Share This Article:

Ghana Cocoa Industry—An Analysis from the Innovation System Perspective

Abstract Full-Text HTML Download Download as PDF (Size:214KB) PP. 276-286
DOI: 10.4236/ti.2012.34038    7,644 Downloads   12,881 Views   Citations

ABSTRACT

This paper discusses Ghana’s cocoa industry from the innovation systems perspective. Cocoa is the major cash crop of Ghana. Its importance is not only in the contribution of about 25% annually of the total foreign exchange earnings but also on account of being the source of livelihoods for many rural farmers and the related actors in the value chain. The critical actors in the innovation system are the farmers, the researchers, the buyers, the transporters, public officers, consumers and the policy makers. By the roles and functions they perform, they impact on the dynamics of the cocoa industry. The paper describes the trends in cocoa production and processing and highlights the key characteristics and implications. It discusses the policy reforms in the cocoa industry and the major drivers of the reforms. The Ghana Cocoa Board (COCOBOD) is one of the biggest public institutions in Ghana and its subsidiaries are major actors in the production process of cocoa for export. The key reforms in the policies governing the industry were the dissolution of the monopoly of Produce Buying Company and the deregulation of cocoa purchasing to allow Licensed Buying Companies (LBCs) to enter the business in 1992/93 crop season. There was also the dismantling and re-organization of the Cocoa Services Division into two separate units—the Cocoa Swollen Shoot Virus Disease Control Unit (CSSVDCU) and the Seed Production Unit (SPU). The processing of cocoa into cocoa butter, cocoa paste and confectioneries is an important component of the value chain especially with the national goal of processing 50% of cocoa before export. The paper discusses policy implementation in the cocoa industry underscoring the successes and failures. It highlights lessons for other primary commodity producing countries especially those whose development contexts are similar to Ghana’s.

Conflicts of Interest

The authors declare no conflicts of interest.

Cite this paper

G. Essegbey and E. Ofori-Gyamfi, "Ghana Cocoa Industry—An Analysis from the Innovation System Perspective," Technology and Investment, Vol. 3 No. 4, 2012, pp. 276-286. doi: 10.4236/ti.2012.34038.

References

[1] ISSER, “The State of the Ghanaian Economy in 2010,” Institute of Statistical, Social and Economic Research, University of Ghana, Legon, 2011.
[2] B.-A. Lundvall, “National Systems of Innovation: Towards a Theory of Innovation and Interactive Learning,” Pinter, London, 1992.
[3] L. K. Mytelka, “Local Systems of Innovation in a Globalised World Economy,” Industry and Innovation, Vol. 7, No. 1, 2000, pp. 15-32. doi:10.1080/713670244
[4] R. R. Nelson, “National Systems of Innovation: A Comparative Study,” Oxford University Press, Oxford and New York, 1993.
[5] B. Oyelaran-Oyeyinka and K. Lal, “SMEs and New Technologies Learning E-Business and Development,” Palgrave MacMillan, New York, 2006. doi:10.1057/9780230625457
[6] A. K. Fosu and E. Aryeetey, “Ghana’s Post-Independence Economic Growth: 1960-2000,” In: E. Aryeetey and R. Kanbur, Eds., The Economy of Ghana—Analytical Perspectives on Stability, Growth and Poverty, James Currey, Suffolk, 2008.
[7] G. O. Essegbey, “Chapter Two—Ghana: Cassava, Cocoa and Poultry,” In: K. Larsen, R. Kim and F. Theus, Eds., Agribusiness and Innovation Systems in Africa, World Bank, Washington, 2009.
[8] PBC, “Produce Buying Company Ltd Annual Report 2009/2010,” Produce Buying Company Ltd., Accra, 2010.
[9] CPC, “CPC Annual Report 2011,” Cocoa Processing Company Limited (CPC), Accra, 2011.
[10] C. Breisinger, X. S. Diao, S. Kolavalli and J. Thurlow, “The Role of Cocoa in Ghana Future Development,” Ghana Strategy Support Program (GSSP), Washington, 2008.
[11] RM&E, “COCOBOD Annual Report, Research,” Monitoring & Evaluation of COCOBOD, Accra, 2011.
[12] UNIDO, “Agro-Value Chain Analysis and Development: The UNIDO Approach,” Vienna, 2009
[13] B. Eifert and V. Ramachandran, “Competitiveness and Private Sector Development in Africa—Cross-Country Evidence from the World Bank’s Investment Climate Data,” Asia-Africa Trade and Investment Conference (AATIC), Tokyo, 2004.
[14] C. Juma, “The New Harvest: Agricultural Innovation in Africa,” Oxford University Press, New York, 2011.
[15] M. Buchgraber and E. Anklam, “Validation of a Method for the Quantification of Cocoa Butter Equivalents in Cocoa Butter and Plain Chocolate—Report on the Validation Study,” European Commission Joint Research Centre, Brussels, 2003.
[16] European Parliament, “Directive 2000/36/EC of the European Parliament and the Council June 2000 Relating to Cocoa and chocolate products intended for human consumption” OJ L197, 2000, pp. 19-25.

  
comments powered by Disqus

Copyright © 2019 by authors and Scientific Research Publishing Inc.

Creative Commons License

This work and the related PDF file are licensed under a Creative Commons Attribution 4.0 International License.