National Food Buffer Stock Company Achieves Record GH¢91.7 Million Profit While Tree Crops Authority Strengthens Regulatory Frameworks

The National Food Buffer Stock Company (NAFCO) has reported a landmark financial performance for the year 2025, achieving a profit before tax of GH¢91.7 million. This represents a significant turnaround for the state agency, which recorded a loss of GH¢19.4 million in the previous year. CEO George Abradu-Otoo attributed the success to comprehensive structural reforms, improved governance, and a soaring gross profit margin that jumped from 1.61 percent to 13.96 percent. The company also made its highest-ever tax contribution of GH¢20.3 million. However, despite these record gains, NAFCO management remains cautious regarding financial stability. Mr. Abradu-Otoo noted that the company's acid-test ratio of 1.18 remains marginal and has set a target of 1.5 to better mitigate financial risks and ensure more robust working capital management moving forward. Operational challenges persist as NAFCO seeks to bolster Ghana's food security through infrastructure and dedicated funding. Deputy CEO Osmond Amuah revealed that the national food storage capacity currently sits below 50,000 metric tonnes, a figure he described as inadequate for a country that consumes over six million metric tonnes of maize and rice annually. Amuah called for urgent investment in warehouses and silos to establish a 90-day emergency reserve, citing potential global supply disruptions as a major risk. The agency also highlighted a significant funding gap, noting that while GH¢1.2 billion was required to effectively manage a recent food glut, only GH¢100 million was received from the government. NAFCO is now proposing the creation of a dedicated funding source and a farmer data center to improve yield predictions and agricultural interventions. In a parallel effort to organize the agricultural sector, the Tree Crops Development Authority (TCDA) has intensified its engagement with stakeholders in the Bono Region to ensure compliance with the Tree Crops Development Authority Act, 2019 (Act 1010) and the 2023 regulations (L.I. 2471). Led by CEO Dr. Andy Osei Okrah and supported by the Ghana Private Sector Competitiveness Programme II, the initiative focused on registration, quality assurance, and traceability within the value chain. Dr. Okrah emphasized that collective responsibility among law enforcement, the media, and private sector actors is essential for the sustainable growth of the tree crops industry. These regulatory efforts, combined with NAFCO's financial recovery, signal a broader push toward enhancing the efficiency and resilience of Ghana's agricultural economy as the current administration under President John Mahama continues its term.