Productivity and Competitiveness Of Sorghum Production in Northern Ghana; A Policy Analysis Matrix Approach

Ma Akuriba,Am Bonsu,S Asuming-Brempong

doi:10.4314/gjds.v8i2.7

Abstract

A major element of low productivity at the farm level of smallholder farmers is high production costs which result in low competitiveness of the produce. Low produce prices, especially during harvests, also result in low returns to farmers. To help mitigate this problem in sorghum farming, the study sought to analyze the productivity and competitiveness of sorghum production in northern Ghana with particular reference to varieties produced for the brewery industry. A Policy Analysis Matrix (PAM) approach was used in the analysis. The PAM results showed that sorghum production in the study areas yielded profitable returns to land and management at social prices but not at private prices mainly because of low yields. The results also indicated differences in profitability for different areas. To make sorghum production sustainable, profit levels of farmers are critical. It is therefore recommended that the cost of production and output levels of farmers be taken into consideration in negotiating prices for farmers to at least break even.Keywords: Sorghum, Profitability, Competitiveness, Investment Potential, Poverty Reduction.

Highlights

According to the 2008 World Bank Development Report agricultural growth has high potential in reducing poverty in developing countries
This paper reports on a research that compared the productivity and competitiveness of sorghum production in three sorghum producing areas in northern Ghana of different climatic conditions, vegetation and population densities by using a Policy Analysis Method (PAM) approach
Social profitability which measures comparative advantage or efficiency in the agricultural commodity system is positive except for the Saboba District (Table 4). This implies that the production system is socially efficient in the Garu-Tempane and Sissala East Districts but inefficient in the Saboba District

Summary

Introduction

According to the 2008 World Bank Development Report agricultural growth has high potential in reducing poverty in developing countries. The main pathway out of poverty through agriculture, according to the report, is improving productivity, profitability and sustainability of smallholder farming. There have been significant reductions in poverty in Ghana between 1991 and 2006 as a whole but the reductions in the northern rural savanna areas (Northern, Upper East and Upper West Regions) have been very marginal and inequality has increased (GSS, 2007). This has been attributed to deterioration in productivity, profitability and sustainability of smallholder farming over time (Dittoh, 2005). There is evidence of poor price incentives and difficulties in getting secure markets for farm produce (ACDEP, 2007)

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Conclusion