Challenges in Ghana's Agricultural Sector
ECON 215
Introduction to Economy of
Ghana
Session 11 – Agricultural Sector Part 2
Lecturer: Dr. Michael Danquah
Contact Information: mdanquah@ug.edu.gh
Session Overview
•
Session Overview: This session discusses the challenges which
have plagued the agricultural sector and the policies which
have been put in place to drive the growth of the sector in
Ghana. Also, the prospects of the sector are considered.
Goals/ Objectives: At the end of the session, the student will
•
Be aware of the challenges confronting the sector
•
Understand the polices which have been instituted to aid the
growth of the agricultural sector
•
Know the prospects of the agricultural sector
Slide 2
Session Outline
The key topics to be covered in the session are as follows:
•
Topic One: Challenges of the Agricultural Sector
•
Topic Two: Agricultural Policies in Ghana
•
Topic Three: The Prospects of the Agricultural Sector in Ghana
Slide 3
Reading List
•
Refer
to
students to relevant text/chapter or reading materials
you will make available on Sakai
Slide 4
CHALLENGES OF THE AGRICULTURAL
SECTOR
Topic One
Slide 5
Challenges of the Agricultural Sector
•
The challenges confronting the agricultural sector in Ghana generally
stem from the nature of agriculture practiced in Ghana. Some of the
challenges include:
•
LAND TENURE SYSTEM
: Land is fragmented and more often in the
hands of title owners who are not interested in agriculture. This
therefore inhibits large-scale production of agricultural products. Land
reforms are necessary to ensure large fertile agric lands are cultivated
on commercial basis.
•
LOW INVESTMENTS OR LACK OF FINANCIAL SUPPORT FOR
AGRICULTURE:
Farmers who are interested in agriculture sometimes
face credit constraints as banks find it more profitable or less risky to
lend to such businesses. This affects the levels of production since agric
inputs are expensive. It is expensive to acquire a tractor just as it is to
purchase an outboard motor for fishing. Government intervention to
support farmers if not with cash then inputs or new technology or
subsidies.
Slide 6
Challenges of the Agricultural Sector
Cont’d
•
SCARCITY OF WATER FOR ALL YEAR ROUND PRODUCTION:
Irregular rainfall patterns have made planning and cultivation quite
unpredictable. This has contributed to crop failure in some instances
and in other instances lost of investment into the sector making the
sector risky for investors to commit funds to. When this happens
especially to maize and other cereals, it affects the few poultry
(livestock) farms production as well. Scale irrigation projects
including building of dams to support irrigation for all year round
production.
•
INADEQUATE EXTENSION SERVICE SUPPORT TO FARMERS:
Extension officer-farmer ratio is poor and as a result the officers are
under incessant pressure. 3000 farmers to 1 extension officers.
Slide 7
Challenges of the Agricultural Sector
Cont’d
•
POOR INFRASTRUCTURE, STORAGE AND PRESERVATION
FACILITIES:
Often, areas where output is produced and there is glut
lack good roads to convey the products to the market expeditiously.
When it comes to storage, the facilities are inadequate and
sometimes items produced get destroyed while there are ready
markets in the urban areas for them. Within the fishing sector,
farmers have to sometimes throw back their catch because of
unavailable cold store facilities attached. Need for target
investments into building such facilities or upgrading them to
support agric.
•
POOR PRICES:
A season of glut normally comes with a situation
where supply outweigh demand hence prices fall severely to affect
returns from the sector. Government buffer stock company okay
but needs a lot of investment into building more storage facilities so
it can buy the excess and store for the future.
Slide 8
AGRICULTURAL POLICIES IN GHANA
Topic Two
Slide 9
Agricultural Polices in Ghana
•
The government since 2010 identified agricultural sector as
Ghana’s greatest strength and as critical for industrial
growth
•
Some of the programmes and activities for the Agric sector
planned by the government since 2010 includes:
Buffer Stock management
Fertilizer subsidy
Livestock and fisheries development
Irrigation development and mechanization systems.
