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Home Business Agribusiness

PFAG Urges Investment in Agriculture to Cut Ghana’s $2bn Food Import Bill

March 7, 2025
in Agribusiness
Reading Time: 4 mins read
0

The Peasant Farmers Association of Ghana (PFAG) is calling for urgent government intervention in the agricultural sector to curb the country’s alarming $2 billion annual food import bill.

The Association believes that with the right policies and investment, Ghana can produce much of the food it currently imports, ensuring food security and economic growth.

Acting Executive Director of PFAG, Bismark Nortey, has emphasized the need to prioritize mechanized farming, implement all-year-round agricultural systems, and introduce subsidies on essential farm inputs to make local food production more viable.

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One of the main concerns raised by PFAG is the rising cost of food production, which has significantly contributed to high food prices in the country. Speaking on the matter, Mr. Nortey stated, “Currently, one of the major causes of high cost of food is the fact that we are spending so much on production.”

The cost of agricultural inputs, including fertilizers, seeds, and pesticides, continues to rise, making it difficult for farmers, especially smallholder farmers, to sustain their businesses. Additionally, access to agricultural services remains expensive, further discouraging large-scale food production.

“We are spending so much on cost of input and agricultural services. These are because these things are so high. If the government can find a mechanism to either subsidize or reduce the prices of these inputs, then we can produce at low cost, and that will translate into high productivity.”

Bismark Nortey

Another major challenge facing Ghana’s agricultural sector is the continued reliance on traditional farming tools such as hoes and cutlasses.

Many farmers still lack access to mechanized equipment, which significantly limits productivity and efficiency. “If you go to a lot of farming districts, they have no access to mechanization, so we are still using the hoe and cutlass, which is not helping,” Mr. Nortey noted.

Without modern farming tools such as tractors, harvesters, and irrigation systems, smallholder farmers struggle to scale up their production. The absence of mechanization also discourages young people from engaging in agriculture, as farming is perceived as labor-intensive and unprofitable.

PFAG is advocating for a transition from rain-fed agriculture to all-year-round farming, which would significantly increase food production and reduce reliance on imports. Ghana’s agricultural sector is highly dependent on seasonal rainfall, making it vulnerable to climate change and unpredictable weather patterns.

Investing in irrigation infrastructure would allow farmers to cultivate crops throughout the year, ensuring a stable food supply. This move, according to PFAG, would make Ghana less dependent on imported food items and reduce pressure on foreign exchange reserves.

Reducing Ghana’s Dependence on Food Imports

Ghana currently spends approximately $2 billion annually on food imports, despite having the potential to produce many of these food items domestically. PFAG believes that a well-structured investment strategy targeting smallholder farmers and agricultural infrastructure could drastically reduce this import bill.

“If we are able to invest in agriculture—if we are able to invest in smallholder farming and infrastructure—I am sure the kind of monies that we spend on importing the food we have the capacity to produce… we are one step away from reducing our dependence on that food import.”

Bismark Nortey

Reducing food imports would not only save the country billions of dollars but also create jobs, enhance food security, and stimulate rural economies. A well-developed agricultural sector has the potential to drive industrialization, as local food production supports agro-processing industries and value-added agricultural enterprises.

For these proposed changes to be effective, PFAG is urging the government to implement policies that prioritize agriculture as a key driver of economic growth. Subsidizing agricultural inputs, providing access to affordable mechanization services, and expanding irrigation facilities are critical steps in achieving food self-sufficiency.

Additionally, the government must work closely with smallholder farmers to address their challenges and create an enabling environment for them to thrive. By supporting local farmers, Ghana can not only reduce its food import bill but also achieve sustainable agricultural development.

READ ALSO: Felix Kwakye Refutes Claims of Boated Presidential Staffers

Tags: agricultureFood ImportsPeasant Farmers Association of Ghana (PFAG)rain-fed agriculture
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