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Article
Publication date: 12 August 2014

Kenneth Ofori-Boateng and Baba Insah

– The study aimed at examining the current and future impact of climate change on cocoa production in West Africa.

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Abstract

Purpose

The study aimed at examining the current and future impact of climate change on cocoa production in West Africa.

Design/methodology/approach

A translog production function based on crop yield response framework was used. A panel model was estimated using data drawn from cocoa-producing countries in West Africa. An in-sample simulation was used to determine the predictive power of the model. In addition, an out-sample simulation revealed the effect of future trends of temperature and precipitation on cocoa output.

Findings

Temperature and precipitation play a considerable role in cocoa production in West Africa. It was established that extreme temperature adversely affected cocoa output in the sub-region. Furthermore, increasing temperature and declining precipitation trends will reduce cocoa output in the future.

Practical implications

An important implication of this study is the recognition that lagging effects are the determinants of cocoa output and not coincident effects. This finds support from the agronomic point of view considering the gestation period of the cocoa crop.

Originality/value

Although several studies have been carried out in this area, this study modeled and estimated the interacting effects of factors that influence cocoa production. This is closer to reality, as climatic factors and agricultural inputs combine to yield output.

Details

International Journal of Climate Change Strategies and Management, vol. 6 no. 3
Type: Research Article
ISSN: 1756-8692

Keywords

Article
Publication date: 12 March 2018

Wasiu Olayinka Fawole and Burhan Ozkan

The purpose of this paper is to assess how profitable and technically efficient is cocoa enterprise in Ondo State of Nigeria especially amidst the ongoing diversification program…

Abstract

Purpose

The purpose of this paper is to assess how profitable and technically efficient is cocoa enterprise in Ondo State of Nigeria especially amidst the ongoing diversification program of the current administration in Nigeria.

Design/methodology/approach

The study made use of primary data collected with the aid of structured questionnaires. The multistage random sampling technique was used to select the sample for the study. Data collected during the survey were analyzed by both descriptive and inferential techniques. A total of 140 respondents who were majorly cocoa farmers were selected for this study with data on their socioeconomic characteristics and input utilization taken and subsequently analyzed.

Findings

This study found that the cocoa enterprise in the study area was efficient and profitable with rooms for improvement, especially in the areas of labor and input used as identified by the outcome of the study. The average yield, total revenue, gross margin and efficiency ratio were 1.2 ton/ha, ₦1,344,000.00/ha, ₦1,071,717.00/ha and 0.36, respectively. The highest, average and least technical efficiencies among farmers in the study area were 98.86, 88.81 and 75.12 percent, respectively. It was also discovered that none of the farmers investigated operated at 100 percent, confirming that there are still rooms for improvement in the production processes in the study area by adopting modern methods of production and replacement of the old breeds with resistant and high yielding breeds.

Research limitations/implications

The major limitation of this study was that the study sample is quite smaller and could as well not be used to make a strong policy case for the topic under consideration. However, as it is found among the majority of cocoa farmers in Nigeria, they mostly operate under the same conditions of production which suggests that the outcome of this research is not meaningless, considering the similarities in the production environment and other factors of production among cocoa farmers in Nigeria. It is therefore strongly recommended that future studies take into consideration this limitation and address it appropriately by widening the scope and sample for the study as this will go a long way in giving true representation as regarding the topic under consideration.

Social implications

The social implication of this study has to do with the employment opportunities that will be created for the teaming youths if the cocoa enterprise is made to attract them by creating enabling environment as recommended by the study. When quantity of production is improved, it will create additional income for the farmers and also provide foreign earnings to government.

Originality/value

This study is strictly original, considering its content and the contribution it is making to the body of knowledge. The study will be contributing to the knowledge by pointing out the potentials inherent in cocoa production as especially coming at a time when the price of crude oil that provides over 80 percent of Nigerian foreign earnings is down and the cocoa price is not only high but also stable at the international market.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 8 no. 1
Type: Research Article
ISSN: 2044-0839

Keywords

Article
Publication date: 26 September 2019

Richard Kwasi Bannor, Helena Oppong-Kyeremeh, Samuel Atewene and Camillus Abawiera Wongnaa

The purpose of this paper is to examine the factors influencing the choice and the amount of cocoa beans sold to public and private licensed buying companies in the Western North…

Abstract

Purpose

The purpose of this paper is to examine the factors influencing the choice and the amount of cocoa beans sold to public and private licensed buying companies in the Western North of Ghana.

