Rising air-freight restrains exports of chilli pepper and others in Ghana

Published 2022년 8월 15일

Tridge summary

The article highlights the concerns of chilli pepper and other vegetable exporters in Ghana over the significant increase in freight charges by international airlines, which has led to higher export costs to the EU and US markets. The rising costs, attributed to the COVID-19 pandemic, global fuel prices, and the dollar's exchange rate, have negatively impacted the sector, which has the potential to generate over $100 million in exports annually. The Vegetable Producers and Exporters Association of Ghana (VEPEAG) has urged the government to support the sector by acquiring a national cargo plane, a model inspired by Kenya's approach, to reduce freight costs and boost production. Such interventions are crucial for Ghana to meet its target of earning $25.3 billion from non-traditional exports by 2029, as part of the National Export Development Strategy (NEDS), which aims to increase exports by $22.5 billion from 2020 levels.

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Original content

Chilli pepper and other key vegetable exporters are worried about rising freight charges by international airlines – a phenomenon that is deterring exports to the EU and US markets amid increasing demand for the commodities. Due to their perishability, fruit and vegetables are best transported by air per international best practices and standards. But current freight charges for a kilogramme of chilli pepper, shallots, okra and other vegetables have gone up by more than 50 percent to US$1.90 and US$2 for others. Currently, a tonne of chilli pepper transported by international cargo to the EU costs the local exporter not less than US$2,000, with freight charges to the UK higher than that. With the COVID-19 pandemic contributing to the situation, the increases have been made worse by existing global fuel prices and the dollar’s exchange rate. Alongside tomato and onion, chilli ranks as one of Ghana’s three most important vegetable crops, in terms of hectarage and crop value with ...

Source: Thebftonline