Slide 10
Agricultural Policies in Ghana Cont’d
Buffer Stock Management
•
The National Food Buffer Stock Company (NAFCO) was established to hold security
buffer stocks and to intervene in the market to ensure competitive prices at all
times
•
The company acquired and rehabilitated two warehouses for the storage of grains
•
About 6,949 metric tonnes of paddy rice and 416 metric tonnes of maize were
purchased and stored.
Fertilizer Subsidy Programme
•
The fertiliser subsidy programme was reviewed and a more efficient waybill system
was introduced
•
The new system was to replace the existing coupon system, to enhance the
delivery of the programme and ensure a more transparent distribution system
•
The government subsidised 60,000 metric tonnes of fertiliser at an average cost of
GHȻ16.00 per bag, as part of efforts to increase productivity.
Slide 11
Agricultural Policies in Ghana Cont’d
Livestock and Fisheries Development
•
For fisheries and livestock development, the government began the
construction of cold stores at Nyanyanor, Kromantsi and Apam in the
Central Region and Half Assini, New Takoradi, Shama and Sekondi in the
Western Region.
•
About 11.07 hectares (ha) of ponds and 192 cages were constructed as
part of efforts to promote and develop aquaculture and cage culture.
•
To improve the performance of local breeds of livestock, livestock farmers
were supplied with 2,584 livestock of various improved species in the
Northern, Upper-East, Upper-West, Brong Ahafo, Ashanti and Volta
Regions.
•
In addition, 35,000 cockerels were distributed to 1,750 farmers in 25
districts at subsidized prices to improve the protein intake of Ghanaians.
Slide 12
Agricultural Policies in Ghana Cont’d
Agriculture Mechanization
•
In line with the government’s commitment to increase
farmers’ access to agricultural mechanization services, 84
service centres were operationalized by September 2010
as against 69 in 2009
•
In order to boost its food security policy, the govt
increased existing food storage capacity by purchasing
pro-cocoons to store a total of 30,000 metric tonnes of
grains.
•
165 combine harvesters were assembled and deployed
across the country in 2011 to support individual farmers
to increase productivity.
Slide 13
Agricultural Policies in Ghana Cont’d
Irrigation Projects
•
The first phase of the rehabilitation of the Tono irrigation dam has been
completed, making available 1,874 hectares of land for cultivation
•
Additionally, the rehabilitation of 70 dams in the three Northern Regions which
were breached was also completed
•
The second phase of the Tono irrigation dam was completed in 2011 allowing two
night storage reservoirs
Sustainable Management of Land and Environment
•
The Agricultural Sustainable Land Management Strategy and Action Plan were
launched in August, 2009 to ensure continued productivity of agricultural lands
•
The strategy is to provide the framework for sustainable management of the
country’s land and water resources for higher productivity and growth
Slide 14
Agricultural Policies in Ghana Cont’d
Youth in Agriculture Programme (YIAP)
•
Under the Block Farm Programme, about 47,000
hectares of land were cultivated with maize, rice,
sorghum, soybean and vegetables
•
This programme provided financial opportunities to
80,000 beneficiaries
•
In the year 2011, under the livestock and poultry sub-
programme, 19,300 day-old chicks were procured and
brooded for distribution and rearing to 950 farmers in 60
districts in seven regions at subsidised prices.
Slide 15
Agricultural Policies in Ghana Cont’d
Savannah Accelerated Development Authority (SADA)
•
There exist a development gap between the north and the south of
Ghana. To bridge gap, SADA was born by an Act of Parliament; SADA Act
805 on 17 September 2010.
•
SADA envisions a ‘Forested North’ by 2030 where agriculture production is
modernized and oriented towards a larger market
The SADA initiative have six unique pillars:
•
Development of a comprehensive regional and ecological strategy
•
A model for the modernisation of agriculture
•
Development of strategic infrastructure
•
Strong linkage between Northern Savannah and the Sahelian Countries
•
A vigorous private sector initiative that strengthens existing private
operators
•
Active support for Civil Society Organisations (CSOs) and NGOs, to support
the developmental programme of the SADA area
Slide 16
Agricultural Policies in Ghana Cont’d
Ghana Commercial Agricultural Project (GCAP)
•
In the govt quest to increase agriculture production, it
collaborated with the World Bank to develop GCAP.
