The Chamber of Agribusiness Ghana (CAG) has raised concerns about government's proposed US$64 million grain silo project, urging the Ministry of Food and Agriculture to prioritise investments in irrigation infrastructure, post-harvest facilities and farmer capacity building to boost productivity in the grains sector.

The Chamber is very concerned with the project's US$64 million price tag, considering the current economic climate and competing priorities for agricultural development.

In a statement signed by the Chamber's Chief Executive Officer, Anthony Morrison, CAG criticised the 60,000-tonne silo's proposed location in the Eastern Region, arguing that Bono, Ahafo, Ashanti, Volta and Upper West Regions are the primary hubs for maise and rice production, not Kwahu-Eastern Region.

"Investing in grain silos for these regions would yield greater economic benefits and have a more significant impact on the country's food security," CAG emphasised.

The Chamber is of the view that this US$64million could be re-aligned to allocate a significant portion that supports farmers, improves irrigation systems, deploys post-harvest and enhances agricultural research.

"The current project's location and a strategic reserve of this nature require careful consideration for accessibility, storage facilities and transportation networks. We fear that a poorly chosen location could lead to inefficiencies and increased costs. Furthermore, the analysis also reveals that Kwahu and Eastern Region are not major grain-producing areas in Ghana. The region's agricultural production is primarily focused on fruit, vegetables, cocoa, roots and tubers rather than grains," stressed CAG.

The Chamber buttressed its argument with statistical data which show that in the year 2023, maise and rice production were dominated by the Bono, Ahafo and Volta Regions.

"Ghana produced 3.7 million tonnes of maise in 2023. Major producing regions were Brong-Ahafo – 30%; Ashanti – 20%; and Upper West – 15%.

"Similarly, Ghana produced 1.9 million tonnes of rice in 2023. Major producing regions were Volta – 60%; Northern- 20%; and Upper West – 10%. How, then, does Eastern Region host the grains silo?" it quizzed.

CAG – as a policy, technical and trade advisory body – recommends exploring re-aligned solutions with strategic prioritisation for utmost impact instead of investing in a single, large-scale silo.

It opined that there are several experts and research findings out there which show investing in grain storage infrastructure is crucial, but location, capacity and cost are critical factors to consider.

"The decentralisation of storage facilities across major production zones; smaller, community-based storage units that reduce transportation costs and increase accessibility; public-private partnerships and strategic collaborations that leverage private sector expertise; and funding to improve agricultural infrastructure would be the best solution," it emphasised.

Agric diversification

Agricultural diversification supports farmers to grow a variety of crops, reducing dependence on a single crop and enhancing food security.

Constructing silos in major grain-producing regions like Bono, Ahafo, Ashanti, Upper West for maise and Volta Region for rice will yield more impact than the current option.

Investment in irrigation infrastructure to increase grain production, enhancement of farmer capacity building and extension services are some proposals the Chamber has made as an alternative.

"The Chamber believes that a more strategic approach to this project will ensure Ghana's agricultural sector receives the support it needs to thrive."