Data from the Ghana Statistical Service shows that locally produced foods contribute more to inflation than their imported counterparts.
Data released by the Ghana Statistical Service highlights significant factors contributing to the recent rise in food prices across the country. Food inflation stood at 22.6% in May, down slightly from 26.8% in the previous month. However, detailed analysis reveals that locally produced food has been the main driver of this inflation, overshadowing the impact of imported food.
According to the data, locally produced food contributed 28.6% to national inflation, while imported food accounted for only 9.2%. This disparity highlights that the rising cost of locally produced food is the main cause of food inflation in Ghana.
Of the 20 products with the highest inflation rates, eight were locally produced foods, while only three were imported. The food subclass comprising vegetables, tubers and plantain experienced an inflation rate of 37.9%.
Several factors have been identified as contributing to the rising costs of locally produced food. A major factor is the cost of transportation from the farm to markets. Annual transport inflation was 20%, close to the national average.
However, monthly inflation, which reflects the current situation, saw a significant jump of 10.6% compared to the national average of 3.2%. This substantial increase highlights the impact of transportation costs on the prices of locally produced food, a concern frequently raised by traders.
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Additionally, low production levels due to competing uses of arable land have exacerbated the problem. Illegal mining activities, which destroy large areas of agricultural land, pose a major threat to local food production, agricultural sector analysts have noted. Ironically, mining communities are also key agricultural areas.
Another competing use of arable land is real estate development, often called “concrete plantations.” Large plots of land once used to grow crops such as maize, cassava and rice have now been converted into residential areas, particularly in cities like Accra.
Despite the government’s Planting for Food and Jobs initiative, implemented since 2017, the food situation remains disastrous. The initiative aimed to boost local food production but faced challenges that hampered its effectiveness.
As Ghana grapples with these challenges, the need for strategic interventions to stabilize food prices and support local farmers becomes increasingly urgent. Reducing transportation costs, protecting arable land from competing uses, and improving agricultural productivity are essential steps to alleviate the current crisis of food inflation.