Design/methodology/approach

The study was conducted in the Western North of Ghana. Cragg’s Double Hurdle model was used to examine the factors influencing the choice of licensed buying company (LBC) whereas Kendall’s coefficient of concordance was employed in analysis of the marketing challenges.

Findings

The results showed that non-price incentives determine the choice and the amount cocoa beans sold to an LBC. Specifically, education, years of experience in cocoa farming and timely payment of sold cocoa beans positively influence the choice of public LBC. However, off farm job participation, provision of credit facilities and extension services affect the choice of private LBC as marketing outlet. Perceived low price of cocoa beans, inadequate credit support, and adjustment of scales used in weighing of cocoa beans were identified as the most important challenges confronting farmers.

Research limitations/implications

The research provides important information on non-price incentives influencing cocoa marketing outlet decision as well as the marketing challenges faced by farmers which can contribute to improving internal marketing efficiency of the cocoa industry in Ghana. Besides, this study also extends the frontiers in terms of methodological approach by adopting Cragg’s Double Hurdle Model in addressing the research question.

Originality/value

The research provides important information on non-price incentives influencing cocoa marketing outlet decision as well as the marketing challenges faced by farmers which can contribute to improving internal marketing efficiency of the cocoa industry in Ghana. Besides, this study also extends the frontiers in terms of methodological approach by adopting Cragg’s Double Hurdle Model in addressing the research question.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 9 no. 4
Type: Research Article
ISSN: 2044-0839

Keywords

Article
Publication date: 31 December 2020

Bismark Amfo, James Osei Mensah and Robert Aidoo

Poor working conditions among migrant labourers on cocoa farms may be commonplace. This could affect labour productivity and cocoa industry performance. The paper investigates…

Abstract

Purpose

Poor working conditions among migrant labourers on cocoa farms may be commonplace. This could affect labour productivity and cocoa industry performance. The paper investigates migrants' satisfaction with working conditions on cocoa farms in Ghana and the key drivers of satisfaction.

Design/methodology/approach

The study employed a five-point Likert scale to evaluate migrants' satisfaction with remuneration, working hours, welfare, health and safety, contract and freedom. Using primary data from 400 migrants and non-migrants in four cocoa districts, multivariate probit regression was employed to evaluate the determinants of satisfaction with working conditions.

Findings

Migrant labourers are generally satisfied with their working hours, nature of contract and freedom they enjoy. However, they are unsatisfied with their remuneration, welfare and health/safety conditions on cocoa farms. All things being equal, secondary occupation, nature of contract, number of farmers served by labourer, annual earnings, farm ownership, education and expectations before migration influence migrants' satisfaction with working conditions.

Practical implications

To improve satisfaction with working conditions and productivity, migrants on cocoa farms should be given protective working gear, long-term or renewable contracts and they should be encouraged to engage in secondary occupations.

Originality/value

Unlike previous studies that focussed on working conditions in the formal sector, this study explores migrants' satisfaction with working conditions in the informal agricultural sector. Also, the study examines labourers' satisfaction with six subcomponents of working conditions compared to previous studies that employed a univariate analytical approach to examine working conditions.

Details

International Journal of Social Economics, vol. 48 no. 2
Type: Research Article
ISSN: 0306-8293

Keywords

Expert briefing
Publication date: 11 September 2015

Outlook for cocoa production in West Africa.

Details

DOI: 10.1108/OXAN-DB203313

ISSN: 2633-304X

Keywords

Geographic
Topical
Article
Publication date: 13 May 2020

Abiola John Asaleye, Philip O. Alege, Adedoyin Isola Lawal, Olabisi Popoola and Adeyemi A. Ogundipe

One of the challenging factors in achieving sustainable growth is the inability of the Nigerian government to diversify the country's revenue base. This study aims to investigate…

Abstract

Purpose

One of the challenging factors in achieving sustainable growth is the inability of the Nigerian government to diversify the country's revenue base. This study aims to investigate the relationship between cash crop financing and agricultural performance in Nigeria.

