The latest annual grain and feed forecast report from the United States Department of Agriculture (USDA) anticipates a nearly six percent surge in wheat imports into the United States.
Projections indicate imports to reach 900,000 metric tonnes, marking an increase from the 850,000 metric tonnes recorded last year.
The USDA attributes this expected rise in wheat imports to importers’ efforts to bolster their reserves in anticipation of heightened demand spurred by an improving economy.
Ghana’s annual wheat imports exceed US$230 million, as per data from the Observatory of Economic Complexity (OEC).
Similarly, the USDA forecasts a slight uptick in total wheat consumption for 2024, expected to reach 850,000 metric tonnes, representing a one percent increase compared to the previous year’s consumption of 840,000 metric tonnes.
“This is because wheat flour products are popular among Ghanaian consumers, especially by urban dwellers. Bread is a staple consumed by most households. The observed decline in wheat consumption in the preceding year was mainly due to the recent economic hardships,” the report stated.
The USDA predicts that with the anticipated return to economic stability, wheat consumption will resume its growth trajectory, fueled by population growth and the popularity of wheat flour products among Ghanaian consumers, particularly urban dwellers who consider bread a staple.
Economic hardships in the past year led to a decline in wheat consumption, according to the report.
Despite recent declines in inflation rates and food inflation, utility tariffs, high inflation rates, and domestic currency depreciation have reduced disposable income for many Ghanaians.
However, the decrease in inflation is viewed positively.
Bread remains a preferred choice for breakfast, especially among lower-income consumers, despite observed increases in flour prices and the stagnant price of bread in the Ghanaian market.
“Even though a 50kg bag of flour which was sold at GHȼ625 (US$48) in 2023, now selling at retail price of GHȼ600 (US$46), down by four percent, this has not affected the price of bread, which remains unchanged at GHȼ20 to GHȼ25 per 0.70kg loaf,” it said.
The report highlights that Canada, along with Turkey, France, Poland, Lithuania, Germany, Latvia, Senegal, Côte d’Ivoire, and China, are the major suppliers of wheat to Ghana, with Canada dominating the market, accounting for over half of the market share.