factors affecting adoption of alternative pineapple production systems in ghana

174 Pages·2015·2.77 MB·English

by  Aboma Oljira

FACTORS AFFECTING ADOPTION OF ALTERNATIVE
PINEAPPLE PRODUCTION SYSTEMS IN GHANA

By FARIDA BADU-GYAN

Submitted in partial fulfilment of the requirement for the degree
MASTER OF SCIENCE IN AGRICULTURAL ECONOMICS

In the
Supervisor(s): Mr JIF. Henning Faculty of Natural and Agricultural Sciences
Professor B. Grove Department of Agricultural Economics
Mr E. Owusu-Sekyere University of the Free State
July 2015 Bloemfontein

DEDICATION

This dissertation is dedicated to my wonderful parents and all my siblings for their spiritual
support, words of encouragement and push for tenacity throughout my education. You are
greatly cherished.

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ACKNOWLEDGEMENTS

Most importantly, I would like to express my sincere appreciation and thanks to Almighty Allah
for all the blessings and guidance in my life and over my studies, and for granting me the
perseverance to finish this research study. This dissertation has relied on the contributions,
cooperation and support of numerous people. Therefore, I would like to thank the following
people who contributed to the successful completion. First of all, I express my sincere gratitude
to my supervisors, Mr J. Henning, Prof B. Grove and Mr E. Owusu-Sekyere, for all their
guidance, support, invaluable contribution and mentorship during my studies, and my academic
career. I would also thank Intra Africa, Caribbean and Pacific (ACP) Scholarship Scheme for
fully funding my master’s study at the University of the Free State. Furthermore, I express my
appreciation to Mrs R. Sally Visagier, Intra ACP coordinator, for kind her treatment and patience
with me during my study at the University. I also thank Prof Corlli, Prof Neil, Mr Lameck (Intra
ACP project coordinator) and all the Intra ACP officials at Namibia Polytechnic.

Special thanks go to the pineapple farmers, extension officers and district agricultural directors
from the central region of Ghana for their time and willingness to participate in the survey. Also,
a special word of appreciation goes to the directors and heads of the Ghana Export Promotion
Authority, the horticultural and Plant Protection and Regulatory Services departments for their
assistance and support to me for better understanding the institutions in the pineapple industry,
and the technical aspects of pineapple production and marketing. I would like to thank Mr
Anthony Baidoo for his assistance and support during the fieldwork. Lastly, I would like to thank
all my colleagues and siblings, especially Mr Emmanuel Donkor, Mr Rahman Badu-Gyan, and
Miss Mansura Badu-Gyan, for their academic assistance and assistance with the data
collection.

I am deeply grateful to the whole Department of Agricultural Economics at the University of the
Free State, starting with the entire teaching staff, administration and my MPhil colleague
students, for all their wonderful contributions throughout my studies.

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ABSTRACT

The main objective of this research was to examine farmers’ decision and choice of production
systems for pineapple production in order to determine the effect of factors within the social,
physical and institutional environment that the farmers in the Central Region of Ghana operate
under. An integrated value chain (VC)–New Institutional Economics (NIE)–Structure-Conduct-
Performance (SCP) framework (‘VC-NIE-SCP framework’) was used to identify and describe
the characteristics and requirements of the different production systems in the pineapple
production sector. The integrated VC-NIE-SCP framework allows for comprehensive analysis
of the behaviour and performance of small-scale pineapple farmers in their social, physical and
institutional environment. A multinomial logit model was used to determine the factors that will
influence farmers’ decision and choice of pineapple production system in Ghana in order to
assess the relationship between social, physical and institutional factors and farmers choice
behaviour. The results show that there are three pineapple production systems in the Central
Region, namely certified organic, non-certified organic and conventional pineapple production
systems. The majority of the farmers are conventional pineapple producers. Participation by
women in the pineapple sector is very low. All the categories of farmers are credit-constrained.
Most of the certified organic farmers have either written or oral contracts with pineapple
exporters or processors. Most of the farmers in all the three categories have basic education.
The empirical results reveal that farmers’ choice of certified organic pineapple production is
positively influenced by the farmers’ concern for the environment, organic premium perception,
and contracts with certified organic pineapple exporters or processors, training on organic
production, access to support services from governmental or non-governmental organisations,
and availability and access to the certified organic market. Within the institutional environment,
farmers’ knowledge on institutional factors, such as level of knowledge on land tenure systems,
level of knowledge on phytosanitary regulations of importing countries, and level of knowledge
about the traditional norms, taboos and beliefs in the farming communities, all have positive
influence on farmers’ choice of certified organic pineapple production system. Social capital
index has a positive influence on farmers’ choice of certified organic pineapple production.
However, personal factors, such as senior high school, training college and undergraduate
university levels of education, household size, off-farm activity and wealth of farmers, have
negative influence on farmers’ choice of certified organic pineapple production. Farmers’ choice
of certified organic pineapple production is negatively influenced by access to government-
subsidised inputs. Among the physical environment factors, farm size and distance from farm
to organic market negatively influence farmers’ choice of certified organic pineapple production,
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compared with conventional production methods. Owned land tenure system has a negative
influence on farmers’ choice of certified organic pineapple production, compared to
conventional production methods. The main conclusion from this research is that, for the growth
and development of the certified organic pineapple production sector in Ghana, policy makers
should take the above factors into consideration when designing policy documents and
sustainability strategies for the development of the pineapple sector.

