ECONOMIC COST-BENEFIT ANALYSIS OF CERTIFIED SUSTAINABLE COCOA PRODUCTION IN GHANA

Ghana is well endowed with premium bulk cocoa and is strategically positioned to capture significant market shares for the growing demand in specialty cocoa products on the world market. Consumers’ taste and preference for differentiated or ‘specialty’ cocoa based on environmental- and ethically certified cocoa products have been rising over the years. This study uses an ex-ante analytical approach to explore the potential for smallholder cocoa farmers in Ghana to develop niche markets for an environmentally and sustainably produced cocoa, namely; Rainforest Alliance Certified cocoa as an alternative to Ghanaian bulk cocoa. Using NPV, BCR and IRR economic decision criteria, the profitability or otherwise of introducing this rainforest alliance certified cocoa in Ghana is assessed. Rainforest Alliance certification requires farmers to shift from low or no shade Amazon production systems (i.e.,