Market Trends of Ghana Seeds Industry
Growing Demand for Certified Seeds
Quality seeds are a prerequisite to thriving agriculture and constitute a significant pathway for achieving national food security goals for Ghana, where agriculture is the prime mover of the national economy.
Crops such as corn, rice, cowpea, soybean, sorghum, and peanut are mainly regulated for seed production in Ghana, among which corn and rice seeds form the bulk of certified seed production. The Ghana Seed Inspection Division (GSID) of the Ministry of Food and Agriculture (MOFA) is the Government of Ghana's institution mandated to inspect and certify seeds produced at every stage of seed production from the production of Breeder's seed, foundation seed, and certified seed.
Government initiatives such as subsidy programs are a prominent factor behind the increased production of certified seeds in the country. For instance, according to the Ministry of Food and Agriculture, Ghana, the total production of certified seeds in Ghana in 2020 was 17,204.94 metric tons which increased by approximately 44.5% and reached 24,854 metric tons in 2021. Furthermore, due to government initiatives, the number of registered private seed companies supplying certified has also grown from 203 in 2020 to 452 in 2021.
Moreover, initiatives launched by several authorities are further boosting the demand for certified seeds in the region. For instance, in November 2022, The Board of Directors of the African Development Fund approved a USD 27.9 million grant to Ghana to develop the agricultural value chain in the Savannah region. The grant will support farmers with farm inputs to produce climate-resilient rice, maize, and soybean. It will also support the production of certified seeds.
Decrease in Arable Land
The decreasing per capita availability of arable land is a major concern for agricultural production in Ghana. The arable land in Ghana was reduced from 2017 to 2020. The total arable land in Ghana in 2017 was around 2,652,000 hectares which declined by approximately 5.2% and reached 2,513,400 hectares in 2020.
The need to increase production from the fluctuating arable land to get higher returns can be met using HYVs and hybrid varieties. This trend encourages farmers to shift their focus from conventional seed sources to packaged seeds, which promise better returns. Hence, to meet the increasing food demand, the production of crops, such as cereals and pulses, needs to increase despite the limited availability of arable land. This has propelled the farmers in the country to adopt high-yielding varieties to produce more within the limited available land. This, in turn, drives the growth of the market.
The fluctuating arable land is encouraging corporations and farmers to pool their resources for contract farming, especially for crops such as maize and rice in the country. The increasing contract farming practices help converge a large set of farmers to one point for seed selection. This maintains uniformity in the produce, thereby assisting the seller in obtaining sustainable demand and augmenting the bulk sale of seeds.
Maize is a staple food and plays a significant role in Ghana's food security. The GOG exerts considerable pressure to ensure adequate maize production to meet domestic consumption requirements. Therefore, maize hybrid seed use is becoming highly important for Ghana to reach its targeted production. Thus, government policies promoting the development of the seed sector to ensure sufficient domestic production are expected to drive the market.
The major players within the market are majorly focusing on research and development activities to produce new seed varieties, which are embedded with the characteristics of high yield and reduced crop damage.
