A collaborative effort by Consumers International, the Consumer Advocacy Centre, and Laweh University College has shed light on concerning patterns in the Ghanaian food market, emphasizing the likelihood of unfair pricing due to weak competition dynamics. The study’s findings have triggered a call to action, urging national authorities in Ghana to address this pressing issue, particularly in the markets of onions, gari (cassava flakes), and sorghum.
Consumers International, a global organization representing over 200 consumer advocacy groups in over 100 countries, stands at the forefront of this initiative. Together with generous support from The Rockefeller Foundation, the organization is collaborating with consumer groups across Africa to raise awareness about the impending threat of unfair food prices in Ghana. This joint effort, encapsulated in the "Consumer Voice for Fair Food Prices" project, seeks to bolster the evidence base and foster multi-stakeholder collaboration, all aimed at addressing this pivotal challenge.
Critical Findings
The study points to concerning trends where retail prices for essential food items surged at a faster rate than their wholesale counterparts. Notably, the retail price for onions saw a substantial 42.4% increase, while gari and sorghum retail prices surged by 77% and 117.9%, respectively. These significant rises in retail prices, outpacing wholesale increases, have raised alarms about the burden being disproportionately shouldered by consumers.
Probing Factors and Proposing Solutions
The study's Fair Food Price Monitor underscores potential influences on these exorbitant price differentials, including escalating fuel costs and currency devaluation. Yet, it suggests that these factors alone do not fully explain the excessive surge in retail food prices. As a part of its recommendations, the study advocates for Ghana to enact a competition law and establish a dedicated competition authority to address unfair pricing practices, such as price gouging and price fixing. The report further emphasizes the urgent need for enhanced data on food prices across the supply chain to identify instances of unfair pricing, alongside the imperative to strengthen competition dynamics in the food market.
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