•
GCAP seeks to improve the investment climate for agri-
business and also develop Public-Private Partnerships
(PPPs) aimed at increasing on-farm productivity and
value addition in selected value chains.
•
This is aimed at advancing the commercial goals of the
Medium Term Agriculture Sector Investment Programme
(METASIP)
2
Slide 17
Agricultural Policies in Ghana Cont’d
Objectives/Goals of METASIP
•
Food security and emergency
•
Increased growth in incomes
•
Increased competitiveness and enhanced integration
into domestic and international markets
•
Sustainable management of land and environment.
•
Science and technology applied in food and agric
development.
•
Improved institutional coordination
Slide 18
PROSPECTS FOR THE
AGRICULTURAL SECTOR IN GHANA
Topic Three
Slide 19
Agricultural Productivity
•
In the medium-term, policy initiatives will also be targeted at
minimising post-harvest losses as well as the establishment of
the appropriate sub-structures and links for the accelerated take-
off of agro-industrialisation.
•
Also, in the medium-term, policies to be implemented will aim at
expanding the nucleus/outgrower scheme, where small farmers
are attached to a nucleus farm, and/or an agricultural estate. The
nucleus farms will identify and test seed varieties, develop
growing techniques and provide extension, mechanisation and
marketing services to the outgrowers. The outgrowers can access
inputs and credit from the nucleus farmer. The nucleus farmer
will ensure that good agricultural practices (GAPs) are adopted
and standards enforced. This is expected to lead to an increase in
output and quality
for the smallholder farmers
Slide 20
Accelerated Creation of Decent Jobs
•
Agriculture will be transformed from subsistence to a business-
oriented activity. This will be done by minimising the risks
associated with farming. All proposed transformation activities
will be undertaken in partnership with the private sector.
•
The private sector will be given incentives to invest in
commercial farming through the establishment of plantations
and estates. They will partner the Government in the provision
of mechanisation services, irrigation facilities and provide other
services along the value chain such as haulage, storage facilities,
processing facilities and marketing of the end product
Slide 21
Agricultural Competitiveness and Integration
into the Domestic and International Market
•
In the medium-term, Government policy in this area will
focus on achieving the following policy
objectives:
a.
improve post-production management;
b.
develop an effective domestic market; and
c.
expand agriculture exports.
Slide 22
Production Risks and Bottlenecks in
Agricultural Industry
Slide 23
•
The
unpredictability in food supply and prices due to climate
variability and other natural occurrences negatively impact on
food security all-year-round, especially in the three northern
regions. In order to address these challenges, Government
will pursue the following objectives:
a.
promote irrigation development;
b.
improve agriculture financing; and
c.
promote sustainable environment, land and water
management.
Development of Agriculture Estates
•
Agricultural Estates are
commercial farming operations organised around one type
of farming (open field or controlled environment) supported by irrigation. They
undertake on-farm processing and therefore require the provision of utilities.
•
The development of agriculture estates entails the provision of essential services
including land clearance and preparation, machinery service centres, certified
seeds and other inputs. These services are provided by the private sector leading
to the creation of decent jobs in the agriculture sector.
•
To promote the development of agriculture estates, Government will facilitate
access to land (unused Government lands, including abandoned state farms,
unused lands belonging to public institutions or support the private sector to lease
land from traditional authorities) and the provision of infrastructure e.g. feeder
roads, power and where appropriate irrigation.
Slide 24
Livestock and Poultry Development
•
In the medium to long-term, strategic measures will be taken to raise
Ghana’s livestock and poultry production to reduce the overdependence
on imports and the corresponding negative impact on the national
economy.
•
Strategies to achieve the objective include increasing research into large-
scale breeding and production of guinea fowls, cattle, sheep, and goats
especially in the northern regions; support large-scale cultivation of maize
and soya-beans for the formulation of animal feed to improve access to
quality feed; improve access to watering resources; facilitate access of
operators to technology and appropriate financial instruments to enhance
their competitiveness; design appropriate interventions to address
processing and marketing of livestock; increase awareness on food safety
and public health and intensify disease control and surveillance especially
for zoonotic and scheduled diseases.
