Ghana commences trade of soybean at commodity exchange platform

GHANA – The Ghana Commodity Exchange (GCX) has commenced the sale of soybean through the platform in a move to formalise and develop the value chain.

Speaking during the launch of soybean on the Exchange platform, Dr Kadri Alfah, the Chief Executive officer of GCX said that the platform will improve the value chain, reports GhanaWeb.

“Trading soybean through the Exchange is expected to benefit all the parties involved in the value chain, especially farmers and processors.

More farmers will be encouraged to cultivate the crop as they will be assured of market opportunities,” he added.

This is also expected to enable farmers to present good quality soybean for the market and negotiate better prices while guarantying buyers of sufficient produce at their convenient locations.

Dr Alfah further noted that with the Exchange acting as a platform for soybean trading, there would be a formalized system of produce marketing with respect to grading and standardization which will benefit both parties.

He pointed out that the exchange has also signed agreements with nine Ghanaian commercial banks to allow farmers who trade their produce through the exchange certified warehouse to access short term loans at better rates.

Dr Alfah said that GCX in collaboration with its partners undertook extensive feasibility studies in post-harvest management, quality control, marketing, and production to improve Ghanaian commodity value chains.

The platform has been set up at various strategic warehouses across the country to increase efficiencies of the trading system.

Farmers were urged to join the platform and have access to affordable storage commodity for up to nine months, access to drying, cleaning and weighing facilities that will improve the quality and marketability of their products.

Ghana produces about 30,000 metric tonnes of soybean annually with about 90% of the commodity sourced from the northern regions and the remaining 10% from the south of the country.

Ghana Commodity Exchange was established in 2015 with a regulated market that connects buyers and sellers of commodities and currently trades yellow and white maize.

The platform deploys digital technologies in creating markets for commodities with the value proposition of assuring market quality and quantity, timely delivery and payment of credits.

Mr Hanan Abdul Wahab, the chief executive of Ghana National Buffer Stock (NAFCO) revealed that stock had purchased 10,000-50 kg maize bags for other bulk traders to boost the trading activities on the platform for the 2019/2020 season.

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