Coronavirus: Ghanaian agribusiness firms monthly revenue falls by 61.2%

The average monthly revenue of Ghanaian agribusiness firms reduced by 61.2% during the COVID-19  restriction period, according to a survey conducted by the Chamber of Agribusiness Ghana on the effects of COVID-19 on agri-business in Ghana.

According to the survey, small-scale agribusiness firms suffered the largest revenue shortfalls of about 77.4 %, with large-scale agribusiness firms experiencing the least revenue shortfall over the same period.

Perhaps, the high small-scale agribusiness firms’ revenue shortfall may be due to undeveloped or poorly-developed business linkages, weak incorporation of technology, including information communication technology, processing, poor raw material supply chains and inventory management, the report emphasised.

It explained that large-scale agribusiness firms experienced the least revenue shortfall over the same period, adding, the relatively low revenue shortfalls of large-scale Ghanaian agribusiness firms may result from good work or employee arrangements, improved raw material supply chains and good market arrangements.

The report indicated that Ghana has no clear pathway to salvage the sector players from the global pandemic.

Even with the government’s promises and efforts to offer stimulus packages to vulnerable groups, the report said agribusinesses and smallholder farmers are despairing to see the government’s immediate roadmap to mitigate the threat of the pandemic as the country nears food insecurity.

Participants in the survey were both local- and foreign-owned agribusinesses located across 16 regions of Ghana.