Agribusiness Strategy: Adding Value to the Mushroom Value Chain

Kwaku Ahenkora,Stephen Banahene,Arthur Dissou Yarhands

doi:10.47127/ijtmr.v1i2.26

Kwaku Ahenkora, Stephen Banahene + Show 1 more

Open Access

https://doi.org/10.47127/ijtmr.v1i2.26

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Abstract

Strategy should begin with the understanding of customer needs which can be determined through perceptions of channel partners or direct research. In line with this, the study conducts a qualitative value chain audit of the mushroom industry with a view to understanding priorities. Structured and semi-structured interviews were conducted with value chain players of the 'mushroom growers and export association'. Value chain participants prioritised changing customerperceptions to improve demand, and to grow the market through penetration and the management of factors that influence the marketing mix, and the provision of quality inputs to improve production and influence the need to address the problem of access to finance and a strong association that advocates for matters of the industry. The study concludes that qualitative value chain analysis of participants' perspectives provides the means for understanding of priority activities for value creation. The study recommends further quantitative value chain analysis that measures the actual value that prioritised value chain activities could generate. Keywords: Agribusiness; mushroom; value chain, strategy, qualitative.

Highlights

Agriculture contributes the largest share of Ghana's Gross Domestic Product (GDP) and over 50% of the population are directly engaged in the sector (MOFA, 2009)
The perspectives of the mushroom value chain participants in this study showed that mushrooms make an appreciable contribution to businesses and income levels and suggest that value chain participant's priorities should constitute the informed choice for value addition
This study conducted an audit of the mushroom value chain, and participants clearly articulated their priorities that included: the changing of customer perceptions to improve demand, the growth of the market through penetration, the management of factors that influence the marketing mix, the provision of quality inputs to improve production and the need for stakeholders to address the problem of access to finance, a strong association that advocates matters of the industry

Summary

Introduction

Agriculture contributes the largest share of Ghana's Gross Domestic Product (GDP) and over 50% of the population are directly engaged in the sector (MOFA, 2009). In addition to modernising the traditional agriculture sector, agribusiness strategies include the development of non-traditional crops for the domestic and export market. The potential of mushrooms, as a non-traditional crop, to generate income for farmers and the nutritional and medicinal attributes of mushrooms are widely recognised (Gateri et al, 2009). The strategic objectives of Ghana's food and agriculture sector policy include improved growth in income, increased competitiveness and enhanced integration into domestic and international market and improved institutional coordination (MOFA, 2009). Value chain analysis of the business or industry is used by strategic analysts to understand vulnerabilities, discover and evaluate opportunities for expansion, look for increased margins, understand more profoundly suppliers, customers and competitors (Levicki, 2003)

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