IDEAS home Printed from https://ideas.repec.org/p/fpr/ifprid/1213.html

The partially liberalized cocoa sector in Ghana: Producer price determination, quality control, and service provision

Author

Listed:
  • Kolavalli, Shashidhara
  • Vigneri, Marcella
  • Maamah, Haruna
  • Poku, John

Abstract

The cocoa sector in Ghana is one of few examples of an export commodity sector in an African country that has withstood the pressure to fully liberalize. Despite substantial government control over internal and external marketing via the Ghana Cocoa Board (COCOBOD), the current institutional arrangement is able to pass on a significant share of export prices to farmers, a key objective of the liberalization of commodity markets in Africa. As Ghana continues to capitalize on its recent discovery of off-shore oil reserves, the government and donors alike are concerned that the competitiveness of the cocoa sector may be threatened. The overall objective of this study is to examine the competitiveness of the cocoa sector by focusing on four aspects of the current set of institutions, including (1) the process of determining producer prices; (2) the outcomes of the introduction of private licensed buying companies; (3) COCOBOD’s role in maintain quality, and the costs and benefits of this process; and (4) trends in COCOBOD expenditure on the provision of various goods and services. The methodology adopted for this study is primarily that of an expenditure review.

Suggested Citation

  • Kolavalli, Shashidhara & Vigneri, Marcella & Maamah, Haruna & Poku, John, 2012. "The partially liberalized cocoa sector in Ghana: Producer price determination, quality control, and service provision," IFPRI discussion papers 1213, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:ifprid:1213
    as

