Overview of Agriculture in Ghana
Agriculture in Ghana is largely characterized by smallholder farming, with approximately 90% of farmers cultivating less than 2 hectares of land. Despite the vast agricultural potential, only 0.4% of the 7.85 million hectares of cultivated land is under irrigation. This highlights a significant underutilization of irrigation technology in the country.
Our Ekulibi Project
Understanding Poverty: A Multi-dimensional Perspective. This project focuses on leveraging digital tools to provide fair financing options for shea nut farmers, breaking traditional barriers to capital access.
Overview of Agriculture in Ghana
Agriculture in Ghana is largely characterized by smallholder farming, with approximately 90% of farmers cultivating less than 2 hectares of land. Despite the vast agricultural potential, only 0.4% of the 7.85 million hectares of cultivated land is under irrigation. This highlights a significant underutilization of irrigation technology in the country.
- • Employment Contribution: Agriculture employs about 52% of the workforce.
- • GDP Contribution: In 2016, agriculture contributed 19.5% to Ghana's GDP (ISSER, 2016).
- • Land Use: 56% of Ghana's land area is used for cultivation.
Key Challenges in the Agricultural Sector
Despite its growing global demand, Ghana's shea butter sector faces several structural and operational challenges that hinder its full economic potential:
1. Low Productivity of Shea Trees
Most shea trees in Ghana grow wild, with no deliberate cultivation. This results in inconsistent supply, long gestation periods, and minimal yield improvements.
2. Low Adoption of Improved Technology
Many women producers use traditional methods with limited access to modern equipment. This reduces efficiency, compromises quality, and limits competitiveness in international markets. Without improved technology, it's difficult to meet export standards or scale operations. Boosting adoption is key to unlocking the sector's full potential.
3. Limited Access to Finance
Many women producers use traditional methods with limited access to modern equipment. This reduces efficiency, compromises quality, and limits competitiveness in international markets. Without improved technology, it's difficult to meet export standards or scale operations. Boosting adoption is key to unlocking the sector's full potential.
4. Market Access and Price Fluctuations
Producers are often at the mercy of middlemen and seasonal price swings. They have limited bargaining power and little access to export markets or fair trade opportunities.
5. Quality Control Issues
Lack of standardized production methods and poor post-harvest handling can lead to contamination or inconsistent product quality, affecting export potential.
