The agro-processing sector can be divided into two categories: domestic processing and factory processing. Domestic agro-processing involves small-scale operations and units. Typically, the workers in this sector are family members and females. The skills required for food processing are mainly acquired through on-the-job training and apprenticeships, as opposed to formal training. Despite their small size, domestic agro-processing ventures often create jobs and utilize local resources.

Factory agro processing on the other hand involves large-scale processing of raw materials. This type of processing requires the use of huge equipment and machinery. Agro-processing is mostly done by multinational companies. Factory-processed agricultural products are suitable for export, which generates foreign exchange

Processed food and beverages make up the biggest portion of commodity products. This includes canned fish and meat, tomato puree, peanut butter, pepper sauces, jams, jellies, and beans.

Agro-processing presents several benefits to the agricultural sector. First, it helps reduce post-harvest losses and ensure year-round availability of food. Food processing also helps to retain the nutritional value of food through a reduction in food spoilage. Moreover, adding value to locally farmed agricultural produce further helps to establish indigenous food brands and standards.

Agro-processing can potentially reduce the need for importing foreign foods, while also increasing exports to neighbouring countries. Processed foods tend to be more stable in price on the global market, which can lead to increased market opportunities for exports. This, in turn, can help generate income security for rural communities that are primarily involved in agricultural activities.

Agro-processing companies offer jobs for people to earn a living and contribute to government revenue through tax payments. Additionally, the agricultural waste produced during processing can be recycled into useful products, like animal feed and compost for farming.

REFERENCE

Information from Owoo, Nkechi S., and Monica P. Lambon-Quayefio, 'The Agro-Processing Industry and its Potential for Structural Transformation of the Ghanaian Economy', in Richard Newfarmer, John Page, and Finn Tarp (eds), Industries without Smokestacks: Industrialization in Africa Reconsidered (Oxford, 2018; online edn, Oxford Academic, 20 Dec. 2018), https://doi.org/10.1093/oso/9780198821885.003.0010, accessed 22 Aug. 2023 and https://www.ug.edu.gh/iast/node/5 was used in this story