A study by Consumers International, the Consumer Advocacy Centre, and Laweh University College suggests that weak competition in Ghana may lead to unfair food prices, as retail prices increase faster than wholesale prices.

Based on the study’s findings, national authorities are urged to look into and take action in relation to food products like onions, gari, and sorghum, which have been identified as key markets of concern.

Consumers International is the global membership organization for consumer groups, bringing together over 200 member organizations in more than 100 countries to empower and champion the rights of consumers everywhere. It represents the voice of consumers in international policy-making forums and the global marketplace to ensure they are treated safely, fairly, and honestly.

The organisation with the support of The Rockefeller Foundation is working with consumer organisations across Africa to raise the alarm on this threat, and to collaborate with authorities to take decisive action. The project, Consumer Voice for Fair Food Prices, aims to strengthen the evidence base and facilitate multi-stakeholder collaboration on this critical issue.

According to the report, experts in Ghana and around the world are warning that some market actors are making record profits during this time of food crisis, at the expense of overcharged consumers and underpaid farmers.

A new tool created by consumer organisations has highlighted the risk of unfair food prices in Ghana, driven by insufficient competition in national and global food supply chains.

The Fair Food Price Monitor warns that rising prices for Ghanaian consumers may be influenced by factors like fuel costs and currency depreciation, as well as dominant market actors exploiting the crisis.

The tool, developed by Consumers International (representing consumers across the world) and Ghanaian organisation Consumer Advocacy Centre (based in Laweh University College), uses data from sources such as the UN World Food Programme (WFP) and UN Food and Agriculture Organization (FAO) to track the relationship between food prices at different stages of the supply chain in Ghana and to highlight where investigation and action may be needed from government.

Growing evidence of unfair prices

Key outcomes from the first analysis using the Fair Food Price Monitor have shown that for several important food items, retail/consumer prices have risen substantially faster than wholesale/market prices.

The study, among other things, identified that between January 2022 and July 2023:

The retail price of onions increased by 42.4%, while the wholesale price rose by just 18.1% in the same period.
The retail price of gari grew by 77%, compared to a 63% rise in wholesale prices; and an increase of just 46.4% in the wholesale price of cassava, gari’s basic ingredient.
The retail price of sorghum increased by 117.9%, while the wholesale price increased by 100.6%.
This shows that while costs are increasing for all market actors, consumers are bearing an unfair and excessive burden, the report said.

The Fair Food Price Monitor explores several potential explanations for this divergence in retail and wholesale prices – such as rising fuel costs and a weakening exchange rate – but finds that while these factors may have contributed, they do not appear to be sufficient explanation for the excessive rise in retail prices.

Recommendations

As part of its recommendations, the study outlined some actions the government can take to tackle this threat of unfair food prices.

”In particular, it is highlighted that Ghana is one of the few countries in the world without a competition law, or a dedicated competition authority to tackle unfair or anti-competitive pricing practices, such as price gouging and price fixing. Addressing this shortcoming must be an urgent priority.

Once this is achieved, there is a need for improved data on the prices of food products at different stages of the supply chain, to identify cases of unfair pricing; and action is needed to strengthen competition in the marketplace, by tackling monopolies, and supporting small and medium businesses,” the study said.