Hot SourceThe Chamber of Agribusiness Ghana (CAG) is calling for a united front across the agribusiness and agro-industrial sectors to realign food prices in a bid to curb worsening food insecurity, economic strain, and malnutrition in the country.
In a statement signed by its Chief Executive Officer, Anthony Morrison, the Chamber urged all players within the agricultural value chain—from input suppliers and aggregators to food retailers and transporters—to urgently adjust their profit margins and reduce food prices to reflect current consumer realities.
“Ghana’s food system is under immense pressure,” the statement reads. “Soaring prices are putting nutritious diets out of reach for millions of Ghanaians, undermining national goals of food security and economic stability.”
The Chamber highlighted five compelling reasons why immediate price reductions are necessary:
- To prevent malnutrition and disease: Rising prices are forcing low-income households to shift from healthy foods to cheaper, nutrient-poor staples. This is fuelling malnutrition, micronutrient deficiencies, and increased vulnerability to non-communicable diseases.
- To keep farmers in business: With input costs skyrocketing, many farmers are scaling down production or abandoning their farms. Reducing post-farmgate margins could keep producers motivated and financially afloat.
- To contain food inflation: Persistent high food inflation is eroding incomes and savings while placing pressure on the Bank of Ghana to maintain high interest rates. According to the Chamber, “lowering food prices is one of the most effective levers to cool overall inflation.”
- To revive consumer demand and broader economic growth: Excessive food costs are squeezing disposable incomes, leading to a decline in demand for other goods and services. Lower food prices would free up household spending and stimulate the wider economy.
- To reduce waste and improve efficiency: The Chamber argued that inflated prices often hide supply chain inefficiencies. Price pressure would push businesses to cut operational waste and drive innovation.
While the Chamber is demanding responsibility and sacrifice from the private sector, it is also challenging government to deliver immediate, strategic interventions to address the structural challenges crippling the agricultural sector.
Key demands include:
- Tackling input cost volatility: Implement digitally managed input subsidy programmes and boost local seed and fertilizer production to reduce forex exposure.
- Combating post-harvest losses: Invest in climate-smart storage infrastructure and subsidise affordable post-harvest technologies.
- Fixing transportation & logistics bottlenecks: Rehabilitate feeder roads, regulate axle loads, and explore investments in rail and modernised trucking fleets.
- Improving access to affordable finance: Expand programmes like GIRSAL and create tailored financing instruments for SMEs across the value chain.
- Fixing market information gaps: Build robust, real-time market data systems and facilitate structured market linkages to reduce transaction inefficiencies.
“This is no longer just an economic issue—it is a matter of national survival,” Morrison declared.
The Chamber is urging its members to “adjust margins, innovate for efficiency, and make food affordable again,” while demanding from government the political will and investment to create an enabling environment for these changes to take hold.
The message is clear: Ghana cannot achieve food security or economic resilience without a bold, united front between private actors and public policymakers.
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