RISING FOOD PRICES AND ITS IMPLICATIONS FOR THE GHANAIAN ECONOMY

Abstract

The recent crisis of soaring food prices has moved the world to respond.  Many factors contributed to the unprecedented rise in food prices including high energy prices, changing patterns of consumption, low investment in agriculture, low harvests in some major agricultural regions, and the use of grains for biofuel production.  The responses have been sub-optimal due to information deficit and political pressure.  Short-term and long-term strategies are yet to be developed.  Some supply surplus countries have imposed a ban on exportation of food and certain supply-deficit countries have removed tariffs to increase imports to supplement domestic food supplies. This paper discusses some of the causes of the food crisis, and its implications for the Ghanaian economy.  It concludes that Ghana needs its own tailor-made strategies that will result in sustainable food security.  Ghana needs to strengthen its own capacity in resource mobilization for increased agricultural production and research that achieve national level priorities.