Agribusiness Chamber warns 20% juice tax could ost 127,000 jobs, $1bn in exports

The Chamber of Agribusiness Ghana (CAG) has cautioned that the 20 per cent excise duty imposed on natural fruit juices is inflicting severe damage on the country’s agribusiness sector, threatening as many as 127,000 jobs and eroding Ghana’s prospects of earning up to $1 billion annually from juice exports.

In a statement issued on Wednesday, February 4, 2026, the Chamber said the tax, which was introduced as a public health intervention, has instead weakened the fruit processing industry. According to CAG, many juice processing factories are now operating at just 30 to 45 per cent capacity, far below the optimal range of 70 to 85 per cent. This has reduced demand for raw fruits and negatively affected farmers who depend on processing companies as stable off-takers for pineapples, oranges, mangoes and other produce.

Chief Executive Officer of CAG, Anthony Morrison, described the policy as devastating for both processors and farmers. He said the excise duty has led to sharp declines in farm-gate prices, with farmers losing between 15 and 30 per cent of expected income. He added that up to 40 per cent of harvested fruit is now wasted due to the lack of buyers, while thousands of households that previously benefited from contract farming arrangements are losing reliable markets.

CAG noted that the impact is especially harsh on women, who account for about 55 to 60 per cent of fruit producers nationwide. The Chamber also warned that reduced processing activity is putting youth employment at risk and accelerating economic decline in major fruit-producing regions, including the Eastern, Volta and Central regions.

Beyond domestic effects, CAG stressed that the tax is undermining Ghana’s competitiveness in the global beverage market. The Chamber pointed out that international demand for natural and functional drinks is expanding at an annual rate of 6 to 8 per cent, offering Ghana a clear opportunity to earn between $700 million and $1 billion in export revenue. However, the current excise duty, it said, makes locally produced juices less competitive on the global market.

CAG is therefore calling on the government to urgently exempt 100 per cent natural fruit juices from the excise duty. The Chamber warned that failure to reverse the policy could lead to further job losses, declining farmer incomes, and a weakened position for Ghana in the fast-growing global juice industry.