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Production, markets and the future of smallholders: the role of cocoa in Ghana

19 November 2007 14:30-17:30 (GMT+00) - Workshop, Accra

Cocoa pod (Source: snrephotos, Flickr - http://flickr.com/photos/7177201@N06/423315183/)
  • This workshop looked at ways to strengthen links between research and policy for more effective management of the cocoa sector in Ghana. Panel discussions covered two key issues: production and marketing.

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  • An ODI workshop.

For more than one hundred years, growing cocoa has been central to the livelihoods and prosperity of small farmers in southern Ghana. Cocoa has been a key contributor to the country’s poverty-reducing growth in recent years.
But can the sector maintain this role and contribute further to reducing poverty and improving livelihoods in Ghana? What have been the recent trends in production and productivity? How effective is the marketing system in providing the right incentives to farmers to sustain production and land productivity in the sector?

This workshop, organised by ODI and the Ghana Strategy Support Program of the International Food Policy Research Institute looks at ways to strengthen links between research and policy for more effective management of the sector. Panel discussions covered two key issues: production and marketing.

Production, productivity, the economy and poverty reduction

Cocoa production in Ghana nearly doubled between 2001 and 2003 main crop seasons, contributing to productivity growth in the agricultural sector and considerable reduction in poverty among cocoa producers. How did this come about? The panel addresses the following questions:

  • What is the role of the cocoa sector for economy-wide growth and poverty reduction in Ghana? What are the links of cocoa with other sectors of the economy? What do changes in cocoa prices imply for economy-wide growth and poverty reduction in Ghana? 
  • Has cocoa production increased by area expansion or by more intensive use of land? To what extent have more intensive use of fertilisers and the Government spraying contributed to increased production? Is there evidence of cocoa farmers making long terms investments in their trees?  What do developments in other cocoa producing countries imply for Ghana?

Organisation of marketing

Ghana, the second largest producer of cocoa in the world after Cote d’Ivoire, remains the only country where the state controls the exports and has an overwhelming presence in the internal market. Partial liberalisation in 1993, however, has introduced elements of competition into buying. The panel addresses the following questions:

  • Have farmers benefited from this partial liberalisation and how? How do farmers’ selling strategies affect production and market efficiency?
  • What are the implications for licensed buyers? Who can continue to participate and how? Do regional differences in the location of the companies reflect the changing location of cocoa production?