Farm Households’ Livelihood Diversification into Agro-processing and Non-agro-processing Activities: Empirical Evidence from Ghana

This study seeks to identify the types of agro-processing and non-agro-processing activities in the Upper West Region of Ghana and the factors influencing households’ choice of diversification into each of these groups of activities as livelihood strategies. The study employs the multinomial logit model to identify the determinants of diversification. Data were obtained from a survey conducted by the International Food Policy Research Institute (IFPRI) in December, 2012 covering production activities for the 2011 agricultural year. The Primary data were collected from two hundred and fifty (250) food crop farmers selected using a multistage sampling procedure. The empirical results indicate that households in the Upper West Region diversify their livelihoods activities to agro-processing and activities not related to agro-processing. Households who are likely to diversify are females who are high income earners with small farm sizes. Further, educated and asset-rich farmers who produce for subsistence only are more likely to diversify to agro-processing while access to credit will influence diversification but not necessarily into agro-processing. These results have implications for the development of agro-processing ventures in developing countries

Adoption of Mobile Money Transfer Technology: Structural Equation Modeling Approach

In recent years, rapid spread of mobile phones use in the developing countries is as a consequence ofthe introduction of prepaid cards and the fallen prices of mobile handsets. One of such uses is the useof mobile phones in financial services industry. This study investigates the key factors that influencethe Ghanaian consumers' acceptance and use of mobile money transfer technology using keyconstructs from the Technology Acceptance Model (TAM) and Diffusion of Innovation (DoI) theory.We analyzed the data using a Structural Equation Modeling (SEM) to evaluate the strength of therelationship between the constructs. The results were consistent with the key TAM and DoI constructs.Keywords: Technology Acceptance Model, Adoption, Mobile Money Transfer Technology, Diffusionof Innovation theory, Ghana

Assessing the Degree of Food Insecurity among Farming Households: Evidence from the Central Region of Ghana

This study seeks to determine the level of food insecurity among farming household in the Central Region of Ghana. A multistage sampling technique was used to select the respondents that were interviewed using a structured questionnaire. In all 240 households were interviewed for the study (i.e., 120 farming households in each of the Forest Communities and Coastal Communities). Data was obtained from 1690 individuals for the analysis of the food security status of the households. The empirical results reveal that majority of the respondents were food insecure. Though majority of the households were food insecure, the level of food insecurity was not severe. The months of April and May are the periods in which households experience severe food shortage. The immediate food insecurity coping strategies households adopt when faced with food insecurity are eating less preferred food, food rationing and skipping meal within a day. Most of the food insecurity coping strategies used by farming households are moderate, and only employed to temporarily minimize the impact of food insecurity. These results have implications for agricultural food policy in developing countries. Key words: Food insecurity, farming households, copping strategies, Ghan

TIME SERIES ANALYSIS OF A PRINCIPAL-AGENT MODEL TO ASSESS RISK SHIFTING AND BARGAINING POWER IN COMMODITY MARKETING CHANNELS

We apply the classic agency model to investigate risk shifting in an agricultural marketing channel, using time series analysis. We show that if the principal is risk-neutral and the agent is risk-averse instead of risk-neutral, then a linear contract can still be optimal if the fixed payment is negative. Empirical results for the Dutch potato marketing channel indicate that while fixed payments to farmers (agents) have decreased over time, even to negative levels, the incentive intensity has approximately doubled, and the risk premium the farmers ask for has remained considerable. These results imply that risk has shifted from wholesalers, processors, and retailers to farmers; we argue that this shift could be the consequence of chain reversal, i.e., the transformation of the traditional supply chain into a demand-oriented chain.Marketing, Risk and Uncertainty,

Risk Management Using Futures Contracts: The Impact of Spot Market Contracts and Production Horizons on the Optimal Hedge Ratio

We specify a principal-agent marketing channel involving producers, wholesalers, retailers and a futures market. Our hedge ratio for producers appears to be much lower than the common price-risk minimising ones as we account for producers vertical contracts and, by using annual data, their production horizon. The Dutch ware potato marketing channel and its futures market in Amsterdam show that possibly through decreases in producers and wholesalers risk aversions, their optimal dynamic hedge ratios decreased from 38% and 12%, respectively, in 1982 to 18% and 10%, respectively, in 2003. These results comply with the decreased futures volume traded in Amsterdam over the years.Principal-Agent Model, Risk Management, Futures and Spot Market Contracts, Production Horizons, Food Marketing Channels, Marketing, Risk and Uncertainty,

