The Minister of Food and Agriculture, Eric Opoku, has disclosed that adequate allocations will be made in next year’s budget for the construction of silos for the storage of grains. This move aims to support farmers and ensure food security in Ghana. The announcement was made at the first Annual General Meeting of the Ghana Food Buffer Stock Company (NAFCO) in Accra on September 24.
Ghana produced 4.6 million tonnes of maize last year against an estimated national demand of 3.6 million tonnes, creating a surplus of about one million tonnes. The Agric Minister urged NAFCO to play a critical role in putting up many silos to store the growing level of cereal production in the country. This will help create a reliable market for farmers while ensuring that increased domestic production does not translate into losses for producers.
NAFCO currently has 20,443 tonnes of grains in storage, which is a step towards rebuilding the country’s strategic food reserves. The minister said his ministry had worked with the board and management to strengthen NAFCO’s operations and rebuild its reserves after years of financial and operational constraints. This effort aims to ensure that the country is better equipped to handle food production and storage.
The government has directed NAFCO to release 50,000 bags of grains to settle the country’s outstanding obligation to the Economic Community of West African States (ECOWAS). In 2018, Ghana borrowed grains from ECOWAS to support the School Feeding Programme. The Agric Minister noted that the country has been able to procure enough grains to pay back what was borrowed.
The Minister directed NAFCO to ensure that suppliers contracted to support public feeding programmes purchase food directly from Ghanaian farmers rather than relying on imported produce. This move aims to support local production and reduce reliance on imported food. The minister emphasized that purchasing imported food for programmes such as Free SHS undermines local production.
NAFCO has recorded significant financial improvements, with a net profit before tax of GH¢91.7 million in 2025. This is the highest profit made by the company, and it reflects improved deployment and management of the company’s assets. The CEO of NAFCO, George Abradu-Otoo, attributed the improvement to stronger cost discipline and revenue growth.
Despite the improved financial performance, NAFCO continues to face operational risks, particularly in the area of working-capital management. The company’s CEO emphasized the need to address these risks to ensure sustained growth and stability. The Agric Minister’s announcement of plans to include grain silos in the 2027 budget is expected to further support NAFCO’s operations and the country’s food security efforts.
Key points
- The 2027 budget will include allocations for the construction of grain silos to support farmers and ensure food security.
- NAFCO has recorded a significant increase in profit, with a net profit before tax of GH¢91.7 million in 2025.
- The Agric Minister has directed NAFCO to prioritize purchasing food directly from Ghanaian farmers for public feeding programmes.
