EconPapers    
Economics at your fingertips  
 

What does liberalization without price competition achieve?: The case of cocoa in Ghana

Marcella Vigneri and Paulo Santos

No 14, GSSP working papers from International Food Policy Research Institute (IFPRI)

Abstract: "The deregulation of Ghana’s domestic cocoa supply chain that took place in the early 1990s was expected to bring competition among different private buyers and to generate a number of production incentives to the farmers. Most notably, it was expected that competition would emerge by means of price bonuses and/or premiums over the guaranteed price. However, this paper finds that price-based competition mechanisms did not develop in the resulting domestic cocoa value chain. Rather, the now increasing numbers of Licensed Buying Companies compete for cocoa supplies based on the provision of different services to farmers. The availability of a number of outlets offers farmers the option to choose among those that can provide cash as well as credit. The cash payment and credit for inputs offered to attract cocoa sales mainly benefit liquidity-constrained farmers, enabling them to invest in productive inputs. Since cash constrained farmers are likely to be the poorest as measured by simple welfare indicators, liberalization may be seen to have had a progressive impact on Ghana’s cocoa farmers." from text

Keywords: Agricultural policy; Agricultural productivity; Cocoa Ghana; market regulations; Liberalization (search for similar items in EconPapers)
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://cdm15738.contentdm.oclc.org/utils/getfile/c ... 3/filename/32124.cpd (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fpr:gsspwp:14

Access Statistics for this paper

More papers in GSSP working papers from International Food Policy Research Institute (IFPRI) Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2022-01-20
Handle: RePEc:fpr:gsspwp:14