Key Words: Ghana, pineapple, production system, certified organic, multinomial logit, social
environment, physical environment, institutional environment

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TABLE OF CONTENTS

DECLARATION……………………………………………………………………………………… ii
DEDICATION………………………………………………………………………………………... iii
ACKNOWLEDGEMENTS………………………………………………………………………….. iv
ABSTRACT…………………………………………………………………………………………... v
TABLE OF CONTENTS…………………………………………………………………………… vii
LIST OF TABLES…………………………………………………………………………………… xi
LIST OF FIGURES…………………………………………………………………………………. xii
LIST OF ACRONYMS…………………………………………………………………………….. xiv
CHAPTER 1 INTRODUCTION……………………………………………………………………...1
1.1 Background and Motivation ................................................................................ 1
1.2 The Problem Statement ...................................................................................... 3
1.3 Research Objectives ........................................................................................... 5
1.4 Organisation of the Study ................................................................................... 5
CHAPTER 2 LITERATURE REVIEW……………………………………………………………... 7
2.1 The Pineapple Sector in Ghana .......................................................................... 7
2.1.1 The Importance and Development of the Pineapple Industry ................ 7
2.1.2 Pineapple Production and Marketing in Ghana ................................... 10
2.2 Production Systems .......................................................................................... 12
2.2.1 Organic Production System ................................................................. 13
2.2.1.1 Overview of Organic Production and Marketing in Ghana .................... 15
2.2.2 Conventional production system ......................................................... 17
2.2.2.1 Overview of Conventional Production in Ghana ................................... 18
2.3 Empirical Literature on Factors Influencing Farmers’ Choice of Certified Organic
Production among other Production Systems ................................................. 20
2.3.1 Personal Factors ................................................................................. 20
2.3.2 Attitudinal and Behavioural Factors ..................................................... 23
2.3.3 Social Factors ..................................................................................... 28
2.3.4 Physical Factors .................................................................................. 30
2.3.5 Institutional Factors ............................................................................. 31
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2.4 Methods of Estimating Factors Influencing Farmers’ Choice of Production System
....................................................................................................................... 32
2.4.1 Non-Parametric Approach ................................................................... 32
2.4.2 Parametric or Econometric Approaches .............................................. 33
2.4.3 The Integrated Value Chain and New Institutional Economics (Nie) –
Structure-Conduct-Performance (SCP) Framework ............................ 35
2.5 Conclusion ........................................................................................................ 40
CHAPTER 3 DATA AND METHODOLOGY……………………………………………………. 43
3.1 Study Area ........................................................................................................ 43
3.1.1 The Central Region of Ghana ............................................................. 43
3.1.2 Cropping Structure and Farming Techniques ...................................... 46
3.2 Data Collection ................................................................................................. 47
3.2.1 Development of Questionnaire ............................................................ 47
3.2.2 Sampling Procedure and Conduct....................................................... 48
3.3 Characteristics of Respondents ........................................................................ 49
3.3.1 Types of Production Systems Used for Pineapple Production ............. 49
3.3.2 Personal Characteristics ..................................................................... 50
3.3.3 Attitudinal and Behavioural Factors ..................................................... 53
3.3.4 Social Capital ...................................................................................... 63
3.3.5 Physical Factors .................................................................................. 68
3.3.6 Institutional Factors ............................................................................. 70
3.3.7 Summary of Respondents’ Characteristics .......................................... 72
3.4 Procedures ....................................................................................................... 72
3.4.1 Identify and Describe the Characteristics and Requirements of the
Different Production Systems in the Pineapple Production Sector....... 72
3.4.2 Factors that Influence Farmers’ Choice of Pineapple Production System in
