Professional Documents
Culture Documents
This thesis is dedicated to the Ninson family for the wonderful support offered to me in my
entire education.
DECLARATION
I, Daniel Ninson the author of this dissertation, do hereby declare that the work presented in
this dissertation: ANALYSIS OF PINEAPPLE PRODUCTION IN THE AKWAPIM
SOUTH MUNICIPAL AREA was done entirely by me in the Department of Agricultural
Economics and Agribusiness, College of Agriculture and Consumer Sciences, University of
Ghana, Legon from August, 2011 to June, 2012.
This work has never been presented either in whole or in part for any other degree of this
University or elsewhere.
DANIEL NINSON
(Student)
This dissertation has been submitted for examination with my approval as supervisor.
.
DR. EDWARD EBO ONUMAH
(Supervisor)
II
ACKNOWLEDGEMENT
The Lord God almighty deserves the biggest appreciation as far as this thesis is concerned. I
am therefore grateful to Him for the life, wisdom and strength He gave me to accomplish this
work.
This dissertation would not have been a success without the immense contribution from my
supervisor; Dr. Edward Ebo Onumah. I sincerely, respectfully and honourably express my
profound gratitude to him, for such wonderful guidance offered to me throughout the entire
period of this work. I say may the good Lord bless you. My next thanks go to the senior
members of the Department of Agricultural Economics and Agribusiness for organizing such
wonderful presentation seminar where I had the opportunity to defend my thesis. I am really
grateful for the contribution you made towards this successful thesis.
I again want to say thank you to all the respondents in the Akwapim South Municipal area
who spent their precious time in giving me all the necessary information I needed from them.
I am really grateful to them.
Last but not the least, my sincere thanks goes to all who played some role in one way or the
other, but whose names have not been mentioned. May the good Lord bless you all.
III
ABSTRACT
Pineapple is a native to Central and South America, and the varieties include Cayenne,
Queen, Sugarloaf, Pernambuco, Variegated, Baby, Red Spanish and MD2.The export of
pineapples from Ghana has declined by almost 60% over the last five years. Small scale
producers who account for about half of the export volumes are being completely wiped out.
Production in the Akwapim South municipal area keeps on decreasing and this is a
contributing factor to the national decline. The studies therefore sort to analyse pineapple
production in the Akwapim South municipal area using the Cobb- Douglas production
function and Gross margin analysis. Primary data was collected from farmers with structured
questionnaires and the sample size was 50.The results show that farm size, number of suckers
used and depreciation cost significantly and positively affected output of pineapple. Labour
affected output negatively, whilst quantity of fertilizer also affected output positively but was
not significant. The study revealed that pineapple farming in the area exhibit constant returns
to scale. The Gross margin analysis also revealed that the mean gross margin per hectare was
GH11008.4157.The major constraints facing the respondents in the study area were
identified to be lack of reliable market, high cost of farm inputs and inadequate credit for
production.
The study therefore concludes that pineapple farming is quite profitable and farmers should
be encouraged to continue farming. Production in the area exhibits constant returns to scale
with elasticity of one; meaning one percent change in all inputs equals to one percent change
in output. Farmers will be better off if they farm on their current scales. Government should
therefore set up an efficient regulatory body of the pineapple market to offer some
appreciable level of protection to the farmers.
IV
TABLE OF CONTENTS
CONTENTS
DEDICATION ............................................................................................................................................. I
DECLARATION ......................................................................................................................................... II
ACKNOWLEDGEMENT ............................................................................................................................ III
ABSTRACT............................................................................................................................................... IV
TABLE OF CONTENTS............................................................................................................................... V
LIST OF TABLES ...................................................................................................................................... VII
LIST OF ABBREVIATIONS ...................................................................................................................... VIII
1.0 INTRODUCTION ................................................................................................................................. 1
1.1 BACKGROUND TO RESEARCH........................................................................................................ 1
1.2 PROBLEM STATEMENT .................................................................................................................. 3
1.3 OBJECTIVES OF STUDY .................................................................................................................. 4
1.4 MOTIVATION OF STUDY ................................................................................................................ 4
1.5 ORGANIZATION OF THE STUDY ..................................................................................................... 5
2.0 LITERATURE REVIEW ......................................................................................................................... 6
2.1 INTRODUCTION ............................................................................................................................. 6
2.2 PINEAPPLE PRODUCTION .............................................................................................................. 6
2.21 PRODUCTION .............................................................................................................................. 6
