Modernising Agriculture to Reduce Poverty

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Agriculture: Modernising Agriculture to Reduce Poverty

Introduction Annual rainfall varies between using rudimentary technology Agriculture is the backbone 800mm and 2,400mm, gener- to produce about 80% of the of the Ghanaian economy ally decreasing from south to total output. The production and a major foreign exchange north and from west to east. is primarily rain-fed. earner. It contributes about 35% to GDP, employs 55% of The agriculture sector is Performance the population on a formal made up of five major sub of the sector and informal basis and con- sectors – food crops, livestock, In spite of its importance, tributes about 45% of all fisheries, cocoa and forestry. growth has lagged behind export earnings. The aim of the sector is to other sectors of the economy ensure food security and and has been unpredictable, With a land area of some facilitate the production of as most farming is reliant 240,000 square kilometres, agricultural raw materials upon rainwater. Ghana produces a variety of for industry and agricultural crops in its three climatic commodities for export. Agricultural sector growth zones, which range from dry has averaged some 4.6 % savannah in the north through Agriculture is predomi- between 2000 and 2007. It transitional to wet forest, nantly practised on small- grew by 5.1 % in 2008 and which run in east-west bands. holder, family-operated farms posted a remarkable growth

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of 6.2 % in 2009, driven maize, 115% for plantain, include cotton, oil palm, rub- largely on account of good 117% for cocoyam, 214% for ber, coconut and sugarcane. rainfall patterns, good growth cassava to 350 % for yam. in the cocoa sub-sector and by As part of the government’s extension of the land under The main food crops grown export diversification program, cultivation, suggesting that the in the country include cassava, non-traditional export crops sector can indeed be a driver yams, plantains, maize, rice, have been heavily promoted of growth when the conditions peanuts, millet and sorghum, in Ghana. Pineapple, paw- are right. The forestry and among others. Ghana’s main paw, mango and cashew in logging sub-sector grew by export commodities are cocoa particular have received a lot 3.5 % while the fishing sub- and cocoa products, timber of attention under the export sector grew by 5.0%. and wood products, fish and diversification program. These efforts have resulted in an increase in the production and export of the fruits and pineapples in particular.

Cocoa Cocoa production is one of the cornerstones of Ghana’s economy. After gold, cocoa is the second largest foreign exchange earner. The country also prides itself as the second biggest producer of the com- The sector also witnessed fish products, shea nuts and modity after its western neigh- a marked improvement in coffee. Other industrial crops bour, Côte d’Ivoire. food production in 2009 as a result of various initiatives pursued by the government to revamp the sector. On top of the achievements were a 20 % increase in rice production and 5 % increase in maize production, while sorghum and millet production went up by 20 % each. Groundnuts and cowpea also recorded a 3 % growth rate each.

However, lack of techno- logical change and poor basic infrastructure impede a rapid growth of the sector.

Production Ghana’s agricultural production meets only 50% of domestic cereal and meat needs, 60% of domestic fish con- sumption and less than 30% of the raw materials needed for agro-based industries.

The level of self-sufficiency in food items varies from about 30% for rice to 92% for

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There are about 250,000 tonnes within the next three clear picture of the situation, cocoa farmers, each with years. To this end, interven- the opportunities and con- about five acres of land. In tions such as clearing of weeds, straints and provide some all, about 800,000 people are free supply of fertilizer and recommendations on the involved in the cocoa industry. free spraying of cocoa farms preliminary conditions nec- will be intensified to enable essary to revamp the cotton Cocoa production occurs farmers increase their yield industry. in the forested areas of the to meet the target. country where rainfall is The Government’s objec- 1,000 - 1,500 millimeters per The current installed tives in the medium term are year. The crop year begins in domestic processing capacity to increase the availability October, when purchases of is around 343,000 metric of improved planting mate- the main crop begin, while tonnes. This is in line with rial, enhance adoption of the smaller mid-crop cycle the target of processing 50 % improved agronomic prac- starts in July. of cocoa beans locally by the tices, promote large scale year 2010/2011 as a medium commercial farming and Ghana’s full season 2008/ term policy. rehabilitate irrigation dams. 09 cocoa harvest hit 710,638 tonnes, marking a 4.5% rise Industrial crops Irrigation over the previous season and The major industrial crops Although irrigation is the third best performance such as cotton, coconut, oil crucial to boosting agricul- since 1965. This was achieved palm and rubber are con- ture, less than 1% of arable as a result of implementation strained by unavailability land is under irrigation and of good policies such as remu- of high yielding planting the poor management of nerative producer prices (about material, poor agronomic existing systems further limits 70% of the net fob value) and practices and cultivation of their effectiveness. Formal payment of bonuses, effec- small holdings. public irrigation schemes are operating at about one-third of their design and capacity with low yielding and low cropping intensity because of poor operation and main- tenance of irrigation facilities, the latter partly due to inadequate cost recovery. It is therefore no surprise that irrigation has not as yet impacted significantly on Ghana’s food production.

