Ghana plans to expand its new grains storage ahead of 2027 as rising domestic cereal production creates new opportunities and challenges for the agricultural business sector.

The Minister of Food and Agriculture, Eric Opoku, says adequate funding is being provided in the 2027 national budget for the construction of silos to increase the country’s capacity to store maize and other grains.

Also, he is calling on the National Food Buffer Stock Company (NAFCO) to take a leading role in developing additional storage facilities to accommodate growing production.

The announcement comes at a time when Ghana’s maize output is exceeding estimated domestic demand. According to the minister, the country produces about 4.6 million tonnes of maize in 2025, compared with estimated national demand of 3.6 million tonnes, leaving a surplus of approximately one million tonnes.

For the agriculture business sector, the development highlights the increasing importance of post-harvest management, warehousing and structured markets as government policies seek to raise food production.

Mr Opoku makes the announcement at NAFCO’s first Annual General Meeting in Accra on September 24, held under the theme, “Strengthening Food Security through Strategic Partnership.”

The meeting provides a platform for the company to account to its shareholders and present its annual reports and financial statements covering the period from December 31, 2010, to December 31, 2025.

Adequate Storage Facilities for Farmers

The minister says increased agricultural production must be supported by adequate storage facilities to prevent farmers from losing income when supply exceeds immediate market demand.

“Government is making adequate allocations in the next budget for the construction of silos. NAFCO must play a critical role in expanding the country’s storage capacity. This is necessary to manage the growing production of cereals.”

Minister for Food and Agriculture, Hon. Eric Opoku

The expansion of storage infrastructure is particularly significant for farmers who experience difficulties selling their produce during bumper harvests. NAFCO has already been intensifying efforts to secure additional warehouses as part of the National Food Reserve Programme, which is designed to purchase surplus grains, store them and release them when required.

The company’s storage programme is also expected to contribute to reducing post-harvest losses and improving market stability. In May 2026, NAFCO indicated that it needed about GH¢770 million to purchase excess rice and other grains from farmers, highlighting the scale of financing required to absorb surplus production.

Mr Opoku says NAFCO currently holds 20,443 metric tonnes of grains in storage, describing the stock as part of efforts to rebuild Ghana’s strategic food reserves. The Ministry of Food and Agriculture says the government is also working with NAFCO to strengthen procurement planning, storage and inventory systems.

The minister further discloses that government directs NAFCO to release 50,000 bags of grain to settle Ghana’s outstanding obligation to the Economic Community of West African States (ECOWAS).

The obligation originates from a 2018 arrangement under which Ghana borrows grains from ECOWAS to support the School Feeding Programme. Mr Opoku says the current level of domestic grain stocks allows the country to repay the obligation while continuing to strengthen its food reserve.

“Ghana is now able to meet this obligation from its available grain stocks. We have procured enough, and more than enough, to repay what the country previously borrows. This demonstrates the importance of strengthening domestic production and food reserves.”
Minister for Food and Agriculture, Hon.Eric Opoku

Suppliers Must Get Involved in Public Feeding Programme

Beyond storage, the minister is also asking suppliers involved in public feeding programmes to source food directly from Ghanaian farmers. The directive covers programmes such as Free Senior High School feeding, where the government wants public expenditure to generate stronger demand for locally produced agricultural commodities.

The approach has implications for the wider agribusiness value chain because increased local procurement can create markets for farmers, aggregators, transport operators, processors and other businesses involved in food distribution.

NAFCO’s financial performance is also emerging as an important part of the company’s renewed focus on food security. Chief Executive Officer George Abradu-Otoo says the company records a pre-tax profit of GH¢91.7 million in 2025, compared with a loss of GH¢19.4 million in 2024. The company’s gross profit margin also rises from 1.61 per cent to 13.96 per cent over the period.

Mr Abradu-Otoo attributes the improvement to stronger cost management and revenue growth. He also reports that NAFCO’s return on operating assets improves from negative 63.80 per cent to positive 26.29 per cent.

“The 2025 performance represents a major financial turnaround for NAFCO. The company records its highest pre-tax profit of GH¢91.7 million in that year. We also strengthen our contribution to the state by paying GH¢20.3 million in taxes.”
NAFCO CEO, Abradu-Otoo

Despite the improved financial results, the CEO says NAFCO continues to face operational challenges, particularly in working-capital management. This remains important because the company requires sufficient financing to purchase surplus agricultural commodities when farmers need a guaranteed market.

An Investment Proposal for Farmers

The government’s proposed investment in silos therefore forms part of a broader effort to connect increased farm production with storage, procurement, processing and distribution. Recent NAFCO initiatives also include rehabilitation of warehouses in locations such as Yendi, Tamale, Wenchi, Sunyani and Kumasi to improve food storage and preservation.

The development comes alongside other agricultural interventions under the Feed Ghana Programme, which seeks to increase productivity and strengthen food security. The government has also been supporting farmers through inputs and agricultural technologies, including fertiliser and farm drones distributed to farmer groups earlier in 2026.

For Ghana’s agribusiness sector, the central issue is increasingly shifting from production alone to how effectively the country stores, finances, processes and markets the food it produces.

With maize production already exceeding estimated domestic demand, expanded silo capacity could provide additional infrastructure for managing surpluses while supporting farmers and businesses across the agricultural value chain.

The success of the strategy will depend on financing, efficient procurement, reliable storage systems and strong coordination between government, NAFCO, farmers and private-sector operators.