CAG calls for sector-wide price reductions and urges gov't action to curb soaring food costs

The Chamber of Agribusiness Ghana (CAG) has issued a powerful nationwide call to action, urging all players in the agribusiness and agro-industrial value chain to collaborate in adjusting food prices downward in a bid to protect national food security, economic stability, and public health.
In a statement released on Sunday and signed by Aathony Morrision, Chief Executive Officer of
Chamber of Agribusiness Ghana (CAG) warned that Ghana's food system is under "unprecedented strain," with escalating food prices severely undermining consumer purchasing power and placing nutritious diets out of reach for millions.
The Chamber called for immediate, collective intervention from stakeholders in the input supply, commodity production, food retail, and transportation sectors.
“At a time when food inflation continues to batter households, inaction is not an option,” said Anthony Morrison, CEO of the Chamber. “Lowering prices is a shared responsibility. It’s a matter of national survival.”
The Chamber outlined five critical areas where price realignment could yield tangible benefits:
Curbing Malnutrition and Disease: Rising costs have pushed many families toward cheaper, less nutritious foods, increasing cases of stunting, wasting, and diet-related illnesses. Lower prices would restore access to essential nutrients.
Supporting Farmers: High input costs and low profitability are discouraging farming activities. Price adjustments downstream can maintain sustainable farmgate prices and keep farmers in business.
Reducing Inflation and Stabilising the Economy: Food is the largest component of Ghana’s Consumer Price Index (CPI). Making food more affordable can ease inflationary pressures, reduce interest rates, and stimulate broader economic growth.
Reviving Consumer Demand: With most of their income spent on food, consumers are cutting back on other goods and services, slowing the entire economy. Lower food prices would free up disposable income and stimulate other sectors.
Improving Efficiency Across the Value Chain: High retail prices often mask inefficiencies, including post-harvest losses and poor logistics. Pressure to reduce prices can drive operational improvements and innovation.
Alongside its appeal to the private sector, the Chamber issued a strong call to the government for urgent structural reforms. It highlighted several key challenges:
Volatile Input Costs: The Chamber called for well-targeted subsidy programs using digital platforms like e-vouchers, and a fast-tracking of domestic fertiliser and seed production.
Post-Harvest Losses: With losses estimated between 30%–50%, the Chamber recommended major investment in modern storage infrastructure and farm-level technologies such as hermetic bags and solar dryers.
Inefficient Transport and Logistics: The group urged urgent rehabilitation of feeder roads, promotion of rail transport, and enforcement of axle load regulations to reduce transport costs.
Limited Access to Finance: The Chamber asked the government to expand successful schemes like GIRSAL and develop new de-risked lending instruments to support agribusinesses along the entire value chain.
Poor Market Information and Coordination: It also calls for robust, real-time market information systems accessible by mobile platforms and stronger, structured market linkages, including contract farming.
In a clarion call to both public and private actors, Morrison stressed that Ghana’s food security can only be achieved through dual commitment.
“To our members and industry partners – now is the time to act. Streamline, innovate, and reduce your prices. To government – bold policy reform and targeted investment are essential,” he said.
Source: Classfmonline.com/Cecil Mensah
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