CAG criticizes government’s US$64M silo project, advocates strategic agricultural investments

GHANA – The Chamber of Agribusiness Ghana (CAG) has expressed serious concerns over the government’s proposed US$64 million grain silo project, questioning its cost, location, and overall strategic impact.

The Chamber is urging the Ministry of Food and Agriculture to consider alternative investments that would more effectively address the needs of the grains sector and enhance national food security.

In a statement signed by its Chief Executive Officer, Anthony Morrison, CAG highlighted the economic climate and competing priorities within the agricultural sector.

The Chamber noted that the proposed silo, which is planned for Kwahu in the Eastern Region, does not align with Ghana’s primary grain production zones.

Bono, Ahafo, Ashanti, Volta, and Upper West Regions, which are responsible for the bulk of maize and rice production, were identified as more suitable locations.

The Chamber underscored the strategic importance of aligning such projects with production data, emphasizing that in 2023, Ghana produced 3.7 million tonnes of maize, with Brong-Ahafo contributing 30 percent, Ashanti 20 percent, and Upper West 15 percent.

Similarly, rice production reached 1.9 million tonnes, with the Volta Region accounting for 60 percent, followed by the Northern Region with 20 percent and Upper West with 10 percent.

CAG questioned the rationale for situating the silo in Kwahu, a region whose agricultural focus is predominantly on fruits, vegetables, cocoa, and tubers, rather than grains.

The Chamber argued that a poorly chosen location for the silo could lead to inefficiencies, increased transportation costs, and limited accessibility for farmers.

Instead, it advocated for a decentralized model of grain storage facilities, proposing smaller, community-based silos distributed across major production zones. This approach, according to CAG, would reduce logistical challenges and deliver greater economic benefits to farmers and consumers alike.

Push for strategic agricultural investments

CAG also raised concerns about the US$64 million budget for the project, suggesting that the funds could be more effectively spent on initiatives such as improving irrigation infrastructure, strengthening post-harvest handling systems, and providing training and support for farmers.

By focusing on these areas, the Chamber believes the government could significantly boost productivity in the grains sector and ensure long-term food security.

The statement emphasized that while investment in grain storage infrastructure is crucial, the capacity, location, and cost of such projects must be carefully considered to maximize their impact.

CAG also advocated for greater public-private collaboration to bring in expertise and funding that would complement government efforts in building a resilient agricultural sector.

In addition to its recommendations on storage infrastructure, the Chamber stressed the importance of agricultural diversification. Supporting farmers to cultivate a variety of crops could reduce dependence on a single staple and enhance the country’s overall food security.

The Chamber urged the government to prioritize irrigation infrastructure and extension services, which are critical for increasing grain production and supporting farmers’ livelihoods.

The Chamber concluded by calling for a strategic reassessment of the proposed silo project, arguing that Ghana’s agricultural sector needs targeted, data-driven interventions to thrive.

Constructing silos in the major grain-producing regions, coupled with investments in infrastructure and farmer capacity, would yield far greater benefits than the current proposal, CAG stated.

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