•
In addition, Government will support private sector initiatives for the large
scale production of rabbits and grass-cutters.
Slide 25
Fisheries and Aquaculture for Food
Security and Income Generation
Slide 26
•
In the case of aquaculture, the major intervention in the
medium-term will be the full implementation of the
Ghana National Aquaculture Development Plan (2012 -
2017).
•
This will entail among others, ensuring the production of
fish seed of high value, fish feed with the appropriate
nutrients and support for private sector investments in
the sub-sector as well as support for fish farmers
associations.
References
Slide 27
Challenges facing agriculture in Ghana include land tenure issues, lack of financial support, water scarcity, and inadequate extension services. Addressing these challenges is crucial for the sector's growth and sustainability.
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Presentation Transcript
Lecturer: Dr. Michael Danquah Contact Information: mdanquah@ug.edu.gh College of Education School of Continuing and Distance Education 2014/2015 2016/2017
Session Overview Session Overview: This session discusses the challenges which have plagued the agricultural sector and the policies which have been put in place to drive the growth of the sector in Ghana. Also, the prospects of the sector are considered. Goals/ Objectives: At the end of the session, the student will Be aware of the challenges confronting the sector Understand the polices which have been instituted to aid the growth of the agricultural sector Know the prospects of the agricultural sector Slide 2
Session Outline The key topics to be covered in the session are as follows: Topic One: Challenges of the Agricultural Sector Topic Two: Agricultural Policies in Ghana Topic Three: The Prospects of the Agricultural Sector in Ghana Slide 3
Reading List Refer to students to relevant text/chapter or reading materials you will make available on Sakai Slide 4
Topic One CHALLENGES OF THE AGRICULTURAL SECTOR Slide 5
Challenges of the Agricultural Sector The challenges confronting the agricultural sector in Ghana generally stem from the nature of agriculture practiced in Ghana. Some of the challenges include: LAND TENURE SYSTEM: Land is fragmented and more often in the hands of title owners who are not interested in agriculture. This therefore inhibits large-scale production of agricultural products. Land reforms are necessary to ensure large fertile agric lands are cultivated on commercial basis. LOW INVESTMENTS OR LACK OF FINANCIAL SUPPORT FOR AGRICULTURE: Farmers who are interested in agriculture sometimes face credit constraints as banks find it more profitable or less risky to lend to such businesses. This affects the levels of production since agric inputs are expensive. It is expensive to acquire a tractor just as it is to purchase an outboard motor for fishing. Government intervention to support farmers if not with cash then inputs or new technology or subsidies. Slide 6
Challenges of the Agricultural Sector Cont d SCARCITY OF WATER FOR ALL YEAR ROUND PRODUCTION: Irregular rainfall patterns have made planning and cultivation quite unpredictable. This has contributed to crop failure in some instances and in other instances lost of investment into the sector making the sector risky for investors to commit funds to. When this happens especially to maize and other cereals, it affects the few poultry (livestock) farms production as well. Scale irrigation projects including building of dams to support irrigation for all year round production. INADEQUATE EXTENSION SERVICE SUPPORT TO FARMERS: Extension officer-farmer ratio is poor and as a result the officers are under incessant pressure. 3000 farmers to 1 extension officers. Slide 7
Challenges of the Agricultural Sector Cont d POOR INFRASTRUCTURE, STORAGE AND PRESERVATION FACILITIES: Often, areas where output is produced and there is glut lack good roads to convey the products to the market expeditiously. When it comes to storage, the facilities are inadequate and sometimes items produced get destroyed while there are ready markets in the urban areas for them. Within the fishing sector, farmers have to sometimes throw back their catch because of unavailable cold store facilities attached. Need for target investments into building such facilities or upgrading them to support agric. POOR PRICES: A season of glut normally comes with a situation where supply outweigh demand hence prices fall severely to affect returns from the sector. Government buffer stock company okay but needs a lot of investment into building more storage facilities so it can buy the excess and store for the future. Slide 8
Topic Two AGRICULTURAL POLICIES IN GHANA Slide 9
Agricultural Polices in Ghana The government since 2010 identified agricultural sector as Ghana s greatest strength and as critical for industrial growth Some of the programmes and activities for the Agric sector planned by the government since 2010 includes: Buffer Stock management Fertilizer subsidy Livestock and fisheries development Irrigation development and mechanization systems. Slide 10
