Browsing by Author "Assan, Gordon Yeboah"

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    Comparative analysis of viability of smallholder oil palm and rubber production in the Mpohor district of Ghana
    (KNUST, 2019-11) Assan, Gordon Yeboah
    Rubber and Oil palm are perennial tree crops that provide income for farmers for more than twenty years. In the Mpohor district, the conducive weather conditions needed for optimum growth and development of the trees are provided, placing the burden of choice on the farmer. A decision to develop a hectare of land for rubber implies foregoing earnings from oil palm and vice versa. Farmers are therefore in an economic dilemma in choosing between which of these crops to cultivate to get the maximum returns or benefits. This study therefore evaluates the financial viability of both crops, determines the factors that affect a farmer’s decision to choose either crop and assesses the constraints that prevail in the industry. Fifty-seven (57) rubber and fifty-nine (59) oil palm farmers were sampled from five communities in the Mpohor district and primary data taken from them for analysis. Secondary data from smallholder schemes of oil palm and rubber companies (BOPP and GREL) were also used in estimating the various viability indicators. The results indicate that, it was economically prudent to invest in either rubber or oil palm production with funds at the prevailing cost of capital. Net Present Values of GHc 2,331.75 and GHc 3,919.57 were recorded for rubber and oil palm respectively. Benefits Cost Ratio of 1.08 and 1.12 and Internal Rate of Return of 25.63% and 25.69% were estimated for Rubber and Oil palm cultivation respectively. The significant factors that affected farmers’ decision to choose either crop were farm size cultivated, age of farmer, household size and proximity to mill. The major constraints to rubber production were identified to be difficulty in getting machines operators/technicians and managing pests and diseases. In oil palm cultivation, the top two constraints were negative effects of price fluctuations and theft of produce. Active intervention by industry players in addressing these challenges and creation of enabling environment by government would be necessary for continuous cultivation of these crops