BTA Admin Ghana plans to allocate funds in the 2027 national budget for the construction of grain silos, as the government moves to address storage challenges and protect farmers from losses caused by excess agricultural production.
The Minister of Food and Agriculture, Eric Opoku, said adequate provisions would be made in next year’s budget to support the construction of silos to store maize and other cereals.
His announcement comes as Ghana records a significant maize surplus, producing approximately 4.6 million tonnes last year against an estimated national demand of 3.6 million tonnes.
The difference represents a surplus of about one million tonnes, raising the need for stronger storage infrastructure and more effective systems to purchase and preserve locally produced grains.
Speaking at the first Annual General Meeting of the Ghana Food Buffer Stock Company (NAFCO) in Accra on September 24, Mr Opoku called on the company to expand its storage capacity to match the country’s growing agricultural output.
Ghana’s 1 Million-Tonne Maize Surplus Raises Storage Concerns
Ghana’s rising maize production presents an opportunity to strengthen food security, but without sufficient storage facilities and reliable markets, farmers risk losing income when supply exceeds demand.
When large quantities of grains are harvested at the same time, limited storage capacity can contribute to post-harvest losses and put pressure on farm-gate prices.
Mr Opoku said NAFCO must play a central role in purchasing excess produce from farmers and storing it for future use.
He explained that strengthening the company’s ability to absorb surplus production would provide farmers with a more dependable market while helping prevent increased domestic output from resulting in financial losses for producers.
The planned grain silos are expected to support this effort by providing facilities where grains can be stored safely and made available when needed.
NAFCO Holds 20,443 Tonnes of Grains in Storage
The Agric Minister disclosed that NAFCO currently holds 20,443 tonnes of grains in storage as part of efforts to rebuild Ghana’s strategic food reserves.
He described the stock as an important step towards restoring the company’s capacity after years of financial and operational difficulties.
According to Mr Opoku, the Ministry of Food and Agriculture has been working with NAFCO’s board and management to improve operations and strengthen the company’s ability to support national food security.
He also directed the company to release 50,000 bags of grains to settle Ghana’s outstanding obligation to the Economic Community of West African States (ECOWAS).
The country borrowed grains from ECOWAS in 2018 to support the School Feeding Programme. Mr Opoku said Ghana had now procured sufficient quantities to repay the outstanding obligation.
Government Wants Public Feeding Programmes to Buy Ghanaian Food
The Minister has also directed NAFCO to ensure that suppliers contracted to provide food for public feeding programmes purchase produce directly from Ghanaian farmers rather than relying on imported food.
He said the use of imported food for programmes such as Free Senior High School could weaken demand for locally produced agricultural commodities.
According to Mr Opoku, purchasing food from Ghanaian farmers would help retain more public expenditure within the domestic economy, support local employment and create a reliable market for agricultural producers.
The directive forms part of the government’s broader effort to link domestic food production with public procurement and reduce dependence on imported agricultural products.
NAFCO Records GH¢91.7 Million Profit in 2025
Despite the operational challenges facing the company, NAFCO reported a major improvement in its financial performance in 2025.
The company’s Chief Executive Officer, George Abradu-Otoo, said NAFCO recorded a profit before tax of GH¢91.7 million in 2025, reversing a loss of GH¢19.4 million reported in 2024.
He described the latest result as the highest profit in the company’s history, surpassing profits recorded in previous years, including 2018, 2019, 2020, 2022 and 2023.
NAFCO’s gross profit margin also increased from 1.61 per cent in 2024 to 13.96 per cent in 2025, which the CEO attributed to improved cost management and revenue growth.
The company’s return on operating assets moved from negative 63.80 per cent to positive 26.29 per cent, reflecting improvements in how its assets were deployed and managed.
Mr Abradu-Otoo further disclosed that NAFCO paid GH¢20.3 million in taxes to the state in 2025, its highest annual tax contribution in its 16-year history.
Working Capital Remains a Challenge
While NAFCO’s latest financial results indicate an improvement in its operations, the company continues to face risks, particularly in managing working capital.
Working capital is essential for NAFCO to purchase grains from farmers, maintain storage operations and respond to changes in supply and demand.
Insufficient funds could limit the company’s ability to buy surplus produce during peak harvest periods, even when farmers have large quantities available for sale.
The proposed investment in grain silos, alongside efforts to strengthen NAFCO’s finances, will therefore be important to ensuring the company can fulfil its role in Ghana’s food security system.
Can Grain Silos Help Ghana Protect Farmers’ Incomes?
The planned allocation in the 2027 budget comes at a time when Ghana is seeking to increase agricultural production and improve the economic benefits farmers receive from their output.
However, producing more food does not automatically guarantee higher incomes for farmers. Storage capacity, access to markets, financing and effective procurement systems all influence whether increased production translates into better returns.
If the proposed silos are supported by adequate funding, reliable management and an effective grain purchasing system, they could help Ghana preserve surplus harvests, strengthen strategic food reserves and reduce pressure on farmers to sell produce immediately after harvest.
The success of the initiative will ultimately depend on how quickly the facilities are constructed, how much grain they can store and whether NAFCO has the financial capacity to purchase and manage the produce.
