Participation in UTZ-RA voluntary cocoa certification scheme and its impact on smallholder welfare: Evidence from Ghana

Abstract

The study analyzed the determinants and extent of participation in UTZ-RA cocoa certification program as well as its impacts on smallholder farmers' welfare. Using cross-sectional data collected from 296 cocoa farmers in Ghana and employing the Cragg double hurdle model to analyse participation, the study also controls for sample selection bias using propensity score matching technique. The results revealed that household size, years of formal education, non-farm income, sex of respondent, quantity of man-hours of labour used in cocoa production as well as dependency ratio influenced participation. The findings also reveal that the UTZ-RA cocoa certification program increased yield and household income. It however had a negative impact on the food security status of cocoa farming households. Data from this paper has demonstrated that increased productivity and income from certification of commodities might not necessarily lead to enhanced food security status of enrolled farmers. The study recommends that, the Rainforest Alliance scheme should consider food security indicators in the next revised edition of their code of conduct which has since been finalized for implementation. Employment of different food security measurement tools in the revised codes is highly recommended. This will provide a better understanding of the synergies and trade-offs that exist or are likely to exist between cash crop production and food security.