Agricultural Policies in Ghana Contd Buffer Stock Management The National Food Buffer Stock Company (NAFCO) was established to hold security buffer stocks and to intervene in the market to ensure competitive prices at all times The company acquired and rehabilitated two warehouses for the storage of grains About 6,949 metric tonnes of paddy rice and 416 metric tonnes of maize were purchased and stored. Fertilizer Subsidy Programme The fertiliser subsidy programme was reviewed and a more efficient waybill system was introduced The new system was to replace the existing coupon system, to enhance the delivery of the programme and ensure a more transparent distribution system The government subsidised 60,000 metric tonnes of fertiliser at an average cost of GH 16.00 per bag, as part of efforts to increase productivity. Slide 11
Agricultural Policies in Ghana Contd Livestock and Fisheries Development For fisheries and livestock development, the government began the construction of cold stores at Nyanyanor, Kromantsi and Apam in the Central Region and Half Assini, New Takoradi, Shama and Sekondi in the Western Region. About 11.07 hectares (ha) of ponds and 192 cages were constructed as part of efforts to promote and develop aquaculture and cage culture. To improve the performance of local breeds of livestock, livestock farmers were supplied with 2,584 livestock of various improved species in the Northern, Upper-East, Upper-West, Brong Ahafo, Ashanti and Volta Regions. In addition, 35,000 cockerels were distributed to 1,750 farmers in 25 districts at subsidized prices to improve the protein intake of Ghanaians. Slide 12
Agricultural Policies in Ghana Contd Agriculture Mechanization In line with the government s commitment to increase farmers access to agricultural mechanization services, 84 service centres were operationalized by September 2010 as against 69 in 2009 In order to boost its food security policy, the govt increased existing food storage capacity by purchasing pro-cocoons to store a total of 30,000 metric tonnes of grains. 165 combine harvesters were assembled and deployed across the country in 2011 to support individual farmers to increase productivity. Slide 13
Agricultural Policies in Ghana Contd Irrigation Projects The first phase of the rehabilitation of the Tono irrigation dam has been completed, making available 1,874 hectares of land for cultivation Additionally, the rehabilitation of 70 dams in the three Northern Regions which were breached was also completed The second phase of the Tono irrigation dam was completed in 2011 allowing two night storage reservoirs Sustainable Management of Land and Environment The Agricultural Sustainable Land Management Strategy and Action Plan were launched in August, 2009 to ensure continued productivity of agricultural lands The strategy is to provide the framework for sustainable management of the country s land and water resources for higher productivity and growth Slide 14
Agricultural Policies in Ghana Contd Youth in Agriculture Programme (YIAP) Under the Block Farm Programme, about 47,000 hectares of land were cultivated with maize, rice, sorghum, soybean and vegetables This programme provided financial opportunities to 80,000 beneficiaries In the year 2011, under the livestock and poultry sub- programme, 19,300 day-old chicks were procured and brooded for distribution and rearing to 950 farmers in 60 districts in seven regions at subsidised prices. Slide 15
Agricultural Policies in Ghana Contd Savannah Accelerated Development Authority (SADA) There exist a development gap between the north and the south of Ghana. To bridge gap, SADA was born by an Act of Parliament; SADA Act 805 on 17 September 2010. SADA envisions a Forested North by 2030 where agriculture production is modernized and oriented towards a larger market The SADA initiative have six unique pillars: Development of a comprehensive regional and ecological strategy A model for the modernisation of agriculture Development of strategic infrastructure Strong linkage between Northern Savannah and the Sahelian Countries A vigorous private sector initiative that strengthens existing private operators Active support for Civil Society Organisations (CSOs) and NGOs, to support the developmental programme of the SADA area Slide 16
Agricultural Policies in Ghana Contd Ghana Commercial Agricultural Project (GCAP) In the govt quest to increase agriculture production, it collaborated with the World Bank to develop GCAP. GCAP seeks to improve the investment climate for agri- business and also develop Public-Private Partnerships (PPPs) aimed at increasing on-farm productivity and value addition in selected value chains. This is aimed at advancing the commercial goals of the Medium Term Agriculture Sector Investment Programme (METASIP) 2 Slide 17
Agricultural Policies in Ghana Contd Objectives/Goals of METASIP Food security and emergency Increased growth in incomes Increased competitiveness and enhanced integration into domestic and international markets Sustainable management of land and environment. Science and technology applied in food and agric development. Improved institutional coordination Slide 18
