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An analysis of the competitive performance of the Ghanaian cocoa industry

Thesis (MScAgric)--Stellenbosch University, 2025.

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Main Author: Boateng, Melissa Nana Yaa
Other Authors: Van Rooyen, Cornelius Johan
Format: Thesis
Language:en_ZA
Published: Stellenbosch : Stellenbosch University 2025
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access_status_str Open Access
author Boateng, Melissa Nana Yaa
author2 Van Rooyen, Cornelius Johan
author_browse Boateng, Melissa Nana Yaa
Van Rooyen, Cornelius Johan
author_facet Van Rooyen, Cornelius Johan
Boateng, Melissa Nana Yaa
author_sort Boateng, Melissa Nana Yaa
collection Thesis
dc_rights_str_mv Stellenbosch University
description Thesis (MScAgric)--Stellenbosch University, 2025.
format Thesis
id oai:scholar.sun.ac.za:10019.1/132108
institution Stellenbosch University (South Africa)
language en_ZA
last_indexed 2026-06-10T12:45:24.995Z
license_str Other — see source repository
provenance_str_mv Harvested via OAI-PMH from SUNScholar — Stellenbosch University Repository
publishDate 2025
publishDateRange 2025
publishDateSort 2025
publisher Stellenbosch : Stellenbosch University
publisherStr Stellenbosch : Stellenbosch University
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source_str SUNScholar — Stellenbosch University Repository
spelling oai:scholar.sun.ac.za:10019.1/132108 An analysis of the competitive performance of the Ghanaian cocoa industry Boateng, Melissa Nana Yaa Van Rooyen, Cornelius Johan Stellenbosch University. Faculty of AgriSciences. Dept. of Agricultural Economics. Cocoa industry -- Ghana Cocoa -- Economic aspects -- Ghana Cocoa trade -- Ghana Agricultural industries -- Ghana Agricultural Economics -- Ghana UCTD Thesis (MScAgric)--Stellenbosch University, 2025. Boateng, M. N. Y. 2025. An analysis of the competitive performance of the Ghanaian cocoa industry. Unpublished masters thesis. Stellenbosch: Stellenbosch University [online]. Available: https://scholar.sun.ac.za/items/b7307c65-2991-47a1-b2b3-c9a4786229e3 ENGLISH SUMMARY: This study examines the competitive performance of the Ghanaian cocoa industry, a key contributor to the country’s GDP and export earnings, for the period between 2003 and 2021. By applying theoretical frameworks such as New Trade Theory (NTT), the concept of competitive advantage and an expanded version of Porter’s Competitive Diamond (PCD) model, the research captures the unique complexities and dynamics of the industry in Ghana. This approach allows for a detailed understanding of the factors influencing the industry’s competitiveness, and subsequently the development of a strategic agenda for the improvement of competitive performance. Competitiveness is defined as the ‘sustained condition of the Ghanaian cocoa industry to trade its products in both the domestic and global markets by creating competitive advantages that yield greater earnings than the opportunity cost of scarce resources employed through the strategic decisions, choices and innovations of the industry’. Competitive performance was empirically measured using quantitative measures, namely the relative trade advantage (RTA) for intra- country competitiveness i.e. in context of the Ghanaian economy, and the normalised revealed comparative advantage (NRCA) to measure how competitive the Ghanaian cocoa industry exports perform, against its major competitors. Trade Map ITC data was employed for these computations. Both results indicated that the Ghanaian cocoa industry has a positive, sustained competitiveness. The NRCA results revealed that the Ghanaian cocoa industry has an increasing export competitiveness for cocoa beans and is second only to the Ivory Coast in cocoa bean exports. The RTA results revealed that, although the Ghanaian cocoa industry remains highly competitive in the economy of Ghana, its performance is declining. Thus, it is losing out against alternative Ghanaian industries. The results further revealed that cocoa beans are the most competitive products of the Ghanaian cocoa industry. It must also be noted that the relative high levels of the RTA index for all cocoa products indicates that the Ghana cocoa industry provides a strong foundation