COACHING ON GREEN MAIZE NEGOTIATION SALES SUMMARY MAY 2012

Stage 1: May 2, 2011 Test Sale

PRICE

As a first time activity, there was distrust between the farmer and the buyer. The farmer tried to get as high a price as possible without regard to whether the final consumer will offer a price for a cob of maize that will provide enough spread to cover the cost of transport from farm to market, cost of cooking/roasting and a motivating margin to the Market Woman. On the other hand the Market Woman tried to get as low a price as possible without being sensitive to whether the farmer would be able to cover cost of production, machine depreciation charges, and get sufficient margin that serves as incentive to produce in next dry season. The grounds were set for negotiations as the market women were eager and astonished at the business opportunity to sell green maize in the dry season, which hither to was rare. It was a situation of the Market Womans Word against the Farmers Word as she argued that the price the consumer would offer was not more than 30pesewas per cob while the farmer believed that final consumers would offer up to 50-80p for saleable cobs of maize. Pro-forma production analysis had shown that if the farmer could sell at 20pesewas per cob, he would be able to break even and make a marginal profit which but this will not be very motivating to continue production next season. If however he could really sell fresh maize at 30pesewas per cob, the motivation will be higher. It was agreed to start with 12 cobs for GHC2.00 (approx 1.6 pesewas per cob). On the first day consumers were ready to pay as much as GH1.00/cob for this northern home-grown fresh maize. Farmers were themselves monitoring the sale outlets with facilitation from NRGP specialist. This provided evidence for the farmer to renegotiate the price the next time that this set of Market Women returned to the farm. They were really making more that proportionate profit. Hajia Fati - Aboabo market = GH60.00 Mamaata = GH40.00 Alima (Daughter) = GH20.00 ------------GH120.00 --------------

Stage 2: 5 May 2011: Establishing Price;

With evidence from the test sale, this first group of Market Women that had run over the farmers were forced to offer GH2.00 for 10 cobs (2pesewas per cob). A new badge of Market Women were introduced to the fresh maize farm and they were transparent enough and straightaway offered 2.5 pesewas per cob (GHC 2 for 8 cobs) as they compared it to buying fresh maize from B/Ahafo to sell in Tamale Metropolis. This became the price for the fresh maize set for the season and the Report on Coaching on price negotiation for Green Maize-May 2011-VCS Paschal B. DERE Page 1

first batch of Market Women were forced to accept it and felt ashamed of their attempt to conceal price information but were exposed. Much of the business was conducted with the second batch of Market Women. Fatima = GH50.00 Asana = GH40.00 Fushena = GH22.00 Madam = GH15.00 Driver = GH 2.00 --------------GH127.00 ----------------

Stage 3: 7 & 9 May 2011: Relation building

Following the establishment of a transparent price mechanism with the cost of landing fresh maize from Techiman into Tamale Metropolis as the objectively variable indicator for price negotiation, the ground rules have been set to build relationship between the farmers at Kukobilla and the Fresh / green maize traders in the Tamale Metropolis especially those led by Madam Taimako alias Bobobo. An evidence-based baseline has now been set for green maize value chain market upgrading linking the farmers to market.
Fatima Asana Fushena Madam = GH16.00 = GH45.00 = GH15.00 = GH30.00 -------------GH106.00 --------------= GH20.00 GH20.00 GH40.00 GH20.00 GH17.00 = GH17.00 -----------------GH134.00 -------------------

9 May 2011
Fatima Fushena Asana Azartu Memunatu Madam = = = =

SUMMARY OF SALES FROM COACHING DATE SALE GHC 2 May 2011 120 5 May 20119 127 7 May 2011 106
Report on Coaching on price negotiation for Green Maize-May 2011-VCS Paschal B. DERE Page 2

9 May 2011

134

TOTAL

467

Report on Coaching on price negotiation for Green Maize-May 2011-VCS Paschal B. DERE Page 3