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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)
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)

What determines the price received by farmers? The case of cocoa in Cameroon

sjon van 't hof's picture
TitleWhat determines the price received by farmers? The case of cocoa in Cameroon
Publication TypeJournal Article
Year of Publication2009
AuthorsBergaly Kamdem, C., Galtier F., Gockowski J., David-Benz H., Egg J., and Kamgnia Dia B.
Date Published2009
Publication Languageeng
Keywordsaccess to finance, access to markets, Cameroon, farmer income, farmer organization, farmers & production, prices, traders
Lead

Various works have demonstrated that small-scale agricultural producers from developing countries do not generally obtain the potential gains linked to marketing. What can be done to help them obtain better prices? In this article, we examine two different solutions: (1) increasing the bargaining power of individual producers; and (2) collective marketing through producer organizations (POs). We use data on 2,487 cocoa transactions by producers in Cameroon during 2005-2006. We explore bargaining theories to identify the determinants of the price received by producers who sell their produce individually, and analyse the effect of collective marketing. We show that when the bargaining situation is least favourable to the producers (because the prices are nonnegotiable and there is information asymmetry which favours the traders), the traders seize the entire surplus generated by the trade. In order to improve the prices received by producers, it should be necessary to manage their access to credit (so that they will not be bound to any buyer they had obtained credits from, thus ameliorate arbitrate and negotiate the price), and enable them delay their sale until after the start of the school year (so that traders could no longer know the producers financial need). We also show that selling produce via the POs generally results in a price increase of 9% caused by improvement in a reduction in transaction costs (through economies of scale) and improved bargaining power.

URLhttp://escholarship.org/uc/item/8c9570gc.pdf

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