Published as FARA Research Report Volume 5 No: 14 (2020).
In Ghana, the agro-processing subsector plays a fundamental role in the generation of income and employment for a considerable number of households. The employment growth in the sector has been much faster than that of farming. Although the current direct employment effects might relatively small, the indirect and induced effects on job creation are expected to grow in the future. Therefore, to fully leverage is potential for development, requires a planned investment. This study aimed at understanding the food and beverage sector by exploring the qualitative and quantitative dimensions of the sector. It ascertains how investments and other interventions in the sector influence the quantity, quality and inclusiveness of jobs created. The study identified training as one area that need emphasis. Some of the strategies for ensuring growth were adequate employee training to ensure the production of quality products, compliance with standards and regulations, and the development and application of innovations to enhance competitiveness. In terms of production structure, manual production was costly as it is time-consuming and inefficient leading to delays in meeting production targets. This implies that introduction of machinery will improve efficiency. This could create more employment due to increased production capacity while demand for high skilled labour could increase as companies grow. Limitations identified include frequent breakdowns, inadequate funds to acquire good quality machines, limited space for machine installation and lack of qualified personnel to operate and maintain the machines. The review shows that the supply chain for most of the firms was largely informal making quality assurance for raw materials and other inputs quite difficult. The strategy for most firms was to work with a few suppliers, trained by the firms, to produce raw materials and other inputs to their specifications. This will help beef up one of the firms’ main challenge of limited availability of skilled labor.
You can download the full report here.