The domestic citrus industry is at risk of severe contraction as liquidity constraints and delayed payments threaten the survival of farmers and processors.
Despite an annual production of 440,000 tons of citrus in 2024, stakeholders say only 40 percent of output is being economically utilised, with the rest either wasted or sold at a loss.
The crisis, they argue, stems from a financing gap that prevents farmers from sustaining operations while awaiting payments from juice processors.
At a meeting between the Orange Growers Association (OGA) and the Ministry of Food and Agriculture (MoFA) in Accra, industry representatives outlined the structural weaknesses in the citrus supply chain, calling for a government-backed financial mechanism to address the issue.
“We are talking about a sector with immense potential… By volume, citrus production now exceeds cocoa, yet we have only tapped into 40 percent of its economic value,” Theodore Tsidi Kloba, Business Development Manager of OGA said. “The problem is that we do not have the working capital to wait 45 to 60 days to get paid,” he added.
This comes as the value of the global citrus industry surged past US$17 billion in 2023, according to trade data aggregator, the Observatory Economic Complexity (OEC).
Mr. Kloba said in spite of the availability of raw materials, the industry remains hampered by inadequate financing mechanisms, which limit processors’ ability to purchase fruit in large volumes. “By the time payments are made, farmers are already in financial distress, unable to reinvest in their farms,” Mr. Kloba explained.
Processors confirmed that delays in payment cycles are due to the lengthy export process and buyer terms in international markets.
“When I buy the fruit, it takes one day to process, another five days to store, three weeks to ship, and 45 days for my customer to pay,” said Ben Brown, Managing Director at SONO Ghana, a leading citrus processor. “That means it takes up to 65 days before I receive funds, but farmers cannot afford to wait that long,” he added.
Mr. Brown, whose company has a processing capacity of 450 tons per day, confirmed that demand far exceeds supply, but funding shortfalls prevent processors from maximising output. “I can take everything OGA has right now. I am not meeting my customer demand in Europe,” he noted.
The Ministry of Food and Agriculture (MoFA) acknowledged the financing challenge and pledged to provide structured support to farmers and processors. The Minister, Eric Opoku, in describing the engagement as timely, pointed out the government’s commitment to transforming the citrus industry into a major economic pillar.
“The citrus sector represents one of our most promising agricultural frontiers, with production volumes now surpassing even some of our traditional staples. This government recognises that unlocking its full potential requires addressing the current liquidity challenges faced by our farmers and processors. We will work on a comprehensive support package that will bridge the payment gap currently crippling the industry,” he added.
Echoing the Minister’s sentiments, Kwasi Etu Bonde, Technical Director at MoFA stated: “We continue to look at ways to provide infrastructure, duty exemptions, and financing support to bridge this gap… this will help stabilise the citrus industry.”
Additionally, stakeholders argued that direct financial intervention is needed to address the immediate liquidity crisis. “What we need is a revolving working capital fund that allows us to pay farmers upfront… The money does not even have to come to processors—it can go straight to farmers as part of a structured contract, so they get paid as they supply fruit,” the OGA representative explained.
A similar model has been proposed in other agricultural sub-sectors, where government-backed financing allows farmers to receive timely payments, with repayment tied to export revenues from processors. Mr. Brown agrees that such a mechanism would be critical for stabilising the sector. “If there is a financing model where OGA gets access to funds and can supply directly to processors on structured contracts, we eliminate the 60-day gap and ensure farmers stay in business,” he said.
Beyond financing, stakeholders also raised concerns about farm abandonment and aging farmer populations. The average citrus farmer is over 60 years old, and many farms are being left unattended due to a lack of profitability.
“The reality is that many of our farms are being abandoned because younger generations do not see citrus farming as a viable livelihood,” Mr. Kloba noted. “Without immediate financial support, we risk losing a significant portion of our production base,” he added.
SOURCEthebftonline.com
