Impact of Government Support on Cocoa Production in Ghana free essay sample

ID:207DE02002696 NAME:NII AYI KOME THE IMPACT OF GOVERNMENT SUPPORT ON COCOA PRODUCTION IN GHANA FROM 2006 TO 2010 CHAPTER ONE INTRODUCTION 1. 1 Background to the study For 66 years, Ghana was the largest producer of cocoa beans in the world. However, during the 1977/78 season, this position was lost by the country. Today, La Cote d’Ivoire, Ghana’s direct neighbor is the largest producer of the crop in the world, producing about 1. 2 million metric tonnes. In terms of cocoa exports, Cote dIvoire accounts for the largest share in West Africa with an estimated 34%, followed by Ghana 17. % (Based on ICCO figures for 2010). The contribution of the crop to the overall economy of the country cannot be overemphasized. This is what has been the driving force of the various government interventions to support the sector. For instance in 2002, cocoa revenue contributed to 22. 4 percent of total foreign exchange earnings to the country (ISSER, 2003). The crop is now contributing o ver $1billion of foreign exchange earnings to the country (COCOBOD, 2009). We will write a custom essay sample on Impact of Government Support on Cocoa Production in Ghana or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Losing the number one position, therefore, is a big blow to the country. The target is not just to be called the number one but due to the important role of the crop to the economy, it is necessary to increase production. To achieve this, several initiatives have been put in place to support the cocoa sector. In 1999, government approved a Cocoa Sector Development Strategy under which cocoa production was projected to increase from the 335,000 metric tonnes to about 500,000 metric tonnes by 2004/5 and to 700,000 metric tonnes by 2009/10 (Quartey 2008). Government again introduced several interventions in 2001. This time a multisectoral approach was adopted to improve yields and the sector as a whole. These include the construction, expansion and rehabilitation of roads in cocoa growing areas; expansion of warehouse facilities; research into the development of high yield cocoa species; and the Cocoa Diseases and Pest Control Programme(CODAPEC). The CODAPEC programme, popularly known as â€Å"Mass Spraying†, is aimed at addressing some very serious challenges to production in the country. The programme was among others is to educate farmers on best practices and periodic spraying of cocoa farms with insecticides to rid the crops of pests. This initiative paid off during the 2003/4 season where the country produced about 737,000 metric tonnes of cocoa (Quartey 2008). Disease and pest is believed not to be the only impediment to high cocoa yields. The weather is another factor. Cocoa is said to be highly sensitive to drought in terms of growth and yield. Output is projected, as a result, to see a consistent decrease from 2020 to 2080 (Anim-Kwapong and Frimpong, 2004). This is attributed to high temperatures being experienced lately as a result of climate change. After the impressive yields of the 2003/4 season, the performance of the sector has not been that impressive. From the common man’s point of view, production figures should be rising by the year as government increases funding for the implementation of the mass spraying programme. Between 2004 and 2010, the country’s production figures have seen constant fluctuations. Sometimes, there has been consistent fall in production. During the 2009/10 cocoa season, the country produced about 640,000 metric tonnes of cocoa. This figure is expected to rise to 1 million metric tonnes during the 2011/12 cocoa season (Kpodo, 2010). This study will primarily focus on the mass spraying project to support the cocoa sector for an increase in production between 2006 and 2010. The study will focus on these years due to the danger of getting incorrect information from farmers when the period is too long. The study will evaluate the effectiveness of the project in view of the fluctuations in yield. 1. 2 Problem Statement The problem of pest and disease on cocoa farms in Ghana, which greatly hinders production, should be solved by now. The mass spraying programme is supposed to have taken care of that. It is believed that a similar mass spraying project undertaken between 1959 and 1962 paid off with an impressive yield of 580,000 metric tonnes in the 1964/5 cocoa season (Adjinah and Opoku, 2009). Two years after inception of the mass spraying project of 2001/02, yields doubled. As shown in Table 1, the production figure of 2009/10 (8 years) is almost the same as that which was experienced after two years of inception of the mass spraying programme of 2001/02. The problem at hand is that the country is unable to see significant increases in production even though efforts are being made to that effect. How effective has government support to increase production been over the period. 1. 3 Objectives of the Study The study aims at achieving the following: 1. To find out how effective the programme has been in ridding farms of pest and disease 2. To evaluate the cost benefits of the programme to the nation. 3. To find out its contribution to increase yields. 1. 4 Significance of the Study The outcome of the study will be of value to two main categories of people. First it will be of value to the major stakeholders in the cocoa industry. The findings could help shape decisions and policies put in place that is aimed at improving on cocoa yields. The findings will inform government on how to improve on support interventions to the cocoa sector. Secondly, students and other researchers will find this study of great value. They will find valuable information and credible data which will facilitate their research or study. 1. 5 Definition of terms COCOBOD Ghana Cocoa Board; The regulator of the cocoa sector in Ghana. CODAPEC Cocoa Diseases and Pest Control; The body set up to administer the mass spraying initiative. CRIG Cocoa Research Institute of Ghana; A subsidiary of COCOBOD responsible for research into everything leading to improvement in the cocoa sector. ICCO – International Cocoa Organization 1. 6 Organization of chapters Chapter one is an introduction to the study. It is made up of the background, problem statement, and objectives of the study, significance of the study and definition of terms. Chapter two represents a literature review. This chapter reviews relevant literature on the topic and tries to analyze such studies. It involves both the studies of empirical and theoretical data relevant to the study. Chapter three give the methodology to be used in the study. The chapter elaborates how the research is to be conducted the statistical tools to be used, sample and sample size. Chapter four discusses the results and findings of the study. An attempt will be made at making meaning to the data gathered. Chapter five is the summary, conclusion and recommendations chapter. This last chapter summarizes the whole research, points out how it has created knowledge and how far the objectives of the study have been met, and makes recommendations.