Design of Solar Drying Technology Equipment for Drying Food Consistent with Farmers' Willingness to Pay: Evidence from Ghana

In this study, a survey of two hundred and fifty-five (255) farmers, sampled from the Akuapim South District in the Eastern Region and the South Tongu District in the Volta Region of Ghana was undertaken to determine their willingness to adopt and pay for solar drying technology for drying food. Using descriptive statistics, farmers’ awareness, willingness to adopt and willingness to pay for solar drying technology were analyzed. A Logit model analysis was employed in identifying factors influencing farmers’ willingness to adopt the technology. The empirical results reveal a low level of awareness of the solar drying technology (27%) among the farmers. However majority (94.5%) were willing to adopt the technology and (88.2%) willing to pay for the technology. The modal amount farmers were willing to pay was GH¢100.00 and the highest amount GH¢1000.00. The modal amount of GH¢100.00 ($66.00) can produce a 4sq meter simple box type solar dryer that has a drying capacity of 50kg per sq meter, which guarantees the farmers shorter drying time and lower final moisture content. The study also found incentive provision, total monthly income of farmers and space to accommodate a solar dryer as the factors influencing farmers’ willingness to adopt the solar drying technology. In this respect, sensitization campaigns should be intensified to create more awareness of the solar drying technology among small holder farmers. In doing so, farmers should be introduced to varied designs and varied costs of the technology in order for them to make their own choice. Solar dried food products should be differentiated and considered for higher prices, ready market and export to motivate farmers to adopt the technology. Further, there is the need for the provision of space (land) by the District Assemblies in the various communities where these farmers can conveniently place their solar dryers for the purpose of drying the food products. Finally, since income is a factor that significantly influences farmers’ adoption of the technology, it is imperative that the government provides the solar drying equipments at vantage points in the communities that farmers could use to dry their products, even if at an affordable fee.Key words: Design, solar drying technology, drying food, adoption, farmers’ willingness to pay amount, Binary Logit Model, Ghan

Productivity and Resource Use Efficiency in Tomato and Watermelon Farms: Evidence from Ghana

This study examines productivity and resource use efficiency in tomato and watermelon farms in the Dangme East District of Ghana. Cross-sectional data of 200 farmers (100 tomato farmers and 100 watermelon farmers) were obtained from a field survey using structured questionnaires. The empirical results of this study show that, the value of output of watermelon is higher than that of tomato. The difference could be attributed to differences in output prices as well as labour and material input costs incurred in the production of each of these crops. Since prices of inputs are more or less stable over the season, output price difference could be said to be the main cause of this difference. For instance, it costs GH ¢704.59 to produce a hectare of tomato whereas the average cost of producing a hectare of watermelon is GH¢509.03. Conversely, a hectare of tomato yields GH¢480.37 whereas a hectare of watermelon yields GH¢1738.68. Analysis of the factors affecting the value of output of tomato and watermelon shows that, land, labour and experience exert significant influence on the value of output of tomato; whereas land, non-agricultural activity and training significantly influence the level of output of watermelon in the study area. Marginal value products computed for land and labour for each crop were found to be higher than the market prices of  these factors indicating that land and labour are inefficiently used in both tomato and watermelon production though labour did not significantly influence watermelon production. Also, neither did the amount of fertilizer used in tomato production nor the amount of capital used in watermelon production exert significant influence on their value of outputs; these inputs were found to be underutilized in each case. These results have implications for Agricultural policy in Ghana. Key Words: Productivity, Resource Use Efficiency, Tomato, Watermelon, Farms, Ghan

