Determinants of Choice of Pineapple Farm Size in the Akuapim South District, Ghana

Abstract

The importance of non-traditional agricultural commodities, especially pineapple, as a major foreign exchange earner in the diversification of the economy of Ghana has long been realised. It is estimated that $5 million is added to the economy by small farmers annually from pineapple production. Despite the importance and profitability of the pineapple production and export as a good foreign export earner and an a priori expectation that increased production is directly correlated with increased farm size, most pineapple farmers in the Akuapim South District cultivate small farms rather than large ones. This study quantifies the effects of the determinants of the choice of farm size on pineapple production. It also describes the organisational structure of the pineapple industry and describes the pattern of distribution of farm size. Costs and returns of categories of farm sizes are also compared. The empirical results demonstrate that most farmers in the study area cultivate small farms ranging between 0.02 and 1.5 hectares. The major determinants of choice of farm size in pineapple production are the average wage rate, farmer age, educational level and the years of experience of the farmer in pineapple farming. Whereas age and the interactive variable of educational level and experience of the farmer exert significant positive effects on the choice of farm size, the average wage rate exerts a significant negative effect. Although small farms have a slightly higher unit cost of production per hectare, they have high unit net returns per hectare and are therefore more profitable and more preferred to large farms. The study recommends among other things that policies for increased pineapple production and export should be geared towards alleviating the constraints faced by smallholder farmers (since they are in the majority) without loosing sight of the needs of commercial farmers. Affordable Technological packages with new innovations should also be developed for adoption by farmers. Suggestions for future research are also made.