    Download full text from publisher

    File URL: https://hdl.handle.net/10568/154015
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. repec:wbk:wbpubs:13852 is not listed on IDEAS
    2. Timothy Besley, 1997. "Monopsony and Time–Consistency: Sustainable Pricing Policies for Perennial Crops," Review of Development Economics, Wiley Blackwell, vol. 1(1), pages 57-70, February.
    3. Brooks, Jonathan & Croppenstedt, Andre & Aggrey-Fynn, Emmanuel, 2007. "Distortions to Agricultural Incentives in Ghana," Agricultural Distortions Working Paper Series 48523, World Bank.
    4. Bateman, Merrill J. & Meeraus, Alexander & Newbery, David M. & Okyere, William Asenso & O'Mara, Gerald T., 1990. "Ghana's cocoa pricing policy," Policy Research Working Paper Series 429, The World Bank.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Maile, Felix, 2020. "Cooperation or confrontation? Public and private governance and smallholders' incomes in the cocoa sector in Ghana and in Côte d'Ivoire," ÖFSE-Forum, Austrian Foundation for Development Research (ÖFSE), volume 74, number 74.
    2. 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.
    3. Salamatu Jebuni-Dotsey, 2023. "Price Incentives and Supply Response in Cocoa -A Case of Border Regions of Ghana," Journal of Sustainable Development, Canadian Center of Science and Education, vol. 16(3), pages 1-1, May.
    4. Boysen, Ole & Ferrari, Emanuele & Nechifor, Victor & Tillie, Pascal, 2023. "Earn a living? What the Côte d’Ivoire–Ghana cocoa living income differential might deliver on its promise," Food Policy, Elsevier, vol. 114(C).
    5. Amankwah-Amoah, Joseph & Debrah, Yaw & Nuertey, Dorcas, 2018. "Institutional Legitimacy, Cross-Border Trade and Institutional Voids: Insights from the Cocoa Industry in Ghana," MPRA Paper 84393, University Library of Munich, Germany.
    6. Andam, Kwaw & Silver, Jed, 2016. "Food processing in Ghana: Trends, constraints, and opportunities," GSSP policy notes 11, International Food Policy Research Institute (IFPRI).
    7. 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).
    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).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Goodlet Owusu Ansah & Isaac Antwi & Lawrencia Pokuah Siaw, 2017. "All because of competition: A bane or blessing for smaller licence buying companies (LBCs) of the Ghanaian cocoa industry," Cogent Business & Management, Taylor & Francis Journals, vol. 4(1), pages 1299603-129, January.
    2. Jean Paul Azam & Robert Bates & Bruno Biais, 2009. "Political Predation And Economic Development," Economics and Politics, Wiley Blackwell, vol. 21(2), pages 255-277, July.
    3. Moomen, Abdul–Wadood, 2017. "Strategies for managing large-scale mining sector land use conflicts in the global south," Resources Policy, Elsevier, vol. 51(C), pages 85-93.
    4. Anderson, Kym & Masters, William A., 2008. "Distortions to Agricultural Incentives in Sub-Saharan and North Africa," Agricultural Distortions Working Paper Series 48572, World Bank.
    5. Margaret S. McMillan & William A. Masters, 2000. "Africa's Growth Trap: A Political-Economy Model of Taxation, R&D and Investment," CID Working Papers 50A, Center for International Development at Harvard University.
    6. Boansi, David, 2013. "Export performance and macro-linkages: A look at the competitiveness and determinants of cocoa exports, production and prices for Ghana," MPRA Paper 48345, University Library of Munich, Germany.
    7. Scheiterle, Lilli & Birner, Regina, 2016. "Comparative advantage and factors affecting maize production in Northern Ghana: A Policy Analysis Matrix Study," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 249277, African Association of Agricultural Economists (AAAE).
    8. Abbott, Philip C., 2007. "Distortions to Agricultural Incentives in Cote d’Ivoire," Agricultural Distortions Working Paper Series 48522, World Bank.
    9. Margaret S. McMillan, 1999. "Foreign Direct Investment: Leader or Follower?," Discussion Papers Series, Department of Economics, Tufts University 9901, Department of Economics, Tufts University.
    10. Kala Krishna, 1998. "The adding up problem: a targeting approach," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 7(2), pages 151-173.
    11. Willian A Masters and Margaret S McMillan, 2000. "Africa’s growth trap: a political-economy model of taxation, R&D and investment," Economics Series Working Papers WPS/2000-14, University of Oxford, Department of Economics.
    12. Angus Deaton, 1999. "Commodity Prices and Growth in Africa," Journal of Economic Perspectives, American Economic Association, vol. 13(3), pages 23-40, Summer.
    13. repec:wbk:wbpubs:2607 is not listed on IDEAS
    14. Takane, Tsutomu, 2000. "Incentives Embedded in Institutions: The Case of Share Contracts in Ghanaian Cocoa Production," The Developing Economies, Institute of Developing Economies, Japan External Trade Organization(JETRO), vol. 38(3), pages 374-397, September.
    15. Takamasa Akiyama, 1992. "Is there a case for an optimal export tax on perennial crops?," Policy Research Working Paper Series 854, The World Bank.
    16. repec:wbk:wbpubs:15170 is not listed on IDEAS
    17. Schiff, Maurice, 1994. "Commodity exports and the adding up problem in developing countries : trade, investment, and lending policy," Policy Research Working Paper Series 1338, The World Bank.
    18. Kotu, B.H. & Abass, A. & Hoeschle-Zeledon, I. & Mbwambo, H. & Bekunda, M., 2018. "Returns to improved storage and potential impacts on household food security and income: evidence from Tanzania," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276965, International Association of Agricultural Economists.
    19. Jones, Michael & Alexander, Corinne E. & Lowenberg-DeBoer, James, 2011. "An Initial Investigation Of The Potential For Hermetic Purdue Improved Crop Storage (Pics) Bags To Improve Incomes For Maize Producers In Sub-Saharan Africa," Working papers 115554, Purdue University, Department of Agricultural Economics.
    20. World Bank, 2009. "Economy-Wide Impact of Oil Discovery in Ghana," World Bank Publications - Reports 18903, The World Bank Group.
    21. Schulz, Nicolai, 2020. "The politics of export restrictions: a panel data analysis of African commodity processing industries," LSE Research Online Documents on Economics 103779, London School of Economics and Political Science, LSE Library.
    22. Valenzuela, Ernesto & Kurzweil, Marianne & Croser, Johanna L. & Nelgen, Signe & Anderson, Kym, 2007. "Annual Estimates Of African Distortions To Agricultural Incentives," Agricultural Distortions Working Paper Series 48553, World Bank.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fpr:ifprid:1213. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/ifprius.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.