GOVT HAS SET UP NATIONAL FOOD BUFFER STOCK COMPANY (Front Page)

19-03-10

Story: Mary Mensah
A novelty entity known as the National Food Buffer Stock Company Limited (NAFCO) has been set up by the Ministry of Food and Agriculture (MoFA) to purchase, preserve, sell and distribute foodstuffs in the country
The company, solely and fully owned by the government, will guarantee farmers an assured income by providing a minimum guaranteed price and a ready market for their produce.
It will also boost agricultural production that will make Ghana the bread basket of the sub-region and ensure the security of farmers and insulate them against losses resulting from the anticipated increases in production.
Inaugurating the board of NAFCO at a ceremony in Accra, the Minister of Agriculture, Mr Kwesi Ahwoi, who is also the chairman of the board, said the mandate of NAFCO, among others, was to mop up excess produce from all farmers in order to reduce post-harvest losses resulting from spoilage due to poor storage and thereby protect farmer incomes.
He indicated that the government, recognising agriculture as the mainstay of the economy, had decided to stop paying lip service to the efforts of farmers by the introduction of initiatives that would boost agricultural production in the country.
Mr Ahwoi said that would help to expand the demand for food grown in Ghana by selling to all state institutions, such as the military, schools, hospitals, prisons, among others.
He said the operations of the company would ensure the stability of food prices, employment creation, the establishment of emergency food reserves, macro-economic stability and increase foreign currency revenue.
He said according to statistics, in 2009 the total domestic production of maize amounted to 1,619, 600 metric tonnes, as against the demand of 1,197, 000 metric tonnes, indicating a surplus of 145,000 metric tonnes which needed to be stored.
Mr Ahwoi said in times past, such surplus went to waste.
The minister said NAFCO would mop up excess food supply and release it to the market at appropriate times to ensure continuous food supply and thereby stabilise food prices.
He said the concept would increase employment, guarantee prices and provide ready market for food items to motivate farmers to increase food production and also others to go into farming.
“It will also sustain the block farming concept within the Youth in Agriculture programme and result in the creation of more employment avenues for the youth of the country," he stated.
Mr Ahwoi charged members of the board to ensure that the company was managed in a manner that would make everybody proud.
Other members of the board are Dr Sam Mensah of SEM Group Limited; Mr Eric Osei-Owusu, a business/consultant and Managing Director of NAFCO; Mr Kwesi Boamah, the acting Chief Director of the Ministry of Food and Agriculture (MOFA); Mr Charles Ofori, Mrs Magdalene Ewurasi Apenteng, a director of the Ministry of Finance and Economic Planning, and Mr Kweku Bram-Larbi.
Mr Osei-Owusu, who spoke on behalf of the other members, pledged to work hard and ensure the success of the company, adding that for now the company would rely on cereals and add perishables as time went on.