Present Status and Future Prospects of Agricultural Machinery Industry in Ghana

Addo, A.; Amponsah, S. K.

2018

English

ISSN: 0084-5841 (print)

Agriculture plays a noticeable part in the economies of most developing countries in sub- Saharan Africa (SSA) (Dewbre and de Battisti, 2008). In Ghana, it has been the principal sector for the development and growth of the economy for several decades (Buri et al., 2011). Ghana Statistical Service (2017) reports that the agricultural sector employs an estimated 44.7% of the population and contributes 14.3% to the country’s Gross Domestic Product (GDP). According to Ghana Cocoa Board (2017), cocoa export alone generates about US$2 billion in foreign exchange, contributes approximately 57% of total agricultural export annually and is a major contributor to government revenue (30% of all export revenue) and GDP. Agriculture in Ghana is predominantly on a smallholder basis (less than 2 ha) using rudimentary technology to produce about 80% of the country’s total agricultural output, though its activities occupy 56% of the country’s total land area of 23,884,245 hectares (MoFA SRID, 2016). Due to the predominantly gentle slope nature of the country’s agricultural lands, effective agricultural mechanisation is favoured, especially in the Northern part of the country. Despite the contribution of agriculture to Ghana’s economic development, the sector suffers from some serious challenges. The Ghana News Agency (GNA), 2016 cited in a report, low level of technology, inadequate number of agricultural extension officers, shortage and high cost of labour, prevalence of pests and diseases, high cost of farm inputs, limited credit facilities, land disputes, poor marketing network and facilities, and low prices of farm produce as some of the constraints confronting the agricultural sector. It is therefore not surprising that agricultural productivity in Ghana and the sub-Saharan African region as a whole has been on the decline over the past decades owing to these challenges. Yields of maize and other staple cereals have typically remained at about 1.7 t/ha, which is about a third of the average achieved in Asia and Latin America (Abdulai et al., 2013). Studies by Wood (2013) report significant yield gaps for maize where actual yields are 50% to 80% less than achievable yields. Yields of most crops are still far below their potentials, and the level of modern agricultural mechanisation adoption in agricultural production and processing is still extremely low (Diao, 2010). Ghana depends heavily on imported rice with an estimated US$ 200-400 million worth of rice imports annually, accounting for more than 50% of all rice consumed in the country (USAID, 2009; Angelucci et al., 2013; Okine, 2014). Kumar and Kalita (2017) indicated that for most developing countries, between 30% and 50% of agricultural produce is lost due to poor harvest and post-harvest handling, storage and processing methods. Ghana’s agricultural production is principally rainfall dependent with only 2% of the total agricultural land currently under various forms of mechanised irrigation (MoFA SRID, 2016). The low productivity could be a direct result of smallholder farmers’ unfamiliarity with modern agricultural technologies. A worrying trend in Ghana and the SSA region is that agriculture is increasingly becoming unattractive to the youth (Naamwintome and Bagson, 2013; Awiah, 2015). The high level of drudgery, coupled with the unavailability of appropriate technology and equipment, especially during production and postproduction operations is a major cause of this situation. It is not uncommon to see majority of Ghanaian youth, who could have been actively involved in agriculture, venturing into other profit-making businesses including illegal smallscale mining popularly known as “galamsey”. This has led to labour shortages, causing unnecessary increases in labour cost for agricultural operations in most farming communities (Djokoto and Blackie, 2014). If appropriate measures are not taken, this could seriously threaten Ghana’s agricultural sector with the current ageing farmer population. Studies by CARD (2010) identified inadequate appropriate technology as a major problem that may constrain agricultural production in the country. The mechanisation of agricultural operations is an essential step toward increasing production efficiency (Kibaara, 2005). Amponsah et al. (2012) reiterated that without effective mechanisation, Ghana’s food and agricultural sector will not make the expected economic impact.

Addo, A., & Amponsah, S. K. (2018). Present status and future prospects of agricultural machinery industry in Ghana. AMA, Agricultural Mechanization in Asia, Africa and Latin America, 49(2), 87-94.