Hybrid Cocoa and Land Productivity of Cocoa Farmers in Ashanti Region of Ghana

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1 World Journal of Agrcultural Scences 7 (2): , 2011 ISSN IDOSI Publcatons, 2011 Hybrd Cocoa and Land Productvty of Cocoa Farmers n Ashant Regon of Ghana A.N. Wredu, A. Mensah-Bonsu, E.. Andah and.y. Fosu 1 Councl for Scentfc and Industral Research- Savanna Agrcultural Research Insttute, P.O. Box TL 52, Tamale, Ghana 2 Unversty of Ghana, Legon, Ghana 3 wame Nkrumah Unversty of Scence and Technology, umas, Ghana Abstract: The study assessed the effect of hybrd cocoa varetes on land productvty of 366 randomly selected cocoa farmers n the Ashant Regon of Ghana. The results confrm the expectaton about the effect of mproved technologes on the performance of croppng systems. Land productvty s shown to be sgnfcantly hgher for adopters of hybrd varetes. Correctng for endogenety wth nstrumental varable regresson procedure, land productvty s expected to ncrease by 1.84 unts and 3.71 unts f a farmer decdes to adopt and use hybrd varetes respectvely. Wth the excepton of land resource, productvty s shown to be postvely affected by labour resource, age and household sze, natvty, extenson contacts, partcpaton n cocoa programs and engagement n secondary ncome actvtes. On the other hand, less than 50 percent of the farmers allocate about 25 percent of ther cocoa land to hybrd varetes. Strateges to mprove the productvty of the cocoa farmers n the regon and Ghana as a whole should ensure well targeted promoton of avalable and proven technologes to mnmze the exstng adopton gap. The promotonal actvtes should be targeted at young farmers wth smaller household szes and are also natves. Farmers who are members of farmer based organsatons wth access to extenson servce, credt facltes, socal amentes and fertlzer are to be targeted durng the promotons. Also farmers who have many cocoa plots and have replanted ther cocoa farms are to be targeted. These must not come alone but wth approprate tranng n good cocoa management practces through extenson and exstng cocoa based organsatons. In addton to secondary ncome, efforts should be focused on facltaton of access to credt as a means of fnancng cocoa producton actvtes. ey words: Land productvty Adopton Hybrd Cocoa Endogenous Ghana INTRODUCTION agro-chemcals. Farmers are also encouraged to replant ther old farms and ensure approprate shadng [5]. The cocoa sector plays a major role n the Certanly, the ntroducton of mproved technologes development of the economy of Ghana. The sector results n dsequlbrum n behavours whch s set back contrbutes over 37 percent of the overall foregn earnngs to equlbrum va a decson makng process. The and also has the potental of reducng poverty and ncome behavoural and decson makng processes are further nsecurty n the country [1, 2]. The producton of cocoa translated to hgh levels of productvty [6]. s largely domnated by smallholders who operate at very Accordng to Rogers [7], dfferent attrbutes of low levels of productvty [2]. Dseases and pests attacks, nnovators or early adopters and late adopters or nondeclnng sol fertlty, poor agronomc practces, use of adopters affect adopton. Asante [5] classfed these low yeldng varetes, lmted access to credt as well as attrbutes as socoeconomc, nsttutonal and techncal. nadequate nfrastructure consttute major sources of Some of the socoeconomc attrbutes nclude age, gender, constrants to productvty [3, 4]. educatonal level, experence, ncome, farm sze and labour Earler efforts to mprove the performance of the avalablty. Credt avalablty, nput supply and land cocoa sector focused on land area expanson nstead of tenure arrangements are some of the nsttutonal factors ntensfcaton. In the past two decades, the focus has that nfluence adopton. The techncal factors nclude the shfted to the promoton of mproved cocoa technologes, relatve benefts assocated wth the technology, the ncludng the use of hybrd varetes, fertlzer and other compatblty of the nnovaton, complextes assocated Correspondng Author: A.N. Wredu, Councl for Scentfc and Industral Research-Savanna Agrcultural Research Insttute, P.O. Box TL 52, Tamale, Ghana, E-mal: nanayawnmowredu@yahoo.co.uk. 172

