Elizabeth Ofosu-Adjare, the Member of Parliament for Techiman North and Minister-designate for Trade, Agribusiness, and Industry, has outlined her vision for revitalizing the One District, One Factory (1D1F) policy, a flagship initiative of the previous government. During her vetting by the Appointments Committee of Parliament, she acknowledged the inherent potential of the 1D1F program while candidly addressing the significant challenges that have hampered its full realization. Central to these challenges, she identified, is the persistent shortage of raw materials to feed the established factories, a critical bottleneck that has stymied the growth and productivity of these enterprises, particularly in the agro-processing sector. This deficiency has prevented the factories from achieving their intended operational capacity and delivering the anticipated economic benefits.
Mrs. Ofosu-Adjare’s proposed solution hinges on strategically leveraging the 24-hour economy policy, a parallel initiative designed to stimulate economic activity around the clock. She believes this policy can be instrumental in addressing the raw material shortfall and invigorating the 1D1F program. The 24-hour economy framework, she argues, will create an enabling environment for increased production through various incentives, with agribusiness playing a central role. By facilitating and promoting commercial contract farming, the government can ensure a consistent and reliable supply of raw materials to the factories, thereby resolving the supply chain bottlenecks that have hampered their progress.
The core concept of commercial contract farming involves establishing formal agreements between farmers and processing companies. These contracts guarantee a pre-determined market for the farmers’ produce, offering them price stability and assured offtake. Simultaneously, the factories gain access to a consistent supply of raw materials, essential for sustained operations and efficient production planning. This structured approach eliminates the uncertainty and volatility often associated with open market procurement, reducing the risks for both farmers and factories. Furthermore, contract farming can incentivize farmers to adopt improved agricultural practices and invest in higher-quality inputs, leading to increased yields and improved quality of raw materials, ultimately benefiting the entire value chain.
The 24-hour economy policy, Mrs. Ofosu-Adjare explained, will act as a catalyst, driving continuous production and processing cycles. The extended operational hours will optimize the utilization of factory capacity, leading to increased output and improved cost-effectiveness. The continuous flow of raw materials facilitated by contract farming will ensure that these factories operate at optimal levels, maximizing their economic contribution and generating employment opportunities within the districts. This integrated approach, linking the 24-hour economy with the 1D1F initiative through contract farming, promises a more sustainable and robust agro-industrial sector.
Beyond addressing the raw material challenge, the revitalized 1D1F program under Mrs. Ofosu-Adjare’s leadership aims to stimulate broader economic development in the participating districts. By fostering local value addition and creating employment opportunities, the program is expected to generate increased income and improve livelihoods within these communities. The focus on agro-processing also holds the potential to enhance food security and reduce post-harvest losses, contributing to a more resilient and sustainable agricultural sector. The successful implementation of the revamped 1D1F initiative will not only boost the national economy but also contribute to the overall development of rural communities.
In conclusion, Mrs. Ofosu-Adjare’s vision for the 1D1F program centers on addressing the critical challenge of raw material supply through the strategic implementation of commercial contract farming within the framework of the 24-hour economy. This integrated approach promises to unlock the full potential of the 1D1F initiative, transforming it into a robust engine of economic growth and rural development. By ensuring a consistent supply of raw materials, optimizing factory operations, and creating sustainable linkages between farmers and processors, the revitalized program aims to achieve its original objectives of creating jobs, stimulating local economies, and contributing to national prosperity. This integrated strategy holds the key to unlocking the transformative potential of the 1D1F policy and realizing its vision of inclusive and sustainable industrial development across Ghana.
