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Chamber of Agribusiness Ghana warns of imminent food price hikes

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The Chamber of Agribusiness Ghana has warned of an imminent increase in food prices in the country due to rising prices of fertilizer worldwide.

According to the chamber, rising prices of fertilizers are causing shortages worldwide and are likely to impact the production of food in the country, especially as Ghana is a net importer of fertilizer.

In a statement, the chamber said prices of cereals and grains are expected to increase significantly from the first quarter of 2022.

“Unfortunately, fertilizer is currently in short supply, especially fertilizers of the synthetic variety, primarily due to the soaring gas prices. Soaring natural gas prices have forced the closure of two large UK fertilizer plants, sparking warnings of a looming shortage of ammonium nitrate that could hit food supplies as record energy prices start to reverberate through the global economy. At those rates, it is costing fertilizer manufacturers a lot more to produce, and they cannot purchase natural gas at the current price to produce and make profit,” it said.

The Chamber added that, “Food inflation is imminent. As a net importer of fertilizer with no manufacturing capacity, the shortage is expected to drive up fertilizer prices, which increases a major component of farmers crop budget: Food prices, especially grains and cereals are expected to increase significantly from the first quarter of 2022 through to the second quarter of 2023. Cereals and grains will see a surge between 30 and 45 percent with a higher percentage increase at the urban areas within the same period.”

The Chamber of Agribusiness Ghana is therefore asking the government to immediately facilitate the procurement of fertilizer and agro chemicals for the 2022/2023 food season to prevent any catastrophe.

It also wants the government to promote the production and use of organic fertilizer, while plans are expedited to state the production of synthetic fertilizer in the country.

Read the full statement below:

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