2 wth the use of the nnovaton, trablty and the observed W A, = f(h h,) I=1,2...N; k=1,2... (1) benefts [4, 5, 8]. In Ghana, evdence of behavoural processes s In addton to the bnary measure of adopton, the mostly related to arable crop producton systems. area allocated to hybrd cocoa varetes also measures the Adopton and productvty are also usually consdered extent of adopton. Both measures suggest a certan separately [9-11]. Lterature on the nteractons between probablty of adopton and use of technology. mproved technologes and performance or wellbeng Econometrc methods such as Probt and Tobt regresson provdes contrastng results [12-15]. Hossan et al. [14] methods have proven useful for dentfcaton of adopton explaned that the adopton of mproved rce varetes has models [18]. postve effect on wealthy households but negatvely affect poor households n Bangladesh. Mendola [13] and Concept of Productvty: The performance of a producton jma et al. [12] also dentfed a postve relatonshp system can be measured by computed productvty between the adopton of mproved crop varetes and ndces [6]. Productvty s smply defned as the output wellbeng. Smlarly, Bourdllon et al. [16] observed that per unt nput. Gven that a farmer uses a set of k dfferent the adopton of mproved maze varetes ncreased the nputs to produce a certan quantty of cocoa, two crop ncomes of adopters n Zmbabwe. productvty ndces can be derved. The rato of the value The contrbuton of ths paper s to provde emprcal of cocoa produced to the total value of nputs used assessment of the relaton between mproved represents the total factor productvty (TFP) of the technologes and productvty of cocoa farmers n producton system. Partal factor productvty (PFP) on Ashant Regon of Ghana. It compares the effects of the other hand s the rato of the quantty of the cocoa nstantaneous decson to adopt hybrd cocoa varetes produced to the quantty of a partcular nput used [6]. and the extent of cultvaton of hybrd cocoa varetes on Equatons 2.0 and 3.0 represent TFP and PFP respectvely. land productvty. Secton 2 presents the methodology of the study by descrbng the conceptual framework of Q P technology adopton and productvty. It follows wth a = descrpton of the emprcal approach employed for the xk, assessng the decson makng processes and the k = 1 (2) productvty of cocoa farmers n Ashant regon. Also n Q Secton 2 s a descrpton of the data and characterstcs Pk, = x of the surveyed farmers. In Secton 3 the results of the k, (3) study are dscussed whle Secton 4 presents the concluson wth some recommendatons. MATERIAL AND METHODS Concept of Technology Adopton: Cocoa farmers are constantly makng decsons gven the avalablty of nformaton on producton resources, agronomc practces and expected benefts. The decsons results n dfferent combnatons of resources for dfferent benefts [17]. In order to attan the hghest possble yelds, the farmers are encouraged to adopt and use avalable technologes such as hybrd cocoa varetes. They are therefore faced wth two mutually exclusve choces, W A, = 1 f a farmer decdes to adopt the hybrd cocoa varetes and W A, = 0, otherwse. The decson to adopt or reject hybrd cocoa varetes s based on a set of factors (H h,) ncludng socoeconomc, nsttutonal and techncal factors [4] and can be expressed as; The choce of a partcular productvty ndex s determned by the nature and the type of analyss to be conducted and the avalablty of nformaton and standards of measurements [16]. In mperfect markets, the constructon of TFP can be erroneous and subject to crtcsms. Researchers who employ TFP ndex argue that t accounts for the overall effect of the nputs n the producton process and allows for subsequent decomposton by components [16, 19]. If careful constructed, PFP can stand as a legtmate measure of varatons n output attrbutable to varatons n factors of producton [20]. Factor prces are actually not true reflecton of market condtons n the cocoa based producton system. Ths paper therefore estmates land productvty (P nputs: land, ) whch s expressed as a functon of X P land, = f(x k,) (4) k, 173

3 Estmaton Procedure: In an mperfect market wth prce dstortons PFP provdes a plausble descrpton of performance of the cocoa producton system. By dervaton, the model for land productvty can be expressed as relatonshp between cocoa output and the proportons of nputs used per unt area. xk, k, Q 1 k= 1 land, = = 0 + land xland, + + xland, xland, P The coeffcents ( s) n the productvty model represent the margnal effects of nputs used on productvty. Introducng varables to capture dosyncratc management ablty (H h,) and technology (W w,), land productvty s re-expressed as, land, Q 0 h, k h, x land, k= 1 k= 1 w, k w, P = = + H + W + xk, k, 1 k 1 land xland, + = + land, xland, X Equaton 6 suggests postve relatonshps between productvty and all the rght hand sde varables except land. The use of mproved technology s expected to postvely affect productvty. The models features adopton separately as a bnary and a contnuous varable to enable the descrpton of the effects of a decson to adopt on one hand and the proporton of cocoa land allocated to hybrd varetes on the other hand, on land productvty. Adopton and use of hybrd varetes are not purely exogenous n the two models. Instrumental varable regresson and two stage least square methods regresson procedures are avalable for correctng possble