Factors Determining Enterprise Shift Behavior among Smallholder Cocoa Farmers in the Mpohor-Wassa East District in the Western Region of Ghana

Abstract

Recent cutting of cocoa trees and the shifting of farm resources to only rubber cultivation among smallholder cocoa farmers particularly in the Western Region of Ghana has raised great concern. It is important to examine factors influencing enterprise-shift behavior among smallholder cocoa farmers. Interview schedules were administered to all smallholders of rubber plantation famers registered under the Ghana Rubber Estates Limited (GREL)’s out-grower scheme at Mpohor. 150 smallholder cocoa farmers (except 35 absent) were interviewed for the study. Data were analyzed using descriptive statistics and logit regression. About 73% of smallholder cocoa farmers were found to be shifting from cocoa to only rubber cultivation while the remaining 27% engage in both cocoa and rubber cultivation. The logit model reveals that family size and perception of investment outcome of their cocoa farms have a significant effect on their enterprise-shift behavior and decisions (P<0.01). It is recommended that government should address specific issues such as inadequate credit supply and low producer prices that affect the investment outcome of cocoa farm enterprise.

Keywords: Enterprise shift, smallholder cocoa farmers, rubber cultivation, socio-economic determinants.