ADOPTION, TECHNICAL EFFICIENCY AND WELFARE EFFECTS OF ORGANIC VEGETABLE PRODUCTION IN THE NORTHERN REGION OF GHANA

Abstract

Health concerns with respect to vegetable production have meant that organic farming is gaining popularity in many countries, including Ghana. This study examines the factors influencing the adoption of organic vegetable technology and the effects on output/technical efficiency and welfare (household‘s per capita expenditure) in the Northern Region of Ghana. A multi-stage sampling was used to select 400 farmers, consisting of 200 adopters (organic vegetable farmers) and 200 non-adopters (conventional vegetable farmers) and data collected through questionnaire administration. Descriptive statistics were used to analyze farmers‘ perceptions about the benefits and problems associated with organic vegetable production. Heckman‘s Treatment Effect model was also used to analyse the theoretical factors that influence the adoption of organic farming technology and its effect on output, technical efficiency and welfare of the farmers involved. From the results, the major perceived benefits of organic farming border on low external input requirement, cost effectiveness and sustainable uses of farm land. The major challenge is the labour intensive nature of organic farming. The adoption of organic farming was positive and significantly influenced by the following: education; farming experience; FBO membership; extension contacts; access to credit; training land ownership; farmers‘ ability and ownership of resources to cultivate throughout the year; and farmers‘ ability to make their own inputs. Variables that were found to improve technical efficiency were farmers‘ engagement in off-farm activities, training in the farming business and access to external credit support. Households‘ welfare was also positive and significantly influenced by age, sex, education of the head, farm size, engagement in off-farm activities and extension contacts. Organic vegetable farmers were found to have a higher output, technical efficiency and welfare than that of the conventional farmers. In conclusion, organic vegetable farming can be used as a strategy to improve food production and reduce poverty in the Northern region. For a sustained increase in the production of organic vegetables, farmers should be supported through education and unfettered access to extension services, membership of farmers‘ organisations, and affiliation with agricultural research organisations. Certification of organic vegetables would also go a long way to build consumers‘ confidence in organic vegetables and consequently increase their demand for the produce.