Scholar

Fertilizer Subsidy and Cocoa Production in Ghana

By: Robert Aidoo   Phoebe Owusu   Seth Etuah   James Osei Mensah   Simon Cudjoe Fialor  

Fertilizer subsidy is important policy in developing countries like Ghana where the use of fertilizer is low despite declining soil fertility. The study evaluated the impact of subsidy on productivity and technical efficiency in Ghana’s cocoa industry by using 400 cocoa farmers from two cocoa districts in Ghana. Stochastic Frontier and Propensity Score Matching techniques were employed to achieve the study objective. The impact pattern of the fertilizer subsidy programme in Ghana was found to be largely conditioned by farmer location. Whereas the policy had a significant positive impact on cocoa productivity in the Western Region, it did not have any significant impact on productivity in the Ashanti Region of Ghana. Conversely, a negative impact of the policy on technical efficiency was observed in the Ashanti Region, with no significant effect on same in the Western Region, ceteris paribus. Location-specific implementation challenges might account for these mixed policy outcomes. Therefore, the study recommended specific steps that Ghana COCOBOD should take to address the implementation challenges associated with the policy in different cocoa growing to ensure that policy objectives of increased productivity and production efficiency are achieved.

Cocoa, Subsidy, Efficiency
Food, Politics, and Cultures
Paper Presentation in a Themed Session



Dr. Robert Aidoo

Senior Lecturer, Agricultural Economics, Agribusiness and Extension, Kwame Nkrumah University of Science and Technology, Ghana
Ashanti Region, Ghana

Robert is Senior Lecturer at Kwame Nkrumah University of Science and Technology with over 15years experience in Management and development consulting in the field of agriculture and Agribusiness management. He has led different research teams to conduct studies for international organizations such as UN World Food Programme, UNHCR, Danida, International Institute of Tropical Agriculture and Ghana's Ministry of Food and Agriculture and other local NGOs. Robert has published extensively and participated in many international and local conferences in the field of agriculture and food economics. His research interests are in consumer behaviour analysis, agricultural policy analysis and agricultural value chain analysis as well as project impact assessment, among others. 



Phoebe Owusu

MPhil Graduant, Kwame Nkrumah University of Science and Technology, Ghana
Ghana



Seth Etuah

Lecturer, Kwame Nkrumah University of Science and Technology, Ghana
Ghana



James Osei Mensah



Simon Cudjoe Fialor

Associate Professor, Kwame Nkrumah University of Science and Technology, Ghana
Ghana