Journal of Food, Agriculture and Environment

Economics of maize, soybean and cowpea processing in the northern regions of Ghana

Author(s):

Akinola Adebayo ^1*, Bussie Maziya-Dixon ², Ayedun Bamkole ², Abdoulaye Tahirou ²

Recieved Date: 2014-01-18, Accepted Date: 2014-03-28

Abstract:

Maize, soybean and cowpea are important staple food items in Ghana. However, there is paucity of information on the economics of the processing sector in the three northern regions of Ghana. Using survey data and applying budgetary technique, Foster-Greer-Thorbecke measures of poverty and Stochastic Production Frontier Function, this paper analysed costs and returns to food processors, incidence, depth and severity of as well as technical efficiency of the processors in the sector. The results revealed that cost of materials processed represented the highest cost (>40%) items in all the regions. The net benefit was highest in the northern region, followed by upper east. An average processor has a net benefit per person per day of €4.30, €4.54 and €4.33 from processing Banku, Dawadawa and Kose, respectively. On a regional basis, an average processor of foodstuff has a net benefit of €6.32, €5.09 and €6.53 in the northern region. The figures for the upper west were lowest. Although, the results indicate positive net benefits in the study area, cost benefit ratios are not that high (<2) in all regions. The moderate poverty line for the whole northern region was €1381.00 while the core poverty line was €920.67. The moderate poverty line for northern Ghana, upper east and upper west were €1724.80, €1503.96 and €993.55, respectively. The two significant variables (p<0.1) influencing amount of food processed were raw materials that represented the quantity of crop used in processing and amount spent on transport in the course of getting the food crop transported to point of sales. The study suggested the need for concerted efforts aimed at increasing awareness for improved access to credit facilities as well as better transport conditions in order to improve quantity and quality of processed food crops as ways to enhancing general livelihood of the processors in the three regions of Ghana.

Keywords:

Efficiency, poverty, processing, Gini coefficient, stochastic

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Journal: Journal of Food, Agriculture and Environment
Year: 2014
Volume: 12
Issue: 2
Category: Food and Health
Pages: 252-258

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