The rice sector is gradually playing a visible role in the national economy of Ghana due to increasing dietary shift (i.e. from the traditional – kenkey, fufu, Gari etc.) to rice, particularly in the urban centres. However, current output of the country rice production sector is unable to meet this increasing local demand. Estimates vary, but it will not be an exaggeration to assume that more than 70% of the rice consumed in Ghana is imported (estimated cost of $450m each year). According to industry experts, given Ghana’s favourable agro-ecological conditions and other productive resources, the country can produce more than 300,000 tonnes of rice yearly for local consumption. Ghana has great potential to expand its present rice output if its vast area of inland valleys and swamps is efficiently exploited.
The abundant supply of agro-climatically suitable wetlands and water resources can support a large expansion in rice production especially along the Volta River. Currently, it is estimated that, less than 10% of the potentially suitable wetlands are exploited for rice because of various constraints. Therefore, Ghana government should accord high priority to developing the local rice sector as an important component of national food security, economic growth, and poverty alleviation measures. Proper development of the rice sector offers tremendous opportunities to provide sustainable jobs for the youth in the rural areas because of the labour-intensive nature of rice cultivation and processing. Expansion and intensification of operations along the entire rice value chain could provide additional sources of work and income for the rural poor, especially women.
Though the rapidly increasing domestic demand under normal circumstances should help local rice farmers leverage yields and expand their operations, chronic bottlenecks in the sector, such as a lack of modern inputs and capital investment to enable farmers fully exploit the sectors full economic potential has seriously affected the sector’s ability to be globally competitive. Lack of modern production technologies to enable farmers cope to abiotic stresses (i.e. drought, flood, erratic rainfall patterns, extreme temperatures, bush fires) and biotic constraints (i.e. weeds, diseases and pests) severely limit the sector’s output potential.
Also, domestic rice processors and service providers lack the necessary investment and capital to carry out downstream activities, including high-quality milling, packaging, branding and marketing. Furthermore, misconceptions regarding the quality and nutritional value of local rice as well as post-harvest inefficiencies in storage have hindered the growth of the sector. This is where an innovative public–private investment partnership is needed to support the intensification of local rice farming, processing and marketing in the country.
High capital demands vis-à-vis low investment in the sector has been described as the most common cause of low rice productivity in the country, hence future competitiveness of the sector will depend on how efficiently local inputs are converted into output along the entire rice value chain (i.e. on efficiency and productivity growth). In this regard, well-tested irrigated rice technologies from Asia and elsewhere could be introduced and adapted to local conditions to help mitigate the deficit of rice production while obtaining fast returns on those investments.
Increased private-sector investment is therefore necessary to help bring a revolution in the whole sector to meet international standard which allow efficient usage of modern technologies. In 2011, GADCO signed a 30-year lease on 1000 ha of land to develop high-quality rice crops. Currently, GADCO produces two annual harvests over 1600 ha of land, and plants new paddies each month. In April 2013 American multi-national AVCO acquired 500 ha of land in the Volta Region for rice cultivation, announcing plans to invest some $500,000 in the next three to five years.
Since Self-Sufficiency in rice production is an important component of national food security strategy, additional support (both private and public) through the provision of technical advice, supply of good-quality seed/seedlings, irrigation facilities and other inputs, including farm credit would be necessary for profitable and sustainable intensification of rice cultivation in Ghana.
As usual, your comments, questions and criticism are welcome
Author: Dr. Amos Mensah
Agricultural and Resource Economist, Consultant-GFA-Group, Researcher-Georg-August-Universität Göttingen
