A Comparison of Wholesaler/Retailer Business Characteristics of Natural Products between Ghana and Rwanda

Abstract

The usage of natural products is becoming an increasingly common consumer phenomenon due to increasing health consciousness, and because of their naturalness, and medicinal qualities of the products. African countries are very rich with natural products resources and supplies. The continent’s rich botanical heritage offers an excellent opportunity to diversify away from other traditional exports. Europe and the USA are particularly promising markets for natural products. Thus, it is advantageous to examine development of natural products exporting as alternative or complimentary economic opportunities for many African people, especially those in the rural areas. This paper has explores both factors which promote and which act as obstacles to the natural products market, specifically in the retail and wholesale portions of the value chain in Ghana and Rwanda.

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New Jersey Agricultural Experiment Station
P-15009-2-06
November 2006

A Comparison of Wholesaler/Retailer Business Characteristics
of Natural Products between Ghana and Rwanda

Ramu Govindasamy
James Simon
Venkat Puduri
H. Rodolfo Juliani
Juliana Asante-Dartey
Hanson Arthur
Bismarck Diawuo
Dan Acquaye
Nicholas Hitimana










Department of Agricultural, Food and Resource Economics
Rutgers Cooperative Extension
New Jersey Agricultural Experiment Station
Cook College
Rutgers, The State University of New Jersey
New Brunswick, New Jersey 08901

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A Comparison of Wholesaler/Retailer Business Characteristics
of Natural Products between Ghana and Rwanda



Ramu Govindasamy
James Simon
Venkat Puduri
H. Rodolfo Juliani
Juliana Asante-Dartey
Hanson Arthur
Bismarck Diawuo
Dan Acquaye
Nicholas Hitimana





Ramu Govindasamy is Associate Professor, Dept. of Agricultural, Food and
Resource Economics, Rutgers University, New Brunswick, NJ 08901; James
Simon is Professor, Dept. of Plant Sciences and New Use Agriculture and Natural
Plant Products Program Rutgers University, New Brunswick, NJ 08901, USA;
Venkat Puduri is Post Doctoral Associate, Dept. of Agricultural, Food and
Resource Economics, Rutgers University, New Brunswick, NJ 08901; H. Rodolfo
Juliani is Research Associate, Dept. of Plant Sciences, Rutgers University, New
Brunswick, NJ 08901; Juliana Asante-Dartey , Hanson Arthur, Bismarck Diawuo
and Dan Acquaye, ASNAPP-Ghana, P.M.B. (18) Kanda, Accra, H/NO C 205/29,
Mempeasem, East Legon, Accra, Ghana; Nicholas Hitimana, ASNAPP-Rwanda,
PO Box 6052, Kigali, Rwanda.

Correspondence Address

Ramu Govindasamy, Associate Professor
Department of Agricultural, Food and Resource Economics
Cook College
Rutgers, The State University of New Jersey
55 Dudley Road, New Brunswick, New Jersey 08901-8520
Phone: (732) 932-9171 ext. 254

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Acknowledgements

We thank both the Ghanaian and Rwandan individuals with whom we interviewed for
sharing their information with us. We thank the USAID for providing funds to support
this survey work and our ASNAPP and PFID/NP programs. Specifically, we thank Carol
Wilson, USAID Cognizant Technical Officer of our Partnership for Food and Industry in
Natural Products (PFID/NP), a university led program supported by the Office of
Economic Growth, Agriculture and Trade (EGAT/AG) of the USAID (Contract Award
No. AEG-A-00-04-00012-00) in support of their global economic development
programs. We also thank Jerry Brown, USAID-Southern Africa and project officer, for
his support and encouragement on our ASNAPP programs and organization. Finally, we
thank the New Use Agriculture and Natural Plant Products Program (NUANPP) and the
New Jersey Agricultural Experiment Station, Rutgers University. For further information,
see pfidnp.org; and www.asnapp.org.



















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Table of Contents

Acknowledgements..............................................................................................................i
Table of Contents................................................................................................................ii
List of Tables and Figures..................................................................................................iii
Abstract............................................................................................................................... v
1. Introduction..................................................................................................................... 1
2. Survey Design................................................................................................................. 4
3. Results............................................................................................................................. 5
3.1. Opinion and Preferences........................................................................................ 5
3.2 Demographic Characteristics................................................................................ 12
3.3 Commonly Traded Natural Products and Uses..................................................... 15
3.4 Ghana and Rwanda Combined Regression Model............................................... 17
4. Conclusions................................................................................................................... 21
5. References..................................................................................................................... 23




















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List of Tables

Table 1: Percentage Distribution of Wholesalers versus Retailers in Ghanaian and
Rwandan Natural Products Industry.................................................................... 6
Table 2: Sourcing of Natural Products by Wholesaler/ Retailers of Ghana and Rwanda . 6
Table 3: Wholesalers/Retailers Business/Firm that received any Support towards
Trade/Finance/Technical training........................................................................ 7
Table 4: Distribution of Type of support received by Wholesalers/Retailers towards
Trade/Finance/Technical training........................................................................ 8
Table 5: Wholesalers/Retailers Opinion about their Infrastructure, needs, information
and support........................................................................................................... 8
Table 6: Types of Current Support needs of Ghanaian Wholesalers/Retailers ................. 9
Table7: Obstacles faced by Ghanaian and Rwandan Respondents in the Industry......... 10
Table 8: Wholesalers/Retailers Positive (increase) Expectation about Business Growth in
the next one to two Years................................................................................... 12
Table 9: Wholesalers/Retailers Age Distribution............................................................ 13
Table 10:Wholesalers/Retailers Educational Levels ........................................................ 14
Table 11:Wholesalers/Retailers Special Educational Skills with respect to their Business
............................................................................................................................ 14
Table 12: Marital Status of Principal Business Operator.................................................. 15
Table 13:Distribution of Top Ten Natural/Herbal Products by Ghanaian Wholesalers/
Retailers............................................................................................................. 16
Table 14:Distribution of Top Ten Natural/Herbal Products by Rwandan Wholesalers/
Retailers............................................................................................................. 17
Table 15:Descriptive Statistics of Variables Used in the Regression Analysis................ 18
Table 16:Regression Model Results................................................................................. 19









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