TECHNICAL AND RESOURCE-USE EFFICIENCIES OF CASHEW PRODUCTION IN GHANA: IMPLICATIONS ON ACHIEVING SUSTAINABLE DEVELOPMENT GOALS

Abstract

The expansion of Ghana’s cashew industry is expected to be a watershed moment in the country’s diversification of agricultural export commodity trade. In Ghana’s cashew farms, however, there is a significant difference between observed and potential farm yield. As a result, empirical study is required to serve as policy guidelines in order to improve farmer’s productive efficiency and, as a necessary consequence, contribute to the achievement of the Sustainable Development Goals (SDGs) of no poverty and zero hunger. The study explores farm-level productive efficiency and factors that can lead to variations in farmer’s technical efficiency in the Bono East region of Ghana. The single-stage double bootstrap Data Envelopment Analysis (DEA) was used to estimate technical efficiency and its determinants. The estimated results indicate that the average bias-corrected technical efficiency score (33%) was lower than the original average score (51%), suggesting that the original efficiency scores had been skewed upwards. Some of the primary factors that have been reported as having a significant effect on technical efficiency include the gender of respondents, educational attainment, and membership of farmer groups. Results of the resource use efficiency analysis suggest that cashew farmers in Ghana do not escape the criticisms of inefficient resource allocation. Farm-level policies should be skewed towards enhancing resource-use efficiency through effective capacity-building to improve farmer’s management and technical capabilities, improve farm productivity, and consequently contribute to Ghana’s quest to meet the sustainable development goals.