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Increasing Income of Ghanaian Cocoa Farmers: Is Introduction of Fine Flavour Cocoa a Viable Alternative

Author

Listed:
  • Gockowski, James
  • Afari-Sefa, Victor
  • Sarpong, Daniel Bruce
  • Osei-Asare, Yaw B.
  • Dziwornu, Ambrose K.

Abstract

Consumers’ taste and preference for differentiated cocoa based on darkness and flavour quality has been rising over the years. Added value of such specialty cocoa is expressed by consumers’ willingness to pay more than the standard commodity price for the attributes and associations such as augmented health benefits that differentiate the product. Conventional cocoa production systems often planted with local landraces and to some extent hybrids often have low yields that cannot match farmers’ investment decisions. An ex ante analysis of fine flavour cocoa was investigated for Ghana vis-à-vis existing farming conditions, using economic decision criteria. Fine flavour cocoa is differentiated on the basis of clonal planting material as opposed to regular pods and by its superior flavour qualities at during post-harvest handling. Results of hypothetical fine flavour systems are compared with business-as-usual systems with high input fine flavour system emerging as clear winner in terms of profitability. Sensitivity analysis shows that increasing percentage of producer price with fertiliser subsidies dramatically improves farmers’ income.

Suggested Citation

  • Gockowski, James & Afari-Sefa, Victor & Sarpong, Daniel Bruce & Osei-Asare, Yaw B. & Dziwornu, Ambrose K., 2011. "Increasing Income of Ghanaian Cocoa Farmers: Is Introduction of Fine Flavour Cocoa a Viable Alternative," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 50(2), pages 1-26.
    • Handle: RePEc:ags:qjiage:155531
    DOI: 10.22004/ag.econ.155531
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    Citations

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    Cited by:

    1. Bangmarigu, Emmanuel & Qineti, Artan, 2018. "Cocoa Production and Export in Ghana," 162nd Seminar, April 26-27, 2018, Budapest, Hungary 272051, European Association of Agricultural Economists.
    2. Jeff Luckstead & Francis Tsiboe & Lawton L Nalley, 2019. "Estimating the economic incentives necessary for eliminating child labor in Ghanaian cocoa production," PLOS ONE, Public Library of Science, vol. 14(6), pages 1-22, June.
    3. Tsiboe, Francis & Nalley, Lawton Lanier & Dixon, Bruce L. & Popp, Jennie S. & Luckstead, Jeff, 2014. "Cost-Benefit Analysis of the Cocoa Livelihoods Program in Sub-Saharan Africa," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 195775, Southern Agricultural Economics Association.
    4. Enoch Kwame Tham-Agyekum & Ernest Laryea Okorley & Joseph Kwarteng & John-Eudes Andivi Bakang & Fred Nimoh, 2021. "Enhancing Market Orientation of Cocoa Farmers through Farmer Business Schools: The Ghana Cocobod Experience," Asian Journal of Agriculture and rural Development, Asian Economic and Social Society, vol. 11(1), pages 129-138, March.
    5. Priscilla Wainaina & Peter A. Minang & Lalisa Duguma & Kennedy Muthee, 2021. "A Review of the Trade-Offs across Different Cocoa Production Systems in Ghana," Sustainability, MDPI, vol. 13(19), pages 1-18, October.
    6. Alexis H. Villacis & Jeffrey R. Alwang & Victor Barrera & Juan Dominguez, 2022. "Prices, specialty varieties, and postharvest practices: Insights from cacao value chains in Ecuador," Agribusiness, John Wiley & Sons, Ltd., vol. 38(2), pages 426-458, April.
    7. Ximena Rueda & Andrea Paz & Theodora Gibbs‐Plessl & Ronald Leon & Byron Moyano & Eric F Lambin, 2018. "Smallholders at a Crossroad: Intensify or Fall behind? Exploring Alternative Livelihood Strategies in a Globalized World," Business Strategy and the Environment, Wiley Blackwell, vol. 27(2), pages 215-229, February.
    8. Eberhard, Erich K. & Hicks, Jessica & Simon, Adam C. & Arbic, Brian K., 2022. "Livelihood considerations in land-use decision-making: Cocoa and mining in Ghana," World Development Perspectives, Elsevier, vol. 26(C).
    9. Emmanuel Ahoa & Ayalew Kassahun & Bedir Tekinerdogan & Cor Verdouw, 2021. "Analyzing and Designing Business Processes in the Ghana Cocoa Supply Chain for Supporting Inclusiveness," Sustainability, MDPI, vol. 13(22), pages 1-29, November.

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