2.22 FACTORS INFLUENCING PRODUCTION ....................................................................................... 7
2.23 CATEGORIES OF PINEAPPLE PRODUCERS IN GHANA .................................................................. 8
2.24 METHOD OF PINEAPPLE PRODUCTION IN GHANA ..................................................................... 9
2.3 PROFITABILITY ANALYSIS ............................................................................................................ 10
2.31 GROSS MARGIN......................................................................................................................... 10
2.4 CONSTRAINT ANALYSIS ............................................................................................................... 12
3.0 METHODOLOGY .............................................................................................................................. 14
3.1 INTRODUCTION ........................................................................................................................... 14
3.2 METHOD OF DATA ANALYSIS ...................................................................................................... 14
3.3 HYPOTHESIS TESTING .................................................................................................................. 15
3.4 THE STUDY AREA ......................................................................................................................... 17
3.4 METHOD OF DATA COLLECTION ................................................................................................. 18
4. 0 RESULTS AND ANALYSIS ................................................................................................................. 19
4.1. SOCIO- ECONOMIC CHARACTERISTICS OF FARMERS................................................................. 19
VI
LIST OF TABLES
3.1 DESCRIPTION OF REGRESSION VARIABLES .......................................................... 15
4.1 GENDER DISTRIBUTION OF RESPONDENTS ........................................................... 19
4.3 PINEAPPLE FARMING AS A MAJOR OR NON MAJOR OCCUPATION ................. 21
4.4 SUMMARY DESCRIPTION OF VARIABLES .............................................................. 22
4.5 ESTIMATES FOR THE PRODUCTION FUNCTION .................................................... 22
4.6 RESULTS OF LIKELIHOOD RATIO TEST ................................................................... 24
4.7 RESULTS OF THE F-TEST ............................................................................................. 25
4.8 RESULTS OF THE T- TEST ............................................................................................ 25
4.9 GROSS MARGIN, GROSS INCOME AND TOTAL VARIABLE COST ..................... 26
4.10 CONSTRAINTS FACED BY PINEAPPLE FARMERS ............................................... 28
VII
LIST OF ABBREVIATIONS
EU
European Union
EUREP- GAP
GEPC
GLOBALGAP
GDP
GM
Gross Margin
MOFA
NGO
OLS
TR
Total Revenue
TVC
VIII
1.0 INTRODUCTION
1.1 BACKGROUND TO RESEARCH
Pineapple is a native to Central and South America, and the varieties include Cayenne,
Queen, Sugarloaf, Pernambuco, Variegated, Baby, Red Spanish and the new variety MD2.
Between 1990 and 2004, pineapple exports in Ghana grew from virtual inexistence to 68000
tons becoming Ghanas first horticulture export product (Danielou and Rawry, 2005), making
a great contribution to the overall GDP of the country. The pineapple industry saw some
growth after the implementation of the Economic recovery program in 1983 when the nation
began looking at the export of other crops apart from the usual traditional export crops.
The success story of the pineapple industry over the years was the fact that it had a
demanding market. The major market target was the European Union. The national policy
with respect to pineapple export also accounted for such a success. The pineapple industry
grew from strength to strength until the taste of the major consumers (European Union)
shifted to the MD2 variety. The nation at that time specialized in the production and export of
the Smooth Cayenne variety until the MD2 began dominating on the international market.
Jaegar (2008) explains that the last five years had been quiet difficult for the Ghanaian
pineapple industry since the European Union no more preferred the traditional Smooth
Cayenne. Also the requirement for EUREP GAP certification has also become widespread.
Costa Rica now has the largest market share of the EU market with the likes of Cote DIvoire
and Brazil also doing very well. Farmers are now offered the MD2 planting material at a
subsidized price. The disbursement of the MD2 variety was through the horticultural exports
industry initiative programme which was heavily supported by the World Bank between 2004
and 2007.
However the cultivation of the MD2 variety is perceived by the farmers to be quite expensive
in terms of management cost or production cost. Fruit processing companies complain about
the inadequate supply of pineapple fruits to feed their processing plants. The introduction of
the EUREP-GAP and GLOBALGAP certification has also accounted for the recent problems
of the Ghanaian pineapple export industry. Most producers and exporters cannot bear the cost
involved in the certification of their pineapple produce according to the EUREP-GAP and
GLOBALGAP standards. Their pineapple products are therefore rejected on the EU market
for reasons of below standard.
The fruit is mostly consumed fresh by many people and this is source of vitamins and other
mineral elements. In Ghana the fruit is mostly grown in parts of Greater Accra, Volta, Central
and Eastern regions. The Akwapim South municipal is well noted for high production of
Ghanaian pineapple due to its climatic conditions and the fact that the area is closer to the
airport and harbour. Production of pineapple is dominated by both smallholders and large
scale farms which include Campagnie fruitiere, Blue Skies, Pinora and Farmapine. Farmapine
was set up by the World Bank but it is now a defunct company. The large scale plantations
offer contract farming to small scale farmers or out growers. Ghanas pineapple production is
estimated between 120000 150000 tons annually (Kleemann, 2011). Currently both organic
and conventional productions of pineapples are practised by the farmers.
