Price-Setting Power in Global Value Chains: The Cases of Price Stabilisation in the Cocoa Sectors in Côte d’Ivoire and Ghana

Staritz, Cornelia; Tröster, Bernhard; Grumiller, Jan; Maile, Felix

doi:10.1057/s41287-022-00543-z

Cited by 9 publications

(3 citation statements)

References 49 publications

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“…We conducted a form of inductive content analysis to generate codes, categories and themes of transcribed field notes (Silverman 2017). The inductive analysis provided an understanding of the dynamics of governance factors enabling upgrading for smallholder cocoa producers and Abusa sharecroppers in GCVC.…”

Section: Methodsmentioning

confidence: 99%

The implications of governance factors for economic and social upgrading in Ghana’s cocoa value chain

Kissi,

Herzig

2024

Agric Econ

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This paper identifies several governance factors that enable economic upgrading and the link between economic and social upgrading /downgrading of smallholders and Abusa sharecroppers in Ghana's cocoa value chain (GCVC). The findings are based on qualitative interviews and focus group discussions with various actors in GCVC. Our findings suggest two types of economic upgrading: process and product upgrading, achieved by smallholder producers and Abusa Sharecroppers in GCVC. While process upgrading is enabled by governance factors such as price stabilization and controlling opportunistic behavior, transparency in the sale of certified beans and premium management is key for product upgrading. Regarding the link between economic and social upgrading, we reveal that process upgrading leads to the same outcome of social upgrading and downgrading for smallholders and Abusa sharecroppers due to governance factors such as production and purchasing policies and lack of resources and capabilities. However, product upgrading links to social upgrading and downgrading for smallholders and Abusa sharecroppers respectively owing to governance factors such as controlling resources and bargaining power. We provide insights into key actors and their interests, drivers of change and effects of incentives that play crucial roles in shaping governance factors that influence economic and social upgrading of smallholders and Abusa sharecroppers in GCVC. In our conclusion, we identify how regulations, institutional support and conflicts of interest are key for enabling upgrading of developing countries’ agricultural value chains.

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Section: Methodsmentioning

confidence: 99%

The implications of governance factors for economic and social upgrading in Ghana’s cocoa value chain

Kissi,

Herzig

2024

Agric Econ

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“…Thus, the exposure to price risks for actors in most producer countries shifted from inter‐seasonal to intra‐seasonal variations from short‐term changes in futures prices. Only a few countries were able to continue or re‐establish national price stabilization (van Huellen and Abubakar, 2021; Staritz et al., 2023).…”

Section: Lead Firms In Physical Gvcs and Commodity Derivatives Marketsmentioning

confidence: 99%

The Financialization of Coffee, Cocoa and Cotton Value Chains: The Role of Physical Actors

Tröster,

Gunter

2023

Development and Change

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The prices of cash crops impact the livelihoods of millions of households in developing countries. While the influence of speculators on global commodity prices determined through derivatives exchanges is extensively discussed, the contribution of hedgers to short‐term changes in futures prices has largely been disregarded in the financialization of commodities discourse over the past two decades. This results in a failure to account for the interconnected activities of increasingly consolidated lead firms within physical global value chains (GVCs) and derivatives markets. This article examines the pricing and hedging strategies of lead firms in the coffee, cocoa and cotton GVCs in relation to their activities on commodity derivatives markets. Based on Open Interest data as an indicator of derivatives markets activity, a measure of buying and selling pressure by trader categories is applied in a Generalized ARCH (GARCH) model. The findings of this article show that hedgers’ activities allow speculators to drive global benchmark prices so that they can benefit through combinations of financial hedging and physical trading strategies. As these practices of lead firms contribute to the transmission of futures prices along GVCs, smallholders and other actors in cash crops in producer countries are exposed to heightened price changes.

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“…The cocoa produced in Huila has an excellent quality, although the quantity offered can be increased. Currently, it is negotiated in a market that promotes the commercialization of grain as a basic product, centralized from the years 1925 in New York and 1928 in London, which have become benchmarks for setting world prices [9].…”

Section: Introductionmentioning

confidence: 99%

Model to Estimate Determinants of an Area Harvested in Cocoa Production Systems

Manrique,

Trujillo,

Arias Barrera

2023

TEM Journal

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The stakeholders of the cocoa sector should be introduced with determinants that influence an area of cocoa harvest. Objective of the study is to identify the determinants of a harvested area in small cocoa production units in Huila. A correlational method, cross section, and quantitative approach was used with data from the last National agricultural census. Results of the study revealed that major area does not use credit, advice and irrigation increase the area while the organic fertilization is positive. Those displaced by violence have less harvest area and the primary and secondary sectors are positively associated with an increase in area. It can be concluded that the determinants of harvested area identified in this study exhibit a low management behavior in the agronomic practices of cocoa producers that limit the expansion of the harvested area in Huila. This aspect affects the medium and long-term economic sustainability of this agricultural activity. Therefore, continuous training and education of the producers are essential in order to improve this problematic situation.

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Price-Setting Power in Global Value Chains: The Cases of Price Stabilisation in the Cocoa Sectors in Côte d’Ivoire and Ghana

Cited by 9 publications

References 49 publications

The implications of governance factors for economic and social upgrading in Ghana’s cocoa value chain

The implications of governance factors for economic and social upgrading in Ghana’s cocoa value chain

The Financialization of Coffee, Cocoa and Cotton Value Chains: The Role of Physical Actors

Model to Estimate Determinants of an Area Harvested in Cocoa Production Systems

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