Energy and water mapping of the cocoa value chain in Ghana

Abstract

The cocoa sub-sector in Ghana is an economically active sector, serving as a major export earner for the country and contributing up to 7% of Gross Domestic Product (GDP). The cocoa value chain in Ghana includes pre-harvest, post-harvest and processing stages, which consist of activities such as seed production, nursery, replanting, cultivation, harvesting, fermentation, drying, scaling and sale, certification and bulking, export or processing. Along the entire chain for all these stages is the intensive use of water and energy, although intensities vary for the different stages. An energy and water mapping was therefore conducted to analyse the energy and water usage along each value chain activity. The studies indicate that mainly rainwater and a little stream and dugout water are used in the pre-harvest stage for nursery activities. The main energy used here is direct sunlight for drying the cocoa beans, manpower used on the farm and about 10% of total petrol and diesel usage along the entire value chain used for transportation during field visits and in tractors for land preparation. During the post-harvest stage, 75% of fossil fuel is used in vehicles and trucks for transportation. The processing stage of the value chain is where the bulk of energy is used, largely from the national grid and about 15% diesel/petrol used in small backup generators and for running processing machineries and equipment. Energy and water estimation and requirements used along each stage in the value chain was conducted. The processing companies, undertaking activities in the processing stage, pay commercial tariffs for water usage (approximately US$1.82 per 1000 litres) and US$0.14 per kWh of electricity usage. The studies showed that besides these high tariffs, which affect production and profits, efficiency levels are very low. The paper concludes that despite the numerous challenges with high cost of production and low efficiencies, there are many opportunities and strengths that can be harnessed to bring about innovation, efficiency and increased productivity along the value chain of cocoa in Ghana. Key amongst these are; collaborating with the vibrant private and public sectors involved in the value chain; harnessing the abundant and high solar radiation to improve drying activities; using the existing regulatory and institutional frameworks to introduce innovative initiatives in the value chain, for example converting the large quantities of organic waste generated from cocoa products production to produce bio-energy; introducing energy efficiencies measures, etc. These, amongst many others, are recommended as opportunities that can be harnessed, together with the enabling environment in the country, to add value to the cocoa sector.