Both the organic and conventional pineapple production takes between 12 -18 months from
planting to harvest. The variety types normally grown are Sugarloaf, Smooth Cayenne and
now the new variety MD2. Suckers are what the farmers use in cultivation and this is usually
treated to avoid pest and disease incidence. With the organic type of production, plant and
animal manure are used as source of fertilizer but the conventional type of production heavily
depends on artificially manufactured fertilizer. Farm land is also a major factor in production.
The farmers use various means to acquire land and this can be through inheritance, lease or
any other means. Both hired and family labours are employed. Other inputs mainly used by
farmers are drums, protective clothing, knapsack sprayer and cutlass. Harvesting takes place
all year round. Pineapple is an offseason fruit on the EU market with peak seasons for exports
from October to December and from February to April/ May and low exports and low prices
in the rest of the year (Kleeman, 2011).
As a consequence it is difficult for small scale farmers to participate profitably in the market.
The factors affecting pineapple production leave as with a lot of uncertainties which this
research seeks to unravel.
It is therefore in the light of these that we ask the following questions:
1. What are the factors that affect pineapple production in the area of study?
2. How profitable is the enterprise?
3. What are the constraints facing pineapple farmers in the area?
The research will give an understanding of the evolving opportunities and constraints in
pineapple production. Like has been indicated above the pineapple industry is with a lot of
opportunities. Understanding of these opportunities is also good for better decision making as
far as pineapple production is concerned.
The study seeks to provide information for further research. It will therefore provide the basis
for further extensive research to be carried out in pineapple production. The research will also
add onto the body of knowledge which already exist.
Decreasing returns to scale also means the proportional change of output per unit increase of
all inputs is less than one. Constant returns to scale is where the proportional increase for
both output and input is same.
2.22 FACTORS INFLUENCING PRODUCTION
Keerthi (2008) studied the production and marketing of pineapple in the Shimoga District of
India and examined the productivity of important resources used in the cultivation of
pineapple. The Cobb- Douglas production function was used to estimate the resource
productivity of pineapple cultivation. He classified the variable inputs into five major groups
which included human labour, fertilizers, weedicides, growth regulators and planting
materials with the dependable variable being yield of pineapple per hectare. The results of the
regression analysis of pineapple production by sample cultivators did show a range of
marginal value product to marginal factor cost for various resources.
The regression co-efficient for fertilizer and planting material were positive, which indicated
that they will have a positive impact on the pineapple yield with further application of these
two resources in the production process.
Saili et al. (2005) conducted a research into the factors affecting the performance of
pineapple smallholders in Kampung Meranek. In their study they regressed the production
(output) against a number of factors which included labour, pineapple cultivation practise,
land, knowledge and farm record keeping. The average production observed was 35 60
tonnes per hectare and average income of RM 18000 per hectare per annum. They focussed
on a number of qualitative factors that influenced output as against most of the variables or
characteristics that can be quantified. The methodology employed was structured interview
and observation-farm visit. The qualitative variables included education, race, gender, status,
number of farmers children involved in pineapple farming, pineapple cultivation practice, and
farm recording.
7
Conley et al. (2000) also tried to study pineapple output as a result of the combination of two
most important inputs in pineapple production. They regressed output over fertilizer and
labour. They indicated that there was agronomic evidence that pineapple yields are very
responsive to fertilizer. Their empirical measure of input intensity was based on fertilizer
usage since it was better measured than labour. The logit model was employed to describe
changes in inputs. They concluded that farmers were more likely to change input levels upon
the receipt of bad news about the profitability of their previous level of input use.
Adinya et al. (2011) conducted a study on the estimation of efficiency constraints using
Cobb-Douglass production function in snail production by small farmers in Cross River
State, Nigeria. In their research they analysed the data obtained using the Ordinary Least
Square (OLS) multiple regression technique to determine the relationship between snail
output and the input variables. They also tried to use the linear, double-log and semi-log
function forms to determine which of the forms would best fit the relationship between snail
output and the independent variables. The value of their co-efficient of determination (R)
indicated that the Cobb- Douglass production function was the best compared with the Linear
and Semi-log production functions. The Cobb-Douglass function had the highest R value of
0.60 and meeting other econometric criteria.
The regression analysis also did show that farm size, labour, farm management practices,
operating costs and farming experience had positive influence on output of snail production
and were significant at one percent level of significance.
