University of Ghana http://ugspace.ug.edu.gh

DETERMINANTS OF CHOICE OF PINEAPPLE FARM SIZE

IN THE AKUAPIM SOUTH DISTRICT, GHANA.

PAUL SANDOH AYAGIBA

THIS THESIS IS SUBMITTED TO THE UNIVERSITY OF GHANA, LEGON IN

PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF

M.PHIL DEGREE IN AGRICULTURAL ECONOMICS

DEPARTMENT OF AGRICULTURAL ECONOMICS & AGRIBUSINESS FACULTY OF AGRICULTURE UNIVERSITY OF GHANA LEGON, ACCRA.

August 2002 University of Ghana http://ugspace.ug.edu.gh University of Ghana http://ugspace.ug.edu.gh

DEDICATION

Dedicated

To

My beloved Wife, Maggie

And

My lovely Children, Franklyn and Pamela

For their patience, love and understanding during my long periods of absence from home. University of Ghana http://ugspace.ug.edu.gh

DECLARATION

I, PAUL SANDOH AYAGIBA, the author of this Thesis titled, “DETERMINANTS OF

CHOICE OF PINEAPPLE FARM SIZE IN THE AKUAPIM SOUTH DISTRICT,

GHANA”, do hereby declare that with the exception of references to past and current literature duly cited, the entire research leading to this thesis was carried out by me at the

Department of Agricultural Economics and Agribusiness, University of Ghana, Legon. It is

PAUL SANDOH AYAGIBA

This thesis has been submitted for examination with our approval as supervisors.

(MAJOR SUPERVISOR)

DR.DANIEL B. SARPONG

(CO- SUPERVISOR) University of Ghana http://ugspace.ug.edu.gh

ACKNOWLEDGEMENTS

I wish to thank my major supervisor, K. Yerfi Fosu. He guided me, critically examined the scripts and offered constructive suggestions to improve and enrich the thesis.

I wish to express my sincere thanks to my co-supervisor, Dr. Bruce Sarpong for his criticism, corrections and suggestions, which have substantially improved the text. I am also grateful to him and Mr. Owusu-Asante for access to part of their primary data.

No less thanks go to Mr. Bannerman-Lawson of the IFAD Liaison Office, Accra for his cheerful and accurate typing of the various stages of the manuscript. I am also indebted to the staff of the International Fund for Agricultural Development (IFAD) Liaison Office,

Accra, for permission to use their computer and photocopier. Finally, I wish to express my heartfelt gratitude to Mr. Dadson of the computer room and Mr. Reindorf Darko of the

Agricultural Economics main office for their enormous assistance. Last but not the least, I am grateful to Mr. E.T. Adika, the Librarian.

Any errors in this thesis are wholly mine and will not be because of, but in spite of such assistance.

PAUL SANDOH AYAGIBA

iv University of Ghana http://ugspace.ug.edu.gh

ABSTRACT

The importance of non-traditional agricultural commodities, especially pineapple, as a major foreign exchange earner in the diversification of the economy of Ghana has long been realised. It is estimated that $5 million is added to the economy by small farmers annually

from pineapple production. Despite the importance and profitability of the pineapple production and export as a good foreign export earner and an a priori expectation that

increased production is directly correlated with increased farm size, most pineapple farmers

in the Akuapim South District cultivate small farms rather than large ones. This study quantifies the effects of the determinants of the choice of farm size on pineapple production. It also describes the organisational structure of the pineapple industry and

describes the pattern of distribution of farm size. Costs and returns of categories of farm

sizes are also compared. The empirical results demonstrate that most farmers in the study

area cultivate small farms ranging between 0.02 and 1.5 hectares. The major determinants

of choice of farm size in pineapple production are the average wage rate, farmer age,

educational level and the years of experience of the farmer in pineapple farming. Whe