Despite growing demand for fruit juice in the country, lack of technical and management skills, finance, stringent quality standards, and ability to meet strict performance criteria is hampering the sector�s growth.
Currently, per capita consumption for fruit juice in Ghana is estimated at 0.52 liter per year, which translates to 10.4 million liters per annum. The demand is met by both domestic supply and imports. A visit by B&FT to some supermarkets in Accra revealed that most consumers prefer naturally processed fruit drinks considered to be healthier than carbonated drinks.
Demand for fruit juice is driven by product quality and packaging. Imported fruit drinks such as �Ceres� from South Africa and �Don Simon� from Italy attract higher prices than corresponding products from Ghanaian processors. Imported Chinese pineapple drink sells less than Ghanaian products.
The metropolitan areas of Accra, Tema and Kumasi constitute the largest segments of the domestic market for processed fruit where a growing number of middle income people prefer natural fruits and fruit drinks. Ghanaian juice exports, however, have huge potential in the Sahel region of West Africa since the majority of the population does not consume alcoholic beverages because of religious reasons.
The climatic conditions in these areas are not conducive for cultivation of fruits. These countries, therefore, depend heavily on sources outside of their region for fruit juice needs. The European Union also presents a large market for processed fruit just as it does for fresh produce. However, processed products have to meet more stringent quality standards and discrimination in order to enter the lucrative markets.
Currently, only a few companies such as Blue Skies, Pinora and Athena Foods Ltd are able to supply bulk juice and chopped fruit to EU buyers. Two major sources of fruit juice supply are imports and local fruit processors. Although data on local and imported volumes are not readily available, indications are that imported fruit drinks volumes are relatively higher than local production.
Domestic fruit juice is mainly packaged in tetrapak, glass and pet bottles and plastic gallons. Major local producers are Rush Farms, Akramang Ltd, Winfield Farms, Sunripe Ltd, Milani Ltd, Coastal Groves Ltd, Athena Foods and Printex - producers of the popular tetrapak Kalypo.
A number of fresh fruit exporters have recently shown interest in processing as a result of the loss of the EU market for Smooth Cayenne pineapple which has been the main variety grown by farmers.
The installed capacity of local juice processors has also increased to 1,200 metric tonnes per annum due to increased ability to access financing and a number of government initiatives to fund the supply of processing equipment.
The demand for fruits, especially pineapple, mango and citrus, and their derivatives is growing in the export and domestic markets. Currently, out of the total national consumption of 10.4 million liters, 17 percent is from imports, 44 percent from the local tetrapak packaged product while 39 percent is from bottled juice, constituting 4,056,000 liters of the market.
�This means that in the long-term, bottled juice should look to the sub-regional market for growth because of the domination by tetrapak. Standards are set by imported products and growing sophistication of local consumers mean they cannot be taken for granted by local producers,� said Managing Director of PROVEN AG SOLUTIONS, DR. JOHN AZU.
Despite opportunities for processed fruits by Ghanaian processors to lucrative export markets, Dr Azu explained that, �Many processors are unable to meet strict delivery times, quality parameters and volume requirements set by international buyers. EU juice bulk traders and supermarkets depend on strict adherence to performance by suppliers who seek to meet demands of their own sophisticated customers.�
Dr Azu added: �It is increasingly difficult for developing-country-processors to enter markets of developed countries as a result of very high standards or entry conditions set. In a bid to protect their own processing factories from developing country competition, local processors are expected to perform far above the norm to gain entry.
�The few Ghanaian processing firms who have managed to access lucrative EU markets are either partly or fully owned by European investors.�
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