The current area under cultivation is 11,000 ha whereas the potential area, including inland valleys, that could be developed for irrigation is estimated at tive diseases and pest con- In the case of cotton pro- 500,000 ha. trol exercise, and improving duction, government and the the agronomic practices on key players are facing serious Recognising the impor- cocoa farms. difficulties. The French Devel- tance of irrigation in the eco- opment Agency, Agence Fran- nomic development of Ghana, Ghana Cocoa Board, the çaise de Développement (AFD), Government in 2009 made state-owned company that has accepted to support the efforts to develop and improve purchases and exports cocoa, sector. AFD and the Ministry on existing irrigation facil- has projected to increase the of Food and Agriculture have ities, including the rehabili- country’s annual cocoa pro- agreed to conduct a diagnos- tation of 72 breached dams/ duction to one million metric tic study in order to have a dugouts which are now at

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aggregate level of 30% to 80% by the year 2015 and contribute to the reduction of the incidence of poverty among farmers, who are also livestock farmers, from 59% to 30% by the year 2015.

The key strategies are to: focus in improving animal health (using community animal health workers); improve access to quality feed and various stages of completion. duction of meat is insuffi- water; enhance performance Government has also con- cient to meet the growing of indigenous breeds through tracted a grant to finance a local demand. a programme of selection; feasibility study of the Accra develop commercial poultry Plains Irrigation Project. The challenges facing the as the priority for improving Detailed designs of 5,000 ha livestock sub-sector include meat supply in the short term; for the first phase of the devel- low genetic material of live- improve access of operators to opment of the project have stock species, poor manage- technology and appropriate been concluded and the imple- ment practices, inadequate financial instruments; advo- mentation will commence availability of quality feed, low cate fair trade; and advocate during 2010. The project when application of good agricul- an enabling environment for completed will be used to cul- tural practices in production, intensive urban and peri- tivate crops such as banana, handling and transportation urban livestock farming. soya bean, rice, pineapple, of livestock/livestock products mango, maize, groundnut and and poor quality of data and As part of the revitaliza- cowpea. This will help boost monitoring system. tion effort, the government agricultural production and contribute to the satisfaction of growing domestic demand for food and raw materials for agro-based industries in the country.

Livestock Livestock farming is mainly in northern parts of the country (Northern, Upper East and Upper West regions) and the Accra plains.

Cattle, sheep and goats, pigs, and poultry constitute the major types of livestock produced in Ghana. Of these, the poultry industry is the largest and most successful. It is estimated that the livestock population in Ghana is about 30 million heads. National Livestock Policy undertook to rehabilitate and The goals of the livestock restock the six cattle stations Commercial production policy are increasing the at Pong-Tamale, Ejura, Babile, of farm animals has grown supply of meat, animal and Kintampo, Amrahia and significantly over the past dairy products from domestic Nungua, but these efforts five years. However, the pro- production at the current have yet to bear fruit.

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To boost meat production industry plays a major role The fishing industry is for food in 2010, Government in sustainable livelihoods and based on fishery resources from will support selected poultry/ poverty reduction in several the marine and to a lesser livestock farmers, including households and commu- extent, inland or freshwater the youth, with brooded nities. The sector is estimated fisheries and aquaculture. chicks (cockerels) and small to contribute about 3 % of The Volta Lake, reservoirs, fish ruminants to enhance their the nation’s gross domestic ponds and coastal lagoons capacity to produce. Guinea product (GDP) and 10 % of are the main sources of inland fowl farmers are also to be the Agriculture GDP. For a or freshwater fish. supported with incubators to long time, fish has remained produce keets in the 3 northern the preferred and cheapest Marine fishing contributes regions. In addition there will source of animal protein with over 80 per cent of the total be a nationwide campaign about 75 % of total annual fish catch. The fisheries activ- to vaccinate local poultry, production being consumed ities in the marine sector range small ruminants and dairy locally. from artisanal to industrial, cattle against diseases. exploiting both pelagic and Besides, Government will In spite of the apparent demersal fish resources up to also levy duties to cut down potential of the fishing indus- 200 nautical miles (EEZ). The imports of poultry into the try, the sector has recorded small-scale artisanal marine country and to support local consistent decline in terms of fishing communities generally production. The target is that output over the years owing contribute about 30 per cent Ghana should be able to meet to climate change, overfishing of the traditional sector land- the domestic demand for and illegal fishing methods. ings. About 1.5 million people poultry by the year 2012. Fish landing was estimated depend on this sub-sector, at about 800,000 metric tonnes directly as fishermen and Fish per annum in the past but indirectly through fish pro- The importance of the this has fallen to an annual cessing and trade. fisheries sector in the socio- fish catch of 400,000 metric economic development of tonnes currently. Ghana, the Fish and fish products, the country cannot be over- fourth largest consumer of including shrimps, tuna loins emphasised. With a marine fish in Africa, now has to and canned tuna contribute coastline of 550 km, the fishing import fish to meet demand. to about 20 % of the total

