September 30, 2020
Clickongh

#CitiBusinessFestival: Farmers urged to consider agro-processing to boost revenue

Commercial Manager at RMG Ghana, Martin Tettey Nartey, has advised farmers and other stakeholders within the agriculture sector to invest in the agro-processing sector to boost revenue and economic development.

He says the development of the agro-processing sector often has a stronger link to the agricultural sector than other sectors, and thus plays an important role in increasing GDP through the provision of additional goods.

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The country is said to import as much as 2.4 billion dollars’ worth of food every year, and helps in the production of a huge chunk of the world’s cocoa.

Speaking on the topic, “Understanding Commercial Agriculture” on the on-air series of the Citi Business Festival, Mr. Tettey Nartey said there ought to be more focus on the processing and manufacturing sector as Ghana cannot continue to import finished products when farmers in the country can venture into processing, storing, distribution, wholesaling, retailing and export.

“Processing and manufacturing are not the biggest, but in terms of turn over or revenue generation, you would say that they are. The reason being that, Ghana as a country helps significantly in the production of cocoa across the world. However, for the industry itself, we are enjoying just 2% of it. That means the production is important, but more focus needs to go to the processing and manufacturing. And that is where we can then change the raw materials into either semi-finished products or finished products to get more revenue,” he said.

He called on young entrepreneurs to consider venturing into the sector as it is a viable part of the value chain.

“An example is that, cocoa prices keep fluctuating year in year out, but the chocolate as the end product doesn’t fluctuate. That means that if Ghana or individuals who want to go into farming start focusing on processing and manufacturing, they can have a steady flow of revenue and can make more meaningful projects,” he said.

“The reason why people claim agriculture is risky is because revenue or income is not fixed, and whenever there is glut the farmer is punished and whenever there is scarcity the farmer benefits. So, if we can move beyond the production and the agriculture input supply into the processing and manufacturing, then we can make much returns,” he added.

The 2020 edition of the Citi Business Festival started on Monday, June 1, 2020, with an array of radio and TV programmes.

It is sponsored by the Ghana Investment Promotion Authority (GIPC), ABSA Bank, Citi FM and powered by Ghana’s most comprehensive business news website, www.citibusinessnews.com.

Source: Business