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Why Is Agriculture Important In Ghana

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Agriculture has been the backbone of the Ghanaian economy until recently where the production and expansion of the oil sector, has shrunk the agriculture sector in relative terms (Institute of Statistical, Social and Economic Research (ISSER), 2013, 2014). Agriculture contributes around 22% to GDP, employs 45.5% of the population on a formal and informal basis and contributes approximately 45% of all export earnings (Ashitey, 2012; ISSER, 2013; ISSER, 2014). Ghana’s agriculture is vastly dominated by smallholders; many commodities, including cocoa, maize, cassava and yam are produced predominantly on small farms. According to Chamberlin (2007), more than 70% of Ghanaian farms are 3 hectares (ha) or smaller in size and cocoa and maize represent …show more content…

It also remains the country’s most important agricultural export crop (Asuming-Brempong et al., 2007; International Cocoa Organization (ICCO), 2010). Cocoa provides the second largest source of export earnings after gold, representing about 30% of Ghana 's total export earnings in 2011. Ghana is currently the world’s second major producer of cocoa beans, after the Ivory Coast. Bank of Ghana reported that cocoa bean and products export receipts for the first quarter of 2011 was $859.4 million, accounting for almost 61% of total export earnings as compared with $682.5 million at 48.8% in 2010 (Ashitey, 2012; ISSER, …show more content…

It is the second largest gold producer in Africa after South Africa, the third-largest African producer of aluminium metal and manganese ore and a significant producer of bauxite and diamond (Bird, 1994; Coakley, 1999; Amponsah-Tawiah and Dartey-Baah, 2011). Mining, specifically gold mining has contributed immensely to the economy of Ghana through employment generation, attracting foreign direct investment, contributing to export earnings and GDP. The same is the agricultural sector and thereby the development of these sectors is paramount to the success of the country. Mining is undertaken in almost all the regions in Ghana including the Brong Ahafo Region where 0.7% of the workforce is into mining (Ghana Statistical Service (GSS), 2012). Gold mining is the most active mining activity spearheaded by Newmont Gold Ghana Limited which commenced its surface mining operations in 2006. It is the only large scale gold mining company in the region and employs an approximate 4400 employees and contractors as at 2014 (Newmont Ghana Gold Ltd.,

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