Currency Exchange Rates Hit Livestock Sales at Avenor Market

During this year’s holiday season, traders at Accra’s Avenor Livestock Market are struggling with an unanticipated drop in sales. A steep rise in cattle costs, mostly caused by the high exchange rate between the Ghanaian cedi and the West African CFA Franc, is being blamed for the decline.

The cost of importing livestock from Burkina Faso and other Francophone nations, where many of the animals are derived, has increased dramatically due to the unfavorable exchange rate. Avenor, one of Accra’s most popular livestock markets, usually sees a booming trade during Christmas, when people swarm to buy goats, sheep, and cattle for festive feasts. But 2024 hasn’t been like the others.Even while there is a constant flow of prospective buyers coming to the market, brokers say that the number of actual purchases is still surprisingly low. A disgruntled trader expressed worries about the difficulties facing the sector in an interview with Citi News, pointing out that the high price of livestock has turned off buyers.

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The trader bemoaned, “We don’t know what’s going on, and people aren’t buying the animals.” “It is not their fault, but the creatures are costly. It is the exchange rate between Cedi and CFA Franc. The cost of our animals ranges from GH¢800 to GH¢6,000.

Another trader explained how prices have increased over the past year, offering more insight into the effects of rising exchange rates.
The goats we used to sell for GH¢1,000 are now GH¢1,500 due to the increase in the CFA Franc. The trader clarified that it is all due to the currency rate.

The holiday season is a significant chance for many traders to increase profits. However, the dramatic increase in livestock prices this year has made it difficult for both buyers and sellers to adjust. Demand was much lower than anticipated, despite some traders having stored up in anticipation of strong business.

The circumstances at the Avenor Livestock Market serve as a sobering reminder of the wider economic difficulties that both dealers and consumers must deal with as the holiday season draws to a close. Stabilizing markets and assisting local companies may depend on addressing how the exchange rate affects industries that rely heavily on imports.