Topic Three PROSPECTS FOR THE AGRICULTURAL SECTOR IN GHANA Slide 19
Agricultural Productivity In the medium-term, policy initiatives will also be targeted at minimising post-harvest losses as well as the establishment of the appropriate sub-structures and links for the accelerated take- off of agro-industrialisation. Also, in the medium-term, policies to be implemented will aim at expanding the nucleus/outgrower scheme, where small farmers are attached to a nucleus farm, and/or an agricultural estate. The nucleus farms will identify and test seed varieties, develop growing techniques and provide extension, mechanisation and marketing services to the outgrowers. The outgrowers can access inputs and credit from the nucleus farmer. The nucleus farmer will ensure that good agricultural practices (GAPs) are adopted and standards enforced. This is expected to lead to an increase in output and quality for the smallholder farmers Slide 20
Accelerated Creation of Decent Jobs Agriculture will be transformed from subsistence to a business- oriented activity. This will be done by minimising the risks associated with farming. All proposed transformation activities will be undertaken in partnership with the private sector. The private sector will be given incentives to invest in commercial farming through the establishment of plantations and estates. They will partner the Government in the provision of mechanisation services, irrigation facilities and provide other services along the value chain such as haulage, storage facilities, processing facilities and marketing of the end product Slide 21
Agricultural Competitiveness and Integration into the Domestic and International Market In the medium-term, Government policy in this area will focus on achieving the following policy objectives: a. improve post-production management; b. develop an effective domestic market; and c. expand agriculture exports. Slide 22
Production Risks and Bottlenecks in Agricultural Industry The unpredictability in food supply and prices due to climate variability and other natural occurrences negatively impact on food security all-year-round, especially in the three northern regions. In order to address these challenges, Government will pursue the following objectives: a. promote irrigation development; b. improve agriculture financing; and c. promote sustainable environment, land and water management. Slide 23
Development of Agriculture Estates Agricultural Estates are commercial farming operations organised around one type of farming (open field or controlled environment) supported by irrigation. They undertake on-farm processing and therefore require the provision of utilities. The development of agriculture estates entails the provision of essential services including land clearance and preparation, machinery service centres, certified seeds and other inputs. These services are provided by the private sector leading to the creation of decent jobs in the agriculture sector. To promote the development of agriculture estates, Government will facilitate access to land (unused Government lands, including abandoned state farms, unused lands belonging to public institutions or support the private sector to lease land from traditional authorities) and the provision of infrastructure e.g. feeder roads, power and where appropriate irrigation. Slide 24
Livestock and Poultry Development In the medium to long-term, strategic measures will be taken to raise Ghana s livestock and poultry production to reduce the overdependence on imports and the corresponding negative impact on the national economy. Strategies to achieve the objective include increasing research into large- scale breeding and production of guinea fowls, cattle, sheep, and goats especially in the northern regions; support large-scale cultivation of maize and soya-beans for the formulation of animal feed to improve access to quality feed; improve access to watering resources; facilitate access of operators to technology and appropriate financial instruments to enhance their competitiveness; design appropriate interventions to address processing and marketing of livestock; increase awareness on food safety and public health and intensify disease control and surveillance especially for zoonotic and scheduled diseases. In addition, Government will support private sector initiatives for the large scale production of rabbits and grass-cutters. Slide 25
Fisheries and Aquaculture for Food Security and Income Generation In the case of aquaculture, the major intervention in the medium-term will be the full implementation of the Ghana National Aquaculture Development Plan (2012 - 2017). This will entail among others, ensuring the production of fish seed of high value, fish feed with the appropriate nutrients and support for private sector investments in the sub-sector as well as support for fish farmers associations. Slide 26
References Slide 27