for value-added processes. To analyse the competitive performance of the Ghanaian cocoa industry, 126 competitiveness factors were identified through interactions with relevant industry players, and clustered into eight determinants using the extended PCD model. Two additional determinants, namely socio-economic transformation and technological innovation and transfer, were added to tailor the analysis to the Ghanaian context. This analysis indicated that related and supporting industries (scoring 3.59 out of 5 or contributing 72%) significantly enhanced the competitive performance of the Ghanaian cocoa industry, supported by demand and market conditions (3.45 out of or 69%), firm structure, strategy and rivalry (3.25/5 or 65%), government support and policies (3.05/5 or 61%) and technological innovation and transfer (3.07 or 61%). The relative constraining determinants of the Ghanaian cocoa industry are production factors (2.99/5 or 59.9%), socio-economic transformation (2.91/5 or 58.4%) and chance factors (2.61/5 or 52%). In general, these ratings show a sustained positive competitive environment for the industry. The principal component analysis revealed that most of the factors were uncorrelated, leading to the conclusion that value chain coordination seems constrained since different functions in the value chain may have different perspectives on the significance and impact of each factor. This would have an impact on value chain decision-making. Therefore, strategies towards improving competitive performance, require dialogue and cooperation among value chain stakeholders, ranging from producers to processors, marketers, government and specialised services entities, such as financial services. To enhance its competitive performance, the Ghanaian cocoa industry should consider the strategic agenda proposed in this study. Key proposals include increasing farm productivity to boost production and export volumes, enforcing stricter regulations to curb illegal gold mining in cocoa-growing areas, promoting sustainable land-use practices, implementing rehabilitation programs for ageing farms, intensifying climate-smart training for farmers, investing in cocoa products tailored to local preferences, accelerating the development and deployment of the traceability software, and collaborating with financial institutions to create specialized financial products and credit lines for cocoa farmers. AFRIKAANSE OPSOMMING: Hierdie studie ondersoek die mededingende prestasie van die Ghanese kakaobedryf, 'n sleutelbydraer tot die land se BBP en uitvoerverdienste, vir die tydperk tussen 2003 en 2021. Deur die toepassing van teoretiese raamwerke soos New Trade Theory (NTT), die konsep van mededingende voordeel en 'n uitgebreide weergawe van Porter's Competitive Diamond (PCD)-model, vang die navorsingskompleksiteitsbedryf in Ghana die unieke en dinamiese kompleksiteite vas. Hierdie benadering maak voorsiening vir 'n gedetailleerde begrip van die faktore wat die bedryf se mededingendheid beinvloed, en gevolglik die ontwikkeling van 'n strategiese agenda vir die verbetering van mededingende prestasie. Mededingendheid word gedefinieer as die 'volgehoue toestand van die Ghanese kakaobedryf om sy produkte in beide die plaaslike en globale markte te verhandel deur mededingende voordele te skep wat groter verdienste oplewer as die geleentheidskoste van skaars hulpbronne wat aangewend word deur die strategiese besluite, keuses en innovasies van die bedryf'. Mededingende prestasie is empiries gemeet deur gebruik te maak van kwantitatiewe maatstawwe, naamlik die relatiewe handelsvoordeel (RTA) vir binnelandse mededingendheid d.w.s. in konteks van die Ghanese ekonomie, en die genormaliseerde geopenbaarde vergelykende voordeel (NRCA) om te meet hoe mededingend die Ghanese kakao-industrie uitvoere presteer, teenoor sy belangrikste mededingers. Trade Map ITC-data is vir hierdie berekeninge gebruik. Beide resultate het aangedui dat die Ghanese kakaobedryf 'n positiewe, volgehoue mededingendheid het. Die NRCA-resultate het aan die lig gebring dat die Ghanese kakaobedryf 'n toenemende uitvoermededingendheid vir kakaobone het en slegs tweede is na die Ivoorkus in kakaobone-uitvoere. Die RTA-resultate het aan die lig gebring dat, hoewel die Ghanese