The Jospong Group of Companies (JGC) has begun its integrated rice farming project following the decision of the Akufo-Addo government to boost the economy through import substitution, which was recently announced by the Minister for Finance.
Accordingly, a team from the JGC led by its Executive Chairman, Dr. Joseph Siaw Agyepong, visited Thailand to understudy the Thai rice sector in order to replicate their experiences and strategy in Ghana.
The objective of the Jospong Group is to partner with major rice industry players in Thailand to provide technical and equipment support for the entire rice value chain in Ghana with the aim of producing rice for the local and export market.
It will be recalled that whilst presenting the 2023 Budget statement and economic policy of government to Parliament last week, the Minister for Finance, Ken Ofori-Atta, said as part of efforts to promote exports, the Akufo-Addo administration will expand the productive capacity in the real sector of the economy and actively encourage the consumption of locally produced rice, poultry, vegetable oil and fruit juices, ceramic tiles among others.
The JGC delegation was supported by the High Commissioner of Ghana in Malaysia in charge of Thailand and other South-East Asian countries, Mrs. Florence Akonor.
In her remarks, the High Commissioner indicated that the rice project marks another level of bilateral cooperation between Thailand and Ghana for mutual benefits.
She expressed deep appreciation to the Honorary Consul, Dr. Sicha Singsomboon, and her team for their hard work in facilitating the visit.
High Commissioner Florence Akonor stressed that the collaboration was fundamental for deepening cooperation to improve the economies of both countries, especially for rice production.
High rice imports
The importation of rice into Ghana exceeds 60% annually, with dire economic consequences. Between 2007 and 2015, the amount spent on imported rice rose from $151 million to $1.2 billion per annum, with domestic consumption supplemented by imports primarily from Thailand, Vietnam and India.
Ghana’s annual rice importation, which currently stands at $1.3 billion, continues to increase year after year.
This negative narrative in the rice sector can only be changed with the injection of massive capital by big players from the private sector.
JGC’s intervention
The decision of Jospong Group of Companies heeding to the call of government to venture into the sector, especially in value addition, is great news.
The JGC has always led in improving lives of people through provision of solutions to problems.
The Group has commenced its 100,000 acres of rice production, with land banks secured.
The Group intends to partner with the Ghana Rice Inter-Professional Body (GRIB) and other local rice players to achieve this vision.
The project involves integrated rice farming methods ranging from seed development, paddy cultivation, milling, packaging and marketing. The delegation visited and discussed with captains of industry in the rice sector in Thailand.
This included Thai Farmers Lifestyle and Learning Centre, rice equipment manufacturers such as Kubota, Satake and Deler Engineering Services as well as Thai EXIM Bank.
The Thai Exim Bank was very impressed and thus expressed its readiness to support JGC.
The delegation also visited Fertilizer manufacturers, Institute of Food Research and Product Development, Kasetsart University.
At a news conference held in Bangkok, the Executive Chairman, Dr. Joseph Siaw Agyepong, called on the players within the Ghana rice value chain to collaborate for the development of the industry.
As part of the outcome of the visit, the Jospong Group of Companies signed MOUs with key sector rice players in Thailand for the establishment of Seed Development and Research Centre, Rice Mechanization centres, Bio-organic Fertilizer Production Centres, Supply of Farm Implements and Rice Mills in Ghana.
The first batch of the technical team is expected to arrive in Ghana in December.
