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Kwame Nkrumah University of Science and Technology, Kumasi KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY, KUMASI COLLEGE OF AGRICULTURE AND NATURAL RESOURCES FACULTY OF AGRICULTURE DEPARTMENT OF AGRICULTURAL ECONOMICS, AGRIBUSINESS AND EXTENSION ECONOMIC ANALYSIS OF COCOYAM PRODUCTION IN GHANA BY STANLEY BOAKYE-ACHAMPONG May, 2016 ECONOMIC ANALYSIS OF COCOYAM PRODUCTION IN GHANA BY STANLEY BOAKYE-ACHAMPONG BSc. Agriculture (Hons.) A THESIS IS SUBMITTED TO THE KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY IN PARTIAL FUFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF MASTER OF PHILOSOPHY IN AGRICUTURAL ECONOMICS KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY. KUMASI- GHANA COLLEGE OF AGRICULTURE AND NATURAL RESOURCES FACULTY OF AGRICULTURE DEPARTMENT OF AGRICULTURAL ECONOMICS, AGRIBUSINESS AND EXTENSION MAY, 2016 DECLARATION I, STANLEY BOAKYE-ACHAMPONG, author of this thesis entitled “ECONOMIC ANALYSIS OF COCOYAM PRODUCTION IN GHANA” do hereby declare that to the best of my knowledge, the thesis is the product of my own original research work in the Department of Agricultural Economics, Agribusiness and Extension, College of Agriculture and Natural Resources-KNUST from August, 2013 to July, 2015 except for the references cited, which are duly acknowledged. This thesis is not published or submitted either in part or in whole anywhere for the award of any degree. I therefore, cede copyright of the dissertation in favour of the Kwame Nkrumah University of Science and Technology. Stanley Boakye-Achampong ………………….………… ….…………………… (Student) Signature Date Certified By: Dr. Kwasi Ohene-Yankyera ………………….………… ….…………………… (Main supervisor) Signature Date Dr. Robert Aidoo ………………….………… ….…………………… (Internal examiner) Signature Date Dr. Dadson Awunyo-Vitor. .………………….……… ...….…………………… (Head of Dept.) Signature Date i DEDICATION This work is dedicated to the Achampong’s Family; first and foremost to my mother, Mayfred Bemah Kwakye, for her spiritual, moral and motherly support throughout the period of study. You have indeed been such an influence and inspiration to me in my academic pursuit. I also dedicate it to my father, Kofi Boakye-Achampong and younger brother, Frederick Owusu Achampong. ii ACKNOWLEDGEMENT I am forever grateful to my heavenly Father and friend, God Almighty, for His grace, favour, wisdom and the gift of life that enabled me to successfully complete this work. All the glory be unto Him, Amen!! A plethora of persons also deserve my gratitude. First of all, I acknowledge my supervisor, Dr. Kwasi Ohene-Yankyera for his directions, unique constructive criticisms and expert advice towards the completion of this work. I profoundly acknowledge my co-supervisor and academic mentor, Dr. Robert Aidoo. Words really cannot communicate how grateful I am to you for believing in me. My indebted gratitude also goes to the DANIDA and the Root and Tuber Value Chain Project (KNUST) for offering me scholarship, without which this work might not have been a reality. I also appreciate all the lecturers at the Department of Agricultural Economics, Agribusiness and Extension of CANR- KNUST for their immense support which facilitated the successful completion of this research. Furthermore, I am grateful to Professor Arne Wangel of Danish Technical University (DTU) and Olav Juul Sørensen of Aalborg University (AAU) all in Denmark and Dr. Faustina Wireku- Manu of the Food Science department-KNUST, for their cherished contributions. Special thanks goes to Messrs Abraham Kwesi Amevor and Francis Owusu Anane, Reginald Kwame Aborakwa and Michael Achuli who are Agricultural Extension Officers in Asante Akyem South, Asunafo North and Fanteakwa districts of Ghana respectively. Thank you all for aiding immensely with organization of cocoyam producers and facilitation of data collection. Space may not allow that all persons who have contributed to this work one way or the other to be mentioned here however, I do appreciate the significant contributions of all and I say thank you very much. “Never, never, never give up” –Winston Churchill “We must study the present in the light of the past for the purposes of the future” John Maynard Keynes iii ABSTRACT Cocoyam is an important food security crop in Ghana because it stores better than the other root and tuber crops; however its production remains low. This study examines the economics of cocoyam production in Ghana. Using a multi-stage sampling technique, 150 cocoyam producers were drawn from Asante-Akyem South, Asunafo North and Fanteakwa districts in Ghana. Primary data, collected through questionnaire administration, was used to fit a Cobb- Douglas production function by employing the Stochastic Frontier Approach (SFA). Krippendorff’s Alpha Reliability Test was employed to examine constraints faced in cocoyam production. Results from the