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Field Working Paper 5
Cost of Transport

based on the work of

Ulf N. Wijkstrom (FAO Consultant Economist)
C.E. Agyenim-Boateng (FAO Consultant Sociologist)

FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS
Rome, 1990

The cost of transport in Ghana is recognized as high. This will influence the magnitude and location of commercial fish farming. This annex is an attempt (i) to quantify the costs of transport of production inputs as well as of fish, or other aquaculture produce, and (ii) to quantify the repercussions of these costs on fish farm development.

Fish, fresh and cured, is transported in “mammie-wagons” and on buses. Agro-industrial by-products are transported primarily by truck. Reportedly, there is little transportation of manures. It is not likely that anything other than road transport will be used.

1. Road transport rates and fares

The Ministry of Transport and Communication yearly releases “approved Road Transport Rates and Fares”. These are indicatory in nature; transporters and customers are free to agree on other prices than those recommended by the Ministry.

In its Press Release of 31st March 1990, the Ministry indicated the following rates for:

Actual transport charges in Ghana were examined by the mission.

2. Transport of fish

In Ghana, fish is normally processed after landing or harvesting. Thus fish transport in effect means transport of processed fish.

Fish which are landed on the Atlantic coast or along the shores of Volta lake, are commonly transported hundreds of kilometres. The bulk of this fish is cured fish - smoked or salt -dried.

Transport of fish in fresh form over long distances is not common. Fresh fish is head-loaded short distances from landing centres, and exceptionally transported in ice to Accra and other main urban markets. Some frozen marine fish is transported upcountry. While some of this fish is offered for sale fresh (e.g. as seen by the mission in the Kumasi market), most of it is smoked and dried.

2.1 Charges for Cured products

The cured product is taken from landing centres to major trading locations (Accra, Kumasi, Techiman, Bolgatanga). From then on relatively small quantities are taken away. Women selling fish at the retail level buy in small quantities, frequently between 20 and 50 kgs at a time. They generally move from their market to the wholesale centre by bus or “mammi-wagon” as frequently as once a week or more. The quantities purchased are one to three baskets, depending on prices.

Interviews with women selling fish (Ho, Takoradi, Kumasi, Bolgatanga) provided some indications of the costs incurred in travelling to the wholesale market and back.

The costs in effect consist of (i) return journey for the individual concerned; (ii) the charge for the loaded basket, and (iii) the “lost” income (as time spent travelling, not selling). Including all these costs, the transport cost (as opposed to charges for the fish only) is of the order of C 50 to C 75 for one kg of fish over 100 kms. The product is cured, and therefore sells at a retail rate of about C. 1.000 per kg. Thus, with a 100 km journey (one way) the retailer would be adding some 10 % to her costs.

Although it is sometimes said that the retailers have substantial markups, the author doubts that this is so. The number of women involved, and the ease of entry into the profession, indicate that the markup is probably such that a women earns sufficiently to cover her costs (purchase, transport, market fees) and an income that is not likely to be much higher than the prevailing income for agricultural workers. At a turnover of 10 15 % on the purchase price (for someone bringing the fish from 100 kms away). Thus, the markup can be “consumed” rather quickly by rising transport costs.

2.2 Charges for fresh products

There is little transportation - other than headloading - of fresh fish. The “fresh” marine fish offered for sale in Kumasi and other towns in the forest zone is generally defrosted fish. Although some cold stores and insulated trucks are in use, frequently frozen fish is transported without any particular precautions taken to preserve the fish in frozen form.

The mission has no information on actual costs for transporting fish in ice. However, a calculation can be made using the haulage rate for “wet products” as a base. However, given that the rates are low, the actual rate is doubled to C. 50 per ton-km. However, this modification is not sufficient, as the fish needs to be transported in ice.

This means that to be effective and economic the fish needs to be transported in insulated boxes. Furthermore, the ice needs to be brought from the urban area (which is also the market) to the fish pond site. Thus, to cover cost of insulated boxes, the charge is increased by C. 5 per kg. Ice sells at an assumed price of C. 20 per kg and, applying 1/2 kg of ice per kg of fish, results in a cost of C. 15 per kg of fish.

Thus, the effective rate for fish transport in insulated boxes is one of C. 20 per kg to start with and C. 100 per ton-km. Thus, if the fish farm is located 100 kms from the wholesale or retail market the added cost per kg is: 20 + (100 × 100/1000=) Cedis 30 per kg. This is expensive but not prohibitive.

3. Transport of fish farm inputs

It is feed and manures which represent the bulk of fish farm inputs. These items are considered in the following.

3.1 Agro-industrial by-products and agricultural waste

The mission obtained some information about the cost of transporting wheat-bran and maize in the Greater Accra area. This information indicates that the actual costs of transport are considerably higher than the rates quoted as guidelines by the Ministry of Transport and Communications. The actual costs seem to be of the order of C. 50 to C. 60 per ton-km, as against the guidelines of C. 15 per ton-km.

These high rates can be partially explained by the relatively the short distances involved; less than 100 kms. However, the Ministry is also of the opinion that the rates in urban areas are lower, due to more competition, than in rural areas. A cost of C. 50 per ton-km of agro-industrial by-products and agricultural waste is, therefore, a realistic one to apply in evaluating fish farming possibilities.

3.2 Manures

Given that the number of cows needed to fertilize 1.000 m2 of ponds is small (in effect only one tenth of a cow!) and given the presence of cows in the regions in which fish farming development may occur, it seems unlikely that cow-manure will be transported in large quantities or over large distances.

As the transport of pig-manure is practical in normal lorries or trucks only when the manure is dry, this is not likely to be subject to much transport either.

Chicken droppings, on the other hand, are likely to be purchased and transported. There are basically two reasons for this. First, the chicken droppings are not so liquid as pig manure, making handling and transport easier. Second, the chicken manure contains more essential nutrients per kg than do the other manures, and therefore is more economic (in terms of kgs of fish obtained per kg of manure) than the others.

Chicken manure would be transported as dry cargo. As the specific weight is similar to that of rice-bran, the freight charge in the analysis is maintained at C 50 per ton-km.

4. Conclusions

The cost of transport will effectively prevent transport of manures over long distances. The reason is of course the combination of a high cost of transport, in terms of Cedis per ton-km, and the relatively large amounts of manures that are required when they are used as “single fertilizers”; that is, when no other fertilizers or feed are added to the pond.


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