The National Food Buffer Stock Company has licensed 14 firms to supply food commodities under its current procurement framework, Chief Executive Officer George Abradu-Otoo has disclosed.
The licensed companies are authorised to procure food directly from farming communities and deliver the commodities to NAFCO warehouses nationwide. The announcement was made during an interview on Face to Face on Channel One TV on Tuesday.
Abradu-Otoo said the licensing regime enables NAFCO to work closely with agents on the ground while maintaining proper oversight of the supply chain. He explained that once licensed, companies can purchase rice from locations such as Asutsuare, deliver it to warehouses and provide verification documents.
All commodities supplied by licensed companies are received and verified at NAFCO warehouses by designated officials, including storekeepers and regional managers, before being accepted into storage.
Pricing for the commodities is determined through a Price Determination Committee made up of representatives from the Ministry of Food and Agriculture, the Peasant Farmers Association, the Rice Millers Association and NAFCO. The committee relies on research and market data gathered from various locations across the country to agree on prices.
Once prices are agreed, they are submitted to the Public Procurement Authority for review and approval. The authority may approve the proposed prices or request adjustments before granting final clearance.
Abradu-Otoo stressed the process is designed to ensure transparency, accountability and compliance with procurement regulations. He stated NAFCO’s current focus is managing excess food supply in the market.
The Chief Executive Officer assumed office on Monday following a handover ceremony in Accra. He outlined his vision to reposition the company to ensure consistent food availability and contribute to price stability.
NAFCO, a wholly government-owned entity, is tasked with purchasing surplus maize, rice, millet, beans, sorghum and soybeans from farmers, preserving these staples and distributing them to state institutions.
Abradu-Otoo acknowledged that while the company’s framework appeared solid, a thorough review of operations and financials was necessary to effectively reposition the buffer stock system. He commended the outgoing Chief Executive Officer Hanan Abdul-Wahab and the Board for laying a strong foundation.
NAFCO’s storage capacity has grown to 100,000 metric tonnes, thanks to rehabilitation efforts and the One District-One Warehouse initiative. The company supplies food items to over 700 secondary schools nationwide under the Free Senior High School programme.
Currently, 13 of the top 15 inflation-driving items in Ghana are food-related. The World Food Programme estimates that over one million people in the country are food insecure, while one million children under five are chronically malnourished.
