User login

To share, meet and learn for sustainable cocoa

Practical publications

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)
Cocoa Quality Index Proposal, .R, AraujoQ, and al FernandesC.A.F et , 05/2014, (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)
The Partially Liberalized Cocoa Sector in Ghana, Kolavalli, Shashidhara, Vigneri Marcella, Maamah Haruna, and Poku John , 09/2012, Washington, DC, (2012) , (Practical Publication)
Impact of Collective Marketing by Cocoa Farmers’ Organizations in Cameroon , Kamdem, Cyrille Bergaly, Tameko André Melachio, Ndeffo Luc Nembot, and Gockwoski James , 2013 Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia, 09/2013, Tunisia, (2013) , (Practical Publication)

Marketing reforms in Ghana's cocoa sector

sjon van 't hof's picture
TitleMarketing reforms in Ghana's cocoa sector
Publication TypeMiscellaneous
Year of Publication2009
AuthorsLaven, Anna
Publication Languageeng
Keywordsaccess to markets, credit supply, farmer income, farmers & production, farmers & traders, Ghana, prices, trade liberalization

In Ghana, the liberalization of internal marketing started in 1992 with the introduction of private Licensed Buying Companies (LBCs) as competitors to the state-owned monopoly in buying cocoa from farmers. Thus, Ghana’s state-owned Marketing Board (Cocobod) still controls external marketing. The Quality Control Division, a subsidiary of Cocobod, is responsible for the final quality checks of cocoa beans. Ghana produces good quality cocoa, for which it receives a premium on the world market. Through a system of forward sales, Cocobod still manages to pre-finance cocoa production, and price stabilization has remained intact. The Ghanaian economy is heavily dependent on cocoa exports so the government is loath to relinquish control; private buyers rely on government licenses to operate; and global buyers are guaranteed a good-quality product. Although partial liberalization could be a viable alternative model, changing preferences of international buyers, or pressure from World Bank and international donors may provide the impetus for further reforms. But cocoa farmers might not be benefiting as much as other stakeholders from the partial liberalization. Intensive fieldwork undertaken with the Amsterdam institute for Metropolitan and International Development Studies (AMIDSt) in Ghana has shed some light on this issue, and the findings suggest that farmers are not benefiting fully from the system, and those benefits they do see are not equitably distributed. Not only that, farmers are being exposed to new risks — such as rises in production costs and in costs of living — as a result of the reforms. If partial liberalization remains in place, its long-term success depends also on the ability and willingness of the Ghanaian government to re-invest the income generated from exporting cocoa effectively back into the farmer communities and strategically for the long-term future of the industry. Either scenario will require an increase in the bargaining power of LBCs and farmers in relation to the state.


Farmers & production


Logo Ministry of Economic Affairs of the Netherlands

Logo Royal Tropical Institute