Economic Implications of a Changing Climate on Smallholder Pineapple Production in Ghana

Abstract

Pineapple production in Ghana plays a major role in developing the economy through socioeconomic impacts and export. Climatic variations contribute to variable yield and subsequently affect pineapple productivity. Direct dependence on climate for pineapple production could have significant economic implications.  This study examined the economic impact of a changing climate on smallholder pineapple farming in Ghana.  Data from 400 pineapple farmers was obtained from four pineapple growing districts using a two-stage sampling technique. Ricardian regression approach was used to estimate the relationship between farmer’s net farm revenue per hectare, climate and other control variables such as soil and socio economic characteristics. The results revealed negative economic effect between rainfall and net revenue during vegetative stage of pineapple production as well as temperature and net revenue during the flowering stage. A positive effect between net revenue and temperature during yield formation stage was also observed. The study again discovered a fall in net revenue if temperature increases by 1°C and a rise in net revenue if rainfall increases by 1mm during production. The other variables that were key to net revenue were production on Dystric Planosols soil type, access to credit and membership of farmer-based associations. Given the role of pineapple production in the Ghanaian economy, supporting and promoting adaptation options to address issues of climate variability and change is recommended for improved productivity to sustain the pineapple industry economically.

Keywords: Net revenue, temperature, rainfall, pineapple production, Ghana