The Chamber of Agribusiness Ghana (CAG) has raised alarm over the impact of the 20% excise duty on natural fruit juices, warning that the tax threatens up to 127,000 jobs along the agricultural and processing value chains and undermines the potential to earn $1 billion annually in juice exports.
In a statement issued on Wednesday, February 4, 2026, CAG said the tax, introduced as a public health measure, is instead forcing juice processing factories to operate at 30-45% of capacity, well below the optimal 70-85%, creating cascading effects on rural farmers.
These farmers rely on factories as stable buyers for pineapples, oranges, mangoes, and other fruits, and reduced processing capacity is disrupting these supply chains.
Anthony Morrison, Chief Executive Officer of CAG, emphasized the wider economic impact: “The 20% excise duty is not just a tax on juice processors; it is a direct attack on the livelihoods of 50,000 to 120,000 farming households across Ghana.
Farmers face 15-30% price declines, watch 30-40% of their harvest rot in the fields, and lose the reliable markets that contract farming provides.”
The Chamber highlighted that women farmers, who account for 55-60% of fruit producers, are disproportionately affected.
The tax also threatens youth employment in factory operations and contributes to rural economic decline in key fruit-producing regions, including the Eastern, Volta, and Central regions.
Beyond domestic concerns, CAG warned that the excise duty is hampering the international competitiveness.
“Global demand for natural and functional beverages is growing at 6-8% annually. Ghana is uniquely positioned to capture $700 million to $1 billion in exports, but the current tax undermines our competitiveness,” Morrison noted.
CAG is urging the government to exempt 100% natural fruit juices from the excise duty immediately.
The Chamber cautioned that failure to act could result in lost jobs, declining farmer incomes, and diminished Ghanaian presence in the growing global juice market.
This warning comes amid broader discussions on balancing public health policies with economic growth, particularly in sectors that provide significant employment and export revenues for the country.