2.23 CATEGORIES OF PINEAPPLE PRODUCERS IN GHANA
Producers of fresh pineapples for export in Ghana can be classified into three categories;
smallholders, non-resident commercial farmers, and large-scale producer-exporters. Takane
(2004). The small holders are farmers who come from that particular pineapple growing area.
They are indigenous people who usually farm in their own villages, usually on relatively
small sized lands. The non- resident commercial farmers usually do not live in the particular
pineapple growing area but have acquired some land in the growing area on which they farm.
Their farms are comparatively bigger than that of the smallholders. Their produce is mostly
for commercial or trade purposes. The large-scale producers are those who may also not be
inhabitants of the pineapple growing area but have very large farms in the area. They usually
combine production of the pineapple and export. They are mostly multinational companies
who produce and export almost all of their produce. Examples are Blue skies, Compaigne
Fruitiere and Pinora.
In terms of target market, there are also three choices of groups that producers prefer to sell
their produce. The first is the exporters who arguably pay higher prices. The next preferred
buyers are the processing companies who pay less than what the exporters pay. Itinerant or
ordinary market men and women are the next group of buyers. They are least preferred
buyers because they pay very low prices.
2.24 METHOD OF PINEAPPLE PRODUCTION IN GHANA
Agyare (2010) argues that pineapple is by far the most important crop within the horticultural
subsector of the Ghanaian economy. Over 15000 individuals are employed by this industry.
About 40% of the number are women and generate rural incomes of over 6 million USD.
Large and medium commercial farms account for about 70% of production with the
remaining produced by smallholders. Agyare (2010) goes on to say that pineapple production
in Ghana covers over 8000 acres of land and is predominant in the Greater Accra, Eastern,
Central and Volta region of the country. The varieties usually produced are Sugarloaf,
Smooth Cayenne and now the MD2. Two basic methods of pineapple production are mostly
employed by farmers in the country. These are the organically produced pineapple and the
inorganically produced pineapple.
9
10
Gross margin analysis is very important for comparing performance of farm enterprise. If a
farm enterprise records a relative low gross margin, it may be due to;
1. Unfavourable input costs relative to product prices.
2. Low output associated with low variable cost (pointing to inadequate
expenditure on variable cost, example feed, fertilizer, labour, machine
expenses)
3. Excessive inputs relative to value of production.
4. An antiquated, inadequate or otherwise unsuitable type of production
technology. Rickards and McConnell (1967).
Tamasese (2009) conducted an analytical study of selected fruits and vegetable value chain in
Samoa. In his study Gross margin analysis for pawpaw production was performed for farmers
in Samoa with secondary data from the Ministry for Agriculture.
In determining the total income of farmers, the number of trees per acre, the acres planted,
plant spacing, growth period, land preparation cost per acre, and the number of fruits per tree
harvested were considered. The average weight per fruit was also very significant in
determining the total sales or income.
The total direct cost was also considered. Cost like planting material, fertilizer, transport to
market, hire of market stall, packaging costs and labour cost were determined.
The gross margin of farmers was deduced by deducting the direct cost from the total income
of farmers. The gross margin was calculated for three consecutive years before determining
the total crop income over the three years.
11
Egyir (2007) in her work on Allanblackia, compared the net returns to Allanblackia with
alternative tree crops including cocoa and evaluated the potential synergies between
Allanblackia and other crops such as Cola, Cocoa, Abesebuo and Atooto. She calculated
the gross margin per annum for each combination. The study revealed that the Gross margin
for Allanblankia, Abesebuo, Atooto, Cola and Cocoa were equal to the mean revenue because
the variable cost for all the crops were equal to zero.
2.4 CONSTRAINT ANALYSIS
Constraints can be measured using the Kendalls Coefficient of Concordance; the Garretts
ranking technique and sometimes the direct scoring method. However the Garret ranking
technique is preferred because the scorings given to each constraint ranked is then weighted
through conversions, by the use of a formula. It is also easier to use.
Chalamila and Madulu (2007) conducted a study on the Potential and Constraints of Fruits
trees in Coast region in Tanzania. In their constraint analysis it was found out that farmers
major constraints were lack of reliable markets, lack of improved varieties , lack of improved
production and processing know how ;and pests and diseases. The most important problem
was lack of reliable market.
The percentage score for the constraints were 75% for lack of reliable markets; 50% for lack
of improved varieties ; 45% for lack of improved production and processing know how and
30% for incidences of pests and diseases. They concluded that pineapple, cashew nut and oil
palm were potential source of households income replacing coconut in the study area.
However the major constraints of farmers were efficient marketing system and technological
knowhow. The methodology employed was direct scoring or ranking and the analysis was
done with Microsoft Excel and SPSS software packages.
