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Cocoa Production In Ghana

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Cocoa has been a key contributor to the economic development of Ghana. This has led some researchers to find out the effects of some factors on the cocoa production and income of cocoa producers. For instance, findings of a research carried out by Fadipe et al. (2012) showed a positive relationship between cocoa output and farm size and access to finance in Nigeria. Vigner emphasized that an increase in farmland dedicated to cocoa has high chances of increasing output. In addition, a study out carried by Aneani and Ofori-Frimpong shows that spraying fungicides against black pod disease, frequency of weeding cocoa farms, and area of cocoa farm have significant impact on cocoa yield in Ghana. Abdulai and Rieder (1995) found out that the supply …show more content…

The theory predicts that when two countries with each producing two goods open up to trade, each country will get to consume more of both goods. Workers in both countries will also get higher wages. According to the theory, two countries will trade with each other when one country as a comparative advantage in producing one good and the other too has a comparative advantage in producing the other good. A country is said to have a comparative in producing a good when it can produce the good at a lower opportunity cost than the other country. When a country has comparative advantage in producing a good, it produces that good and export it to the other country that do not have comparative in producing the said good. In the case of Ghana and Brazil, Ghana has a comparative advantage in producing cocoa, hence produces and export cocoa to Brazil. Brazil on the other hand has a comparative advantage in producing chicken, hence produces chicken and export it to Ghana. Ricardo’s model however is based on the following assumptions. • Two countries, two goods: There must be only two countries trading only two goods: Ghana and Brazil trading cocoa and …show more content…

The no trade production could have been 15 boxes of chicken and 30 bags of cocoa. 3.2.1 Wages in Ghana before trade (putting existing data in Ghana into the Ricardian model) A worker can produce 10 bags of cocoa cultivated in a hectare. Therefore the marginal product of labour (MPL) is 10 bags. Considering 2011/2012 season, producer price per bag of cocoa in this season is GH₵200. See the table below for producer prices and productions of cocoa from 2010 to 2015. 2009/2010 2010/2011 2011/2012 2012/2013 2013/2014 2014/2015 Production of cocoa Beans 602030 1004180 1000000 850000 800000 700000 Producer Price per bag (GH₵) 109 145 200 212 212/bag 345 Source: Data from USDA Foreign Agriculture Service—GAIN Report 2012, ICCG Given price (P) to be GH₵200 and MLP to be 10bags, Wage in Ghana before trade is 200 x 10 which is

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