study showed that cocoyam was predominantly cultivated as an intercrop (84%) with plantain, cocoa, and cassava. However, about 20% of producers in Fanteakwa and Asunafo North districts planted cocoyam as pure stand (sole cropping). Cocoyam was cultivated equally for sale and household consumption with corms being the main economic part even though producers also harvested cocoyam leaves for sale. The average land area under cocoyam cultivation was 0.55 hectares, corm yield was estimated at 6.5mt/ha and cocoyam leaves yield was about 0.59mt/ha. Cocoyam yield under mono-cropping system was found to be significantly higher than yield under intercropping system. Empirical results showed that labour, land area cultivated, quantity of planting materials (corm setts) planted and amount invested in other farm inputs positively influenced cocoyam production. Furthermore, the type of cropping system practised, extension contact, education, farming experience and household size had significant positive effect on corm production. However, the quantity of cocoyam leaves harvested from the crop, herbicide application and continuous cultivation on the same piece of land had significant negative effect on corm production. Labour constituted the biggest cost component for cocoyam production. Cocoyam production returned an average gross margin of GH¢ 5164 and net farm profit of GH¢ 4824 per hectare representing 24% return on investment. This suggests that the enterprise may be relatively profitable than similar farm investments, however not so profitable compared to the present cost of capital (25%) in Ghana. Producers in Fanteakwa had comparative advantage over those in Asunafo North and Asante Akyem South with relatively higher returns to land as well as labour and management. Cultivating cocoyam as a sole crop was found to be more profitable than as an intercrop. With a Krippendorff Alpha statistic of 0.54, the study showed a moderate level of concordance among cocoyam producers with respect to production, marketing and socio-economic constraints facing them. Producers ranked socio-economic constraints as the most significant set of constraints hampering cocoyam production followed by marketing constraints and production constraints respectively. Among other things, the study recommended the adoption of mono-cropping system to improve cocoyam production in Ghana; which is possible only if producers have improved access to farmlands. In this regard, re-introduction of the regulated rotational strategy for using secondary forest lands for food crop production under the Modified Taungya System (MTS) is recommended to boost cocoyam production in the country. The study further recommended the formation of policies directed at improving producers’ access to capital and other productive inputs, more participation from male farmers and an enhanced extension delivery system so as to increase cocoyam production in Ghana. Finally, the study recommended that cocoyam producers especially in Asante Akyem South and Asunafo North intensify usage of market inputs so as to maximize yield, enhance their competitiveness and increase farm profit. iv TABLE OF CONTENTS DECLARATION.................................................................................................................................... i DEDICATION....................................................................................................................................... ii ACKNOWLEDGEMENT ................................................................................................................... iii ABSTRACT .......................................................................................................................................... iv TABLE OF CONTENTS ..................................................................................................................... v LIST OF TABLES ............................................................................................................................. viii LIST OF FIGURES ............................................................................................................................. ix LIST OF ACRONYMS AND ABBREVIATIONS ............................................................................ x CHAPTER ONE ................................................................................................................................... 1 1.0 INTRODUCTION ........................................................................................................................... 1 1.1 Background Information ............................................................................................................... 1 1.2 Research Problem ........................................................................................................................
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