Effect of Diversification on Smallholder Cocoa Farmers’ Livelihood: Evidence from Atwima Mponua District in the Ashanti Region, Ghana

Abstract

Background: Cocoa is a very important economic crop to the world industries as many products are born out of it. Ghana makes significant contribution to the world cocoa production. Higher temperatures, erratic rainfall patterns, unpredictable and more severe droughts have threatened agricultural livelihoods especially for the smallholder cocoa farmers. In view of this, many smallholder farmers have diversified into several activities to enhance and improve livelihoods. The study therefore examines the effect of diversification on smallholder cocoa farmers’ livelihood in the Atwima Mponua District of Ghana. Methods: The study employed the cross-sectional survey approach of data gathering. A multistage sampling technique was used to sample one hundred and fifty (150) respondents for the study. The data collected was analysed using Statistical Package for Social Sciences (SPSS) and Stata. Result: The findings of the study revealed that smallholder cocoa farmers have diversified into several economic activities and diversification strategies were influenced by household head, household size (4-6), income and business opportunity.