As the world marks World Food Day on October 16, the economic importance of investing beyond the farm gate is gaining attention in Ghana, where post-harvest losses, limited processing capacity and weak market connections continue to constrain the incomes of smallholder farmers.
The International Fund for Agricultural Development (IFAD) is highlighting how investments in the first mile of food value chains can strengthen rural economies, improve market access and enable producers to capture more value from their harvests.
The approach is particularly relevant to Ghana, where agriculture remains a major source of livelihoods and a foundation for the country’s agrifood industrialisation ambitions.
IFAD reports that its supported programmes have helped 49 million people increase their incomes, 39 million improve market access and 40 million raise production over the past three years.
The organisation also reports that every US$1 in donor contributions generates US$6 in investment on the ground through core contributions, loan reflows, investment income, borrowing and co-financing.
“Food is never just food: in rural areas, it can become an engine for economic growth.”
International Fund for Agriculture
Post-Harvest Losses Undermine Rural Incomes
For Ghana, increasing agricultural production alone will not guarantee higher rural incomes unless farmers can preserve, process and sell their produce efficiently. Inadequate storage, limited cold-chain facilities, poor feeder roads and insufficient processing equipment can leave farmers with fewer opportunities to negotiate favourable prices.
A report published in August 2024, citing the World Food Programme, put Ghana’s annual economic losses from post-harvest waste at approximately US$1.9 billion. The report also cited estimates that such losses can deprive farmers of about 30 per cent of their incomes.
These figures underline the economic cost of failing to connect production with storage, transportation, processing and reliable markets. Perishable commodities such as tomatoes, pineapples, mangoes and vegetables are particularly vulnerable when harvesting coincides with inadequate storage or limited buyer demand.
IFAD’s example from Meghalaya, India, demonstrates how targeted infrastructure can improve the value farmers receive. A US$200,000 investment in machinery and cold storage is helping a cooperative process pineapples and other produce into higher-value products. Farmer earnings reportedly increased from INR 2–3 to as much as INR 12 per pineapple.
Although the results cannot automatically be replicated in Ghana, the example illustrates how processing and preservation can change the economics of agricultural production.
”By supporting productivity, post-harvest handling, local value addition and market connectivity, these investments help producers capture a greater share of the value they generate.”
International Fund for Agriculture
Agrifood Investment Offers a Path to Growth
Ghana already has experience with value chain development initiatives designed to connect smallholder farmers with agribusinesses and markets.
The Ghana Agricultural Sector Investment Programme (GASIP), supported by IFAD and the Government of Ghana, promotes private-sector-led agricultural value chains, rural infrastructure, access to finance and climate-resilient production. Its priority commodities have included cassava, yam, maize, sorghum, fruits and vegetables.
The programme’s underlying approach recognises that farmers need more than production inputs. They also require dependable buyers, business relationships, appropriate technologies and financing that allows them to respond to commercial opportunities.
The report also documented additional sales of 108,947 tonnes of maize, 12,456 tonnes of rice and 6,244 tonnes of soybean among programme participants.
These results demonstrate the potential of combining improved production practices with stronger commercial linkages. However, increased output must be matched by sufficient demand, storage and processing capacity to prevent oversupply and downward pressure on farm-gate prices.
“Inclusive value chains are essential for agriculture to create jobs and stimulate economic growth in rural areas, both on and off the farm.”
International Fund for Agriculture
Infrastructure and Market Access Remain Critical
Ghana’s wider agricultural transformation agenda also recognises the importance of connecting producers to markets. The World Bank-supported AgriConnect Compact, launched in June 2026, seeks to strengthen food security, create jobs, reduce food imports and mobilise investment across priority agricultural value chains.
Its first phase, covering 2026–2030, estimates financing needs of approximately US$3.5 billion. The initiative targets improvements in irrigation, mechanisation, farmer services, agro-processing and logistics, with priorities including cocoa, oil palm, rice, maize and poultry.
The government and its development partners face the challenge of ensuring that such investments translate into measurable improvements in productivity, profitability and rural employment.
For smallholder farmers, access to affordable storage and processing services could reduce distress sales immediately after harvest, while cooperative marketing and contractual arrangements could strengthen their bargaining power. For agribusinesses, reliable supplies of quality raw materials could support factory utilisation, product consistency and investment in domestic processing.
IFAD’s rural development model also places importance on institutions and partnerships that coordinate farmers, processors, traders, input suppliers and financial institutions. Such coordination can help address the fragmented nature of agricultural markets and reduce the costs of connecting rural producers with commercial buyers.
“Every US$1 in donor contributions translates into US$6 of investment on the ground through core contributions, loan reflows, investment income, borrowing and co-financing.”
International Fund for Agriculture
As Ghana marks World Food Day, the central economic question is how much value the country can retain from the food it produces. Increasing output remains important, but sustained rural prosperity will also depend on reducing post-harvest losses, expanding local processing, improving transport and storage infrastructure, and building dependable markets.
For the country’s agricultural and agrifood sector, investing in the first mile of food value chains offers an opportunity to turn harvests into higher incomes, competitive enterprises and stronger rural economies.
READ ALSO:Analyst Warns Ghana Against Shifting Dependence From West To East
