Esoko Ghana launches first agricultural commodity index

An agricultural commodity index that tracks the prices of selected agricultural products across the country has been launched in Accra by Esoko Ghana.

The first of its kind in the country, the Esoko Ghana Commodity Index (EGCI), is a cash market price index composed of data on physical commodities. The index, which is published weekly by the company, tracks prices at wholesale and retail levels namely the Esoko Ghana Commodity Index-Retail (EGCI-R) and the Esoko Ghana Commodity Index-Wholesale (EGCI-W) - and will enable consumers to get prices of agricultural products in real time just by texting through short messaging service (SMS) codes.

Speaking at the launch of the index, Mr. Bernard Otabil, managing director of Esoko Ghana, said the EGCI-R and EGCI-W were developed to serve as benchmarks for selected commodity prices in selected markets as a measure of commodity price performance over time and expressed his outfit's excitement about the enumeration system they've established. “In the absence of a proper warehouse receipt system and a regulatory framework that would support the operation of a commodity exchange in Ghana, we have used our understanding of the market from our work with field agents to develop a commodity cash market index that is appropriate for the current market conditions. The enumeration methodology of Esoko makes it the most credible information portal for the agricultural sector where information is so difficult to collect and redistribute in an efficient way”.

As to how they are able to collect data on the products Mr. Otabil said, “Esoko Ghana has established a network of enumeration agents stationed in market centres. These agents feed Esoko with critical data like prices, offers and industry profiles. Enumerators are well trained and operate throughout the country, coordinated by two managers who set targets, provide ongoing support, supervise and monitor data accuracy making prices recorded in the morning on the “market floor” a part of the index that very day.

The EGCI, the company says, “has been developed to assist analysts and policy makers as well as the media keep track of commodity prices, which have been so volatile over the last few months. The index will also provide transparency to farmers and traders and help with production planning”.

Twelve commodities are included in the index—groundnuts, white maize, Gari, millet, soya beans, both imported and local rice, cowpeas, cassava tuber, wheat, tomatoes and yams. Markets were selected based on their regional location and strategic importance, and they include Accra, Bawku, Kumasi, Tamale, Techiman, Takoradi, and Hohoe.

Esoko is an innovative market service that allows anyone to access market information over their mobile phones. With up to date information from markets across the country, businesses and individuals can access prices, browse offers to buy or sell, or advertise their own products and services. Results demonstrate that farmers are able to improve revenues by negotiating better prices, or selecting more favorable markets for their produce. Traders that use Esoko's SMS can procure product more quickly and at better prices for everyone.

Esoko's goal is to improve market efficiencies throughout the value chain thus reducing poverty and contributing to the role of Agriculture in Ghana's National Development. Active in 8 other countries, Esoko was designed and built exclusively in Ghana. Esoko was recently recognized by the United

Nations as a 'World Summit Awards 2009 Winner' for its work in creating unique content.

Esoko Ghana is the only owned and operated franchisee of Esoko Networks Limited (the Mauritius based parent company). Esoko Ghana Limited was formerly TradeNet, which was officially launched in January 2007.

Plans are far afoot to get the index online next year.

By: OBED BOAFO-The Accra Mall
Development / Accra / Ghana / Africa / Modernghana.com