Agric becomes casualty of bad roads

The Deputy Minister of Agriculture, Alhassan Yakubu, has said bad roads, especially in rural farming communities, are retarding the growth of the agriculture sector which has grown by barely 1 percent per annum in the last two years.

“There are peculiar problems affecting the growth of agriculture. As a Ministry, we have identified bad road networks, particularly in the rural farming communities, as a key factor affecting growth of the sector,” he said.

The Minister was speaking to the B&FT at the opening ceremony of the Africa Cashew Alliance (ACA) World Cashew Festival and Expo 2013 in Accra. Asked why the country has not fully realised its potential as a major producer of cashew within the sub-region, Mr. Alhassan cited lack of research back-up and infrastructure as some factors that have bedeviled the cashew industry.

“Research capacity and infrastructure as well as the human resource level are some of the challenges that impede cashew production and agriculture as a whole,” he added.

Ghana’s agriculture has been living below its potential, characterised by low productivity and primitive farming methods. In 2011 and 2012, annual output growth in the sector barely managed 1 percent, compared to above 7 percent in 2008 and 2009.

Public officials have for decades talked of “modernising” the sector by increasing the use of modern machinery and accelerating the adoption of new technologies to raise productivity. The reality, however, is that much of the investment in agriculture is driven by Western donors -- government transfers are often only enough to pay salaries and keep institutions running -- who lately have shown a penchant for not fully honouring their commitments.

Cocoa, which is backed by strong state support including subsidies to farmers, has been one of the few bright spots in the sector -- with Ghana maintaining its position as the world’s second-biggest grower of the crop.

Cashew is seen as a cash-crop that could rival cocoa if it receives similar support. In 2012, the country produced 50,000 metric tonnes of raw cashew nuts, and with recent investment by Brazilians -- who are establishing a US$25million cashew processing plant in the country, experts in the sector say cashew looks set to be one of Ghana’s major export commodities; which will translate into the creation of incomes for Ghanaians.

The ACA World Cashew Festival and Expo 2013, which is on the theme “Value Chain and Gains”, is an annual event organised by the ACA and its partners to chart a way forward for growth of the cashew sector in Africa.

The event has brought together over 500 key players in the cashew industry from across the world -- including financial institutions, equipment manufacturers, processors, service providers, retailers, traders, exporters and farmers.

The Minister of Trade and Industry, Haruna Iddrisu, encouraged investors in the sector to take advantage of the free-zones policy that the country is offering to investors who wish to add value to Ghana’s raw cashew nuts.

“We are ready to give free-zones status to any company that wants to add value to raw cashew and to produce in Ghana, particularly for export. In this regard, we are ready to give you some tax-breaks and incentives to promote growth of the private sector.”

He said the President, John Mahama, will early next year announce stimulus packages for entrepreneurs, including five for the cashew sector.