endogenety assocated wth technology. Data: The study s based on data from 366 randomly selected cocoa farmers across Ashant Regon. Overall, percent of the farmers are adopters of hybrd cocoa varetes. Some of the farmers use nsectcdes, fungcdes, fertlzer, termcde and weedcdes. Others have also replanted ther old cocoa felds (Table 1 and Table 2). Males domnate the lst of sampled cocoa farmers who have an average age of about 57 years. Out of every 10 of the sampled farmers, 9 are marred. The typcal household ncludes an average of about 10 persons. There are as much natve farmers as non-natves. The smallholder farmers have reasonable levels of exposure to condtons that enhance access to nformaton on cocoa. X (5) (6) Table 1: Demographc Characterstcs Characterstcs Non-Adopters Adopters Overall Sample (N/%) 206 (56.28) 160 (43.72) 366 (100) Female (%) Male (%) Age (years) Sngle (%) Marred (%) Dvorced (%) Wdow (%) Wdower (%) Household sze (N) Natve (%) Educaton (%) Experence (years) Membershp assocaton (%) Extenson (%) Extenson contact (%) Cocoa nformaton (%) Cocoa program (%) Secondary ncome (%) Credt (%) Amenty (%) Dstance of amenty (km) Proporton of cocoa ncome (%) Table 2: Resources and Technology Use Characterstcs Non-Adopters Adopters Overall Plot owner (%) Cocoa sze (ha) Total labour (man-`days) Proporton of famly labour (%) Proporton of hred labour (%) Proporton of communal and caretaker labour (%) Replant (%) Proporton of cocoa land wth hybrd Fertlzer use (%) Quantty of fertlzer (bags) Insectcde use (%) Quantty of nsectcde (bottle) Fungcde use (%) Quantty of fungcde (bottle) Weedcde use Quantty of weedcde Termcde use Quantty of termcde Apart from the hgh rate of educaton (about 81%) the average farmer has spent more than half of hs/her lfe tme n cocoa producton. Around 80 percent of the farmers are members of farmer based organsatons. Access to extenson and nformaton on cocoa s ntense. 174

4 More than half of the farmers are nvolved n secondary ncome generatng actvtes. Unlke credt whch s lmted to about 25 percent of the farmers, over 80 percent of the farmers travel at an average dstance of 4.79 km to access other socal amentes (Table 1). On the whole, about 74 percent of the farmers are owners of an average of 2.98 ha of cocoa land and have access to about 224 man-days of labour. Famly labour contrbutes about 58 percent of the total labour resources avalable to the farmer. The farmers also have access to hred, communal and caretaker labour resources. In addton to the use of the agro-chemcals mentoned earler, about 39 percent of the farmers have also replanted old cocoa farms. Hybrd cocoa varetes occupy an average of 11 percent of ther cocoa land area (Table 2). RESULTS AND DISCUSSION Determnants of Adopton and Use of Hybrd Cocoa Varetes: The probablty of adopton and extent of use of hybrd cocoa varetes are assessed wth Probt and Tobt models respectvely. In the two models, natvty, membershp of assocaton, extenson, access to credt and amentes, replantng, fertlzer use, number of cocoa plots and yeld n 2002 are shown to have sgnfcant effect on adopton. In addton to these varables, age and household sze are also shown to sgnfcantly affect the extent of adopton. Gender, educaton, access to nformaton on cocoa and labour are shown to be nsgnfcant n the adopton models (Table 3). Although not necessary when a farmer s decdng on adopton, age as a proxy for the experence of farmers s shown to be an mportant determnant of the proporton of land allocated to hybrd varetes. Households wth younger heads are more lkely to allocate large proportons of ther cocoa area to hybrd varetes. As farmers grow older they tend to be cautous of the extent to whch they allocate resources to new technologes. They are less energetc and may be unable to manage effectvely larger areas of land. Younger farmers, who are vbrant, energetc and nnovatve, have the capacty for effectve management of hybrd cocoa varetes [8]. Large households of food crop producton systems are shown to be more lkely to adopt mproved technologes [9]. However cocoa as a cash crop competes wth food and arable crops for land and labour resources. Consderng ther food needs, large household rather allocate less proporton of ther farm lands to hybrd cocoa varetes whch also mples less labour Table 3: Adopton Decson Models Probt Tobt Varable Coeffcent P>z Coeffcent P>z Male Age Household sze Natve Educaton Extenson Membershp of assocaton Informaton on cocoa Access to amenty Access to credt Secondary ncome actvtes Replant Fertlzer use Quantty of fertlzer Total labour No. of cocoa plots Yeld n requrements. The excess famly labour can then be allocated to arable crop producton. Therefore for a cash crop producton system household sze s shown to ndrectly affect the extent of adopton of hybrd cocoa