The Chamber of Agribusiness Ghana has voiced concerns over the government’s US$64 million plan to construct a 60,000-tonne grain silo in Kwahu, Eastern Region as announced by Food and Agriculture Minister, Dr. Bryan Acheampong.
In a press release signed by Anthony Kofituo Morrison Chief Executive Officer (CEO) of Chamber, while acknowledging the intent to boost food security, they questioned the feasibility and strategic alignment of the project.
Expert’s research findings indicate “Investing in grain storage infrastructure is crucial, but location and cost are critical factors to consider.”
The US$64 million expenditure is seen as excessive, particularly given the country’s current economic challenges. The Chamber, therefore, suggested reallocating a portion of the funds to support farmers, upgrade irrigation systems, build post-harvest infrastructure, and invest in agricultural research, which could yield broader benefits.
“The US$64 million price tag, considering the current economic climate and competing priorities for agricultural development. This amount could be re-aligned to allocate a portion to support farmers, improve irrigation systems, deploy post-harvest infrastructures, and enhance agricultural research,” it was stated.
They noted that Kwahu and the Eastern Region are not significant grain-producing areas in Ghana, focusing instead on crops like fruits, vegetables, cocoa, roots, and tubers. The Chamber advocated for the placement of silos in regions like Brong-Ahafo, Ashanti, Volta, and Upper West, which are known hubs for maize and rice production.
They argued that locating the silos in these areas would align better with production patterns, reduce transportation inefficiencies, and enhance food security.
The Chamber emphasized the importance of considering accessibility, transportation networks, and existing storage facilities in the project design. A poorly chosen location, they said, could result in operational inefficiencies and higher costs.
Furthermore, the group said analysis reveals that the Eastern Region is not a major grain-producing area in Ghana. The region’s agricultural production is primarily focused on fruits, vegetables, cocoa, roots, and tubers rather than grains.
A study by major Agriculture research organizations found that investing in grain storage infrastructure in major producing regions can reduce post-harvest losses by up to 30%. The Chamber, therefore, asserted that a more strategic approach to this project will ensure that Ghana’s agricultural sector receives the support it needs to thrive.
“Ghana imported 1.3 million tons of paddy rice in 2020, compared to 1 million tons produced locally. The country spends between US$300 million and US$500 million annually on rice imports. Ghana’s maize imports have varied over the years.
In 2023, the country imported US$13.4 million worth of maize, with the top trading partners being Argentina (58%), South Africa (19.1%), Brazil (8.7%), USA (6.83%), and India (3.82%).
Interestingly, Ghana also exports maize, albeit in smaller quantities. In 2023, the country exported $987,699 worth of maize, with Malawi being the largest recipient (96% of total exports).”
On the back of this, the Chamber reckoned the country’s grain export potential.
The Chamber outlined measures to handle the situation including conducting a comprehensive feasibility study to determine the most suitable location for the grain silos, engaging stakeholders, including farmers, traders, and agribusinesses, to ensure that the project aligns with the needs of the industry, exploring public-private partnerships to reduce the financial burden on the government and lastly, by prioritizing investments in regions with high grain production potential.
It urged the government to revisit the project design with a focus on inclusivity, regional productivity data, and broader agricultural needs. Grains,
