The persistent rise in food prices across Ghana has not translated into improved incomes for many farmers, with producers continuing to grapple with high production costs, post-harvest losses and limited access to financing, according to Mr. Daniel Fahene Acquaye, Chief Executive Officer of Agri-Impact Group.
Speaking in an interview, Mr. Acquaye challenged the widespread perception that expensive food automatically means farmers are making significant profits, arguing that many producers remain financially vulnerable despite consumers paying more for food.
“People often assume that because food prices are high, farmers are making more money. That is not necessarily true,” he said. “The price consumers pay in the market is very different from what farmers receive at the farm gate.”
He explained that while food prices have increased in urban markets, farmers typically receive only a fraction of the final retail price after transportation costs, storage expenses, market levies and trader margins are added along the supply chain.
According to him, one of the biggest factors eroding farmers’ incomes is the sharp increase in the cost of agricultural inputs.
Prices of fertilizers, improved seeds, agrochemicals, fuel and labour have risen considerably in recent years, pushing up the cost of production.
“Many farmers are spending much more to cultivate their land than they did a few years ago,” Mr. Acquaye noted. “Unfortunately, the prices they receive at harvest often do not reflect those increased costs, leaving them with very little profit or, in some cases, losses.”
He said the situation has become particularly challenging for smallholder farmers, who make up the majority of agricultural producers in Ghana and often lack the resources needed to absorb rising costs.
Mr. Acquaye also highlighted post-harvest losses as a major contributor to farmers’ financial difficulties. Inadequate storage facilities, poor road networks and limited processing capacity continue to result in significant losses of perishable crops such as tomatoes, vegetables and fruits.
“When farmers do not have access to proper storage, they are forced to sell immediately after harvest to avoid spoilage,” he said. “At that time, supply is usually high and prices are low, which further reduces their earnings.”
He stressed that investments in warehouses, cold-chain facilities and agro-processing industries could help farmers preserve their produce, reduce waste and secure better prices.
Access to affordable financing remains another major obstacle, according to the Agri-Impact Group CEO.
He noted that many farmers struggle to obtain loans from formal financial institutions due to high interest rates and stringent collateral requirements.
Without adequate financing, farmers are unable to invest in irrigation systems, mechanisation, improved planting materials and modern farming technologies that could increase productivity and profitability.
“Agriculture is a business and businesses need capital to grow,” he said. “If farmers cannot access affordable credit, it becomes difficult for them to expand production or adopt technologies that improve efficiency.”
Mr. Acquaye further pointed to climate change as an emerging threat to agricultural incomes.
Unpredictable rainfall patterns, prolonged dry spells, floods and pest infestations are increasingly affecting crop yields and exposing farmers to greater risks.
“In some cases, food prices may rise because production has fallen due to climate-related events,” he explained. “But farmers whose crops have been damaged do not benefit from those higher prices because they have little or no harvest to sell.”
To address the challenges, he called for stronger investment in agricultural infrastructure, expanded access to agricultural finance and the strengthening of farmer cooperatives to improve market access and bargaining power.
He also urged policymakers to focus on creating efficient agricultural value chains that allow farmers to capture a greater share of the value generated from food production.
“We cannot achieve sustainable food security if farmers remain poor while consumers continue to pay high food prices,” Mr. Acquaye said. “The goal should be to build an agricultural system where farmers can earn decent incomes, reinvest in their farms and contribute meaningfully to national economic growth.”
He emphasized that improving farmer profitability is critical to attracting young people into agriculture and ensuring long-term growth in Ghana’s food production sector.
