‘Feed the Industry’ Initiative’ — The Minister for Trade, Agribusiness, and Industry, Elizabeth Ofosu-Adjare has during a meeting with the CEO of the Ghana Investment Promotion Center (GIPC) announced that her outfit will soon launch of the ‘Feed the Industry’ project, a new initiative aimed at addressing raw material shortages in Ghanaian industries by creating direct supply chains between commercial contract farmers and manufacturing companies.
The policy seeks to foster stronger collaboration between the government, private sector, and investors to enhance agricultural output for industrial use.
However, Ghana has seen multiple attempts in the past to bridge the gap between agriculture and industry, many of which have failed to achieve long-term success. A closer look at these past initiatives offers insight into whether ‘Feed the Industry’ will be any different.
A Look at Past Interventions
Over the years, several policies have been introduced to boost agricultural production while ensuring supply to industries.
Operation Feed Yourself (1972-1978)
Launched under General Kutu Acheampong’s military regime, this initiative encouraged self-sufficiency in food production. The campaign mobilized citizens into agriculture, leading to an initial increase in food output. However, it lacked a structured market linkage between farmers and industries. Without clear supply chains, much of the excess produce was lost due to poor post-harvest management, leading to the initiative’s collapse.
Ghana Commercial Agriculture Project (GCAP) (2012-Present)
The GCAP sought to integrate smallholder farmers into commercial agribusiness value chains by attracting private sector investment. While it improved access to modern agricultural practices and infrastructure, its impact was mainly focused on export crops rather than supplying local industries. The challenge of ensuring a sustainable market for raw materials persisted.
Planting for Food and Jobs (PFJ) (2017-2023)
Introduced under President Akufo-Addo’s administration, PFJ aimed at boosting food production through subsidized inputs such as fertilizers and seeds. Though it increased local food availability, critics argue that it did not effectively link agriculture to industrial processing. Farmers faced difficulties selling excess produce, leading to post-harvest losses.
How does the ‘Feed the Industry’ Differ ?
While previous initiatives focused largely on increasing production, ‘Feed the Industry’ is according to the Minister designed to ensure that what is grown actually reaches processing factories. Some key differentiators include:
Contract-Based Farming Model
Unlike PFJ, which was heavily reliant on subsidies, ‘Feed the Industry’ will according to the minister establish a contract-based supply model, where farmers grow crops specifically for industrial use under guaranteed purchase agreements. This reduces uncertainty and ensures steady demand.
Targeted Investment into Priority Sectors
The new initiative will focus on specific crops that are crucial for Ghana’s industrial sector, such as maize, cassava, soya, and palm oil for food processing, as well as cotton for textiles. Previous policies were more general in scope, leading to inefficiencies in meeting industrial demand.
Stronger Private Sector Involvement
While past programmess were largely government-driven, ‘Feed the Industry’ seeks to bring in private investors who can fund processing plants, storage facilities, and distribution networks. This is expected to make the initiative more sustainable.
A Focus on Value Addition
Unlike earlier interventions that stopped at primary agricultural production, this initiative will emphasize agro-processing, ensuring that local industries benefit from a steady supply of raw materials.
Potential Challenges and Risks
Despite its promising approach, ‘Feed the Industry’ could face some of the same challenges that plagued its predecessors:
- Infrastructure and Logistics Constraints: Poor road networks and inadequate storage facilities could hinder the efficient movement of raw materials to factories.
- Policy Continuity: Many previous interventions collapsed due to political transitions. For this initiative to succeed, it must be insulated from political changes.
- Access to Finance for Farmers: Contract-based farming requires capital investment. Ensuring farmers have access to financing will be crucial.
Agribusiness Chamber welcomes project, says must be research based
Describing the plan as forward-looking , President and CEO of the Chamber of Agribusiness Ghana, Anthony Morrison, called for the raw material profiling to among others establish the level of demand both local and global.
