Ghana - Current economic position and prospects (Vol. 5 of 10)

RESTRICTED El CV nAW18 Vol. 5 This report was prepared for use within the Bank and its affiliated organizations. They do not accept responsibility for its accuracy or completeness. The report may not be published nor may it be quoted as representing their views. !NTEKRNATIONAL BAINK FOR REUCONSLRUCTION AND DE-VELOPMk<N[ INTERNATIONAL DEVELOPMEINTl ASSOCIATiUN FHE CURRENT ECONOMIC POSITION AND PROSPECTS OF GHANA tin t-n IIuIne s) VOLUME V AGRICULTURE October 26, 1970 Western Africa Department  CURRENCY EQUIVALENTS 1 New Cedi u US$0.98 1 dollar a NO 1.02  This annex is based on the finclings of a mission in April and Miay 1970 to Ghana composed of: Mr. Barend A. de Vries Chief of' Mission Mr. Fateh Chaudhri General Economist Mr. Thomas Klein Bialance of Payments & External Debt Miss Katharine Mortimer Pbpulation, Emnployment & Education Mr. M. Taher Elajani* Fiscal Mr. Ved Gandhi Fiscal Mr. Nake Kamrany Social Sector Mr. Jivat Thadani Industry Mr. Alfredo Soto Transport Mr . Hans Schulte Transport Mr. Charles Metcalfe Agriculture Mr. Bruce Johnston** Agriculture Mr. Merrill Bateman-* (Cocoa Mr. Herman Nissenbaum Project List Mr. John Weston Electric Power Mr. Edward Mirmig Electric Power Mr. S. Rangachar Research Miss Beverley Baxter Secretary * Seconded by the International Monetary Fund -*E Consultants This report is based on the findings of an economic mission headed by Mr. Barend A. de Vries which visited Ghana in AprilhvIay 1970. This volume wals prepared chiefly by Mr. Bruce F. Johnston, Consultant, and Mr. Charles E. Metcalfe.  TABLE OF CONTENTS Page No. I. OBJECTIVES OF AGRICULTURAL POLICY AND MAJOR PROBLEMS ......... 3 A. Objectives .......................................... 3 B. Performance of the Agricultural Sector .... .......... 3 C. Food Supply Problems and Price Trends .... ........... 6 D. Marketing Problems .................................. 7 E. Present Situation and Prospects for Expanded Production of Export Crops ........................ 8 F. Possibilities for Economic Import Substitution in Food Crops and Agricultural Raw Materials ... ...... 10 G. The Organization and Effectiveness of Agricultural Research .......................................... 11 H. State Farms and Settlements ......................... 13 I. Problems Relating to Mechanization .... .............. 14 J. Farm Credit and Cooperatives ........................ 15 K. Land Tenure Problems ................................ 18 L. Processing of Agricultural Commodities .... .......... 18 II. POLICY ISSUES AND STRATEGY FOR AGRICULTURAL DEVELOPMENT ...... 20 A. Scarcity of Capital and Foreign Exchange and Employment Problems as Factors Influencing Agricultural Strateay ............................. 20 B. Problems of Implementation and Determining Priorities for Government Action ............................. 25 C. The Role of Ministry of Agriculture .... ............. 27 D. Allocation of Responsibilities Between the Public and Private Sectors ................................... 28 E. The Role of Autonomous or Semi-Autonomous Agencies 31 F. Policies for Increasing the Effectiveness of Agricultural Research and Extension ............... 31 ITT. AGRTCUTIJTRAI. PRO.TFfTS ANT EXTERNAL ASSTSTANG.F .......-- ........ is A. Sugar Pr,iprt -_3 B. Oil Palm Projects ................................... 37 C. Other Vegetable Oil Projects A38 Thlis report i's based on the -findingso - n econom4c missio headed by Mr. Barend A. de Vries which visited Ghana in April/May 1970. Thuis volu..e was prepareA chiefly b-y Mr. Bruce v. Johnston., Consul= tant, and Mr. Charles E. Metcalfe.  1,MAD, V r tVLJJrrrhTm _ _%Ln1..a.2.. 1 'bU fl..... tU.. D. Grain rroauction Programs ........................... . E. Agricultural Credit Program ......................... 39 F. Fiber Crop Production ............................... 41 G. Irrigation Projects ................................. 42 H. Fruit and Vegetable Development at Vea Dam .... ...... 42 I. Fruit Processing and Fresh Fruit Exports .... ........ 42 j. Rubber .......... .................................... 43 K. A Rural Farm Shop Program ........................... 4.3 L. Urban Market Development ............................ 4.3 M. Tobacco ......... .................................... 44 N. Livestock Project Possibilities ..................... 44 0. Integrated Development Projects ..................... 45 P. External Technical Assistance ....................... 45 STATISTICAL TABLES Table No. Ghana - Land Acquired and Utilized by State, Cooperative, Institutional and Peasant Farms in 1965 ..................... 1 Ghana - History of Agricultural Development Bank's Performance in Lending Since 1964 ....................................... 2 Estimates of Consumption and Projected Consumption of Selected Agricultural Commodities .................................... 3  VOUTTME V AGRICULTURE 1. It is r-ell knom. that ag-r, iclIture 4 the acko. o nf tVhe Ghanain economy. lt 2. It is conventional to note a broad division of Ghanaian agricul- ture into the forest zone of the south and te s n ro the f north. This does not begin to do justice, however, to the diversity of the natu- rfial .4nvirorm.e and the fnr.ingn. sys__te .that _ r_vail _ / As a m ni.u, re- ference should also be made to the coastal savanna that includes the Accra plai4ns andA to the rai4n forest of the sout.hwest where the rainfall is at a I. L. L LC D J.L .~. CD J. L.JL L .I J I lw %_ I. WIL 1-LLLC A GJ.L A.. L.A. ~L L. maximum. Because of leaching out of plant nutrients, the soils of the southl,&wIest AU-o not pe,...Lit the econAomLLic -prodQJucJti0n Vo.f cocoJa .althoughJ the re= gion is well suited to rubber and oil palms. The sandy coastal strip is well sulted to coconul pal.ms. 3. ~ ~~~~ In spite of the emphasis on State Fa.mis In th1,e early 1960' Is , thUe .JLi L. L.JLLL C LE ii L