High production costs may push beverage firms out of Ghana – FABAG

The Food and Beverage Association of Ghana (FABAG) is calling on the government to urgently address the rising cost of production and the growing threat of smuggling.

According to the Executive Secretary of the association, Samuel Aggrey, local manufacturers are struggling to remain competitive in the face of high operational costs and an influx of smuggled, often inferior, products entering Ghana through unapproved routes.

These challenges, he contends, if left unresolved, could lead to a collapse of the domestic beverage industry as it could force local beverage producers to relocate to more business-friendly countries within the West African region.

FABAG has credited the Food and Drugs Authority (FDA) for recent efforts in identifying smuggled products on the market, but insists that stronger enforcement and broader government intervention are needed.

The Association stressed that the persistent rise in production costs is eroding profitability and placing thousands of jobs at risk.

Without swift action to improve the business environment, local manufacturers may have no choice but to shift operations to neighbouring countries offering better conditions.

FABAG is urging the government to introduce stricter border controls to curb smuggling and implement policies that reduce production costs, including tax reliefs and incentives.

The Association warns that continued inaction could see legitimate businesses pushed out of the market by cheaper, unregulated imports, jeopardising livelihoods and undermining industrial growth.