Cost minimisation for cassava production in the Transition and Forest Agro-Ecological zones, Ghana
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Date
2011-10-11
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Abstract
Despite the important role cassava plays in the economy as food security and income generation crop, its development has been faced by a number of challenges. Prominent among these challenges is the high cost of production emanating from cost of stem cuttings (planting material), harvesting and transportation. This study was therefore undertaken to find out how farmers can minimise cost of production through an optimal expenditure approach on activities of production. Knowing the major activities of production and how much should be spent on each activity to minimise total cost of production is a key step in reducing cost of production.
Data was collected from the Eastern and Brong Ahafo regions which are the two major cassava producing regions in Ghana representing the Forest and Transition zones respectively. Multi-stage sampling was used in selecting two Municipals from each region. Suhum/Kraboa/Coaltar and West Akim Municipals were selected for the Eastern Region and Techiman and Wenchi Municipals for the Brong Ahafo Region. Classical optimisation theory was used to investigate whether farmers in the Transition and Forest agro-ecological zones operate at minimal cost. Boarded Hessian determinants through the use of Laplace expansion was applied to estimate the optimal levels of expenditure and total cost of production as well as cost at major activity levels. From the study, it was realised that cassava farmers in the study area were cost minimisers. They were however not operating at the optimal expenditure levels which curtail their ability to further reduce cost. For them to operate at the optimal level, they need to cut down on activity expenditure for land preparation, planting, farm maintenance and harvest and post-harvest and increase expenditure on fixed inputs.
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Dissertation presented to the Graduate School