TY - JOUR
T1 - Assessing the performance of regional soybean prices in Ghana
AU - Martey, Edward
AU - Gatti, Nicolas
AU - Goldsmith, Peter
N1 - Funding Information:
The authors wish to express their profound gratitude to the Feed the Future Innovation Lab for Soybean Value Chain Research (Soybean Innovation Lab (SIL)) for initiating this study. Second, we wish to thank the management of the CSIR-Savanna Agricultural Research Institute, Nyankpala for the administrative support in terms of data collection. Finally, we thank the anonymous reviewers for their valuable inputs to the manuscript. This work is supported by: (1) the Feed the Future Innovation Lab for Soybean Value Chain Research (Soybean Innovation Lab (SIL)) under the U.S. Government’s global hunger and food security initiative, Feed the Future. USAID award no. AID-OAA-L-14-00001; (2) USDA NIFA Hatch/ Multistate Project ILLU-470315; (3) the Feed the Future (FTF) initiative, CGIAR Fund, award number BFS-G-11-00002, and (4) the predecessor fund the Food Security and Crisis Mitigation II grant, award number EEM-G-00-04-00013.
Funding Information:
The authors wish to express their profound gratitude to the Feed the Future Innovation Lab for Soybean Value Chain Research (Soybean Innovation Lab (SIL) for initiating this study. Second, we wish to thank the management of the CSIR-Savanna Agricultural Research Institute, Nyankpala for the administrative support in terms of data collection. Finally, we thank the anonymous reviewers for their valuable inputs to the manuscript. This work is supported by: (1) the Feed the Future Innovation Lab for Soybean Value Chain Research (Soybean Innovation Lab (SIL) under the U.S. Government's global hunger and food security initiative, Feed the Future. USAID award no. AID-OAA-L-14-00001; (2) USDA NIFA Hatch/ Multistate Project ILLU-470315; (3) the Feed the Future (FTF) initiative, CGIAR Fund, award number BFS-G-11-00002, and (4) the predecessor fund the Food Security and Crisis Mitigation II grant, award number EEM-G-00-04-00013.
Publisher Copyright:
© 2020 Martey et al.
PY - 2020
Y1 - 2020
N2 - Soybean production has been widely promoted in sub-Saharan Africa as a means of improving rural household income. Numerous studies point to poor adoption levels, low yield levels, and limited profitability among smallholder farmers. Poor performance of soybean among smallholders generates numerous hypotheses as to the root causes. One logical cause is low prices, which result from anecdotes from the field, especially among producers and policymakers. In this study, the first of its kind that we are aware of, analyzes regional soybean prices over time across six key growing and commercial regions of Ghana. We employ cointegration and multivariate vector error correction model to measure the level of international and inter-market integration and performance. The results show regional and international integration as well as Granger Causality results consistent with the local supply-demand context. Specifically, the international market Granger causes Kumasi, Bolgatanga, and Wa markets, while the Tamale and Kumasi, serve as the leading production and demand markets, respectively. The results of the study provide evidence that prices do perform well in Ghana and are not a major source of weak adoption and low levels of profitability among smallholder soybean farmers.
AB - Soybean production has been widely promoted in sub-Saharan Africa as a means of improving rural household income. Numerous studies point to poor adoption levels, low yield levels, and limited profitability among smallholder farmers. Poor performance of soybean among smallholders generates numerous hypotheses as to the root causes. One logical cause is low prices, which result from anecdotes from the field, especially among producers and policymakers. In this study, the first of its kind that we are aware of, analyzes regional soybean prices over time across six key growing and commercial regions of Ghana. We employ cointegration and multivariate vector error correction model to measure the level of international and inter-market integration and performance. The results show regional and international integration as well as Granger Causality results consistent with the local supply-demand context. Specifically, the international market Granger causes Kumasi, Bolgatanga, and Wa markets, while the Tamale and Kumasi, serve as the leading production and demand markets, respectively. The results of the study provide evidence that prices do perform well in Ghana and are not a major source of weak adoption and low levels of profitability among smallholder soybean farmers.
KW - Cointegration
KW - Price transmission
KW - Soybean
KW - Time series
KW - Vector auto regression
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UR - http://www.scopus.com/inward/citedby.url?scp=85092003250&partnerID=8YFLogxK
U2 - 10.22434/IFAMR2019.0138
DO - 10.22434/IFAMR2019.0138
M3 - Article
AN - SCOPUS:85092003250
SN - 1096-7508
VL - 23
SP - 267
EP - 282
JO - International Food and Agribusiness Management Review
JF - International Food and Agribusiness Management Review
IS - 2
ER -