Ghana’s agriculture sector is projected to reach a compound annual growth rate (CAGR) of 4.2% between 2021 and 2026 driven mainly by a strong growth in the fruits and vegetables segment, according to Ghana Agriculture Market report analyses by Mordor Intelligence.
Mordor Intelligence highlighted that as the country is emerging with a large number of middle-class income families, the number of consumers demanding high-quality fruits and vegetables is increasing in the country.
“It is estimated that the domestic vegetable market in the country is growing at 10 % per year. Tomatoes, onion, and pepper are the most important vegetables in the country. The demand for fresh fruits such as pineapples is very high with mostly intended for export, domestic traditional markets, supermarkets, and fruit processing”.
Mordor Intelligence
There is also a growing demand for fresh fruits for processing juice for both local consumption and export. In order to boost the regional fruits trade, Mordor Intelligence stated that many companies such as Blue Skies, HPW Fresh & Dry, Peelco, and Pinora have established their own fruit processing units in the country which boosts the demand for fruits in the country.
Increasing Production of Fresh Vegetables
As a middle-income country, Mordor Intelligence indicated that vegetable production plays a major role in providing income and employment for a significant proportion of smallholder farmers and traders in Ghana. Tomatoes, okra, onions, and eggplant are the major vegetables produced in the country, according to the report.
According to Mordor Intelligence, most of these vegetables find a ready market, not only in cities, but also in rural areas. With the emergence of a large middle class, an increasing number of consumers in the country are demanding a higher quantity and quality of fresh produce. As a result, Mordor Intelligence, underscored that the domestic vegetable-market alone is growing which is estimated to drive the growth of the agricultural industry in the country.
To position the vegetables sector to meet the growing demands, Mordor Intelligence stated that the GhanaVeg program is being implemented by the Centre for Development Innovation (CDI). The program’s mission is to establish a sustainable and internationally competitive vegetable sector. This initiative targets the high-end domestic and international markets, such as high-end supermarkets, hotels, restaurants, and exports.
“The rise in the initiatives by the program may lead to a surge in the production of vegetables in the country which is leading the fruits and vegetable segment to be the fastest-growing segment”.
Mordor Intelligence
Impact of COVID-19 on agriculture
Agriculture is one of the important contributors to the country’s export earnings and also a major source of income for a majority of the population in the country.
COVID-19 has however, impacted negatively on agriculture in the country due to the disrupted distribution channels and shortage of labour. Mordor Intelligence highlighted that the strict lockdown in Ghana did not allow labourers to go to the field and work due to the lack of transportation. This led to delays in the harvesting of crops which resulted in lower yields than normal, further hindering the growth of agriculture sector in the country.
Rice is one of Ghana’s major food staples, but one in which the country is food insecure, with consumption exceeding domestic production and importing 66% of it consumed, according to Mordor Intelligence analyses. The economic cost of depending on imported rice is high and on the rise, Mordor Intelligence warned.
The market intelligence and Advisory firm expressed optimism that Government’s Industrialization and productivity improvement programs will increase the output of the agriculture sector, create jobs and encourage greater participation by the private sector.
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