Final evaluation : managed inputs and delivery of agricultural service (MIDAS II)

(GSC), a parastatal. End of project evaluation covers the period 1980-11/85 and is based on site visits and interviews with GSC, contract growers, farmers, and other involved personnel. GSC has managed to produce, store, and sell seed under extremely adverse economic conditions. GSC operates 12 foundation seed farms and in 1984 produced 2,371 bages of maize seed and 3,368 bags of rice seed, more than expected; production of groundnut and cowpea seed was low, however. The delivery of foundation seed has proceeded well, despite the great distances (30-70 miles) over difficult roads between regional offices and seed farms. Nonetheless, GSC"s operational practices and lack of management, accounting, and marketing support are not conducive to further inputs by external donors or the GOG. GSC"s poor financial procedures often violate the Ghana Companies Code. Control over revenues and expenditures is not appropriate. For example, GSC has failed to monitor market conditions and purchased seed in excess of demand, experiencing substantial losses. Sales revenues have decreased as there are problems with the quality and germination of GSC seed and farmers prefer to grow their own; also, GSC"s marketing strategy is inadequate. Further, GSC does not maintain an assets register, carries stocks over from year to year, and values them without reference to condition (thus understating its losses). GSC does not distribute a debtors list and it is unlikely that outstanding debts will be recovered. Other problems have included: difficult recruitment due to poor remuneration and general lack of incentives; inadequate linkage between GSC and the extension service; little oversight by the Board of Directors (which was only recently recreated after being disbanded during the revolution); poorly organized equipment and vehicle use; and lack of attention to maintenance. The project was unrealistic in expecting a group of government workers - well-intentioned and well-trained as they may be - to run a large commercial enterprise. The major recommendation is to reorganize GSC as a joint company with GOG and private shareholders.