This paper uses data from a sample of 679 food processing firms in Ghana to estimate changes in e... more This paper uses data from a sample of 679 food processing firms in Ghana to estimate changes in employment by the food processing sector from 2014 to 2017, to analyze the determinants of firm exit during the same period, and to analyze the determinants of firm growth from the firm’s establishment up to 2017. In modeling the determinants of firm growth, the focus is on the effects of formal status as a food processing firm, which is defined in this paper as registration as a business for tax purposes and registration with the national food regulator, the Food and Drugs Authority (FDA).
One likely outcome of Ghana’s rising household incomes and increasing urbanization is a higher de... more One likely outcome of Ghana’s rising household incomes and increasing urbanization is a higher demand for processed foods. The question remains whether this expected higher demand will generate opportunities for growth in domestic agro-processing. This study assesses the performance of the agro-processing sector in Ghana through an inventory of processed and packaged food items in retail shops around Accra. The inventory shows: 1. The agro-processing subsector offers opportunities for domestic firms, with Ghanaian brands accounting for 27 percent of the items identified. 2. In addition to forming nearly a third of products identified, locally-processed products have penetrated diverse market segments with sales across a variety of retail outlets. 3. Regional imports of processed and packaged food items are low. Excluding South African brands, which accounted for 7.8 percent of imports, only 4.3 percent of the items were imported from other African countries. 4. Domestic agro-process...
This paper examines the prospects for import substitution in West Africa by analyzing the prefere... more This paper examines the prospects for import substitution in West Africa by analyzing the preferences of urban consumers for food product attributes. We use market surveys, choice experiments, and experimental auctions to assess price and quality competitiveness of locally-produced chicken, rice, and tilapia in Accra, Ghana. For the price analysis, we compare market prices of imported and local counterparts, and we compare the local costs of production to production costs in major exporting countries. For the quality analysis, we compare consumer perceptions and demand for quality attributes of local versus imported products using data from field experiments with 1,322 consumers. Our findings suggest that among the three products, rice has the lowest prospects for import substitution, due to supply-and demand-side constraints to local competitiveness. For rice, consumers prefer imported products, they perceive imports as having better quality than local products, and they are willing to pay a premium for imports. For chicken, consumers have a strong preference for local products, but the potential for expanding chicken production can only be met if production and processing costs can be reduced significantly to boost price competitiveness. For tilapia, a high preference for freshness provides a natural barrier to import entry, and the comparative advantage of local production can be enhanced by making continuous improvements in seed and extension systems, industry coordination, certification, and regulation.
Urban food systems in Ghana are changing, along with rapid urbanization and growth in household i... more Urban food systems in Ghana are changing, along with rapid urbanization and growth in household incomes. Using data from retail inventories of packaged products carried out in eight cities in 2015 and 2016, we find that the interplay of urbanization, imports and domestic processing and packaging has led to some surprising outcomes. Imports are dominant, especially for milled rice and tomato paste, and the shares are higher in smaller cities than in Accra. Imported products are more prevalent in traditional retail outlets than in modern retail outlets. Moreover, imported products come mainly from East Asia; excluding South Africa, which accounts for 6% of imports, less than 3% of imported products were from other African countries.
This paper uses data from a sample of 679 food processing firms in Ghana to estimate changes in e... more This paper uses data from a sample of 679 food processing firms in Ghana to estimate changes in employment by the food processing sector from 2014 to 2017, to analyze the determinants of firm exit during the same period, and to analyze the determinants of firm growth from the firm’s establishment up to 2017. In modeling the determinants of firm growth, the focus is on the effects of formal status as a food processing firm, which is defined in this paper as registration as a business for tax purposes and registration with the national food regulator, the Food and Drugs Authority (FDA).
One likely outcome of Ghana’s rising household incomes and increasing urbanization is a higher de... more One likely outcome of Ghana’s rising household incomes and increasing urbanization is a higher demand for processed foods. The question remains whether this expected higher demand will generate opportunities for growth in domestic agro-processing. This study assesses the performance of the agro-processing sector in Ghana through an inventory of processed and packaged food items in retail shops around Accra. The inventory shows: 1. The agro-processing subsector offers opportunities for domestic firms, with Ghanaian brands accounting for 27 percent of the items identified. 2. In addition to forming nearly a third of products identified, locally-processed products have penetrated diverse market segments with sales across a variety of retail outlets. 3. Regional imports of processed and packaged food items are low. Excluding South African brands, which accounted for 7.8 percent of imports, only 4.3 percent of the items were imported from other African countries. 4. Domestic agro-process...
This paper examines the prospects for import substitution in West Africa by analyzing the prefere... more This paper examines the prospects for import substitution in West Africa by analyzing the preferences of urban consumers for food product attributes. We use market surveys, choice experiments, and experimental auctions to assess price and quality competitiveness of locally-produced chicken, rice, and tilapia in Accra, Ghana. For the price analysis, we compare market prices of imported and local counterparts, and we compare the local costs of production to production costs in major exporting countries. For the quality analysis, we compare consumer perceptions and demand for quality attributes of local versus imported products using data from field experiments with 1,322 consumers. Our findings suggest that among the three products, rice has the lowest prospects for import substitution, due to supply-and demand-side constraints to local competitiveness. For rice, consumers prefer imported products, they perceive imports as having better quality than local products, and they are willing to pay a premium for imports. For chicken, consumers have a strong preference for local products, but the potential for expanding chicken production can only be met if production and processing costs can be reduced significantly to boost price competitiveness. For tilapia, a high preference for freshness provides a natural barrier to import entry, and the comparative advantage of local production can be enhanced by making continuous improvements in seed and extension systems, industry coordination, certification, and regulation.
Urban food systems in Ghana are changing, along with rapid urbanization and growth in household i... more Urban food systems in Ghana are changing, along with rapid urbanization and growth in household incomes. Using data from retail inventories of packaged products carried out in eight cities in 2015 and 2016, we find that the interplay of urbanization, imports and domestic processing and packaging has led to some surprising outcomes. Imports are dominant, especially for milled rice and tomato paste, and the shares are higher in smaller cities than in Accra. Imported products are more prevalent in traditional retail outlets than in modern retail outlets. Moreover, imported products come mainly from East Asia; excluding South Africa, which accounts for 6% of imports, less than 3% of imported products were from other African countries.
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Papers by Seth Asante