Editorial: Liquidity constraint threatens domestic citrus industry

Liquidity constraints and delayed payments are threatening the domestic citrus industry’s survival.

Despite an annual production of 440,000 tonnes 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 stems from a financing gap that prevents farmers from sustaining operations while awaiting payments from juice processors.

A meeting between the Orange Growers Association (OGA) and Ministry of Food and Agriculture (MoFA) in Accra saw industry representatives outline structural weaknesses in the citrus supply chain, calling for a government-backed financial mechanism to address the issue.

By volume citrus production now exceeds cocoa, which demonstrates its immense potential; yet we have only tapped into 40 percent of its economic value. This comes as the global citrus industry’s value surged past US$17billion in 2023 according to trade data aggregator, the Observatory Economic Complexity (OEC).

Despite the availability of raw materials, the industry remains hampered by inadequate financing mechanisms which limit processors’ ability to purchase fruit in large volumes. According to Business Development Manager-OGA, Theodore Tsidi Kloba: “The problem is that we do not have working capital to wait 45 to 60 days to get paid.

“By the time payments are made, farmers are already in financial distress and 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.

Managing Director at SONO Ghana, a leading citrus processor, Mr. Ben Brown indicated it takes up to 65 days before he receives funds, but farmers cannot afford to wait that long. His company has a processing capacity of 450 tonnes per day but demand far exceeds supply.

Therefore, funding shortfalls prevent processors from maximising output. The Ministry of Food and Agriculture (MoFA) acknowledges the financing challenge and pledges to provide structured support to farmers and processors.

Food and Agriculture Minister Eric Opoku acknowledged that the citrus sector represents one of the country’s most promising agricultural frontiers, with production volumes now surpassing even some traditional staples.

Thus, unlocking its full potential requires addressing the current liquidity challenges faced by farmers and processors. Stakeholders argue that direct financial intervention is needed to address the immediate liquidity crisis.

Beyond financing, stakeholders also raised concerns about farm abandonment and aging farmer populations.

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