ECONOMIC AND FINANCIAL IMPLICATIONS OF DECLINE IN COCOA PRODUCTION

ABSTRACT

Cocoa production has been the backbone of Ghana’s economy for more decades. It employs over a million people throughout the country and source of livelihood for many in the country. This study assessed economic and financial implications of decline in cocoa production in the Bono Region (Jaman South Municipality, specifically Drobo). The study adopted a case study research design using cross sectional survey methods. Purposive sampling was used to select 100 respondents for the study. Data collected were analysed using, frequencies, means, standard deviation and analysis of variance. Findings of the study revealed that logistics challenges and farm related causes were the influential causes of decline in cocoa production. The study again established that there is a decreasing trend of cocoa production from 2015 to 2018in the municipality. The study further revealed that the influential economic and financial implications of decline in cocoa production are net balances after expenses are not encouraging, retirement savings after farming operations are reduce, economic asset of the farmers are not achieved, shops selling cocoa chemical and insecticides are affected and cocoa farmers loan delinquency are increase. The study recommended Government agencies responsible for extension service should offer training programs for farmers’. It further recommended that investing in the logistic constraints of the farmers should be the priority of ministry of food and agriculture. The study suggests that a replica of the study should be conducted in most of the municipalities to give more national outlook for generalization.

TABLE OF CONTENTS

Page

DECLARATION                                                                                                ii

ABSTRACT                                                                                                      iii

KEYWORDS                                                                                                     iv

ACKNOWLEDGEMENT                                                                                  v

DEDICATION                                                                                                   vi

TABLE OF CONTENTS                                                                                 vii

LIST OF TABLES                                                                                              x

LIST OF FIGURES                                                                                           xi

CHAPTER ONE: INTRODUCTION                                                                  

Background of the Study                                                                                    1

Statement of the Problem                                                                                    4

Objectives of the Study                                                                                       6

Specific Objectives                                                                                             6

Research Questions                                                                                             6

Research Hypothesis                                                                                           6

Justification of the Study                                                                                    7

Delimitation                                                                                                        7

Limitations                                                                                                          8

Definition of Terms                                                                                            9

Organization of the Study                                                                                 10

CHAPTER TWO: LITERATURE REVIEW                                                      

Introduction                                                                                                       11

Theoretical Framework                                                                                     11

Models of Cocoa Production                                                                            13

Background of Cocoa Industry in Ghana                                                         15

Structure of Cocoa Production in Ghana                                                          18

Economic and Financial Implication of Cocoa in Ghana                                 19

Actors of Cocoa Value Chain in Ghana                                                           20

Main Actors of the Cocoa Value Chain in Ghana                                            21

Supporting Actors of the Cocoa Value Chain                                                  26

Causes of Fluctuation and Decline of Cocoa Production in Ghana                 29

Fluctuation and Decline of Cocoa Production Related to Farm Inputs            29

Farm Related Causes of Fluctuation and Decline of Cocoa Production          31

Commercial Risks Factors on Fluctuation and Decline in Cocoa Production 33

Effects of Climate Change on Cocoa Production                                             35

Empirical Review                                                                                             37

Conceptual Framework                                                                                     47

Chapter Summary                                                                                             47

CHAPTER THREE: RESEARCH METHODS                                                  

Introduction                                                                                                       49

Research Design                                                                                               49

Study Area                                                                                                        49

Population                                                                                                         50

Sampling Procedure                                                                                          51

Data Collection Instruments                                                                             51

Data Collection Procedure                                                                                52

Data Analysis                                                                                                    53

Ethical Consideration                                                                                        53

Chapter Summary                                                                                             53

CHAPTER FOUR: RESULTS AND DISCUSSION                                          

Introduction                                                                                                       55

Socio-Demographic Characteristics                                                                 55

Causes of Decline in Cocoa Production in Jaman South Municipality    (Drobo)     57

Respondent’s Mean or Average Farm Yield for the Year 2015 to 2018          65

Economic and Financial Implications of Decline in Cocoa Production in the Municipality 67

Discussion of Results                                                                                        71

CHAPTER FIVE: SUMMARY, CONCLUSIONS AND                                   

RECOMENDATIONS                                                                                        

Introduction                                                                                                       76

Summary                                                                                                           76

Conclusions                                                                                                       78

Recommendations                                                                                             79

Suggestions for Future Studies                                                                         79

REFERENCES                                                                                                 80

APPENDIX A                                                                                                   91