Cost-Benefit Analysis of Citrus Production in the Eastern Region of Ghana: The Case of Okumaning and Nkwantanang in the Kwaebibirem District

Abstract

Citrus farming has not been as popular as cocoa and other traditional crops in Ghana. The University of Ghana Agricultural Research Station (UGARS) at Okumaning undertook a research into how citrus could be produced throughout the year and make the tree last longer. Why farmers cultivate citrus on small-scale basis and the impact of the results of the UGARS’ research findings on the citrus industry in Ghana is the basis for this study. Using a mixed method, the results revealed that the citrus industry has a very bright future since for every GH?1.00 invested, a return of GH?2.78 is obtained. Land acquisition in the study area is the challenge, coupled with the lack of credit. Farmers are unable to meet the collateral requirements of the banks and delay in loan approval also puts them off. As a result, the Adventist Development and Relief Agency (ADRA-Ghana) and the University of Ghana, Legon signed an agreement to intercrop citrus with food crops on the farm of low-income earning farmers. The adoption of the ADRA-University of Ghana’s proposal by both part-time and full-time farmers in Ghana is a manifestation of the great impact the research findings of the UGARS, has on the country. Based on the results of the study, it is recommended that citrus processing plant(s) be established to take care of the excess fruits that will arise as a result of the local supply outweighing local demand while alternative markets are sought outside the country. Also, the rigid procedure for loan application and approval, especially to farmers, should be reviewed to incorporate a little flexibility to help the farmers acquire credit to improve, expand and make their operations easier.