Adequate allocations will be made in next year’s budget for the construction of silos for the storage of grains, the Minister of Food and Agriculture, Eric Opoku, has disclosed.
He, therefore, urged the Ghana Food Buffer Stock Company (NAFCO) to play a critical role in putting up many silos to store the growing level of cereal production in the country.
Mr Opoku was speaking at the first Annual General Meeting of NAFCO in Accra last Thursday.
The AGM which was held on the theme, “Strengthening Food Security through Strategic Partnership,” provided an opportunity for the company to present its annual reports and financial statements for the financial years from December 31, 2010, through December 31 last year and account to shareholders on the stewardship of the board and management.
NAFCO’s reserve
He said strengthening NAFCO’s capacity to mop up excess production would help create a reliable market for farmers while ensuring that increased domestic production did not translate into losses for producers.
The minister said NAFCO currently had 20,443 tonnes of grains in storage, describing the stock as a step towards rebuilding the country’s strategic food reserves.
He said his ministry had worked with the board and management to strengthen NAFCO’s operations and rebuild its reserves after years of financial and operational constraints.
Mr Opoku also disclosed that the government had directed NAFCO to release 50,000 bags of grains to settle the country’s outstanding obligation to the Economic Community of West African States (ECOWAS).
He recounted that in 2018, the country borrowed grains from ECOWAS to support the School Feeding Programme.
“Today, by the grace of God and with the prudent management of the company, we have been able to procure enough, more than enough, for us to pay back what we borrowed,” he said.
The minister further directed NAFCO to ensure that suppliers contracted to support public feeding programmes purchased food directly from Ghanaian farmers rather than relying on imported produce
He attributed the improvement to stronger cost discipline and revenue growth.
He said NAFCO’s return on operating assets also rose from negative 63.80 per cent to positive 26.29 per cent, reflecting improved deployment and management of the company’s assets.
“Crowning these achievements, NAFCO paid GH¢20.3 million in taxes to the state in 2025, the highest annual tax contribution in its 16-year history,” he said.
Despite the improved financial performance, the CEO said the company continued to face operational risks, particularly in the area of working-capital management.
