Evaluation of opportunity costs in cocoa production in three ecological zones in Côte d'Ivoire

Abstract

This article examines the production costs of cocoa farming in Côte d'Ivoire, West Africa, taking into account the opportunity cost approach. To this end, surveys were conducted among 228 farmers in three regions, Bonon, Soubré and Biankouma, following an east–west gradient. The estimated costs of using family labor and land were based on the opportunity cost approach. The financial costs associated with production were also taken into account. Comparative analyses between different localities and cropping systems highlighted specific workload characteristics. Finally, a principal component analysis (PCA) was used to profile producers according to their income levels and profits. The findings showed that family labor was the main component of cocoa production costs. Prices paid to farmers did not always cover all production costs, with 38% of farmers producing at a loss, and this was contingent on the agro-ecological zone. Furthermore, the agroforestry system proved to be more economical in terms of labor than the full-sun system. These results underline the relevance of the opportunity cost approach in assessing production costs and setting cocoa selling prices. This should lead to a review of public price-setting mechanisms to ensure fair remuneration for family labor