Effect of hybrid cocoa seedlings adoption on profit efficiency in Ghana

Abstract

• Tree density and old farms reduce hybrid cocoa technology adoption. • Farmers require experience to successfully adopt hybrid cocoa technology. • Male gender, tree density, access to extension and technology information support adoption. • Use of hybrid cocoa seedling, hand pollination, etc., increases profit efficiency. • Hybrid cocoa adopters are 0.101 more profit efficient than non-adopters. • Farmers are encouraged to adopt hybrid cocoa seedlings in their cocoa farms. The study examined the effect of hybrid cocoa seedling adoption on the profit efficiency of cocoa production in Ghana using cross-sectional data collected from 150 farming households in the Wassa Amenfi West district of Ghana. Cragg's Double Hurdle model, stochastic frontier profit function and propensity score matching were the methods of analysis. The results showed that whereas tree density and age of farm had negative influences on hybrid cocoa seedling adoption, farming experience exerted a positive effect. Also, the intensity of adoption of hybrid cocoa seedling was influenced by being a male farmer, tree density, access to extension as well as access to technological information. The mean estimated profit efficiency was 89.9% and this was positively influenced by male gender, hand pollination, age of cocoa tree, access to technological information and education even though farming experience exerted a negative effect. Finally, the study revealed that hybrid cocoa seedlings adopters are 0.101 more profit efficient than non-adopters. Farmers are therefore encouraged to adopt hybrid cocoa seedlings in their cocoa farms. It is also important for government to put measures in place to introduce agricultural programmes on radio and other media to enable farmers get access to technological information.