12
Manoharan et al. (2003) also conducted constraint analysis in milk production faced by the
farmers in Pondicherry union territory. The opinion of the farmers were analysed by the
Garretts ranking technique with the formula 100(Rij-0.5)/ Nj, where;
Rij = rank given for ith factor by j th individual.
N j = number of factors ranked by j th individual.
In terms of the Garretts mean score arranged in decreasing other of importance; the first five
constraints in dairy farming were higher feed cost, lower price for milk, High investment,
infertility problem and low productivity.
Achuonjei et al (2002) in their research dubbed Ghana Sustainable horticultural export chain
indicated the most significant problem or constraint areas in the field of logistics with respect to
pineapple production are; poor infrastructure, poor quality of the means of transport used, lack of
refrigeration facilities resulting in inferior product quality, the exported volumes being too low and
the freight cost also being too high
Mensah et al (2010) in the study The performance of Ghanas Papaya in the Export
industry used the Kendalls Coefficient of Concordance to analyse constraints in the
pawpaw industry in Ghana; Where w = 12S [m (n - n)]-1.
w= Kendalls Coefficient
n= number of logistic constraints being ranked
m= number of rankings by the exports
The constraints revealed were lack of trained staff to handle the produce, cold store, forklift
at the port, quality card boxes, transporters, and pack houses, drying tables, water troughs,
and water reservoirs.
13
3.0 METHODOLOGY
3.1 INTRODUCTION
The methodology for the study is developed through a three step approach. The first step is
the method of data analysis, followed by the geographical area of study and then method of
data collection.
3.2 METHOD OF DATA ANALYSIS
The Method of Data Analysis for the study is described below;
A regression model using the Cobb-Douglass production function was used to identify the
factors that influence the production of pineapple. The Cobb-Douglass production function
has advantage over other forms of production functions like the Linear and Semi-log
production functions. The Cobb- Douglass produces a higher R- square value and also shows
many statistical significant variables, Adinya et al (2011).
The Cobb Douglass production function is specified as;
InYi= o + 1InX1i + 2 InX2i + 3 InX3i + 4 InX4i + n InXni + ei
Where;
Y= the dependent variable (output)
o = Constant term
1 - 5 = Elasticity
e = error
14
Description
Measurement
Expectation
X1
Farm size
Hectares
X2
Labour
Man days
X3
Fertilizer
Kilograms(Kg)
X4
Sucker
Number
X5
Other factors
Cedis (GH)
-/+
ie;
The production of pineapple in the study area exhibits constant returns to scale
HA : i 1 ie;
The production of pineapple in the study area does not exhibit constant returns to scale.
15
T Test was used to test for the significance of the individual variables in the production
function.
Ho: The individual variables are not significant
HA : The individual variables are significant
F- Test was used to test for the importance of the variables in the production function.
n = number of observations
k = number of parameters (constant + exogenous variables)
Degree of freedom for numerator is k-1 and that of the denominator is n-k
The Gross margin analysis was used to measure the profitability of the enterprise.
GM =GI TVC
, GI = (P * Q) = TR
16
To calculate the TR, the farmers total quantity of harvested fruits was to be multiplied by the
unit price.
For the total variable cost; cost of irrigation, transportation, suckers, fertilizer and other
variable cost of the farmer were to be summed together. The Gross margin is the total
revenue less the variable cost incurred.
The Garret ranking technique which was employed by Sedaghat (2011) was to be used to
rank the constraints of pineapple farmers.
The pineapple farmers were given common constraints to rank according to order of
importance. The orders of importance were to be converted into percent positions.
Percent position of each rank= 100 (Rij 0.5)/ Nj, where;
Rij = Rank given for the ith factor (constraint) by the jth individual (farmer).
The percent position of each rank was to be converted into score using the Garret and
Woodworth (1969) table. The mean score was to be estimated for each constraint and
arranged in descending order of magnitude.
17
18
Female
Frequency
46
Percentage (%)
92
19
Tertiary
2%
Primary
36%
Middle school
24%
JSS
30%
20
frequency
Percentage (%)
48
96
21
Maximum
Minimum
Mean
8.0
0.2
1.6
Fertilizer ( Kg)
11200
175
2116.5
11200
175
769.24
Sucker
440000
1000
87840
Depreciation (GH)
594
276.68
Coefficient
Standard Error
Probability
Farm size
0.852630
0.089448
0.0000***
Fertilizer
0.002146
0.044001
0.9613
Labour
-0.038680
0.049613
0.4399
Sucker
0.181775
0.034983
0.0000***
Depreciation
0.058861
0.031396
0.0676*
Constant term
8.585111
0.645023
0.0000
22
R- Square
0.980326
Adjusted R- Square
0.978038
0.136392
Log likelihood
31.29118
1.056732
23
The results shows that the farmers in the area were overusing labour; especially from the
point that they cultivated on relatively small farm sizes. The employment of labour was
mainly an additional cost to the farmers.
