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An optimal phased replanting approach for cocoa trees with application to Ghana

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Listed:
  • Mahrizal
  • L. Lanier Nalley
  • Bruce L. Dixon
  • Jennie S. Popp

Abstract

This study solves for the optimum replacement rate (ORR) and initial replacement year (IRY) of cocoa trees (Theobroma cacao) in Ghana to maximize net present value and achieve steady state by employing a phased replanting approach. The annual ORR is 5%–7% across the three production systems studied: Low Input, Landrace Cocoa, High Input, No Shade Amazon Cocoa, and High Input, Medium Shade Cocoa. The optimal IRY ranges from year 5 to year 9 as a function of cocoa prices, fertilizer prices, labor prices, and percentage yield loss due to disease outbreaks. Deterministic results project economic gains that exceed currently practiced replacement approaches by 5.57%–14.67% across production systems with reduced, annual income volatility. The method applied in this study can be used to increase cocoa yields and stabilize income over time, and facilitate substantial quality of life improvements for many subsistence cocoa farmers in Ghana and around the world.

Suggested Citation

  • Mahrizal & L. Lanier Nalley & Bruce L. Dixon & Jennie S. Popp, 2014. "An optimal phased replanting approach for cocoa trees with application to Ghana," Agricultural Economics, International Association of Agricultural Economists, vol. 45(3), pages 291-302, May.
    • Handle: RePEc:bla:agecon:v:45:y:2014:i:3:p:291-302
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    File URL: http://hdl.handle.net/10.1111/agec.12065
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    References listed on IDEAS

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    Cited by:

    1. Aboah, Joshua & Setsoafia, Edinam Dope, 2022. "Examining the synergistic effect of cocoa-plantain intercropping system on gross margin: A system dynamics modelling approach," Agricultural Systems, Elsevier, vol. 195(C).
    2. Tosto, Ambra & Morales, Alejandro & Rahn, Eric & Evers, Jochem B. & Zuidema, Pieter A. & Anten, Niels P.R., 2023. "Simulating cocoa production: A review of modelling approaches and gaps," Agricultural Systems, Elsevier, vol. 206(C).
    3. Aboah, Joshua & Wilson, Mark M.J. & Bicknell, Kathryn & Rich, Karl M., 2021. "Ex-ante impact of on-farm diversification and forward integration on agricultural value chain resilience: A system dynamics approach," Agricultural Systems, Elsevier, vol. 189(C).
    4. Asante, Paulina A. & Rozendaal, Danaё M.A. & Rahn, Eric & Zuidema, Pieter A. & Quaye, Amos K. & Asare, Richard & Läderach, Peter & Anten, Niels P.R., 2021. "Unravelling drivers of high variability of on-farm cocoa yields across environmental gradients in Ghana," Agricultural Systems, Elsevier, vol. 193(C).
    5. Francis Tsiboe & Bruce L. Dixon & Lawton L. Nalley & Jennie S. Popp & Jeff Luckstead, 2016. "Estimating the impact of farmer field schools in sub-Saharan Africa: the case of cocoa," Agricultural Economics, International Association of Agricultural Economists, vol. 47(3), pages 329-339, May.
    6. Ina-Kathrin Spey & Denis Kupsch & Kadiri Serge Bobo & Matthias Waltert & Stefan Schwarze, 2019. "The Effects of Road Access on Income Generation. Evidence from An Integrated Conservation and Development Project in Cameroon," Sustainability, MDPI, vol. 11(12), pages 1-14, June.

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