Exploring the Revenue Management and Producer Pricing Mechanism Within Ghana's Cocoa Sector

December 3, 2019

Cocoa has played a pivotal role in the economic development of Ghana. It provides employment across the cocoa value chain, serves as an export earner, provides interim liquidity support for the management of the foreign exchange, contributes to growth of the economy and ultimately helps reduce poverty. In spite of these benefits, the sector is bedevilled with challenges such as low yield gap, disease and pest infestation, producer incentivization vis-à-vis government deficit and dissatisfaction from cocoa farmers. The performance of the sector the has been assessed with scholars recording different results, albeit progressive. Some evidence suggests a remarkable performance of the sector, while others bemoan the limited of transparency, inefficiencies in the distribution of subsidized inputs and that the regulator is challenged in attaining its most important objective of stabilizing producer prices at levels that ensure an adequate return on farmers’ land, labour and capital. It appears to a number of stakeholders that, these objectives have not been met completely through time. Against this background, this report aims to explore the revenue management and producer pricing mechanism within Ghana’s cocoa sector.