The number of suckers used was significant at one percent and had a positive relationship
with output. One percent change in suckers causes 18.1% change in output. The higher the
number of suckers used the greater the output level of pineapple.
All the respondents use treated pineapple suckers to plant. Depreciated cost of inputs also
was positively related to the output level. The elasticity was positive and significant at 10%.
One percent change in depreciated cost causes 5.88% change in output. The inputs used were
drums and knapsack sprayer. The F-test conducted indicated that the variables used were
important with R-square value of 0.9803. The R square value of 0.9803 means that about
98% of variability in the dependent variable (output) was explained by the independent
variables. The constant term had a coefficient of 8.58.
The sum of elasticity (i ) was 1.05 which is approximately one and thereby indicating
constant returns to scale. This finding is confirmed by the results of the constant return to
scale test using the log likelihood test as shown in the table below:
4.6 Results of likelihood ratio test
Log likelihood value
( unrestricted )
(restricted )
31.29118
31.28686
Test Statistic
Critical
Decision
Value
0.00864
3.84
Accept
24
The test statistic value was compared to the critical chi square value of 3.84 with probability
of 0.05 at degree of freedom of one. Therefore the null hypothesis cannot be rejected. The
production function according to the hypothesis test exhibits constant returns to scale.
The table below also shows the results of the F-test conducted to show that the variables used
were important in explaining variations in output;
Critical value
Decision
428.5229
2.45
Reject
T-statistic
Critical value
Decision
Labour
-0.7796
1.684
Accept
Fertilizer
0.0487
1.684
Accept
Farm size
9.5321
1.684
Reject
Suckers
5.1960
1.684
Reject
Depreciation
1.8747
1.684
Reject
25
Gross
income
Gross
hectare (GH)
hectare (GH)
hectare (GH)
17343.1333
6049.7005
11008.4157
margin
per
26
On per hectare basis the mean total variable cost of the pineapple farmers in the area was
GH6049.7. The minimum total variable cost was GH1282.00 and the maximum was GH
22102.50.
The variable cost was inflated by the cost of labour which had a mean cost of GH4143.34 as
compared to other cost from fertilizer and transportation. The mean gross margin per hectare
was also GH17343.13. Most of the farmers are able to ensure some level of good
agricultural practise coupled with some level of risk management. They are therefore able to
harvest a large chunk of the pineapple suckers they had planted, and therefore attained the
expected income. The minimum number of suckers planted per hectare was about 12500 and
the maximum was 62500 suckers. The minimum number was due to the nature of the farm
land for such farmers. Some farmers are unlucky to have rocks on their farms and therefore
the planting distance becomes very large above the average.
The minimum number of pineapples harvested per hectare was 20000 and the maximum was
57500. The mean number of suckers used per hectare was 52150, and the mean number of
pineapples harvested per hectare was therefore 17343.13. A high income that a farmer could
earn usually depended on the market and insignificantly on the possibility of having a good
harvest. This was because most of the farmers always had good harvest and therefore they
were only going to have a high income if they got good prices for their produce.
The minimum gross income per hectare was GH9500.00 and the maximum was GH
25000.00. The higher gross margin could be due to good market and good land as
mentioned. It could also be due to some level of economies of scale.
Those with larger farm size usually made higher income per hectare. The mean gross income
per hectare was also GH17343.13. Arguably this may look quite good compared to the fact
that the mean total variable cost per hectare was around GH6049.76.
27
Mean score
Rank
69.10
62.82
58.28
46.16
45.78
41.78
Inadequate irrigation
39.44
36.24
28
The major problem faced by the pineapple farmers is lack of reliable market for their
produce. The farmers have become more of price takers than price makers. Their produce is
always at the mercy of retail sellers and Blue Skies Company. These retail sellers would
make serious argument that given the higher perishable nature of pineapple, they cannot
afford to take the prices quoted by the farmers. And that there is probably a higher risk that
most of the produce they intended to purchase would start deteriorating after a short period of
time if all of them were not sold out. The farmers then have no option than to let go off their
produce at such bad price. The minimum price of a unit fruit was sold for 20p and the
maximum was 50p. The mean price given for a single pineapple fruit was 40.58p.
There are no weighing instruments to weigh when doing business with these traders. Prices
are often quoted by the size of the pineapple and usually even the prices quoted above are for
the larger sizes. Some farmers complain that sometimes there are even difficulties in
accessing potential buyers especially during bumper harvest season.
