The Economic Potential of Black Pepper Production in the Western Region of Ghana

Abstract

The study looked at the economic potential of black pepper production in the Western Region of Ghana. The objectives of the study were: to determine whether there is comparative advantage or disadvantage of producing black pepper; to determine the competitiveness of black pepper production; to determine whether the prices paid by local and international markets give any incentives for black pepper production; and to identify constraints that militate against the production of black pepper, all in the Western Region of Ghana. The findings of the study are: there is comparative advantage of black pepper production in the Western Region of Ghana as shown by the Social Profits (SP) of 2,556,000 and the Domestic Resource Cost (DRC) of 0.34. To further improve on the comparative advantage, there is the need to take a critical look at the land tenure system in the country and to introduce micro finance activities to help farmers, as the black pepper crop is a perennial one. The production of black pepper in the Western Region of Ghana is competitive as shown by the Private Profits (PP) of 1,887,250 and Private Cost Ratio (PCR) of 0.39. However, there is the need for a critical look at the post harvest handling of the crop. The price paid to the black pepper farmers are a little below the international prices as shown by the Nominal Protection Coefficient (NPC) of 0.81 and Effective Protection Coefficient (EPC) of 0.26. It should be however noted that the prices received by the farmers are realistic as the fruits are ungraded and of lower quality than the fruits sold on the international markets.