COVID-19 and its impact on the profit of mango value chain actors

Abstract

The unprecedented impact of the pandemic on both activities and profit of actors draws out the various areas of the value chain that need to be strengthened to ensure resilience in the face of global shock. This study fills the gap by assessing the extent at which COVID-19 impacted the profit of mango value chain actors in southern Ghana. It also analyzed the governance structure and the existing linkages in the dissemination of market information in relation to the profit of the actors. A two-year panel survey on 240 respondents was conducted in 2020 through a multi-stage sampling technique in Greater Accra, Eastern and Volta regions of Ghana. Net Farm Income, Social Network Analysis and Difference-in-Difference models were used in analyzing the data. Findings revealed that mango processors have more bargaining power and make the most profit while producers receive more information than other actors. Farmer-based organizations were found to be the prominent node and influential in the dissemination of market information within the value chain. The outbreak of COVID-19 negatively impacted the profit of mango producers and distributors; however, processors had a positive impact on their profit. The study therefore demonstrated that producers and distributors were vulnerable to the effect of the COVID-19 shock, whilst processors were robust to the shocks. Thus, reformed policies by all stakeholders for emergency preparedness should be targeted especially at those vulnerable actors in the chain. Additionally, FBOs, retailers and other key stakeholders should be considered in policy development to enhance market information dissemination.