Is more chocolate bad for poverty? An evaluation of cocoa pricing for Ghana’s industrialization and poverty reduction
The purpose of this study is to understand how cocoa pricing options affect local processors’ cocoa acquisition, processing, and inventory decisions, with the ultimate goal of determining which policies best meet the multiple, but possibly conflicting, public policy objectives of maximizing governme...
| Main Authors: | , , |
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| Format: | Artículo preliminar |
| Language: | Inglés |
| Published: |
International Food Policy Research Institute
2015
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| Subjects: | |
| Online Access: | https://hdl.handle.net/10568/149704 |
| _version_ | 1855534928931848192 |
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| author | Mulangu, Francis Miranda, Mario Maiga, Eugenie |
| author_browse | Maiga, Eugenie Miranda, Mario Mulangu, Francis |
| author_facet | Mulangu, Francis Miranda, Mario Maiga, Eugenie |
| author_sort | Mulangu, Francis |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | The purpose of this study is to understand how cocoa pricing options affect local processors’ cocoa acquisition, processing, and inventory decisions, with the ultimate goal of determining which policies best meet the multiple, but possibly conflicting, public policy objectives of maximizing government revenue, maximizing and stabilizing processor profits and throughput, and reducing poverty rates among cocoa beans producers. To evaluate these effects, we construct and numerically solve a structural dynamic model of a representative cocoa processor that maximizes the present value of current and expected future profits, given prevailing market conditions and cocoa pricing options. We then take the predicted cocoa pricing options to determine their associated poverty impacts among cocoa producers. We used this model to evaluate the appropriate cocoa pricing regime for attaining Ghana’s objectives of increasing cocoa processing capacity to 40% of total cocoa produced in Ghana. We found, for example, that an appropriate 35% discount on main-crop beans will increase processor revenue by 57%, while either reducing government revenue by 36% or reducing cocoa farmers’ income by a maximum of 22%, depending on who bears the burden of the discount. |
| format | Artículo preliminar |
| id | CGSpace149704 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2015 |
| publishDateRange | 2015 |
| publishDateSort | 2015 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1497042025-11-06T07:13:25Z Is more chocolate bad for poverty? An evaluation of cocoa pricing for Ghana’s industrialization and poverty reduction Mulangu, Francis Miranda, Mario Maiga, Eugenie cocoa beans economic development agricultural development poverty The purpose of this study is to understand how cocoa pricing options affect local processors’ cocoa acquisition, processing, and inventory decisions, with the ultimate goal of determining which policies best meet the multiple, but possibly conflicting, public policy objectives of maximizing government revenue, maximizing and stabilizing processor profits and throughput, and reducing poverty rates among cocoa beans producers. To evaluate these effects, we construct and numerically solve a structural dynamic model of a representative cocoa processor that maximizes the present value of current and expected future profits, given prevailing market conditions and cocoa pricing options. We then take the predicted cocoa pricing options to determine their associated poverty impacts among cocoa producers. We used this model to evaluate the appropriate cocoa pricing regime for attaining Ghana’s objectives of increasing cocoa processing capacity to 40% of total cocoa produced in Ghana. We found, for example, that an appropriate 35% discount on main-crop beans will increase processor revenue by 57%, while either reducing government revenue by 36% or reducing cocoa farmers’ income by a maximum of 22%, depending on who bears the burden of the discount. 2015-12-14 2024-08-01T02:49:47Z 2024-08-01T02:49:47Z Working Paper https://hdl.handle.net/10568/149704 en Open Access application/pdf International Food Policy Research Institute Mulangu, Francis; Miranda, Mario; and Maiga, Eugenie. 2015. Is more chocolate bad for poverty? An evaluation of cocoa pricing for Ghana’s industrialization and poverty reduction. AGRODEP Working Paper 0014. Washington, DC: International Food Policy Research Institute. https://hdl.handle.net/10568/149704 |
| spellingShingle | cocoa beans economic development agricultural development poverty Mulangu, Francis Miranda, Mario Maiga, Eugenie Is more chocolate bad for poverty? An evaluation of cocoa pricing for Ghana’s industrialization and poverty reduction |
| title | Is more chocolate bad for poverty? An evaluation of cocoa pricing for Ghana’s industrialization and poverty reduction |
| title_full | Is more chocolate bad for poverty? An evaluation of cocoa pricing for Ghana’s industrialization and poverty reduction |
| title_fullStr | Is more chocolate bad for poverty? An evaluation of cocoa pricing for Ghana’s industrialization and poverty reduction |
| title_full_unstemmed | Is more chocolate bad for poverty? An evaluation of cocoa pricing for Ghana’s industrialization and poverty reduction |
| title_short | Is more chocolate bad for poverty? An evaluation of cocoa pricing for Ghana’s industrialization and poverty reduction |
| title_sort | is more chocolate bad for poverty an evaluation of cocoa pricing for ghana s industrialization and poverty reduction |
| topic | cocoa beans economic development agricultural development poverty |
| url | https://hdl.handle.net/10568/149704 |
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