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Comparative analysis on financial viability of cocoa agroforestry systems in Ghana

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  • Isaac Nunoo

    (Kwame Nkrumah University of Science and Technology)

  • Victor Owusu

    (Kwame Nkrumah University of Science and Technology)

Abstract

This study employs an ex-ante analytical approach to explore the financial viability of cocoa agroforestry systems in Ghana using cross-sectional data on smallholder cocoa farmers in the Western Region of Ghana. The empirical results generally show that cocoa agroforestry systems are profitable, but the medium shade tends to be more profitable. The no-shade cocoa agroforestry has the highest yield compared with other cocoa agroforestry systems. Sensitivity analysis revealed that increasing the market price by 12.2 % tends to increase the profitability of cocoa agroforestry systems. Also increasing fertilizer price does not lead to any significant change in the profitability. The study recommends the medium-shade cocoa agroforestry system as the most profitable agroforestry system for optimizing ecological and economic outcomes of smallholder cocoa farmers in sub-Saharan Africa.

Suggested Citation

  • Isaac Nunoo & Victor Owusu, 2017. "Comparative analysis on financial viability of cocoa agroforestry systems in Ghana," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 19(1), pages 83-98, February.
    • Handle: RePEc:spr:endesu:v:19:y:2017:i:1:d:10.1007_s10668-015-9733-z
    DOI: 10.1007/s10668-015-9733-z
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    References listed on IDEAS

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    1. Victor, Afari-Sefa & Gockowski, James & Agyeman, Nana Fredua & Dziwornu, Ambrose K., 2010. "Economic Cost-Benefit Analysis Of Certified Sustainable Cocoa Production In Ghana," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 97085, African Association of Agricultural Economists (AAAE).
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    Cited by:

    1. Scudder, Micah & Wampe, Nathan & Waviki, Zephaniah & Applegate, Grahame & Herbohn, John, 2022. "Smallholder cocoa agroforestry systems; is increased yield worth the labour and capital inputs?," Agricultural Systems, Elsevier, vol. 196(C).

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