Productivity and Competitiveness Of Sorghum Production in Northern Ghana; A Policy Analysis Matrix Approach

Abstract

A major element of low productivity at the farm level of smallholder farmers is high production costs which result in low competitiveness of the produce. Low produce prices, especially during harvests, also result in low returns to farmers. To help mitigate this problem in sorghum farming, the study sought to analyze the productivity and competitiveness of sorghum production in northern Ghana with particular reference to varieties produced for the brewery industry. A Policy Analysis Matrix (PAM) approach was used in the analysis. The PAM results showed that sorghum production in the study areas yielded profitable returns to land and management at social prices but not at private prices mainly because of low yields. The results also indicated differences in profitability for different areas. To make sorghum production sustainable, profit levels of farmers are critical. It is therefore recommended that the cost of production and output levels of farmers be taken into consideration in negotiating prices for farmers to at least break even.

Keywords: Sorghum, Profitability, Competitiveness, Investment Potential, Poverty Reduction.