varetes. Farmers who are natves of ther communtes are lkely to adopt hybrd cocoa varetes as well as allocate large proportons of ther cocoa lands to hybrd. Natves have easy access to land and other socal resources whch provdes some form of securty for nvestment nto mproved technologes. None natves on the other hand have temporal ownershp of land wth less securty. They are therefore not lkely to make long term nvestments, whch s a characterstc of the cocoa based producton system. Extenson serves as a source of nformaton and exposure to mproved technologes. Addtonal nformaton on the benefts assocated wth the mproved technologes s obtaned through the extenson system [9] As wth extenson, communty based organsatons are also mportant source of exposure and nformaton on mproved technologes. Farmers have better apprecaton and confdence n ther fellow farmers who expose them to the technology. Observng the outcomes on a fellow farmer`s feld also serves as motvaton for allocatng more resources (land) to hybrd cocoa varetes. These factors separately nfluence both the decson and extent of adopton. 175

5 Access to socal amentes ncludng road, communcaton facltes, nput shops and nformaton centres postvely affect the decson and extent of adopton. These facltate tmely access to the necessary nputs requred for the management of hybrd varetes. Moreover, the presence of roads for nstance guarantees easy access to market for ther produce. There s thus some securty f a farmer wth adequate access to socal amentes decdes to adopt and allocate resources to hybrd cocoa varetes wth the expectant hgh yelds. Contrary to fndngs by Gockowsk and Ndoumbe [8], credt s shown to negatvely affect adopton and use of hybrd cocoa technologes. Ths ndcates that credt n the cocoa based producton system have alternate uses as t s mportant for the fnance of other operatonal actvtes. Moreover, engagement n secondary ncome actvtes does not motvate further nvestment n hybrd cocoa varetes. Earnngs from such economc actvtes are not ncorporated nto cocoa operatons. The results further show that farmers who replanted ther old cocoa farms and do not only use but also allocate large proporton of ther land to hybrd varetes. Gven the hgh expectaton about the yeld represented by yeld n 2002, the farmers are lkely to adopt and allocate more resources to the hybrd varetes. In addton hybrd cocoa varetes, fertlzer was also dentfed wth the farmers. The results show that fertlzer has postve effect on the decson and extent of adopton of hybrd varetes. Gven the hgh response of hybrds to fertlzer treatments [2], farmers wth access to fertlzer have to cultvate hybrd varetes to obtan hgh yelds. Another mportant techncal factor, number of cocoa plots, s shown to be postvely related to adopton. Farmers wth many cocoa plots are motvated to allocate large proportons of ther lands to hybrd varetes. The expectaton of farmers about returns to nvestment n cocoa, as measured by yeld n 2002, has a postve effect on adopton. Hgh expectaton about nvestment ncreases the probablty of adopton and the extent of cultvaton of hybrd cocoa varetes. Effect of Hybrd Cocoa Varetes on Productvty: Farm level productvty of cocoa producton n Ashant regon saw a general ncrease from 0.71 Ton/ha to 1.32 Ton/ha between 2001 and Over the perod, estmated productvty of adopters of mproved cocoa technologes (ncludng hybrds) has been consstently hgher. In 2003 for nstance, adopters of mproved cocoa technologes recorded an extra yeld gan of 0.53 Ton/ha. Smlarly, the adopters of hybrd cocoa varetes ganed an addtonal yeld of 0.32 Ton/ha (Table 3). Table 4: Cocoa Yeld by Adopton Category Yeld 2001 Yeld 2002 Yeld 2003 All technologes Non-Adopters Adopters Dfference 0.25* 0.33* 0.53* Hybrd Non-Adopters Adopters Dfference 0.23* 0.31* 0.32* Overall *95 percent level of sgnfcance. Table 5: Effect of Hybrd Varetes on Land Productvty Use of Hybrd Extent of Use Varable Coeffcent P>z Coeffcent P>z Hybrd Use Percent area under hybrd Total labour Cocoa Area Male Age Household sze Natve Educaton Membershp of assocaton Extenson contacts Cocoa programs Credt Access to amentes Secondary ncome In order to capture the contrbuton of hybrd cocoa varetes to the recorded ncreases n land productvty two models were generated. In the frst model, adopton s ntroduced as a dscrete varable to assess the effect of the decson to adopt on productvty. Agan adopton s ntroduced as a contnuous varable to assess the effect of the extent of adopton on productvty. Adopton was shown to be endogenous wth nsgnfcant effect on productvty when ftted to an ordnary least square regresson model (Appendx). Instrumental varable regresson procedure was used to correct for the endogenety related to adopton and use of hybrd cocoa varetes (Table 4). In addton to adopton and use hybrd cocoa varetes, land sze, labour, age, natvty, partcpaton n cocoa programs and engagement n secondary ncome actvtes are shown to be sgnfcant determnant of land 176