Supply Response of Rice in Ghana: A Co-integration Analysis

This study presents an analysis of the responsiveness of rice production in Ghana over the period 1970-2008. Annual time series data of aggregate output, total land area cultivated, yield, real prices of rice and maize, and rainfall were used for the analysis. The Augmented-Dickey Fuller test was used to test the stationarity of the individual series, and Johansen maximum likelihood criterion was used to estimate the short-run and long-run elasticities. The land area cultivated of rice was significantly dependent on output, rainfall, real price of maize and real price of rice. The elasticity of lagged output (12.8) in the short run was significant at 1%, but the long run elasticity (4.6) was not significant. Rainfall had an elasticity of 0.004 and significant at 10%. Real price of maize had negative coefficient of -0.011 and significant at 10% significance level. This is consistent with theory since a rise in maize price will pull resources away from rice production into maize production. The real price of rice had an elasticity of 2.01 and significant at 5% in the short run and an elasticity of 3.11 in the long run. The error correction term had the expected negative coefficient of -0.434 which is significant at 1%. It was found that in the long run only real prices of maize and rice were significant with elasticities of -0.46 and 3.11 respectively. The empirical results also revealed that the aggregate output of rice in the short run was found to be dependent on the acreage cultivated, the real prices of rice, rainfall and previous output with elasticities of 0.018, 0.01, 0.003 and 0.52 respectively. Real price of rice and area cultivated are significant 10% level of significance while rainfall and lagged output are significant 5%. In the long run aggregate output was found to be dependent on acreage cultivated, real price of rice, and real price maize with elasticities of 0.218, 0.242 and -0.01 respectively at the 1% significance level. The analysis showed that short-run responses in rice production are lower than long-run response as indicated by the higher long-run elasticities. These results have Agricultural policy implications for Ghana. Key Words: Supply response, Rice, Error Correction Model, Co-integration Analysis, Ghan

Chained to Sustainable Development Goals? Changing Role of Entities for Enhanced Resilience along Agriculture Food Value Chains in Thailand

The operation period of the Millennium Development Goals (MDGs) ended in 2015 and the Sustainable Development Goals (SDGs) will be in operation over the period of 2016- 2030. The sustainable development agenda contained 17 goals and covered a broad range of quantitative and qualitative objectives across social, economic, and environmental dimensions of sustainable development including the following: ending poverty and hunger, sustainable consumption and production, improving health and education, making cities more sustainable, combating climate change, and protecting oceans and forests. Sustainable food production, marketing and other postharvest management practices are important to achieving majority of the SDGs. This paper examines the required changing roles of private and public organizations as well as international organizations during the period 2016-2030 to enhance resilience of agricultural food value chains in Thailand. The Sufficiency Economy Philosophy (SEP) of Thailand can be described as a growth and development model characterized by its universality and inclusiveness; people-centered approach; moderation, moral values and reasonableness; and knowledge and integrity. The SEP encourages a holistic farm management system to promote sustainability, food security, water conservation and biodiversity, development of human resources, risk management, investment and expansion of businesses, thereby creating self-sufficiency at the household, community, organizational and national levels. These objectives of the SEP are somewhat consistent with goals 1, 2, 8, 9, 12, 13, 14, and 15 of the SDGs. The required roles of organizations to enable Thailand to achieve the SDGs towards enhancing the resilience of agricultural food value chains are presented and the policy implications are highlighted

Effect of Macroeconomic Variables on the Ghanaian Stock Market Returns: A Co-integration Analysis

This study investigates the effect of macroeconomic variables on the Ghanaian stock market returns using monthly data over period January 1992 to December, 2008. Macroeconomic variables used in this study are consumer price index (as a proxy for inflation), crude oil price, exchange rate and 91 day Treasury bill rate (as a proxy for interest rate). The study employs the Johansen Multivariate Co-integration Procedure. The empirical results reveal that there is co-integration between the four macroeconomic variables and stock returns in Ghana indicating long run equilibrium relationship. Further, the results reveal that; in the short run, Treasury Bill Rate significantly influences the stock returns, with and an elasticity of 0.005, implying that a 1% rise in the Treasury bill rate will lead to a 0.005% rise in the stock returns. The inflation rate is also significant at 1% with elasticity -0.135744, implying that a 1% increase in inflation rate will decrease stock returns by 0.14 %. The residual value of 0.785548 of the Error Correction Model indicates that about 79% of the deviations of the stock returns are corrected in the short run, which is quite high and encouraging for an emerging market like the Ghana Stock Exchange. In the long run, however, the stock returns are significantly influenced by Inflation rate, Crude oil prices, Exchange rate, and Treasury bill rate, with elasticities of 0.5479, -0.03021, 0.05213, and 0.00322 respectively. Crude oil price is negatively related to stock returns; 1% rise in Crude oil prices will decrease returns by 0.03%. Also a 1% increase in inflation rate increases stock returns by 0.54%; and a 1% rise in exchange rate increases stock returns by 0.052%. The effect of Treasury bill rate is highly inelastic with elasticity of 0.003. In both the short run and the long run results, inflation rate appears to be the most influential macroeconomic variable affecting stock market returns in Ghana. The results also reveal that investors are not compensated for inflationary increases in the short run, but are compensated in the long run. These results have implications for financial analysts, fund managers and policy makers