How the policy environment influences value chain linkages: a comparative study of cocoa and pineapple in Ghana

Abstract

This paper takes its point of departure from the school of thought that linkages in agricultural commodity value chains may hold the key to making actors in the chain innovative. Ghana's agricultural export sector is characterized by two main types of export: traditional and non-traditional. The traditional agricultural export sector is driven largely by the cocoa industry, while the pineapple industry represents one of the leading commodity industries in the non-traditional export sector. Using a multiple case study methodology, the paper seeks to examine how the policy environment could strengthen value chain linkages and make activities in the value chains more competitive. The study was derived from interactions with actors in the cocoa and pineapple value chains, namely input suppliers, producers, buyers, processors and some support services providers and regulatory agencies. The intention was to assemble their perceptions as interpreted in their own settings. The study showed how the existing policy on research, extension and marketing had encouraged better linkages horizontally and vertically among actors in the pineapple value chain. On the other hand, the policy underpinned by a public sector leadership in the cocoa value chain, had lowered the motivation for stronger linkages in the cocoa value chain. In terms of policy implication, the study makes a strong case for more participation of private sector actors as it is more likely to expand the platform for more interactive learning among actors for their mutual benefit.

The Political Economy of the Cocoa Value Chain in Ghana

“…For instance, compared to the 1980s when only 10 per cent of trees were of high-yielding varieties, and 1990, when only 10 per cent of farmers applied fertiliser, in 2002, 57 per cent of farmers used high-yielding varieties and 50 per cent applied fertiliser (Löwe 2017). The state acting through COCOBOD's Seed Production Division (SPD) and the Cocoa Health and Extension Division (CHED), supplies inputs such as seedlings and fertilisers to cocoa farmers, and conducts mass spraying on cocoa farms (Manteaw et al 2018). Meanwhile, many small-scale private input dealers, typically located in various urban and peri-urban areas in each region of Ghana, sell inputs sourced from wholesalers primarily based in Accra or Kumasi, generally on a cash-and-carry basis.…”

“…Local and international LBCs (Knudsen 2010). Although the PBC, which is now listed on the Ghana Stock Exchange, remains the largest LBC and retains monopoly over external marketing, close to 30 licenced private national and international LBCs also take part in internal cocoa marketing (Manteaw et al 2018;Monastyrnaya et al 2016). COCOBOD provides 'seed funds' to LBCs to purchase cocoa beans.…”

Justice and Inclusiveness: The Reconfiguration of Global–Local Relationships in Sustainability Initiatives in Ghana’s Cocoa Sector

“…Cocobod's role as a major player mediating sourcing practices, pricing and payment modalities, and their occasional free input delivery also influences the degree of integration feasible for managing workable credit-input schemes. Cocobod's policy regime, therefore, mediates company-farmer interactions (Manteaw et al, 2018) and defines the larger context that companies and farmers negotiate and enact arrangements configuring terms of inclusion in. This paper demonstrates that inclusiveness is dynamic and contextual.…”

Political Settlements and the Management of Cocoa Value Chain in Ghana

“…As a result of a World Bank-backed economic reforms in the cocoa sector in the 1990s, the purchasing and transportation of cocoa beans from points of production to the ports in Ghana is no longer the preserve of the state-owned PBC of COCOBOD (Oomes et al, 2016). Although the PBC remains the largest LBC and retains monopoly over external marketing, about 30 licenced private national and international LBCs also take part in internal cocoa marketing (Manteaw et al, 2018). COCOBOD provides LBCs with seed fund, borrowed from an international syndicate, to purchase cocoa.…”

“…The input supply segment is occupied by private companies and state agencies, such as Seed Production Division (SPD) and the Cocoa Health and Extension Division (CHED) of COCOBOD (Hütz-Adams et al, 2016; Manteaw et al, 2018). While the state provided subsidised fertilisers and agrochemicals in the early post-independence era, the subsidies were withdrawn in the mid 1980s.…”