GHANA — Ghana’s feed milling industry is grappling with a severe production crisis due to acute shortages and soaring prices of essential raw materials, particularly maize.
In an exclusive interview, Eric Manteaw, Executive Secretary of the Association of Feed Millers of Ghana (AFMOG), highlighted that the industry relies heavily on maize (50-55%) and soya beans (30%) for feed production.
However, the drought has led to a significant shortage of these raw materials, resulting in steep price hikes.
“Maize prices have escalated from GH¢200 (US$ 17.86) per 50 kg bag in January to around GH¢360 (US$ 32.14) per bag currently, a whooping 80% increase,” Manteaw explained.
The sector’s production capacity has plummeted from approximately 1,000 metric tonnes to around 700 metric tonnes, primarily due to escalating maize prices driven by ongoing drought conditions.
Manteaw noted that the 80% price increase over just eight months has caused volatility, forcing many feed millers to reject orders and drastically reducing production.
Manteaw emphasized that while the drought is the primary cause of the price hikes, other factors, such as raw material unavailability and supply-demand imbalances, also contribute.
“Those who have maize available are hoarding, further driving up prices. Normally, we would have harvested by now, but we’ve had to stock up instead,” he stated.
Despite the challenges, feed producers have raised their prices by only 8% to absorb rising costs and minimize the impact on consumers.
Manteaw, who also serves as CEO of Agricare Ghana, stressed that while his company continues to maintain quality, they have been forced to reject inconsistent-priced supplies, impacting production lines.
Call for Import Relief
Amid this crisis, the Ghana Poultry Farmers Association (GPFA) has urgently called on the government to issue maize import permits to mitigate the local shortfall.
The association argues that without sufficient domestic production, the poultry sector faces severe shortages, potentially causing a surge in chicken and other poultry product prices, especially with the festive season approaching.
Lawrence A. Tetteh, Executive Secretary of the GPFA, stated, “Ghana has not built its capacity in maize production. While we aim to enhance local production, we urgently need to import to bridge the current gap. Denying imports now could lead to a total collapse of the poultry industry.”
He clarified that the call for imports is not meant to replace local production but to ensure the industry’s survival under current conditions.
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