kakaobedryf hoogs mededingend in die ekonomie van Ghana bly, sy prestasie besig is om te daal. Dit verloor dus teen alternatiewe Ghanese nywerhede. Die resultate het verder aan die lig gebring dat kakaobone die mees mededingende produkte van die Ghanese kakaobedryf is. Daar moet ook kennis geneem word dat die relatiewe hoe vlakke van die RTA-indeks vir alle kakaoprodukte aandui dat die Ghana kakaobedryf 'n sterk grondslag vir waardetoegevoegde prosesse bied. Om die mededingende prestasie van die Ghanese kakaobedryf te ontleed, is 126 mededingendheidsfaktore geidentifiseer deur interaksies met relevante rolspelers in die bedryf, en gegroepeer in agt determinante deur gebruik te maak van die uitgebreide PCD-model. Twee bykomende determinante, naamlik sosio-ekonomiese transformasie en tegnologiese innovasie en oordrag, is bygevoeg om die analise by die Ghanese konteks aan te pas. Hierdie ontleding het aangedui dat verwante en ondersteunende bedrywe (met 3.59 uit 5 of wat 72 bygedra het) die mededingende prestasie van die Ghanese kakaobedryf aansienlik verbeter het, ondersteun deur vraag en marktoestande (3.45 uit of 69%), firmastruktuur, strategie en wedywering (3.25/5 of 65%), regeringsondersteuning en tegnologiese oordrag en -beleide (3.07 of 61%). Die relatiewe beperkende determinante van die Ghanese kakaobedryf is produksiefaktore (2.99/5 of 59.9%), sosio-ekonomiese transformasie (2.91/5 of 58,4%) en toevalsfaktore (2.61/5 of 52%). Oor die algemeen toon hierdie graderings 'n volgehoue positiewe mededingende omgewing vir die bedryf. Die hoofkomponent-analise het aan die lig gebring dat die meeste van die faktore ongekorreleerd was, wat tot die gevolgtrekking gelei het dat waardeketting-koordinasie beperk blyk te wees aangesien verskillende funksies in die waardeketting verskillende perspektiewe op die belangrikheid en impak van elke faktor kan he. Dit sal 'n impak he op waardekettingbesluitneming. Daarom vereis strategiee om mededingende prestasie te verbeter dialoog en samewerking tussen waardeketting-belanghebbendes, wat wissel van produsente tot verwerkers, bemarkers, regering en gespesialiseerde dienste-entiteite, soos finansiele dienste. Om sy mededingende prestasie te verbeter, moet die Ghanese kakaobedryf die strategiese agenda wat in hierdie studie voorgestel word, oorweeg. Sleutelvoorstelle sluit in die verhoging van plaasproduktiwiteit om produksie- en uitvoervolumes 'n hupstoot te gee, strenger regulasies af te dwing om onwettige goudontginning in kakao-verbouingsgebiede te bekamp, die bevordering van volhoubare grondgebruikpraktyke, die implementering van rehabilitasieprogramme vir verouderende plase, die intensivering van klimaatslim opleiding vir boere, belegging in kakaoprodukte wat aangepas is vir die plaaslike voorkeur en sagteware-ontplooiing, die versnelling van die plaaslike voorkeur en sagteware-ontplooiing, met finansiele instellings saam te werk om gespesialiseerde finansiele produkte en kredietlyne vir kakaoboere te skep. Masters 2025-05-23T14:06:42Z 2025-05-23T14:06:42Z 2025-03 Thesis https://scholar.sun.ac.za/handle/10019.1/132108 en_ZA Stellenbosch University xii, 136 pages : illustrations, maps, includes annexures application/pdf Stellenbosch : Stellenbosch University
spellingShingle Cocoa industry -- Ghana
Cocoa -- Economic aspects -- Ghana
Cocoa trade -- Ghana
Agricultural industries -- Ghana
Agricultural Economics -- Ghana
UCTD
Boateng, Melissa Nana Yaa
An analysis of the competitive performance of the Ghanaian cocoa industry
title An analysis of the competitive performance of the Ghanaian cocoa industry
title_full An analysis of the competitive performance of the Ghanaian cocoa industry
title_fullStr An analysis of the competitive performance of the Ghanaian cocoa industry
title_full_unstemmed An analysis of the competitive performance of the Ghanaian cocoa industry
title_short An analysis of the competitive performance of the Ghanaian cocoa industry
title_sort analysis of the competitive performance of the ghanaian cocoa industry
topic Cocoa industry -- Ghana
Cocoa -- Economic aspects -- Ghana
Cocoa trade -- Ghana
Agricultural industries -- Ghana
Agricultural Economics -- Ghana
UCTD
url https://scholar.sun.ac.za/handle/10019.1/132108
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