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Practical publications

Modelling Farmers Investment in Agrochemicals: The Experience of Smallholder Cocoa Farmers in Ghana, Danso-Abbeam, Gideon, and Setsoafia Edinam Dope , Research in Applied Economics , 09/2014, Volume 6, Issue 4, United States, p.27, (2014) , (Practical Publication)
Modelling Farmers Investment in Agrochemicals: The Experience of Smallholder Cocoa Farmers in Ghana, Danso-Abbeam, Gideon, and Setsoafia Edinam Dope , Research in Applied Economics , 09/2014, Volume 6, Issue 4, United States, p.27, (2014) , (Practical Publication)
Cocoa Fertilizer Forum, World Cocoa Foundation, and Initiative IDH - sustaina , 10/2014, Copenhagen, (2014) , (Practical Publication)
An Assessment of Investment in Technology in Cocoa Processing Industry in Nigeria, , Journal of Economics and Sustainable Development , 05/2014, Volume 5, Issue 10, Akure, (2014) , (Practical Publication)
COMPLIANCE OF AGROCHEMICAL MARKETERS WITH BANNED COCOA PESTICIDES IN SOUTHWEST NIGERIA , Mokwunye, Idongesit U., and al Folaranmi D. Babalol , Journal of Agricultural sciences, 05/2014, Volume 59, Issue 2, Nigeria, (2014) , (Practical Publication)
Fertilizer use among Cocoa Farmers in Ghana: The case of the Sefwi Wiawso District, Nunoo, Isaac, Frimpong Benedicta Nsiah, and Frimpong Frederick Kwabena , Kwame Nkrumah University of Science and Technology, (0) , (Practical Publication)
Future Trends of the Export Demand for Selected Malaysian cocoa Products, A. Hameed, Abdel, and Arshad F.M. , Trends in applied sciences research, 06/2013, Institute of Agricultural and Food policy studies, (2013) , (Practical Publication)

Institutional innovation in the credit, input, and cocoa markets of West Africa

sjon van 't hof's picture
TitleInstitutional innovation in the credit, input, and cocoa markets of West Africa
Publication TypeReport
Year of Publication2008
AuthorsGockowski, J., Mva J., Oduwole S., and Binam J. N.
Date Published2008
InstitutionIITA
CityAccra, Ghana
Publication Languageeng
Keywordsaccess to finance, access to markets, access to services & inputs, Cameroon, capacity building, farmers & production, farmers & traders, Nigeria, pesticides, public policies
Lead

Interlinked loans intended for the purchase of agrochemicals are an institutional innovation that evolved in Nigeria and southwest Cameroon following cocoa market liberalization. Since liberalization, an estimated $30 million market for fungicides and insecticides has developed. To increase farmer access to these inputs, credit for their purchase has been interlinked to cocoa sales by networks of local buying agents employed by cocoa exporters. In the 2000/2001 season an estimated $15 million in credit was disbursed by cocoa buying agents to over 75,000 producers. The return on funds lent was estimated to range from 19 to 45% and was usually recovered by paying lower prices for the cocoa sold by the producer and/or charging higher prices for the inputs supplied on credit. The allocative efficiency of borrowers versus non-borrowers in the use of agrochemicals did not differ significantly, however the analysis suggests that farmers were overusing fungicides and underusing insecticides. In the absence of effective state extension services, recommendations provided by a profit motivated private sector may overshoot the optimal level of use. Farmer training on integrated pest management and rational pesticide use could reduce the impact of this market failure. The lack of significant differences in input use efficiency between groups suggests that borrowers have successfully addressed their credit constraints. Interlinked credit between exporters, buyers, and producers is seen as a useful interim innovation that addresses fundamental problems and can support sector-specific efforts to intensify production. The development of such arrangements for other commodity sectors could lead to the eventual emergence of full service financial institutions.

URLhttp://www.iita.org/c/document_library/get_file?p_l_id=98894&folderId=99929&name=DLFE-1123.pdf

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