Ghana Food Manufacturing Study Commissioned by the Netherlands Enterprise Agency Ghana Food Manufacturing Industry Report An Analysis of Ghana’s Aquaculture, Fruits & Vegetable, and Poultry Processing Sectors 1 Contents ACKNOWLEDGEMENTS ................................................................................................................................. 7 INTRODUCTION .............................................................................................................................................. 8 SECTION 1: AQUACULTURE SECTOR ........................................................................................................... 10 Executive Summary Aquaculture Sector .................................................................................................... 10 1. OVERVIEW OF AQUACULTURE SECTOR IN GHANA ................................................................................ 11 2. VALUE CHAIN ANALYSIS: TILAPIA PROCESSING ..................................................................................... 13 2.1 Fingerlings Production ......................................................................................................................... 14 2.2 Fish Feed .............................................................................................................................................. 15 2.3 Tilapia Primary Production ................................................................................................................... 16 2.3.1 Scale of production ........................................................................................................................ 16 2.3.2 Production systems ....................................................................................................................... 17 2.4 Processing ........................................................................................................................................... 19 2.4.1 Smoking ........................................................................................................................................ 19 2.4.2 Salting .......................................................................................................................................... 21 2.4.3 Drying ........................................................................................................................................... 22 2.4.4 fermentation ................................................................................................................................. 22 2.5 Marketing and Trade of Tilapia ............................................................................................................. 24 2.5.1 Domestic trade .............................................................................................................................. 24 2.5.2 International trade ........................................................................................................................ 25 2.6 Structure and Operation of the Tilapia Processing Value Chain ............................................................ 25 3. CONSTRAINTS AND OPPORTUNITIES TILAPIA VALUE CHAIN ................................................................. 27 3.1 Critical Constraints to Market Growth .................................................................................................. 27 3.1.1 High cost of inputs ......................................................................................................................... 27 3.1.2 Fingerlings high mortality rate ....................................................................................................... 27 3.1.3 Insufficient supply of full-grown tilapia to secondary processors .................................................... 28 3.1.4 Weak access to finance .................................................................................................................. 28 3.1.5 Lack or inadequacy of equipment .................................................................................................. 28 3.2 Critical Opportunities for Market Growth ............................................................................................. 28 3.2.1 Export to ECOWAS market ............................................................................................................ 28 3.2.2 Supply of technical services ........................................................................................................... 28 3.2.3 Improving feed quality and lowering cost ...................................................................................... 29 3.3 Market Opportunities for the Dutch Private Sector ............................................................................... 29 3.3.1 Supply of feed................................................................................................................................ 29 3.3.2 Supply of culturing systems ........................................................................................................... 30 SECTION 2: POULTRY SECTOR ..................................................................................................................... 32 Executive Summary Poultry Sector ............................................................................................................ 32 4. OVERVIEW OF POULTRY SECTOR IN GHANA .......................................................................................... 33 4.1 Poultry Produce Production ................................................................................................................. 33 4.1.1 Consumption ................................................................................................................................. 34 2 4.1.2 Trade ............................................................................................................................................ 34 5. SUB-SECTOR ANALYSIS: PRIMARY PRODUCTION .............................................................................. 36 5.1 Day-old Chicks Industry ....................................................................................................................... 36 5.1.1 Domestic production ..................................................................................................................... 36 5.1.2 Supply of day-old Chicks ............................................................................................................... 38 5.1.2 Patterns and challenges of the day-old chick industry ................................................................... 39 5.2 Primary Production Industry ................................................................................................................ 40 5.2.1 Characteristics of primary production ............................................................................................ 40 5.2.2 Primary production ....................................................................................................................... 41 5.2.3 Supply of primary produce ............................................................................................................ 43 5.2.4 Patterns and critical constraints of primary production................................................................. 44 6. VALUE CHAIN ANALYSIS: BROILER PROCESSING ................................................................................... 46 6.1 Characteristics of the Broiler Processing Value Chain ........................................................................... 46 6.1.1 Scale of production and mode of processing.................................................................................. 46 6.1.2 Cyclical demand ............................................................................................................................ 46 6.2 Value-Addition Stages of the Broiler Processing Value-Chain............................................................... 47 6.2.1 Stage I: Broiler meat production .................................................................................................... 47 6.2.2 Stage 2: Processed meat packaging .............................................................................................. 48 6.2.3 Stage 3: Refrigeration ................................................................................................................... 48 6.2.4 Stage 4: Distribution ..................................................................................................................... 49 6.3 Supply of Broiler meat .......................................................................................................................... 50 6.3.1 Production capacity: Installed and actual ....................................................................................... 50 6.3.2 Broiler meat market segmentation ............................................................................................... 51 6.4 Constraints and Opportunities Broiler Processing Value Chain ............................................................. 53 6.4.2 Critical constraints to market growth ........................................................................................... 54 6.4.3 Critical opportunities for market growth ....................................................................................... 55 6.4.4 Market opportunities for the Dutch private sector........................................................................