Tropentag, September 19 - 21, 2012 in Göttingen "Resilience of agricultural systems against crises"

From Production to Export Markets: The Case of the Cacao Value Chain in Ghana

¹Bern University of Applied Sciences, Switzerland
²Kwame Nkrumah University of Science and Technology, Agricultural Econs, Agribusiness & Extension, Ghana

Abstract

For many smallholders, agriculture is their main source of income, understanding how value chains work can derive many benefits to increase productivity and therefore farmers' income. Many different stakeholders around the world are involved in the cacao value chain, which is part of a billion-dollar chocolate industry. Cacao farming in many developing countries is the main source of income for households. West Africa is the most important cacao-producing area worldwide, accounting for 70 percent of the total production. In Ghana, small-scale farmers, with plantations of no more than 4 hectares, are responsible for most of the national production. This investigation sought to determine if the interactions of these farmers with different local and international stakeholders were improving their situation. The study took place in two main cacao producer regions in Ghana, Brong Ahafo and Western. Three hundred small scale farmers in 20 different villages were interviewed. Interviews of different key stakeholders in Ghana, such as COCOBOD and in Switzerland, Felchlin AG, Chocolats Halba and Chocosuisse were conducted. This study focused on identifying the relationships, support, benefits and/or problems between stakeholders (national and international) and small scale farmers. On the other hand, the issue of contract farming and its impact on cacao farmers in Ghana was analysed. The results indicate that small scale farmers have little or no contact with stakeholders especially with chocolate manufacturers, the lack of farming contracts is high in both regions and if farmers work under contract there is little or no information about contracting terms and conditions. Awareness of sustainable production or certifications to motivate better producer price among farmers is also missing. Finally, a participatory value chain analysis is proposed in order to improve relationships between farmers and stakeholders.

Keywords: Cacao, contract farming, Ghana

Contact Address: Ingrid Fromm, Bern University of Applied Sciences, Swiss College of Agriculture, Department of International Agriculture, Länggasse 85, 3052 Zollikofen, Switzerland, e-mail: ingrid.frommbfh.ch