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Efficiency of Value Creation in Farm-Based Cocoa Production: Evidence from the Eastern Region of Ghana Cover

Efficiency of Value Creation in Farm-Based Cocoa Production: Evidence from the Eastern Region of Ghana

Open Access
|Dec 2024

Figures & Tables

Fig. 1.

Levels and distribution of EVA efficiency scores among cocoa farmersSource: prepared from author's survey data 2023.
Levels and distribution of EVA efficiency scores among cocoa farmersSource: prepared from author's survey data 2023.

Maximum likelihood estimates of stochastic frontier EVA function for EVA efficiency of cocoa farmers

VariablesParameterCoefficientStd. errorZ-valueP-value (Pr(>|z|))
Regressor variables

(Intercept)β00.367483720.0101341236.2620< 2.2e-16***
LANβ10.551256760.062103438.8764< 2.2e-16***
LABβ2−0.763914820.11157868−6.84647.572e-12***
EQUIPβ30.070172280.065711941.06790.285576

Exogenous variables

(Intercept)δ0−0.077569670.35846180−0.21640.828679
Ageδ10.013684080.008649561.58210.113637
Genderδ20.011301370.018312950.61710.537153
HHsizeδ3−0.003145280.00428686−0.73370.463129
Educationδ4−0.007009580.01132743−0.61880.536038
YrsOperationδ5−0.016533590.00418754−3.94837.871e-05***
OpCapitalδ60.038855010.012014893.23390.001221**
Grantsδ7−0.000747400.00017467−4.27901.878e-05***
Subsidiesδ8−0.022974090.00442281−5.19452.053e-07***
FBOδ90.175921750.356041930.49410.621233
NumProductsδ10−0.001352530.01667042−0.08110.935336

Variance parameters

Sigma squaredσ20.006153340.0005730510.7379< 2.2e-16 ***
GammaΓ0.163172620.085796601.90190.057190
Llf.394.7104

Descriptive statistics of variables used in the analysis (N = 318)

VariableMinMaxMeanSD
EVA−13 09027 2802 18140 588
LAN10044 001 121809
LAB25328 1203 2862 266
EQUIP05 000452357
HHsize1154.252.05
YrsOperation24013.328.19
Grants04 00022.08256.84
Subsidies04003.5132.71

Constraints to cocoa production

Kendall's W test
ConstraintsMean Rank
Purchasing price of inputs10.67
Ready market for outputs9.60
Distribution of products9.50
Availability of storage facilities9.30
Pests and diseases control9.14
Agrochemical application8.90
Harvesting and on-farm processing8.73
Cultivation and Weed control8.56
Planting7.99
Availability of materials/equipment7.65
Land preparation7.55
Access to credit7.10
Labour availability6.39
Land acquisition4.92
N337
Kendall's W0.119
Chi-Square601.212
df15
Asymp. Sig.0.000
DOI: https://doi.org/10.17306/J.JARD.2024.00010R1 | Journal eISSN: 1899-5772 | Journal ISSN: 1899-5241
Language: English
Page range: 414 - 425
Accepted on: Nov 26, 2024
Published on: Dec 29, 2024
Published by: The University of Life Sciences in Poznań
In partnership with: Paradigm Publishing Services
Publication frequency: 4 issues per year

© 2024 Kwaku Asuako Tabiri, Michael Akwasi Antwi, published by The University of Life Sciences in Poznań
This work is licensed under the Creative Commons Attribution 4.0 License.