Market Trends of Agriculture In Ghana
Growing Fruits Production Supports the Market
Ghana's agricultural sector heavily relies on fruit production, which significantly enhances food security and export income. The country's tropical climate supports the cultivation of a wide variety of fruits, making Ghana a significant player in both regional and international fruit markets. The nation produces several fruits, including pineapple, mango, banana, citrus, and papaya. FAOSTAT reports that in 2022, Ghana's fruit production reached 6,539 thousand metric tons, surpassing other crops like cereals at 5,136 thousand metric tons, oilseeds and pulses at 1,381 thousand metric tons, and vegetables at 811 thousand metric tons. This increase is due to the expansion of the area dedicated to fruit cultivation, which grew from 485 thousand hectares in 2021 to 492 thousand hectares in 2022. The primary fruit-growing regions in Ghana are Greater Accra, Central, Eastern, and Volta.
The growing demand for fruit juices, dried fruits, and canned products has spurred growth in Ghana's fruit processing industry. Companies in this sector are concentrating on adding value to crops such as pineapples, mangoes, and papayas. In 2024, the U.S. Agency for International Development (USAID) allocated USD 440 thousand to enhance dried fruit production in Ghana. This funding aims to improve the processing capabilities of Pure and Just Limited, a Ghanaian company that converts fresh fruits like mango, papaya, pineapple, and banana into dried products using advanced agro-processing techniques. Consequently, the combination of high production, expanding cultivation areas, and increased demand from agro-processing industries drives market growth.
Cereal Imports dominate the Market
Cereal imports are crucial to Ghana's agricultural and food security framework. Despite being a significant agricultural player in West Africa, Ghana's domestic cereal production often fails to meet the rising demand, especially in urban areas. The increase in urbanization and changing dietary preferences have significantly boosted the demand for foods, including rice and wheat products. For instance, Ghana's urbanization rate grew from 58.6% in 2022 to 59.2% in 2023. Additionally, population growth continues to escalate the need for more food, further increasing the demand for cereals that local production alone cannot satisfy. Consequently, the country imports substantial quantities of cereals, such as rice, wheat, and maize, to address this shortfall.
According to the ITC trade map, cereal imports amounted to USD 304 million, oilseeds to USD 189 million, fruits to USD 44 million, and vegetables to USD 9 million in 2023. These imports primarily come from Vietnam, China, Thailand, and India. Vietnam holds the largest share at 77.6%, followed by 4.9%, 4.5%, and 4.3%, respectively. Additionally, rice, wheat, and maize constitute the major share of cereal imports in the country.
Moreover, climate change has disrupted rainfall patterns, temperatures, and extreme weather events (such as floods and droughts), leading to inconsistent cereal yields, particularly for maize and rice. Consequently, there are times when domestic production is insufficient, making imports necessary. Furthermore, the rising cost of inputs for cereal production in the country exacerbates the situation. According to the Ministry of Food and Agriculture Ghana, the price of hybrid maize seed increased from USD 0.5 in 2021 to USD 0.6 in 2022. These escalating input costs discourage farmers from producing these crops, thereby increasing the need for imports to meet local demand. Therefore, the growing local demand for cereals, coupled with production disparities, is driving market growth during the forecast period.
