MEDA Blog - Stories from the Field

The national picture of soy in Ghana

For much of the last month, I have been helping the market linkages team conduct a value chain update. This is part of a mid-way point evaluation of the GROW project to help inform possible future interventions in the remaining three years of the project.

The first two weeks of February were spent undertaking interviews with key actors at various levels of Ghana's soybean value chain, from the small village aggregators and market sellers, to large multinational firms. This saw us travel to border villages with Burkina Faso to the capital of Accra and many points in between.

The team carrying this out consisted of Hilda Abambire and Mohammed Fatawu, our value chain people in the project, myself, and the project manager, Ariane Ryan.

We started in Accra, meeting with equipment suppliers, and an industrial user of soybean oil – the Azar paint company. We then traveled to Ghana's second city of Kumasi and spoke with processing companies, the state seed distributor, financial institutions and poultry operators.

All throughout these interviews, one consistent theme arose: There is not nearly enough soy being produced in Ghana to meet the demand. The huge unmet demand for soybeans and its associated products in Ghana has meant this gap is being filled by imports of raw beans, soy oil and especially soy cake used in animal feeds.

This reliance on imports for a large portion of the country's demand for soybeans is a double negative for Ghana for two reasons. First of all, the country has great potential and many natural advantages to be able to grow substantially more soy. This is a missed opportunity not only for the country's agricultural sector, which could be growing a high value crop, but also for many potential downstream commercial activities – from milling and processing, to end product creation – that create more value. Secondly, importing soy adds to the trade deficit, one of the many large macro-economic difficulties facing the country.

However, there are positive developments. Farmers and other market actors are slowly beginning to realize the great potential in this previously relatively unknown crop. The pace of change is not as fast as we would like: Service providers, seed growers and other key actors are still not able to meet the demands of producers. Although, the market forces and price signals are slowly starting to turn increasing numbers of agriculture value chain actors towards the soybean. This, along with help from projects like GROW, and increasing attention and recognition from government policy makers on the crop, means Ghana's soy production is sure to increase in the coming years.

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