processing Factory, “Our company has the capacity to process pineapples produced by smallholder farmers. Supporting them to increase production and providing an assured market for their pineapple fruits is a testament to USAID’s commitment to providing a sustainable source of income for improved livelihoods, resilience, and food security.”

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