1. Agro-processing in Ghana
Kwaw Andam Ghana Strategy Support Program International Food Policy Research Institute
Presentation to GSSP Side Event, ReSAKSS Annual Conference | Accra
October 18, 2016

2. Brief history Pre-independence Small-scale, cottage industries
Post-independence
(mostly early 1960s)
State-led industrialization to achieve import substitution
Large factories for cocoa, sugar, tomato, among others
1980s and early 1990s
Partial liberalization and sale of state-owned factories
Entry of some cocoa (Cadbury, Cargill) and palm oil processors
2000s and 2010s
Proliferation, continued state-involvement
Food imports growing rapidly
Attempts/plans to revive large-scale projects (Pwalugu for tomato, Komenda for sugar)

3. What is holding back the processing sector?
Low productivity and high cost of production
Scarcity of preferred varieties and poor quality
Transaction costs, transport, and infrastructure
Failure of contract farming and vertical integration as an alternative to imports

4. Emerging opportunities due to…
Urbanizing Ghana
Income growth
2004 per capita GDP: $426
2014 per capita GDP: $1400
Diet changes
Especially shift to processed foods, especially for urban consumers
Expanding export markets (?)
Growth of urban and rural populations in Ghana,

5. What’s for sale? Inventory of processed foods
Cities: Accra, Cape Coast, Ho, Koforidua, Kumasi, Sekondi-Takoradi, Sunyani, Tamale
Stores: open-air stalls, street vendors, traditional self-service shops, small shops with registers, chain and non-chain supermarkets
Categories of processed foods
Accra: cereals, tubers, meats and fish, fruits and vegetables, oils and fats, spices
Other cities: cereals, tubers, tomatoes, poultry
Inventory process
Focused on products rather than shops
Information on products, manufacturers, ingredients, packaging quality
Aimed to cover all products

6. What can we find on store shelves?
A broad range of processed foods
More than 1,779 unique products in Accra, including over 100 brands of rice
1,443 brands in Kumasi, Sekondi-Takoradi, Tamale
Processed food Group
Kumasi
Tamale
Sekondi-Takoradi
Total
Milled grains, roots, and tubers
422
191
339
952
Processed tomatoes
177
106
190
473
Packaged poultry and eggs 8 1 9 18
607
298
538
1443

7. Imports vs. Domestic Products
Main sources of imports
Country
Number of products
Share of imports
Rice
Vietnam
306 53
Thailand
168 29
India 30 5
Tomato Paste
China
252 70
Italy 37 10
United States 18

8. Are there opportunities for processing?
Yes, because…
Import dominance is in rice and tomato, but a range of packaged, domestically-produced products are available from processing cassava, groundnuts, maize, plantain – 291 locally-processed products in 3 cities;
Modern supermarkets have greater product diversity, and are main outlet for domestic food processors
Comparing domestic and imported products, packaging quality is actually reasonably high

9. Thank you! Acknowledgements
Co-authors: Ramatu Al-Hassan, Seth Asante, Xinshen Diao, Jed Silver, David Tschirley
Reviewers: Todd Benson, Shashi Kolavalli
References
Ackah, C., C. Adjasi, and F. Turkson “Scoping Study on the Evolution of Industry in Ghana.” UNU-WIDER: Learning to Complete Working Paper 2014/075. Washington.
Andam, K., R.M. Al-Hassan, S.B. Asante, and X. Diao “Is Ghana Making Progress in Agro-Processing? Evidence from an Inventory of Processed Food Products in Retail Shops in Accra.” Ghana Strategy Support Program (GSSP) Working Paper No. 41. International Food Policy Research Institute. Accra.
Hollinger, F., and J. M. Staatz Agricultural Growth in West Africa Market and Policy Drivers. African Development Bank and Food and Agriculture Organisation. Rome.
Robinson, E.J.Z., and S. Kolavalli “The Case of Tomato in Ghana : Processing.” Ghana Strategy Support Program (GSSP) Working Paper No. 21. International Food Policy Research Institute. Accra.