Design/methodology

Four crops were considered, namely, cotton, cocoa, groundnut and palm oil. The impact of cash crop finance shock on agricultural performance was investigated using the vector error correction model (VECM), while the long-run relationship was examined through the identification of long-run restrictions on the VECM.

Findings

The variance decomposition showed that financing shock is more sensitive to cause variation in aggregate employment than aggregate agricultural output in palm oil, while for cocoa, cotton and groundnut showed otherwise. The long-run structural equations exert a positive relationship between cash crop financing and agricultural performance, except for oil palm and cocoa financing that has a negative connection with agrarian employment.

Research limitations/implications

The study is limited to the unavailability of data for agriculture sector capital utilisation, which was not used.

Practical implications

These results show that long-run benefit can be maximised by appropriate funding in cotton and groundnut production to promote sustainable growth.

Originality/value

The study examines the impact of cash crop financing on agricultural performance with the aim to promote sustainable growth in Nigeria using identified VECM.

Details

African Journal of Economic and Management Studies, vol. 11 no. 3
Type: Research Article
ISSN: 2040-0705

Keywords

Expert briefing
Publication date: 12 November 2018

West Africa cocoa outlook.

Details

DOI: 10.1108/OXAN-DB239801

ISSN: 2633-304X

Keywords

Geographic
Topical
Article
Publication date: 1 June 2022

John Kwesi Buor

Change in the economic status of a low-income country is accompanied by an expected increase in investment and economic activities along with land degradation and biodiversity…

Abstract

Purpose

Change in the economic status of a low-income country is accompanied by an expected increase in investment and economic activities along with land degradation and biodiversity loss. This study aims to explore Ghana's transition from a low-income to a lower-middle income economy, and the impact of the accompanying rise in extractive activities on the upstream cocoa supply chain (CSC) and its supporting ecosystem.

Design/methodology/approach

The author conducted interviews and made critical observations on Ghana's upstream CSC. Grounded theory (GT) and system dynamics (SD) methodologies were employed to extract and analyze themes from the data gathered. Causal loop diagrams were derived from the analyzed data to provide insight into the possible long-term structural behavior of the upstream CSC due to the change in Ghana's economic status.

Findings

The findings suggest that continuous increase in land capture by open-cast mining and logging concessionaires, poor environmental law enforcement and farmer discontentment could cause a decline in cocoa production and biodiversity.

Originality/value

This research could stimulate the identification of a most effective alternative policy (such as agroecological farming) to improve the living standards of upstream CSC partners and reduce biodiversity loss. The models herein could serve as a learning/demonstration tool for researchers, academia and policymakers when brainstorming students, or during stakeholder (community/society) engagement/consultation sessions, to discuss policy decisions and their consequences. The model approach could also be helpful when designing strategic land-use policies. This could improve understanding of the complex interdependent relationships and the consequences of land degradation, loss of biodiversity and rural livelihood from a system thinking perspective.

Details

Management of Environmental Quality: An International Journal, vol. 33 no. 6
Type: Research Article
ISSN: 1477-7835

Keywords

Expert briefing
Publication date: 6 September 2022

The 2020 introduction of the Living Income Differential (LID) -- a USD400 per tonne premium on all cocoa sales from Ghana and Ivory Coast -- aimed at improving the circumstances…

Details

DOI: 10.1108/OXAN-DB272537

ISSN: 2633-304X

Keywords

Geographic
Topical
Article
Publication date: 1 June 1988

Aloysius M. Offiongodon

The study examines the marketing of cocoa in Nigeria as a pilot study to formulating new strategies for the marketing of agricultural commodities. Three interrelated and…

Abstract

The study examines the marketing of cocoa in Nigeria as a pilot study to formulating new strategies for the marketing of agricultural commodities. Three interrelated and interdependent approaches have been developed namely, institutional, functional and market structure strategies. These reveal how exchange, physical and facilitating functions can be effectively utilised to expedite the distribution of cocoa through the marketing system. However, methods in use by the cocoa farmers are not efficient due to problems of shortages and the policies of the Marketing Boards and the commodity boards. Improved methods of cocoa cultivation and the removal of impediments on granting credit facilities are recommended.

Details

European Journal of Marketing, vol. 22 no. 6
Type: Research Article
ISSN: 0309-0566

Keywords

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