The dynamics of horticultural export value chains on the livelihood of small farm households in Southern Ghana

Abstract

Policy makers in developing countries have been concerned with the economic and political risks associated
with heavy dependence on few specialized raw materials as main sources of government revenue and foreign
exchange. Development partners and donor agencies have equally extolled the need for these countries to
diversify their export base as a poverty reduction strategy. As a result, several African countries have tended to
focus on non-traditional agricultural exports (NTEs) which reflect their comparative advantage and for many
countries the export of horticultural crops has been favoured. This study focuses on a household survey
undertaken in the forest and coastal savannah transition zones of Ghana, where the farming system has
undergone a remarkable transition from an established system of food crop farming for sale to urban
consumers to an intensive production of fruits and vegetable crops for export to European consumers.
Econometric analysis shows that though export horticulture has a positive impact on the wellbeing of the
majority of households, the chronically poor households are structurally impeded from seizing the available
opportunities due to poor resource endowment and liquidity constraints.