Assessing the influence of Cocoa Prices on the living conditions of Cocoa Farmers in Ghana from 2000-2010: a Case of New Juaben Cocoa Farmers

• Main Author: Benjamin Opoku Acheampong
• Format: Article
• Language: English
• Published: Africa Development and Resources Research Institute (ADRRI) 2020-08-01
• Series: Journal of Arts and Social Sciences
• Online Access: https://journals.adrri.org/index.php/adrrijass/article/view/104

This paper examines the effects of domestic producer prices of cocoa on the living standard of farmers in and around New Juaben municipality. The producer price of cocoa is expected to influence Ghanaian cocoa farmers to increase production. On the other hand, available figures of cocoa production show a downward trend since the ERP. The implications are that government revenue is severely affected. In addition, farmers’ income is also seriously affected since reduced production means reduced income. In the light of these developments this work aims to find out the effect of producer prices on the living standard of farmers, and its change over time from 1970-2012. The study selected 70 farmers from Oyoko, Jumapo, Suhyen, Effiduase and Koforidua to solicit information from them. A purposive sampling method was adopted since it was difficult to locate some of the farmers. The sample frame was collected from buying agencies in the communities selected. From the regression result, it was observed that all the variables except the ages of the farmers were found to be significant predictors of the living standards of farmers. Some have their living standards improved while others are struggling to make life. This work gives the following suggestions; that taxes on cocoa production should vary in accordance with production level; that pricing of cocoa must be allowed to fluctuate; farmers must have a stake in deciding the producer price. Implementation of these suggestions will save Ghana from cocoa smuggling to other neighbouring countries.