31 January 2024
Parliament of Ghana Enacts Tree Crops Regulation L12471
Parliament of Ghana has passed LI2471 to fortify the Tree Crop Development Authority’s (TCDA) operations. The TCDA, was established in 2020 to regulate and develop tree crop sectors such as oil palm, cashew, coconut, rubber, shea, and mango, to diversify Ghana’s agricultural sector beyond cocoa.
The enforcement of this new Regulation is projected to boost competitiveness, productivity, profitability, and sustainability in the tree crop value chain. The TCDA projects an anticipated revenue of $2 billion in exports for each of the six commodities, potentially amassing $12 billion annually.
The TCDA believes that to ensure food security, Ghana needs to promote diversification in tree crop value chains by encouraging farmers to intercrop and explore alternative livelihoods.
The Regulation outlines protocols for nursery operators, aggregators, and processors to uphold quality standards and fair practices. It also introduces pricing mechanisms to incentivise farmers and safeguard their interests. The new Regulation aspires to enhance international trade by prioritising competitiveness and addressing environmental and social safeguard issues.
Investment in research and development is a key strategy to bridge the yield gap and augment competitiveness and productivity on the global market: For instance, while Côte d’Ivoire is achieving 2.2 metric tons per hectare for cashew, we are around 0.8 and 1 metric ton per hectare, said Mr. Forster Boateng, Deputy Director of TCDA. However, with research and development, we can close the yield gap, he added.
With the introduction of the European Union’s Deforestation-free Regulation (EUDR), the TCDA is concentrating on environmental and social safeguards to meet the requirement and avoid the risk of a ban of commodities like oil palm. The TCDA is implementing measures to ensure environmental sustainability through agro forestry for carbon sequestration, while increasing yield per hectare instead of expanding land cultivation.
The formulation of the regulation was facilitated by Proforest and other partners through extensive stakeholder engagement.
Our support to TCDA has been instrumental in building the necessary policy and business environment to facilitate positive social and environmental outcomes for people, nature, and climate, said Afua Prempeh, Principal Project Manager; Proforest Africa. We will continue to support them with the necessary technical expertise to deliver responsible agricultural commodity production and sourcing, she added.
The TCDA board, primarily composed of private sector members, empowers the private sector to shape their own future while the government facilitates an enabling environment.
The Authority is seeking support from various stakeholders, including public institutions, NGOs, and development partners, for the effective implementation of the Regulation, while it is committed to utilising existing structures to ensure resource efficiency.