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Maize production costs increase by 600% in 5 years

The cost of producing maize has skyrocketed from GH¢1,200 per acre in 2020 to GH¢8,100 per acre in 2024, posing a serious threat to maize cultivation and food security, given its crucial role as a staple crop in Ghana.

This represents an alarming increase of over 500% in maize production costs per acre.

Over the past five years, the cost trajectory has been steep: starting at GH¢1,200 in the 2020/2021 season, nearly doubling to GH¢2,153 in 2021/2022, rising further to GH¢5,513 in 2022/2023, and reaching GH¢6,277 in 2023/2024.

This year, costs have surged from GH¢6,277 to GH¢8,100, compelling many farmers to reconsider maize cultivation altogether.

With an expected yield of 12 bags per acre and a selling price of GH¢250 per bag, farmers are projected to earn GH¢3,000 in revenue, which falls significantly short of the production cost of GH¢8,100.

Executive Director of Agrisolve Ghana, Elorm Goh, shared these concerning figures at the Graphic Business/Stanbic Bank Breakfast meeting, underscoring the profound economic challenges facing farmers.

The sharp rise in production costs can be attributed to escalating prices of seeds, fertilizers, and land preparation.

Seeds that once cost GH¢100 per acre now command GH¢1,100, while fertilizer costs have risen to GH¢2,820 per acre, and land plowing costs GH¢250 per acre. Ms. Goh highlighted these increases as consequences of currency depreciation and heavy reliance on imported inputs.

Ms. Goh emphasized that adverse weather conditions further compound these challenges, jeopardizing maize production and impacting industries such as poultry farming, which heavily relies on maize as feed.

Addressing these critical issues, Ms. Goh stressed the necessity for a holistic agricultural strategy, advocating for increased local seed production and reduced dependence on costly imports. She emphasized the urgency of comprehensive planning and investment across the agricultural value chain to enhance productivity and resilience.

Kwesi Korboe, CEO of GIRSAL, echoed concerns about food inflation, pointing out Ghana’s heavy reliance on food imports, particularly affecting the poultry sector. He emphasized maize’s critical role in poultry feed and called for measures to ensure competitive maize prices, vital for sustaining local poultry production and mitigating food inflation.

Mr. Korboe urged strategic initiatives to boost maize productivity in Ghana, essential for safeguarding food security and reducing dependency on expensive imports in the agricultural sector.

tigpost.co

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