Cocoa farming business, financial literacy and social welfare of farmers in Brong-Ahafo Region of Ghana

Abstract

Government of Ghana has put in place many measures to improve the wellbeing of cocoa farmers in the country through increase in the income they receive from cocoa produce. Despite this, cocoa farmers in Ghana do not earn the quality premium received by Ghana cocoa on the international market. This study examined the influence of cocoa farming business and financial literacy on the social welfare of cocoa farmers in the Brong-Ahafo Region of Ghana. The study employed both qualitative and quantitative methods in the study and data collection was done using questionnaire and interview. A total of 106 cocoa farmers were selected using simple random sampling technique. Analyses of the data were done by using both descriptive and influential analyses. The study revealed that cocoa farmers depend mostly on the income from cocoa, and since most of them are peasant cocoa farmers andthe income they receive is not much, it has an adverse effecton their living standards.Also, the study found that, (65%) of the respondents do not save, thus, having a negative effect on theirwell-being.The study showed that, financial literacy level of cocoa farmers have a positive effect on their well-being. The study also found that educational level has a positive effect on cocoa farmer’s wellbeing whereasnumber of dependents of cocoa farmers and age have negative impacts on the well-being of cocoa farmers. The study thereforerecommends government must increase the cocoa producer price which will help raise the income of cocoa farmersin order to enhance theirwell-being. Also, COCOABOD and government must offer financial literacy education to cocoa farmers.