Influence of non-price incentives on the choice of cocoa licensed buying companies by farmers in the Western North of Ghana
Journal of Agribusiness in Developing and Emerging Economies
ISSN: 2044-0839
Article publication date: 26 September 2019
Abstract
Purpose
The purpose of this paper is to examine the factors influencing the choice and the amount of cocoa beans sold to public and private licensed buying companies in the Western North of Ghana.
Design/methodology/approach
The study was conducted in the Western North of Ghana. Cragg’s Double Hurdle model was used to examine the factors influencing the choice of licensed buying company (LBC) whereas Kendall’s coefficient of concordance was employed in analysis of the marketing challenges.
Findings
The results showed that non-price incentives determine the choice and the amount cocoa beans sold to an LBC. Specifically, education, years of experience in cocoa farming and timely payment of sold cocoa beans positively influence the choice of public LBC. However, off farm job participation, provision of credit facilities and extension services affect the choice of private LBC as marketing outlet. Perceived low price of cocoa beans, inadequate credit support, and adjustment of scales used in weighing of cocoa beans were identified as the most important challenges confronting farmers.
Research limitations/implications
The research provides important information on non-price incentives influencing cocoa marketing outlet decision as well as the marketing challenges faced by farmers which can contribute to improving internal marketing efficiency of the cocoa industry in Ghana. Besides, this study also extends the frontiers in terms of methodological approach by adopting Cragg’s Double Hurdle Model in addressing the research question.
Originality/value
The research provides important information on non-price incentives influencing cocoa marketing outlet decision as well as the marketing challenges faced by farmers which can contribute to improving internal marketing efficiency of the cocoa industry in Ghana. Besides, this study also extends the frontiers in terms of methodological approach by adopting Cragg’s Double Hurdle Model in addressing the research question.
Keywords
Acknowledgements
The authors are grateful to the internal reviewers of the original manuscript at University of Energy and Natural Resources especially Mr Cosmas Amenorvi Rai and Ms Wilhemina Kwabeng. Additionally, the authors are grateful to the purchasing clerks of Nyokopa Licensed Buying Company for their tremendous assistance during the data collection and entry. The authors express heartfelt appreciation to all the cocoa farmers in the Western North of Ghana who spent time to answer the questionnaires.
Citation
Bannor, R.K., Oppong-Kyeremeh, H., Atewene, S. and Wongnaa, C.A. (2019), "Influence of non-price incentives on the choice of cocoa licensed buying companies by farmers in the Western North of Ghana", Journal of Agribusiness in Developing and Emerging Economies, Vol. 9 No. 4, pp. 402-418. https://doi.org/10.1108/JADEE-11-2018-0151
Publisher
:Emerald Publishing Limited
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