NAFCO inaugurates 10-member Producer Price Committee

The National Food Buffer Stock Company (NAFCO) has inaugurated a 10-member Producer Price Committee (PPC) in Accra ahead of the commencement of purchases towards the revival of the National Food Security Reserve (NFSR). 

The committee is expected to determine the price threshold to guide the purchases of selected food commodities from markets and farm gates as the government’s response to reports of food gluts in some parts of the country.  

As part of its mandate, NAFCO is expected to manage a national food reserve to address emergency needs and to help stabilise prices in lean seasons, aside from helping to address post-harvest challenges for farmers, a situation which has militated against agricultural productivity for many years. 

Membership

The committee is made up of representatives of the Ministry of Food and Agriculture (MoFA), National Food Buffer Stock Company (NAFCO), World Food Programme (WFP), Peasant Farmers Association, Poultry Farmers Association, Feed Ghana Secretariat, and the Network of Commercial Agricultural Production (NETCAP).  

Earlier this year, President John Dramani Mahama announced the government’s intention to provide GHC 100 million to NAFCO to revitalise the national food security reserve, which has been empty for some years now.

NAFCO is expected to store away excess maize, rice and gari against future eventualities, including shortage, disasters or emergencies. 

Determining fair prices

The Chief Executive Officer of National Food Buffer Stock Company (NAFCO), George Abradu-Otoo, who inaugurated the 10-member committee, explained that the PCC would serve as a platform for dialogue, analysis and decision-making in determining fair producer prices for staple grains.

“Smallholder farmers, who contribute the bulk of the country’s food production, often face unstable markets, post-harvest losses, and limited bargaining power.

“Through this committee, producers are assured of fair returns, while buyers and aggregators benefit from stable pricing structures that encourage long-term planning and investment,” the CEO of NAFCO explained.

Mr Abradu-Otoo reiterated the sentiments of President Mahama and the Minister of Food and Agriculture that post-harvest losses significantly undermined growth and productivity in the agricultural sector and described the intended aggregation of the excess produce as an urgent call to action.

“By guaranteeing fair producer prices, government ensures that farmers and aggregators can reinvest in production, thereby contributing to rural development and poverty reduction,” he said. 

Stabilising food prices

The initiative, he said, also aligned with broader government efforts to stabilise food prices, reduce dependency on imports and strengthen local production.

Mr Abradu-Otoo urged the committee to ensure that pricing policies reflect both national food security priorities and the economic welfare of smallholder farmers.

The Chairman of the committee, Osmond Amuah, expressed the hope that the outcome of their work would reflect the aspirations of all stakeholders within the agricultural value chain.