Govt Urges Agro-Processing To Absorb Farm Glut and Create Jobs

The Minister for Food and Agriculture, Eric Opoku, has called for a stronger national push into agro-processing as part of efforts to address excess farm produce, reduce post-harvest losses and create sustainable employment opportunities for young people.

He made the appeal during a courtesy visit to P&A African Food International Ltd; a Ghanaian owned agro-processing company located at Medie along the Accra–Nsawam Road, where he underscored the need to shift the country’s agriculture system from primary production to full value-chain development.

According to him, focusing solely on primary agriculture will neither generate the jobs needed to absorb the country’s growing labour force nor unlock the sector’s full potential. He stressed that the future of agriculture lies in agribusiness, where production is integrated with processing, storage, transportation, packaging and distribution.

“Investing in primary agriculture alone cannot give us the jobs we expect from agriculture, so we are looking at the entire value chain. We are shifting from agriculture as a survival activity to agribusiness to unearth the full potential of the sector,” he said.

The Minister noted that the country is currently experiencing high agricultural output but limited processing capacity, creating market challenges for farmers and underscoring the need for expanded infrastructure to absorb surplus produce.

“Our farmers have produced so much across the country. They are crying for market,” he said.

He commended P&A African Food International Ltd for investing in processing facilities that add value to farm produce for both domestic consumption and export markets.

P&A African Foods processes and exports a range of value-added food products under its Precious brand, including Plantain Fufu Flour, Palm Cream Concentrate and dehydrated kontomire, alongside maize- and cassava-based products for local and international markets.

Mr. Opoku further called for deeper collaboration between government and private sector processors, including structured buy-back arrangements to guarantee markets for farmers and encourage increased production.

“We want processors to have buy-back agreements with farmers so that farmers know who they are producing for. Give them the seeds, the skills and the assurance that once they produce, you are ready to take them,” he stated.

He highlighted ongoing government initiatives under the Agriculture for Economic Transformation Agenda and the Feed Ghana Programme, which aim to strengthen food self-sufficiency and reposition agriculture as a business-driven sector. He added that value addition remains central to the government’s 24-hour economy agenda.

The Minister also said government is working with development partners, including German-backed programmes, to support agro-processors with financing and technical assistance. Under these arrangements, eligible processors can access concessionary funding backed by bank guarantees.

He further disclosed that government is mobilising additional resources through donor support and financing arrangements to expand agro-processing capacity nationwide, including replication of successful small-scale processing support models.

Mr Opoku stressed that Ghana’s food import bill, estimated at about US$3 billion annually, represents lost opportunities for local job creation, urging increased consumption of locally produced goods.

“If you buy imported food, you are exporting jobs. But when you buy local, you are creating jobs here at home,” he said.

He encouraged young people to view agriculture and agro-processing as viable business opportunities with strong potential for wealth creation.

P&A African Food seeks support to scale operations

Management of P&A African Foods, led by Richard Mainoo, welcomed the visit and appealed for government support to scale up operations.

The company called for assistance in accessing equipment financing, working capital, storage infrastructure, transport logistics and donor-supported technology upgrade programmes.

Mr Mainoo said the company already exports to the United States, Canada and Europe but requires expanded capacity to meet rising demand and strengthen its role in Ghana’s industrialisation drive.