The Economics of Cocoa

Something has been said in Chapter 10 about the structure of Ghana’s cocoa industry. No book about Ghana’s economy would, however, be complete without some review of a number of economic issues that have been prominent in discussions of domestic and international problems associated with cocoa. In this chapter, therefore, we undertake a necessarily abbreviated examination of certain of these topics. First, the controversy that grew up and to some extent still exists about the policies of the Cocoa Marketing Board is reviewed. Secondly, the nature of the world market for cocoa receives attention and this leads on to a discussion of price instability and attempts at stabilization. Finally, certain further policy questions relating to the future development of Ghana’s cocoa are explored.