Transcript Inventory of processed foods Cities

Agro-processing in Ghana
Kwaw Andam
Ghana Strategy Support Program
International Food Policy Research Institute
Presentation to GSSP Side Event, ReSAKSS Annual Conference | Accra
October 18, 2016
Brief history
Pre-independence Post-independence
1980s and early 1990s
• Small-scale,
(mostly early 1960s)
• Partial liberalization
cottage
• State-led
and sale of stateindustries
industrialization to
owned factories
achieve import
• Entry of some cocoa
substitution
(Cadbury, Cargill) and
• Large factories for
palm oil processors
cocoa, sugar, tomato,
among others
2000s and 2010s
• Proliferation,
continued stateinvolvement
• Food imports
growing rapidly
• Attempts/plans to
revive large-scale
projects (Pwalugu
for tomato,
Komenda for sugar)
What is holding back the processing sector?




Low productivity and high cost of production
Scarcity of preferred varieties and poor quality
Transaction costs, transport, and infrastructure
Failure of contract farming and vertical integration as an
alternative to imports
Emerging opportunities due to…
Growth of urban and rural
populations in Ghana, 2000-2015
4. Expanding export markets (?)
14
12
10
• Especially shift to processed foods,
especially for urban consumers
8
3. Diet changes
Number of People (million)
• 2004 per capita GDP: $426
• 2014 per capita GDP: $1400
16
1. Urbanizing Ghana
2. Income growth
2000
2005
2010
Year
Rural Population
Urban population
2015
What’s for sale? Inventory of processed foods
 Cities: Accra, Cape Coast, Ho, Koforidua,
Kumasi, Sekondi-Takoradi, Sunyani, Tamale
 Stores: open-air stalls, street vendors,
traditional self-service shops, small shops with
registers, chain and non-chain supermarkets
 Categories of processed foods
• Accra: cereals, tubers, meats and fish, fruits and
vegetables, oils and fats, spices
• Other cities: cereals, tubers, tomatoes, poultry
 Inventory process
• Focused on products rather than shops
• Information on products, manufacturers, ingredients,
packaging quality
• Aimed to cover all products
What can we find on store shelves?
 A broad range of processed foods
• More than 1,779 unique products in Accra, including over 100 brands of rice
• 1,443 brands in Kumasi, Sekondi-Takoradi, Tamale
Processed food
Group
Kumasi
Tamale
Sekondi-Takoradi
Total
Milled grains, roots,
and tubers
422
191
339
952
Processed tomatoes
177
106
190
473
Packaged poultry
and eggs
8
1
9
18
Total
607
298
538
1443
Imports vs. Domestic Products
Main sources of imports
Shares of processed food products
Imported (%)
Domestic (%)
Country
Number of
products
Share of
imports
Vietnam
306
53
Thailand
168
29
India
30
5
China
252
70
Italy
37
10
United States
18
5
73
Accra
27
Rice
77
Sekondi-Takoradi
23
82
Tomato Paste
Tamale
18
76
Kumasi
24
0
10
20
30
40
50
60
70
80
90
Are there opportunities for processing?
 Yes, because…
• Import dominance is in rice and tomato, but a range of packaged, domestically-produced
products are available from processing cassava, groundnuts, maize, plantain – 291
locally-processed products in 3 cities;
• Modern supermarkets have greater product diversity, and are main outlet for domestic
food processors
• Comparing domestic and imported products, packaging quality is actually reasonably high
Packaging quality as a measure of competitiveness
Imported (%)
Domestic (%)
58.7
Nutrition Information
47.4
62.6
Bar code
64.6
99.6
Complex Packaging
68.4
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
Thank you!

Acknowledgements
• Co-authors: Ramatu Al-Hassan, Seth Asante, Xinshen Diao, Jed Silver, David Tschirley
• Reviewers: Todd Benson, Shashi Kolavalli

References
• Ackah, C., C. Adjasi, and F. Turkson. 2014. “Scoping Study on the Evolution of Industry in Ghana.”
UNU-WIDER: Learning to Complete Working Paper 2014/075. Washington.
• Andam, K., R.M. Al-Hassan, S.B. Asante, and X. Diao. 2015. “Is Ghana Making Progress in AgroProcessing? Evidence from an Inventory of Processed Food Products in Retail Shops in Accra.”
Ghana Strategy Support Program (GSSP) Working Paper No. 41. International Food Policy Research
Institute. Accra.
• Hollinger, F., and J. M. Staatz. 2015. Agricultural Growth in West Africa Market and Policy Drivers.
African Development Bank and Food and Agriculture Organisation. Rome.
• Robinson, E.J.Z., and S. Kolavalli. 2010. “The Case of Tomato in Ghana : Processing.” Ghana
Strategy Support Program (GSSP) Working Paper No. 21. International Food Policy Research
Institute. Accra.