Productivity and Technical Efficiency of Cocoa Production in Eastern Ghana

Abstract

This paper analyzes the productivity, technical efficiency and its determinants among cocoa producers in the Eastern region of Ghana. A multi-stage random sampling technique is used to obtain a cross sectional data on 190 respondents. The stochastic frontier model is adopted to analyze the research objectives. The results reveal that productivity level of cocoa responds positively to land size, the level of agrochemical, labour and intermediate input used. However, productivity responds negatively to the increasing age of the cocoa trees. Cocoa producers in the region exhibit decreasing returns to scale. The mean technical efficiency among the cocoa producers is estimated to be 85%, indicating that the possibility of enhancing production given the present state of technology and input level can be achieved in the short run by increasing technical efficiency by 15% through adoption of practices of the best cocoa farm. Exogenous factors such as access to extension services, technical support and credit are found to reduce the level of technical inefficiency among the producers. Also older farmers and male farmers are   efficient than younger and female farmers. Farmers with more experience in cocoa production also produce with technical  efficiency.

Key words: Cocoa, productivity, technical efficiency, stochastic frontier, Ghana