Analysis of The Cassava Value Chains and Economic Implications On Actors in Southern Ghana

Subscribe to access this work and thousands more

ABSTRACT

Currently, the cassava crop is transiting from a staple food commodity into an industrial crop for the production of starch and ethanol and this suggests probable changes in marketing arrangements and conditions. The present study analyzed the cassava chains and the economic implications on actors in Southern Ghana. The value chain actors interviewed include cassava farmers and small-scale (gari and agbelima) processors who were selected randomly and large-scale cassava processors, purposively selected from the Volta, Eastern and Central regions of Ghana. The field survey was conducted in October and November 2016. The study describes a value chain map for cassava using an organogram and uses percentage distribution of respondents to describe the nature of trust, type of governance structure, and upgrading along the value chain. It used the Herfindahl-Hirschman Index (HHI) to assess market concentration. The value-added and its distribution, return to labor in the value chain and competitiveness of value-added activities were analyzed. The analysis on gross and net value added used the production and income account approach. Measures of competitiveness employed in the study include the estimation of social and private profit using the Policy Analysis Matrix. From the Policy Analysis Matrix, the domestic resource cost coefficient, private cost ratio, private value added ratio, among other were estimated. The results obtained for level of trust relationships along the cassava value chains were mixed. Generally, the findings suggest that a captive market and a market governance structures exist between cassava farmers and their buyers, small-scale (gray and agbelima) processors and their buyers respectively. Modular governance exists between large-scale cassava processors and their buyers. There is low process and product upgrading among smallholder farmers, while the process upgrading by large-scale cassava processors is high. The estimates of the HHI for cassava farmers, small-scale processors are low, suggesting low market power and thus, inability of a cassava farmer and small-scale processors to influence the price of their respective products. However, estimate of the HHI for large-scale (high quality cassava flour, cassava starch and cake) processors is very high, suggesting their market is concentrated. Analysis of the distribution of gross value-added in the cassava value chains shows that the production of high quality cassava flour generates the highest gross value-added of 36%. In addition, high quality cassava flour generates the highest profit of 58%. It came out from the study that Southern Ghana is efficient in the production of cassava, agbelima, gari, high quality cassava flour and cassava starch. On average, a domestic resource cost coefficient of 0.110 is obtained. The study recommends, among others that policy to increase production should focus on improving the capacity of smallscale processors who represent a less concentrated segment of the value chain and a major market for smallholder farmers. Improvement of the capacity of farmers and smallscale processors is also necessary to ensure process, product and functional upgrading. Farmers and small-scale processors should be given technical and credit support, which could help to modernize the cassava value chains in the long term. Cassava and its value added activities should become an important tool in poverty reduction and food security in Ghana. The study further recommends that value chain actors are incentivized and protected.

Subscribe to access this work and thousands more
Save
Need help with your academic research project/paper, technical or creative writing? Hire our expert researchers and writers. Click Here to Submit a Writing Request
Overall Rating

0

5 Star
(0)
4 Star
(0)
3 Star
(0)
2 Star
(0)
1 Star
(0)
APA

Frontiers, E. & MANU, I (2022). Analysis of The Cassava Value Chains and Economic Implications On Actors in Southern Ghana. Afribary. Retrieved from https://afribary.com/works/analysis-of-the-cassava-value-chains-and-economic-implications-on-actors-in-southern-ghana

MLA 8th

Frontiers, Edu, and ISAAC MANU "Analysis of The Cassava Value Chains and Economic Implications On Actors in Southern Ghana" Afribary. Afribary, 17 Jun. 2022, https://afribary.com/works/analysis-of-the-cassava-value-chains-and-economic-implications-on-actors-in-southern-ghana. Accessed 03 Jul. 2022.

MLA7

Frontiers, Edu, and ISAAC MANU . "Analysis of The Cassava Value Chains and Economic Implications On Actors in Southern Ghana". Afribary, Afribary, 17 Jun. 2022. Web. 03 Jul. 2022. < https://afribary.com/works/analysis-of-the-cassava-value-chains-and-economic-implications-on-actors-in-southern-ghana >.

Chicago

Frontiers, Edu and MANU, ISAAC . "Analysis of The Cassava Value Chains and Economic Implications On Actors in Southern Ghana" Afribary (2022). Accessed July 03, 2022. https://afribary.com/works/analysis-of-the-cassava-value-chains-and-economic-implications-on-actors-in-southern-ghana