Agriculture, Agro-processing, Forestry and Fishing
Agriculture in Ghana is an untapped opportunity on the African continent. Cocoa is a crop of significant interest to the government, as Ghana is a major exporter of cocoa.
In 2010, agricultural growth was 4-5%. Currently the growth rate has increased to 5% to 6%b and is expected to continue to increase. Ghana has the potential for agricultural business to develop into a multi billion dollar industry. The demand for Cocoa continues to climb as China now imports 80-90% of Ghana’s total cocoa production. The cost of cocoa is 150 Ghana Cedis per 50kg bag.
The five major players in the industry include
Ejura Farms (crops)
Darko Farms (livestock)
State Farms (grain production)
Presidential Special Initiative (cassava production)
Blue Sky (pineapple and pawpaw)
The major stakeholders and the government are looking for ways to partner with investors outside the country to improve agri-business through modern technology, to ensure food security in meeting international requirements.
China would like to purchase all of Ghana’s cocoa, but because of the monopoly nature of cocoa, the government is controlling the selling of cocoa in the country. Cocoa prices have increased on the international market.
Listed below are challenges Ghana faces in the agricultural industry.
Lack of agro-processing facilities – Much of the country’s yield goes to waste due to the lack of storage facilities.
Transportation – Many farmers travel several hours to reach a produce transportation point.
Financing – Obtaining financing and training in how to manage finances at the end of a season are issues. Also, private investors are not comfortable with cocoa farming because of its seasonal nature.
Seasonal – Cocoa is a seasonal crop and farmers struggle to control pests and diseases (black pod, etc).
Training – Many cocoa farmers do not understand the criticality of farm maintenance during the off season, which leads to a small yield the next year.
Declining Interest – Young people in Ghana perceive farmers to be poor, which discourages them from becoming involved in agribusiness.
- Improve agricultural practices using modern technology.
- Develop cottage industries for agro-processing.
- Establish associations to improve agribusiness practices and financial management.
- Tractors are needed to help farmers get their crops to transportation facilities.
- Private investors to obtain the equipment needed to process cocoa into finished goods during the offseason.
- Venture capital.
- Equipment and systems for maintenance of the farm.
- Increase the price of cocoa.
- Establish a marketing research institute for the improvement of agribusiness and international market penetration.
- Procurement and installation of agro-processing facilities
- Erection of storage facilities
- Establishment of packaging facilities
- Export and import of agricultural products
- Pre-financing cocoa farmers to buy their yields
- Over two thirds of the land in Ghana is fertile, and needs little or no fertilizers/chemical to grow crops in large quantities.
- The government has interest in agribusiness and is ready to support any credible investor who will bring improvements.
- Ghana is the second leading producer of cocoa in the world.