Ghana has experienced various phases of agro-processing development from pre-independence small cottage industries to current proliferation of factories and food imports. Key challenges include low productivity, poor quality crops, and infrastructure issues. However, opportunities exist due to urbanization, income growth, and diet changes. A study found over 1,700 unique processed foods in Ghanaian cities, with imports dominating rice and tomato paste but many domestic products available, showing potential to expand local processing.

1. Agro-processing in Ghana
Kwaw Andam
Ghana Strategy Support Program
International Food Policy Research Institute
Presentation to GSSP Side Event, ReSAKSS Annual Conference | Accra
October 18, 2016

2. Brief history
Pre-independence
• Small-scale,
cottage
industries
Post-independence
(mostly early 1960s)
• State-led
industrialization to
achieve import
substitution
• Large factories for
cocoa, sugar, tomato,
among others
1980s and early 1990s
• Partial liberalization
and sale of state-
owned factories
• Entry of some cocoa
(Cadbury, Cargill) and
palm oil processors
2000s and 2010s
• Proliferation,
continued state-
involvement
• Food imports
growing rapidly
• Attempts/plans to
revive large-scale
projects (Pwalugu
for tomato,
Komenda for sugar)

3. What is holding back the processing sector?
 Low productivity and high cost of production
 Scarcity of preferred varieties and poor quality
 Transaction costs, transport, and infrastructure
 Failure of contract farming and vertical integration as an
alternative to imports

4. Emerging opportunities due to…
1. Urbanizing Ghana
2. Income growth
• 2004 per capita GDP: $426
• 2014 per capita GDP: $1400
3. Diet changes
• Especially shift to processed foods,
especially for urban consumers
4. Expanding export markets (?)
8
10121416
NumberofPeople(million)
2000 2005 2010 2015
Year
Rural Population Urban population
Growth of urban and rural
populations in Ghana, 2000-2015

5. What’s for sale? Inventory of processed foods
 Cities: Accra, Cape Coast, Ho, Koforidua,
Kumasi, Sekondi-Takoradi, Sunyani, Tamale
 Stores: open-air stalls, street vendors,
traditional self-service shops, small shops with
registers, chain and non-chain supermarkets
 Categories of processed foods
• Accra: cereals, tubers, meats and fish, fruits and
vegetables, oils and fats, spices
• Other cities: cereals, tubers, tomatoes, poultry
 Inventory process
• Focused on products rather than shops
• Information on products, manufacturers, ingredients,
packaging quality
• Aimed to cover all products

6. What can we find on store shelves?
 A broad range of processed foods
• More than 1,779 unique products in Accra, including over 100 brands of rice
• 1,443 brands in Kumasi, Sekondi-Takoradi, Tamale
Processed food
Group
Kumasi Tamale Sekondi-Takoradi Total
Milled grains, roots,
and tubers
422 191 339 952
Processed tomatoes 177 106 190 473
Packaged poultry
and eggs
8 1 9 18
Total 607 298 538 1443

7. Imports vs. Domestic Products
24
18
23
27
76
82
77
73
0 10 20 30 40 50 60 70 80 90
Kumasi
Tamale
Sekondi-Takoradi
Accra
Shares of processed food products
Imported (%) Domestic (%)
Country
Number of
products
Share of
imports
Rice
Vietnam 306 53
Thailand 168 29
India 30 5
Tomato Paste
China 252 70
Italy 37 10
United States 18 5
Main sources of imports

8. 68.4
64.6
47.4
99.6
62.6
58.7
0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0
Complex Packaging
Bar code
Nutrition Information
Packaging quality as a measure of competitiveness
Imported (%) Domestic (%)
Are there opportunities for processing?
 Yes, because…
• Import dominance is in rice and tomato, but a range of packaged, domestically-produced
products are available from processing cassava, groundnuts, maize, plantain – 291
locally-processed products in 3 cities;
• Modern supermarkets have greater product diversity, and are main outlet for domestic
food processors
• Comparing domestic and imported products, packaging quality is actually reasonably high

9. Thank you!
 Acknowledgements
• Co-authors: Ramatu Al-Hassan, Seth Asante, Xinshen Diao, Jed Silver, David Tschirley
• Reviewers: Todd Benson, Shashi Kolavalli
 References
• Ackah, C., C. Adjasi, and F. Turkson. 2014. “Scoping Study on the Evolution of Industry in Ghana.”
UNU-WIDER: Learning to Complete Working Paper 2014/075. Washington.
• Andam, K., R.M. Al-Hassan, S.B. Asante, and X. Diao. 2015. “Is Ghana Making Progress in Agro-
Processing? Evidence from an Inventory of Processed Food Products in Retail Shops in Accra.”
Ghana Strategy Support Program (GSSP) Working Paper No. 41. International Food Policy Research
Institute. Accra.
• Hollinger, F., and J. M. Staatz. 2015. Agricultural Growth in West Africa Market and Policy Drivers.
African Development Bank and Food and Agriculture Organisation. Rome.
• Robinson, E.J.Z., and S. Kolavalli. 2010. “The Case of Tomato in Ghana : Processing.” Ghana
Strategy Support Program (GSSP) Working Paper No. 21. International Food Policy Research
Institute. Accra.