Economics of maize, soybean and cowpea processing in the northern regions of Ghana

Maize, soybean and cowpea are important staple food items in Ghana. However, there is paucity of information on the economics of the processingsector in the three northern regions of Ghana. Using survey data and applying budgetary technique, Foster-Greer-Thorbecke measures of poverty andStochastic Production Frontier Function, this paper analysed costs and returns to food processors, incidence, depth and severity of as well astechnical efficiency of the processors in the sector. The results revealed that cost of materials processed represented the highest cost (>40%) itemsin all the regions. The net benefit was highest in the northern region, followed by upper east. An average processor has a net benefit per person perday of €4.30, €4.54 and €4.33 from processing Banku, Dawadawa and Kose, respectively. On a regional basis, an average processor of foodstuff hasa net benefit of €6.32, €5.09 and €6.53 in the northern region. The figures for the upper west were lowest. Although, the results indicate positive netbenefits in the study area, cost benefit ratios are not that high (<2) in all regions. The moderate poverty line for the whole northern region was€1381.00 while the core poverty line was €920.67. The moderate poverty line for northern Ghana, upper east and upper west were €1724.80,€1503.96 and €993.55, respectively. The two significant variables (p