There was evidence where some farmers had to suspend the harvest of already matured
produce because they could not find buyers. Some of the produce even ends up rotten in the
farm. Since the area is less endowed other source of employment is hardly available and they
have no option than to continue farming against all the odds. Some years ago the exporters
were a major source of market for the pineapple farmers. The findings did indicate that the
exporters are now extinct for some reasons and farmers now depend largely on retailers. Blue
Skies offer prices that are comparatively higher than the normal price offered by retailers.
However Blue Skies only buy pineapple from some few farmers whom they enter into
agreement with and then occasionally purchase from other farmers. All these factors make
the pineapple market not reliable in the Akwapim South. The second most important
constraint per the rankings given was high cost of farm inputs.
29
Inputs like fertilizer and farming equipments are very costly and require frequent use in
pineapple production. Farmers complain that the price of fertilizer like Sulphate of potash,
Urea and NPK frequently goes up and this increases the production cost. The worse of it is
that they dare not also increase the price of their produce since the buyers may not accept
such price increase. The farmers are short changed since the prices of fertilizer keeps
increasing but the price of their produce remains constant over a very long time. They
complain that even though the government provides some form of subsidy; it does not extend
to them. The fertilizer dealers will always tell them the government subsidized ones are all
sold out. The farmers have no option than to purchase the unsubsidized ones at relatively high
prices. As indicated by the findings, one percent increase in fertilizer increases output by only
0.2% .Other farm inputs like wellington boots, nose mask and gloves do not last and require
frequent replacement. They therefore have to purchase these items on frequent basis, facing
new market situations every time. Pineapple farming is such that you cannot risk your health
and you always need protective clothing.
Inadequate credit for production was the next most important constraint ranked by the
farmers. They depend on NGOs and the government for some support, but not all of them get
access to the little help provided. Accessing credit from the banks is also very difficult. The
banks provide pure commercial loans which are normally payable within a year but the
production cycle of pineapple mostly goes beyond a year. Therefore the farmers are always in
a difficult position to repay their loans due to higher interest rates charged on such loans. The
farmers also face some challenge in accessing inputs on credit basis. The farmers claim
pineapple production requires that you are very careful with your suckers least you expose
them to disease and pest infestation.
30
The most vulnerable variety is the MD2. It requires a lot of care for maximum output. The
farmers in the Akwapim South area all treat their suckers before planting and this comes with
some cost.
Given the high perishable and seasonal nature of the pineapple produce, it requires some
equipment that can be used to store it for some time. When all the outputs of the farmers are
not sold out within a minimum time frame, the rest of produce will rot. This is a great source
of worry for the farmers in the municipal area. The lack of storage facilities also put some
sort of pressure on them to give their produce out at a very low price to avoid any risk of
produce rot.
The problem of agricultural machinery and irrigation facilities were considered less serious
by the farmers. The accessibility of tractors is very difficult in the area. It therefore becomes
difficult for farmers to expand their scale of production. The few who also have tractors face
the challenge of acquiring spare parts when their machinery breaks down.
Irrigation facilities in the area were also not accessible. Farmers compete among themselves
for farm lands that are near sources of water; otherwise farmers spend a lot of money
transporting water from other places into their farms. The research indicated that none of the
farmers use irrigation facilities. This situation also limits the scale of production. This
particular constraint was ranked seventh. The last most important constraint ranked at the
eighth position was the lack of extensional and advisory service. The extension to farmer
ratio in the area is such wide that farmers hardly get the services of extension officers.
Getting information on new and good agricultural practise is quite difficult.
31
32
The characteristics of the pineapple produce which include perishability; seasonality and
variability in terms of quality and quantity negatively affect the market power of farmers.
They have become more of price takers than price makers. Lack of extensional and advisory
service was the least important constraint the farmers face.
5.4 RECOMMENDATIONS
Majority of the farmers will be better off if they farm on their current scales but they need to
take steps to improve on the efficient use of labour. Steps should also be taken to improve the
output per every hectare or productivity. Pineapple farming is quite profitable and farmers
should be encouraged to continue farming. The government needs to provide more positive
subsidies to cut down on the production cost of farmers. Government should set up an
efficient regulatory body of the pineapple market to offer some appreciable level of
protection to the farmers.
33
REFERENCES
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Sustainable Horticultural Export Chain, Michigan State University.
Adinya, I.B., D. Edet, G.U. Ikpi, and M.G. Nyienakuna. (2011): Estimation Of Efficiency
Constraints Using Cobb-Douglass Production Function in Snail (Archachatina marginata)
Production by Cross River State, Nigeria. The Journal of Animal & Plant Sciences,
21(2):274-282.
Agyare, E.A. (2010): Technology for Improved Income of Smallholder Pineapple Producers,
Ghana, SNV Netherlands Development Organization Case Studies.
