The latest data from Africa’s leading market mapping platform Asoko Insight delves into the makeup of Ghana’s leading farming firms by revenue, exploring the detail of a key component of the local economy. Agriculture accounted for nearly 18% of the country’s total GDP in 2017, generating revenues of $7.2 billion.
Asoko Insight’s Findings
The agricultural sector employs more than half of the country’s total labor force, affirming its credentials as an economic driver. Asoko Insight’s analysis of Ghana’s top 25 farming companies confirms the importance of crop farming within the sector, in line with central government statistics showing that crop farming accounts for nearly 68% of total agricultural revenues.
Moreover, crop farming is the single-largest economic activity in the country, accounting for 14.2% of the total GDP. A key component of this is cocoa, which is the country’s main export from the sector. Excluding cocoa, other crop farming represents the economy’s third-largest contributor at 12.4% of total GDP, behind transport and storage, which accounts for 12.8% of GDP and the construction sector at 13.8%.
Ghana’s Top 25 Farming Companies
Breaking down the leading sector players by activity, Asoko’s data indicates that more than three-quarters of top-earning companies operating in the farming space are engaged in crop farming, with another two involved in animal farming. Crop-farming companies are further categorised according to crop, with fruit and vegetable farmers making up nearly half of Ghana’s top 25 farming companies, at 12 firms, followed by grain and oil-seeds farmers with 5 of the the top companies, predominately producing edible oils. Within animal farming, there is one poultry producer and one aquaculture firm.
Though cocoa is the second-largest export and a key crop for the West African nation, not a single cocoa farmer appears in Asoko Insight’s market map of Ghana’s top 25 largest farming companies in the country by revenue.
According to Asoko’s research and analysis, cocoa farming is undertaken by a large number of small-scale operations, with individual revenues below that of larger leading farmers in other segments. Furthermore, cocoa revenues are concentrated among processors, which are categorised in the food and beverage sector.
Outside of farming, five firms in the top 25 provide agricultural support services reflecting Ghana’s moves to embrace science and technology as it seeks to bolster crop farming in the race for more yields and efficiency. The country’s agricultural sector is leveraging the use of modern technology through the production and supply of improved seeds and fertilizers to farmers. Local scientists and researchers are spearheading the drive given their clear understanding of the sector.
Revenues of Farming Operations
Asoko’s proprietary revenue estimation formula shows that over half of the top farming companies in Ghana generate revenues of between $1 million and $5 million annually. Another 24% of the top companies generate between $5 million and $10 million while 16% have earnings of between $10 million and $20 million.
The full report can be accessed here: https://asokoinsight.com/content/quick-insights/ghana-leading-farming-companies