Ghana ................................................................................................. 74
3.4.3 Empirical Specification of Multinomial Logit Model .............................. 75
CHAPTER 4 RESULTS AND DISCUSSION……………………………………………………. 84
4.1 Characteristics and requirements of the different pineapple production systems in
the pineapple production sector ...................................................................... 84
4.1.1 Characteristics and requirements of certified organic pineapple production
and marketing at the Central Region of Ghana ................................... 85
4.1.1.1 Value chain influencers........................................................................ 85
4.1.1.1.1 Social Embeddedness (Level 1 of VC-NIE-SCP) ....................... 85
4.1.1.1.2 Institutional Environment and Structure (Level 2 of VC-NIE-SCP)88
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4.1.1.2 Value chain players ............................................................................. 89
4.1.1.2.1 Governance structures and Conduct (Level 3 of VC-NIE-SCP) .. 90
4.1.1.2.2 Resource allocation and Performance (Level 4 of VC-NIE-SCP) 91
4.1.2 Characteristics and requirements of Non-certified organic pineapple
production and marketing at the Central Region of Ghana .................. 92
4.1.2.1 Value chain influencers........................................................................ 93
4.1.2.1.1 Social Embeddedness (Level 1 of VC-NIE-SCP) ....................... 93
4.1.2.1.2 Institutional Environment and Structure (Level 2 of VC-NIE-SCP)94
4.1.2.2 Value chain players ............................................................................. 94
4.1.2.2.1 Governance structures and Conduct (Level 3 of VC-NIE-SCP) .. 96
4.1.2.2.2 Resource allocation and Performance (Level 4 of VC-NIE-SCP) 97
4.1.3 Characteristics and requirements of conventional pineapple production
and marketing in the Central Region of Ghana.................................... 98
4.1.3.1 Value chain influencers........................................................................ 98
4.1.3.1.1 Social Embeddedness (Level 1 of VC-NIE-SCP) ....................... 98
4.1.3.1.2 Institutional Environment and Structure (Level 2 of VC-NIE-SCP)99
4.1.3.2 Value chain players ........................................................................... 100
4.1.3.2.1 Governance structures and Conduct (Level 3 of VC-NIE-SCP) 101
4.1.3.2.2 Resource allocation and Performance (Level 4 of VC-NIE-SCP)102
4.2 Factors Influencing Farmers’ Choice of Pineapple Production System in Ghana
..................................................................................................................... 104
CHAPTER 5 SUMMARY, CONCLUSION AND RECOMMENDATION……………………. 114
5.1 Introduction ..................................................................................................... 114
5.1.1 Background and Motivation ............................................................... 114
5.1.2 The Problem Statement and Objectives ............................................ 115
5.2 Literature Review ............................................................................................ 116
5.2.1 Pineapple Sector in Ghana ............................................................... 116
5.2.2 Production Systems .......................................................................... 116
5.2.3 Literature on Factors Influencing Farmers’ Choice of Certified Organic
Production ......................................................................................... 117
5.2.4 Methods for Estimating Factors Influencing Farmers’ Choice of Production
System .............................................................................................. 118
5.3 Data and Methodology .................................................................................... 118
5.3.1 Study Area ........................................................................................ 118
5.3.2 Data Collection.................................................................................. 119
5.3.3 Characteristics of the Respondents ................................................... 120
5.3.4 Procedures ....................................................................................... 122
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5.4 Results and Conclusion .................................................................................. 123
5.4.1 Characteristics of the Different Pineapple Production Systems in the
Pineapple Production Sector ............................................................. 123
5.4.2 Factors Influencing Farmers’ Choice of Pineapple Production System in
Ghana ............................................................................................... 124
5.5 Recommendations .......................................................................................... 127
REFERENCES……………………………………………………………………………………. 129
APPENDIX A: QUESTIONNAIRE……………………………………………………………… 148
APPENDIX B: FORMULAS USED FOR CALCULATING COGNITIVE AND STRUCTURAL
SOCIAL CAPITAL………………………………………………………………………………... 158
APPENDIX C: PRINCIPAL COMPONENT TEST STATISTICS……………………………. 159

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