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non-traditional exports of in 2008. That itself was some ber of the very many tree Ghana. The country earns US$50 million above the 2007 species which occur in Ghana’s over US$80 million annually figure. Timber is the fourth natural forest in order to take through fish exports. foreign exchange earner of the pressure off the better Ghana after gold, cocoa known traditional species. In a bid to increase pro- and tourism. The exports are duction of fish for consump- mainly to the European Union, TIDD has also a key role tion, Government will con- US, Asia and Middle East. in helping industry to create struct two fishing harbours, more value through additional twelve fish landing sites and The Timber Industry Devel- processing. The aim is to pro- cold-stores in the main fishing opment Division (TIDD) of the vide machined and shaped towns along the coast. The Forestry Commission works timber as well as compo- Government is also in the in support of the logging and nents and finished products. process of securing two fishing wood processing sector. It Significant increases have patrol vessels, for the moni- encourages a skilled and pro- been noticed in plywood, toring, control and surveil- gressive industry based on the sliced veneer and mouldings. lance (MCS) division of the sustainable use of forests and A total contract volume of fisheries commission, to providing a source of secure 129,580 cubic metres of wood enable them perform their employment, income, and products and 5,388 pieces of duties effectively in dealing career and skills development. furniture were processed and with illegal fishing methods. approved during 2009. TIDD is committed to Timber ensuring that Ghana will Management of the sector About one-third of Ghana’s maintain and increase its & Development Strategy land is forests and woodlands wood resource through the The Ministry of Food and Agriculture (MOFA) is the Ministry charged with the development and growth of agriculture in the country with the exception of the Cocoa- Coffee and Forestry sector. MOFA’s primary role is the formulation of appropriate agricultural policies, planning and co-ordination, as well as monitoring and evaluation within the overall national economic development.

Government’s agriculture development strategy is premised on the knowledge that agriculture has significant potential to grow beyond the levels experienced in recent years; that the high agricul- and the timber sub-sector is sustainable management of ture growth can only materi- crucial to the growth of the its Forest Reserves, the estab- alize through modernization agricultural sector. Within lishment of industrial wood and diversification, driven by the high forest zone there are plantations, the evolution of public investment and pro- 216 Forest Reserves legally a sophisticated bamboo indus- ductivity; and that modern- demarcated and controlled try, and the commitment of izing agriculture can change covering about 17,000 km2. local communities to the the face of rural Ghana and protection and responsible poverty. Earnings from timber in use of their forested lands. 2009 are estimated at US$400 TIDD is also encouraging the The overall objective of million from about US$300 industry to use a greater num- the agriculture moderniza-

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tion is to significantly increase • Inadequate supply and dis- enhance food security and the scale of production and tribution of inputs; increase agricultural trade. productivity, enhance food • Inadequate storage and • A well-established agricul- security, create employment marketing facilities; tural research system, which opportunities, and cut down • Poor infrastructure including has been successful in crop on the use of foreign exchange lack of irrigation development; improvement (eg cassava, for food imports. • High transport cost; maize, cowpea). • Land acquisition and land • Relative proximity to Europe The implementation of tenure issues; as an export destination the modernisation of agricul- • Low synergy among sub- compared to competitors in ture policy will be accelerated sectors of agriculture hence southern Africa and South through the implementation no opportunities for new America. of the Youth in Modern Agri- industries; • A flourishing horticultural culture Development Pro- sector with a knowledgeable gramme. Government will Strengths and private sector. take measures to encourage Opportunities participating youth to adopt Despite the challenges, The Ministry also believes appropriate, accessible afford- the sector has strengths and there are opportunities main- able and economically ben- opportunities which have ly for expanding agricultural eficial modern and yield been taken into consider- trade. These are: increasing technologies. ation in adopting strategies for developing the sector. The • New foreign direct invest- Challenges major strengths, according ment in horticultural and Despite the efforts at im- to the Ministry of Agriculture industrial production. proving agriculture in Ghana, are: • Expanding international the sector faces a number of • Diversity of commodities trade in high value horticul- challenges. Among them are: due to diverse agro-ecological ture commodities, in which the country has comparative advantages. • Initiatives to open up ECOWAS sub-regional market. • Preferential access to international market through bi- lateral agreements such as the US African Growth and Opportunity Act (AGOA) and the EU-ACP countries’ economic partnership.

Conclusion In order to achieve long- term agricultural growth, the Government needs to sustain and scale up both traditional and non-traditional agricultural export sectors. It also needs to boost productivity in food to meet rising local • Production is predominantly zones. This allows for easy demand and develop a viable rain-fed; diversification of farm pro- local agro-industry. That • Sector dominated by small- duction systems. way, the overall contribution holder farmers (80% of the • Well-endowed network of of agriculture to GDP will total output); water bodies which can be increase tremendously. • Low level of technology; tapped for irrigation. ■ • High post harvest losses; • Comparative advantage in • Low value addition; the production of roots and • Insufficient access to credit; tubers can be built on to

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