Policies Shocks and the Recent Food Crisis

In Ghana, maize and poultry are essential products for food security as well as for income generation and poverty reduction. The markets of these products are sensitive to various interventions and shocks. In this book we investigate how these market distortions affect different groups of households in Ghana. First, we analyze the profitability of maize production in different regions of Ghana. Net buying households loose significantly due to higher product prices. In addition, their production level is likely to decrease due to higher input costs. Second, we have developed a Multi-Market Model (MMM) for Ghana. We apply different scenarios dealing with changes in margins, prices, tariffs and productivity. The strongest impact on poverty reduction and food security can be achieved by investing in agricultural productivity. Finally, a case study dealing with the impacts of an avian flu outbreak in Ghana is conducted. We find that effects on households are small due to heterogeneous sources of income. However, the overall effects on the domestic poultry market especially through the demand shock are harsh and will harm specialized poultry producers most.