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Cost efficiency of cocoa farmers in Twifo Hemang Lower Denkyira Area in Central Region of Ghana

Obeng, Isaac Antwarko and Adu, Kofi Osei (2014): Cost efficiency of cocoa farmers in Twifo Hemang Lower Denkyira Area in Central Region of Ghana.

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Abstract

This study empirically examined cost efficiency of cocoa production in Twifo Hemang Lower Denkyira area in Central region of Ghana. Primary data was collected from 400 cocoa farmers in twenty (20) communities using interview guide and the cost efficiency of inputs in cocoa production was estimated using stochastic frontier production function. The empirical result of summation of the partial elasticities exhibited positive increasing returns to scale in the inputs use and the mean cost efficiency was 1.10 indicating that an average cocoa farms in the study area incurred costs that were about 10% above the minimum cost defined by the frontier .The findings show that cost efficiency of inputs use was fairly high. Hybrid varieties, level of education and age of tree, Farmer-based organization and extension contacts were found to be the main determinants of cost efficiency. This study recommends that Farmers should be encouraged to join farmer-based organization.

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