1. Brief Overview of Staple Food Sector in Ghana. 7 th May, 2013 By Prof. Felix Asante, Deputy Director, ISSER

2. Structure of the Market and Distribution Network Small scale rural farmers dominate the staple food sector in Ghana for household food security and income. Most of the staples foods in Ghana are gathered in small quantities and aggregated by itinerant traders. Wholesale prices for staple foods ranges and depend on proximity to regional markets and time of the year Transport cost and nature of roads also translate into the wholesale price also.

3. Structure of the Market and Distribution Network cont’d However, there are distinct months where the peak and trough prices of staples are predictable For example, maize prices are generally highest in July and lowest January and February. The staple foods are sold predominantly at the domestic market throughout the country with occasional formal and informal exports in smaller quantities.

4. Figure 1: General Distribution Network of Staple Foods. Structure of the Market and Distribution Network cont’d Producers Frontline Assemblers Itinerant WholesalersResident Wholesalers Retailers [Market Traders and Hawkers] Consumers

5. Reforms Undertaken Agricultural modernisation agenda in the 10 years development plan (1951-1964) Agricultural Development Corporation State Farms Workers Brigade and Farmers’ Co-operative “Operation Feed Yourself” and “Feed Your Industry” (1972-1974)

6. Economic Recovery Programme (ERP)/Structural Adjustment Programme (SAP) (1983-2000) Agricultural Services Rehabilitation Project (ASRP) (1987-90) Rural Finance Project (RFP) (1989-92) Medium Term Agricultural Development Programme (MTADP), 1990 Agricultural Diversification Project (ADP) (1991-99), National Agricultural Research Project (NARP) (1991-99), National Agricultural Extension Project (NAEP) (1992-2000), Agricultural Sector Adjustment Credit (ASAC) (1992-99), Agricultural Sector Investment Project (ASIP) (1994-2000) Accelerated Agricultural Development Strategy (AAGDS), 1996 Agricultural Services Sub-sector Investment Project (AgSSIP), 2002 Reforms Undertaken cont’d

7. Comprehensive African Agricultural Development Program (CAADP), 2003 Food and Agriculture Sector Development Policy (FASDEP I&II), (2002-2008) Medium Term Agriculture Sector Investment Plan (METASIP), (2011-2015) Ghana Shared Growth and Development Agenda (GSGDA), (2010-2013) Fertilizer Subsidy Programme Agricultural Mechanisation Programme Block Farm and Youth in Agricultural Programme National Buffer Stock Company (NAFCO) Reforms Undertaken cont’d

8. Performance of Current Programmes 1.Fertilizer Subsidy Programme There has been increased fertilizer usage in terms of area and per unit application. 2.Agricultural Mechanisation Programme There has been increased access by farmers around project location to mechanisation services which has also resulted in increase acreages. 3.Block Farm and Youth in Agricultural Programme Here has been easy access to low cost input credit and mechanisation services. Contrarily to the concept of the programme, youth (18-35 years) participation has been low. 4.National Buffer Stock Company (NAFCO) There has been relative stabilisation of maize price since 2010. (Benin et al., 2011)

9. Performance of Staple Sector Production and productivity of some staples saw an increase whiles others decreased in 2011. Although maize and rice witnessed a positive rate of growth in area cultivated (3.2% and 8.97% respectively), in 2010/2011 cropping seasons, the rate of growth in production and productivity were negative.

10. Performance of Staple Sector cont’d Staple Area (000 hectares) Roots, Tubers &plantain 200620072008200920102011 %Change 2010/2011 Cassava7908018408868789042.86 Yam3253243483793854045.03 Cocoyam2602582522252052060.48 Plantain2993053123243283393.31 Cereals Maize7937908469549921,0233.20 Sorghum320208276267253244-3.32 Millet2001621821861771802.10 Rice (Milled) 1251091331621811978.97 Table 1: Area Cultivated of Selected Staples, 2006-2011 Source: Ministry of Food and Agriculture, Accra, 2011.

11. Performance of Staple Sector cont’d Staple Output (000 tonnes) Roots, Tubers &plantain 200620072008200920102011 %Change 2010/2011 Cassava9,63810,21811,35112,26013,55014,7038.51 Yam4,2884,3764,8955,7785,9606,2855.44 Cocoyam1,6601,6901,6881,5041,3551,265-6.65 Plantain2,9003,2343,3383,5633,5383,6412.91 Cereals Maize1,1881,2201,4701,6201,8721,684-10.02 Sorghum315155331315324288-11.12 Millet165113194246218186-14.84 Rice (Milled) 250185302391492464-5.62 Table 2: Output of Selected Staples, 2006-2011. Source: Ministry of Food and Agriculture, Accra, 2011

12. Performance of Staple Sector cont’d StapleYield (tonnes per hectares) Roots, Tubers &plantain 200620072008200920102011 %Change 2010/2011 Cassava12.212.813.5113.815.4316.275.49 Yam13.213.514.0815.315.4815.540.39 Cocoyam6.46.66.7 6.66.13-7.09 Plantain9.710.610.710.910.7910.75-0.39 Cereals Maize1.5 1.741.71.891.65-12.80 Sorghum10.71.21.31.281.18-8.07 Millet0.80.71.061.31.241.03-16.60 Rice (Milled) 21.72.722.42.712.35-13.39 Table 3: Yield per Hectare of Selected Staples, 2006-2011 Source: Ministry of Food and Agriculture, Accra, 2011.

13. Performance of Staple Sector cont’d There has been general decline in total domestic production There is however ascendency of estimated national consumption However, the country continued to run surplus in most of her staples. Rich sill encounters deficit in production.

14. Performance of Staple Sector cont’d Staple Total Domestic Production Production Available for Human Consumption Estimated National Consumption Deficit/Surplus Roots, Tubers &plantain 20102011201020112010201120102011 Cassava13,55014,7039,4859,9693,7033,8845,781.906,084.90 Yam5,9606,2854,7685,0363,0283,1751,740.901,861.40 Cocoyam1,3551,2651,2871,2359691,016318.3218.7 Plantain3,5383,6413,0073,0772,0542,154953.2922.9 Cereals Maize1,8721,6841,3101,1791,0611,113249.466.3 Sorghum324288282250121127161.1122.7 Millet21818619016012112769.433 Rice (Milled) 492464257242581610-324.7-367.4 Table 4: Domestic Staple Food Supply and Demand Position (2010/2011) (‘000MT) Source: Ministry of Food and Agriculture, Accra, 2011.

15. Public and Private Participation in the Sector The staple food sector is free and open to all economic agents in the economy. Notable public agents are: MoFA and Programme Directorates, CSIR, NAFCO, Agricultural training institutions, and NGOs. Notable private agents are: Farmers, marketing companies/individuals, input dealers, processing companies and food joints. The public agents busy themselves with controlling, technological dissemination and raw material improvements The private agent are much interested in actual production to satisfy consumers and for income.

16. Public and Private Participation in the Sector cont’d Public and private agents participate at various levels and degree along the staple foods value chain. For instance, NAFCO have special arrangements with Licensed Buying Companies.

17. Consumer and Producer Concerns at the Market Post-Harvest handling and storage at farm gate. Pest and foreign material infestation Handling at market and warehouse Rodent attacks Moisture control

18. Private Association and their Nature of Engagement There are a number of farmer base organisations (FBO’s) in the staple food sector Their concepts are base on the cooperative system. One known association is the N’arziki Farmers Association – an initiative of Wienco (Ghana) Limited. support small medium holder farmers to adopt good agricultural practices and understand agribusiness. Facilitate better access to markets

19. Thank You The end