¢300m won’t cut it – Buffer Stock CEO says Ghana needs ¢1.5bn to secure food reserves

The Chief Executive Officer of the National Food Buffer Stock Company (NAFCO), George Abradu-Otoo, has revealed that Ghana requires at least GH¢1.5 billion to establish a robust and effective national food reserve system capable of supporting farmers, reducing post-harvest losses and strengthening the country’s food security.

According to him, the GH¢300 million currently available to the company is insufficient to undertake large-scale purchases of surplus grains from farmers across the country, limiting the government's ability to build strategic food reserves.

Speaking on JoyNews’ PM Express Business Edition on Thursday, Mr. Abradu-Otoo explained that while the government has made a significant start by allocating funds to the Buffer Stock Company, the current level of financing falls far below what is needed to create a meaningful and sustainable reserve system.

“Last year, Minister of Finance Dr. Cassiel Ato Forson announced that they were giving us a further GH¢200 million to continue the good work that we were doing, so in other words, so far we had only GH¢300 million,” he stated.

He noted that the available funds have enabled the company to begin purchasing grains and building stock reserves, but stressed that the scale of operations remains limited due to funding constraints.

“If we need to do proper meaningful mopping up of excess grains, we need no less than GH¢1.5 billion, so you can imagine what GH¢300 million has done,” he said.

Mr. Abradu-Otoo described the government's intervention as an important milestone in Ghana’s efforts to improve food security and support agricultural production, particularly during periods of bumper harvests when farmers often struggle to find reliable markets for their produce.

“But it’s a good beginning because it hasn’t been done before. That’s where I draw my comfort from,” he added.

He praised the government's decision to prioritize the establishment of a national food reserve system, describing it as a strategic policy shift that could help stabilize food prices, protect farmers’ incomes and safeguard the country against future supply disruptions.

“It’s a good beginning for the government to even think in the first place that we need to have a national food reserve,” he noted.

The Buffer Stock CEO expressed concern that Ghana has lagged behind many countries within the West African sub-region in establishing strategic food reserves despite being one of the region’s leading agricultural producers.

“Because if you take the West African sub-region, Ghana is the only country that did not have a food reserve. Can you believe that?” he asked.

He pointed out that neighbouring countries, including Mali and others within the region, have long maintained national food reserve systems as part of broader strategies to protect citizens from food shortages, market volatility and emergencies caused by climate-related shocks or global supply chain disruptions.

“Interestingly, we can also have Mali and others that have national food reserves,” he added.

The call for increased funding comes amid growing concerns over food security, rising food prices, post-harvest losses and the need for stronger government interventions to support farmers and stabilize agricultural markets.

Agricultural experts have frequently highlighted the importance of strategic grain reserves in ensuring food availability during periods of drought, flooding, market disruptions and other unforeseen crises. Such reserves also help governments respond quickly to emergencies while reducing pressure on consumers during periods of supply shortages.

Mr. Abradu-Otoo believes that significantly increasing funding for the programme would enable the Buffer Stock Company to purchase larger volumes of maize, rice and other staple grains from farmers, thereby reducing waste and guaranteeing producers a ready market for their harvests.

He explained that a well-funded food reserve system would not only enhance national food security but also support economic growth by strengthening agricultural value chains and improving income opportunities for farmers.

As Ghana seeks to modernise its agricultural sector and improve resilience against food supply shocks, stakeholders say the development of a comprehensive national food reserve system could become a critical pillar of the country’s long-term food security strategy.