6 productvty n the two models. Household sze s shown regardng good agrcultural practces. Wth these to be sgnfcant when adopton s ntroduced as a choce knowledge farmers are able to undertake approprate varable. When adopton s ntroduced as the proporton practces to enhance ther productvty. of land allocated to cocoa hybrd, the number of extenson Agrcultural fnance s very crucal n farm busness contacts s shown to be sgnfcant. Gender, educaton, operaton. However, credt, an mportant source of membershp of farmer based organzatons, credt and agrcultural fnance s shown to have no effect on socal amentes do not sgnfcantly affect land productvty. Rather, access to secondary ncome has productvty n the cocoa based producton system postve effect on productvty. Farmers rely on earnngs (Table 4). from secondary ncome to fnance the purchase of In lne wth expectaton from lterature, the decson to requred nputs and also pay for hred labour. In effect, adopt and use hybrd cocoa varetes translates nto hgh farm operatons are undertaken n a tmely manner further levels of productvty. Productvty s expected to ncrease translatng nto hgh levels of productvty. by about 1.84 unts f a farmer adopts hybrd cocoa Land productvty ncreases when non-natves decde varetes. A unt ncrease n the proporton of cocoa land to adopt and allocate resources to hybrd cocoa varetes. allocated to hybrd cocoa s also expected to ncrease Land productvty ncreases by 0.49 unts and 0.36 unts productvty by about 3.71 unts. The results confrm the f a non-natve farmer decdes to adopt and use hybrd fndngs of Wu [6] who dentfed a postve relatonshp varetes respectvely. between productvty and mproved technology. Labour s also shown to postvely affect CONCLUSION AND RECOMMENDATIONS productvty. Access to adequate labour resources ensures tmely executon of operatons on cocoa felds The results from the study confrm the expectaton that further translates nto hgh levels of productvty. On about the effect of mproved technologes on the the other hand, household sze whch sgnfes the performance of croppng systems. The decson to use avalablty of famly labour only affects productvty mproved technologes and the proporton of cocoa land when the farmer just decdes to adopt hybrd cocoa allocated to cocoa producton are all sgnfcant varetes. All thngs beng equal, an ncrease n land area determnants of ncreased productvty. Productvty s lmts the effectve dstrbuton of resources whch further shown to be affected by adopton, land sze, labour, age, results n a declne n productvty. Thus, ncreasng land natvty and partcpaton n cocoa programs, engagement area by a unt results n unts and unts declne n secondary ncome actvtes, household sze and n productvty f a farmer decdes to adopt and use hybrd number of extenson contacts. cocoa varetes, respectvely. The results reveal an adopton gap of over 50 Addtonal year of experence n cocoa producton as percent. Strateges to mprove the productvty of the represented by age ncreases productvty by unts cocoa farmers n the Ashant regon and Ghana as a whole f the farmer decdes to adopt and f the farmer should ensure well targeted promoton of avalable and allocates an extra proporton of cocoa land to hybrd proven technologes to mnmze the exstng adopton varetes. As farmers grow older they accumulate gap. The promotonal actvtes should be targeted at experence and knowledge n the management of cocoa young farmers wth smaller household szes and are also producton actvtes. They adopt and apply sound natves. Farmers who are members of farmer based measures to ensure hgh levels of productvty. organsatons wth access to extenson servce, credt Access to nformaton s further enhanced through facltes, socal amentes and fertlzer are to be targeted extenson and partcpaton n cocoa related programs. durng the promotons. Also farmers who have many The results from the models reveal that extenson vsts cocoa plots and have replanted ther cocoa farms are to be only affects productvty when farmers decde to allocate targeted. land resources to hybrd cocoa. Partcpaton n cocoa These must not come alone but wth approprate related programs s on the other hand expected to ncrease tranng n good cocoa management practces through cocoa productvty by 0.26 unts and 0.31 unts when extenson and exstng cocoa based organsatons. In adopton s treated as a choce varable and as addton to secondary ncome, efforts should be focused proportons of land allocated to cocoa. In deed cocoa on facltaton of access to credt as a means of fnancng related programs provde avenues for nformaton cocoa producton actvtes. 177

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