Chalamila, B.N. and R.B. Madulu. (2007): Potential and Constraints of Fruit Trees in Coast
Region in Tanzania, A Case Study of Mkuranga and Bagamoyo Districts, African Crop
Science Conference Proceedings, Vol.8: 1399-1401.
Conley, T.G. and Udry R. Christopher (2000): Learning About a New Technology: Pineapple
in Ghana. Center Discussion Paper No. 817.
Danielou, M. and C.Rawry. (2005). The Rise of Ghanas Pineapple Industry. Africa Region
Working Paper Series No.93.
Dutta, S, (2006): Introductory Economics (Micro and Macro), New Age International
Publishers, New Delhi.
Egyir, S.E., (2007): Allanblackia: Standard Setting and Sustainable Supply Chain
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of Nature (IUCN).
34
Garret, H.E. and R.S. Woodworth (1986): Statistics in Psychology and Education, Bombay,
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Ghana Export Promotion Council (2010): www.gepcghana.com.Accessed 19/10/11.
Jaegar, P, (2008): Ghana Export Horticulture Cluster Strategic Profile Study.
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Economic Analysis, Department of Agricultural Economics, College of Agriculture,
Dharwad.
Kleemann, L. (2011): Organic Pineapple Farming in Ghana- A Good Choice for
Smallholders? Kiel Institute for the World Economy, Working Paper No.1671.
Mensah, C., D.B .Sarpong, A. Sowah, and A.B. Yeboah. (2010): The Performance of
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Production Faced by the Farmers in Pondicherry Union Territory, Indian J, Anim. Res.,
37(1): 68-70.
Ministry of Food and Agriculture (2011). Regional Agricultural Profiles, Akwapim South
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Tamasese, E. (2009): An Analytical Study of Selected Fruit and Vegetable Value Chains in
Samoa, AAACP Paper Series- No.11.
Takane, T. (2004): Smallholders and Non- Traditional Exports under Economic
Liberalization: The Case of Pineapples in Ghana, African Study Monographs, 25(1): 29-43.
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Saili, A.R., M. Mohamadin and M. Z. Kamil (2005), Factors Affecting the Performance of
Pineapple Smallholders in Kampung Meranek, Institute of Penyelidikan.
36
APPENDIX
FARMER QUESTIONNAIRE
ANALYSIS OF PINEAPPLE PRODUCTION IN THE AKWAPIM SOUTH
MUNICIPAL AREA.
The main objective of this questionnaire is to analyse pineapple production in the Akwapim
South Municipal. This will give an understanding of the evolving opportunities and
constraints in pineapple production.
Respondents are assured, that their details will be kept private and not appear anywhere, as
this is just an academic exercise in partial fulfilment for the award of a Bachelors degree in
Agribusiness.
Name of farmer .................................................................................
Name of farm.......................................................................................
Date of interview..................................................................................
Telephone number...............................................................................
A. SOCIO ECONOMIC CHARACTERISTICS OF FARMER
1. Gender of farmer
[ ] Male [ ] Female
2. Location of farm...........................................................................
3. Educational background:
[ ] Primary
[ ] JHS
[ ] Tertiary
[ ] Others (Specify)......................................................................
37
[ ] Yes [ ] No
[ ] Bought it
[ ] lease
[ ] Share cropping
[ ] others
(Specify)..............................................................
9. How many years have you been into pineapple production?......................................
10. What is the total size of your farm?..................................Hectare equiv.........................
11. What proportion of your farm did you devote to pineapple farming?........Hectare
equiv................
12. What type of fertilizer did you use on your farm?
[ ] Inorganic
[ ] Organic
[ ] Both
13. How much of the fertilizer did you use? .................................................( Kilograms)
14. What was the cost of the fertilizer?...........................................................
15. What type of sucker did you use? [ ]Treated
[ ]Untreated [ ] Both
38
18. What was the quantity of labour used per the production season?
Type
Total
Rate
Months Rate
Weeks
Rate
Days
Rate
Hours
Rate
of
number paid
worked paid
worked paid
worked paid
worked paid
labour
Used/
/year
/month
/week
/day
year
Adult
male 1
Adult
male 2
Adult
male 3
Adult
female
1
Adult
female
2
Adult
39
female
3
Child
(< 18)
1
Child
2
Child
3
of Number
used
Unit cost
Maintenance Year
Expected
Share
cost
lifespan
pineapple
purchased
Hoe
Cutlass
Pickaxe
Wheel barrel
40
for
Sprayers
Others(specify)
41
Inadequate Irrigation
High cost of farm inputs
Inadequate credit for production
Lack of extensional and advisory service
Lack of appropriate agricultural machinery
Lack of reliable market
Incidence of pest and disease
Lack of storage facilities
42