• In 2022, Ghana imported agricultural and related products worth USD 2.6 Bn. Food and agricultural imports will continue to grow as Ghana’s underdeveloped food processing sector is unable to meet increasing demand. Food imports include bulk, intermediate, and consumer-oriented commodities such as rice, wheat, soybean meal, and poultry.
• The 2023 top 10 leading suppliers of agricultural and related products to Ghana in descending order are Vietnam, Brazil, Burkinafaso, Canada, Netherland, Turkey, India, USA, Ivory coast and Russia. Imports of consumer-oriented food from the European Union remain strong.
• In Ghana, population growth is increasing, bringing with it a sharp expansion of the country's middle class. More than half (51%) of the population live in urban areas, a figure that is expected to increase by 3.1% per annum in the coming years.
• Despite the growing demand from consumers, Ghana's food processing sector remain largely underdeveloped. Although one would find a retail shop stocked with vast variety of processed foods, only a small percentage of the food consumed in Ghana are processed locally. The reality is that Ghana's processing industry remains low in capacity, with a wide gap that is filled by imports.
• Rice is one of the major food staples consumed in Ghana, but the production is way behind its actual consumption requirements. In 2020 the rice demand in the country is estimated to be 1.5 Mn tonnes, with hardly 40% demand met domestic production.
• Hence, Ghana depends largely on imported rice to make up for the deficit in domestic rice supply
• Vegetable consumption in Ghana is still relatively small but is expanding rapidly. Most important vegetables are tomato, pepper (both sweet and hot chilles), onion, and okra and their market and production has boomed recently.
• Rice and cereals is the largest imported food commodity in Ghana touching USD 581Mn imports in 2020 - almost one-fifth of the Ghanaian food importation meeting the country's deficit rice demand. Other major food items include meat, fats & oils, confectionery sugar and processed food items.
• Vietnam is the largest supplier of food items to Ghana with over 14% share in Ghanaian food imports, followed by Canada, Belgium, China, Malaysia, USA, Russia. Thailand, Vietnam, India and Pakistan are the largest rice suppliers to Ghana.

AGRO FOOD PROCESSING INDUSTRY IN GHANA

• The Food Processing industry in Ghana and West Africa is expected to grow by around 20% annually between 2020-2025 with domestic food processing and packaging in cocoa based and fruit based industry expected to increase production and processing capacity
• Ghanaian’s spend about 41% of their income on food and beverages. In 2013, total sales of packaged foods were USD 1,276 Mn.
• The Food Packaging Market is expected to grow at a CAGR of 4% during the forecast period 2017-2023. Consumer packaged goods are expected to boost their market value in the coming years by CAGRs between 13% and 16%.
• SMEs (Small to Medium Scale enterprises) form the major chunk of food processing industry in Ghana and West Africa: 85% of employment and contribute 70% to Ghana’s Gross Domestic Product (GDP). Majority of the food industries are located in Accra and Tema.

FACTORS OF CHANGE & DEVELOPMENT

• Rapid urbanization and an evolving middle class have triggered food consumption patterns and demand for convenient and quality foods/ pack food. With urban lifestyle and standard of living getting better, the demand for FMCG and processed food through formal markets and super markets, is increasing exponentially.
• With government attention for expanding the food processing capacity and growth of domestic sector for self-sufficiency, food security, employment creation and exports, the private players and MNCs are also focusing tapping the market, particularly in the resource based food processing sector.