The milk industry in Ghana is characterized by near total dependence on bulk milk imports (primarily powdered milk and processed milk products). Total volumes average about 50,000-100,000 tons of milk equivalent per year. Domestic milk production in Ghana is low and is conservatively estimated at 36,000 liters, and only a minute amount of this enters formal marketing channels. Requirements of dairy and dairy products by the major dairy processors in Ghana are approximately estimated to be about 100,000 tons annually. Ghana’s dairy processors (including ice cream, baby foods, chocolate milk, yoghurt, and long-life milk producers) rely on combining and reconstituting milk powder imported mostly from the European Union (Netherlands, Denmark). Processed infant formula, cheese, butter, as well as high-end ice cream, are also imported.
Dairy imports were valued at more than $100 million in 2008. U.S. dairy products exports to Ghana grew from $0.29 million in 2006 to $5 million in 2008. U.S. market share, though, remains small despite the higher quality perception of U.S. processed dairy products among Ghanaian consumers. U.S. supplies are disadvantaged due to higher freight costs compared to products from the European Union.
Total Market Size
Total Local Production
Imports from the U.S.
Growing population, increasing urbanization, and rising per capita income are expected to stimulate rising demand for dairy based products. Meanwhile, domestic production remains insufficient due to increasing production/processing costs, non-competitiveness of the industry, and the failure to incorporate more advanced technologies. Additionally, there is export potential for livestock genetics, fodders and dairy-based food processing inputs which will likely increase if local infrastructure is improved and production/processing costs lowered.
Note: Figures in millions of dollars and only include formally marketed products and estimates from industry contacts.