Govt to establish 5 factories to tackle maize glut

The government is to establish five maize factories across the country as long-term solution to the glut of maize production, the Deputy Minister of Food and Agriculture, John Dumelo, has told Parliament.

The move, he said, would enable the government to procure grains, particularly maize, from farmers across the country at guaranteed minimum prices.

Stopping short of providing details of where the factories would be located and when they would be completed, Mr Dumelo said the project was aimed to shift from merely storing raw grains to processing them into corn flour for local consumption and exports to reduce the impact of future gluts.

“Schools, especially senior high schools, and school feeding programmes and state institutions such as hospitals and prisons have been instructed to prioritise purchasing locally-produced rice and maize to ensure a steady, high-volume market for local farmers,” he said.

Unwavering commitment

Speaking on the floor of Parliament last Friday, Mr Dumelo said “these interventions demonstrate government's unwavering commitment to support farmers, sustaining agricultural growth, improving rural livelihoods and safeguarding national food security”.

He disclosed this when he responded to a question by the Member of Parliament (MP) for Ketu North, Eric Edem Agbana, who asked the strategies being adopted by the ministry to resolve the challenge of glut, especially of rice and maize crops.

Bumper  

Mr Dumelo said through the dedicated efforts of the Ministry of Food and Agriculture (MoFA), the country was currently experiencing a bumper harvest across several staple foods, including maize, rice, soya beans and other staples.

He, however, said this success had brought with it an unintended challenge, explaining that the bumper harvests had left many farmers struggling to sell their commodities at remunerative and profitable prices.

“This situation poses a significant risk to farmers' livelihoods and could discourage future production if not addressed properly,” he said.

As a solution, Mr Dumelo said, the government, through the National Buffer Stock Company (NAFCO), was implementing a combination of direct purchasing, processing, storage and strategies under the Feed Ghana Programme, including the directive to NAFCO to purchase excess maize, rice and soya from the farmers.

Following an initial release of GH₵100 million in November 2025, he said the government, in the 2026 Budget, provided an additional GH₵200 million for the 2026 season.

“Mr Speaker, GH₵50 million out of the GH₵200 million has been given to NAFCO,” he said, indicating that the purpose was to enable the procurement of grains, particularly maize and rice, at guaranteed minimum prices. 

Guaranteed prices

Currently, he said, NAFCO had engaged approximately 45 accredited licensed buying companies which had been assigned to various grain-producing zones across the country to purchase locally produced rice and maize directly from the farmers. 

That strategic intervention, he explained, would cushion farmers against price volatility and post-harvest losses while helping to stabilise market prices and protect farm incomes.

“In addition, it will strengthen the nation's food security system by ensuring availability of adequate food reserves during emergencies, including pandemics and other unforeseen disruptions,” he said.

Mr Dumelo said the ministry had been able to attract strong partnerships with their donor partners to support infrastructure in food systems.

Key was the World Bank Group support in Food Systems Resilience Programme and World Food Programme active support to the NAFCO to refurbish and procure equipment for some storage warehouses across the country.