Hand pollination, mass spraying, and hybrid seedlings: Do these technologies affect the welfare of smallholder cocoa farmers in Ghana?

Abstract

AbstractAdoption of cocoa production technologies has the potential to improve productivity and welfare of smallholder producers in low‐income countries. While studies investigating synergies in agricultural technologies are growing, empirical evidence on the determinants and impacts of adopting multiple cocoa production technologies on smallholder farmers' welfare is scarce. Therefore, this study contributes by analyzing the determinants and effects of adoption of multiple cocoa production technologies on the welfare of smallholder farmers in Ghana. To achieve this, we used the multinomial endogenous switching regression and multivalued inverse probability regression adjustment models to a random sample of 2233 cocoa farmers from Ghana. The results show that various socioeconomic characteristics (e.g., farmer's age and experience), resource constraints (e.g., land ownership and credit access), market‐related factors (e.g., distance to the market), and production shocks (e.g., rainfall) influence the adoption of multiple cocoa production technologies. Furthermore, the results reveal that adopting multiple production technologies significantly improves cocoa yields, gross income, per capita consumption expenditure, and reduces household food insecurity. Therefore, policies, such as financial support, need to be aimed at improving and strengthening smallholder cocoa producers' capacity to adopt synergistic conventional and non‐conventional cocoa production technologies to maximize smallholder farmers' welfare.