A report dubbed: “Exploring Revenue Management and Producer Pricing Mechanism within Ghana’s Cocoa sector” compiled by think tank Imani Ghana, has noted that poor output, pests and diseases remain major challenges facing the cocoa sector of the Ghanaian economy.
The report further noted that a low-yield gap and producer incentivisation vis-à-vis the government deficit and dissatisfaction from cocoa farmers, also pose challenges to the sector.
The executive summary of the report said: “Cocoa has played a pivotal role in the economic development of Ghana. It provides employment across the cocoa value chain, serves as an export earner, provides interim liquidity support for the management of the foreign exchange contributes to the growth of the economy and ultimately helps reduce poverty.
“In spite of these benefits, the sector is bedevilled with challenges such as low yield gap, disease and pest infestation, producer incentivisation vis-à-vis government deficit and dissatisfaction from cocoa farmers.
Imani Ghana said the performance of the sector has been assessed with scholars recording different results, albeit progressive.
The report said some evidence suggests a remarkable performance of the sector, while others bemoan the challenges of transparency, inefficiencies in the distribution of subsidised inputs.
The research pointed out that the regulator is challenged in attaining its most important objective of stabilizing producer prices at levels that ensure an adequate return on farmers’ land, labour and capital.
“It appears to a number of stakeholders that, these objectives have not been met completely through time. Against this background, this report aims to explore the revenue management and producer pricing mechanism within Ghana’s cocoa sector,” the report added.