Cocoa Farming Business, Financial Literacy And Social Welfare Of Farmers In Brong-Ahafo Region Of Ghana

ABSTRACT

Government of Ghana has put in place many measures to improve the wellbeing

of cocoa farmers in the country through increase in the income they

receive from cocoa produce. Despite this, cocoa farmers in Ghana do not earn

the quality premium received by Ghana cocoa on the international market.

This study examined the influence of cocoa farming business and financial

literacy on the social welfare of cocoa farmers in the Brong-Ahafo Region of

Ghana. The study employed both qualitative and quantitative methods in the

study and data collection was done using questionnaire and interview. A total

of 106 cocoa farmers were selected using simple random sampling technique.

Analyses of the data were done by using both descriptive and influential

analyses. The study revealed that cocoa farmers depend mostly on the income

from cocoa, and since most of them are peasant cocoa farmers andthe income

they receive is not much, it has an adverse effecton their living standards.Also,

the study found that, (65%) of the respondents do not save, thus, having a

negative effect on theirwell-being.The study showed that, financial literacy

level of cocoa farmers have a positive effect on their well-being. The study

also found that educational level has a positive effect on cocoa farmer’s wellbeing

whereasnumber of dependents of cocoa farmers and age have negative

impacts on the well-being of cocoa farmers. The study thereforerecommends

government must increase the cocoa producer price which will help raise the

income of cocoa farmersin order to enhance theirwell-being. Also,

COCOABOD and government must offer financial literacy education to cocoa

farmers.

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