The Chamber of Agribusiness Ghana has voiced strong opposition to the government’s proposed $64 million project to construct a 60,000-tonne grain silo, citing concerns over cost, location, and broader priorities for agricultural development.
In a detailed press statement, the Chamber outlined its reservations, urging the government to reconsider the initiative and refocus on measures that directly benefit farmers and enhance the nation’s agricultural infrastructure.
The Chamber emphasized that while addressing food security is crucial, the proposed project’s financial implications demand scrutiny.
“The Chamber is very concerned with the project cost, the $64 million price tag, considering the current economic climate and competing priorities for agricultural development,” the statement read.
The Chamber argued that reallocating the project’s budget could significantly benefit the agricultural sector. Suggestions included boosting support for farmers, improving irrigation systems, investing in post-harvest infrastructure, and enhancing agricultural research.
The project’s proposed location in the Eastern Region’s Kwahu area was another contentious issue. According to the Chamber, Kwahu’s agricultural focus on fruits, vegetables, cocoa, roots, and tubers makes it unsuitable for a grain storage facility.
In contrast, the Bono, Ahafo, Ashanti, Volta, and Upper West regions are Ghana’s primary hubs for maize and rice production. The Chamber believes these regions should be prioritized for the facility.
“Investing in grain silos in these regions would yield greater economic benefits and have a more significant impact on the country’s food security,” the statement asserted.
Additionally, the Chamber highlighted that a poorly chosen location could result in inefficiencies, increased operational costs, and a limited impact on food security. It called for a feasibility study to evaluate the proposed site and its suitability for a project of this scale.
The Chamber cited research indicating that strategic investments in grain storage infrastructure in major production regions could reduce post-harvest losses by up to 30%.
Ghana’s Grain Import and Export Landscape
The Chamber’s concerns are underscored by Ghana’s significant reliance on grain imports. The Chamber noted that in 2020, the country imported 1.3 million tons of paddy rice while producing just 1 million tons locally. The annual cost of rice imports ranges between $300 million and $500 million.
“Interestingly, Ghana also exports maize, albeit in smaller quantities. In 2023, the country exported $987,699 worth of maize, with Malawi being the largest recipient (96% of total exports).
“Additionally, Ghana’s maize imports have fluctuated over the years, with significant increases in 2012 ($37.8 million) and 2018 ($22.8 million).”
Chamber of Agribusiness Ghana
These figures highlight the pressing need to address post-harvest losses and enhance domestic grain production. However, the Chamber believes that the current silo project, as proposed, does not align with the country’s immediate agricultural needs.
Agriculture Minister Bryan Acheampong announced the silo project as part of the government’s broader strategy to address food security challenges, particularly in the wake of a recent dry spell. He emphasized that the facility would help mitigate post-harvest losses and ensure a steady supply of grains during periods of scarcity.
However, the Chamber insisted that a more inclusive and sustainable approach is necessary. “We urge the government to reconsider the silo project and engage stakeholders in a comprehensive review of the project’s cost, location, and design,” the statement concluded.
The Chamber of Agribusiness Ghana’s opposition to the $64 million grain silo project highlights critical questions about agricultural development priorities in the country.
Its called for a strategic approach, focused on decentralization, public-private partnerships, and targeted investments in high-production regions, presents an alternative vision for addressing Ghana’s food security challenges.
As the debate continues, stakeholders will be watching closely to see whether the government heeds the Chamber’s recommendations or proceeds with its current plans. Ultimately, the success of any agricultural initiative will depend on how effectively it aligns with the needs of farmers and the broader goals of Ghana’s agricultural sector.
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