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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

Table 1.

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
FBOMember – 93.1%; Not a member – 6.9%
GenderMale – 86.8%; Female – 13.2%
EducationBasic – 41.5%; Secondary/technical – 52.2%; Tertiary – 6.3%
OpCapitalBelow 1000 – 0.6%; 1000–10000 – 63.6%; 10 000–100 000 – 26.1%; above 100 000 – 9.7%
Age18–30 – 16.0%; 31–40 – 50.6%; 41–50 – 21.5%; 51–60 – 9.1%; above 60 – 2.8%
NumProductsSingle – 39.3%; multiple – 60.7%

[i] Source: computed from author's survey data 2023.

Fig. 1.

Levels and distribution of EVA efficiency scores among cocoa farmers

Source: prepared from author's survey data 2023.

Table 2.

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

*** 0.001;

** 0.01;

* 0.05;

. 0.1; ‘ ’ 1.

Source: computed from author's survey data 2023.

Table 3.

Constraints to cocoa production

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

[i] Source: computed from author's survey data 2023.

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: Poznań University of Life Science
In partnership with: Paradigm Publishing Services
Publication frequency: 4 issues per year

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