Aware but not compliant: Sustainability standards, farmer compliance and buyer choice in Ghana's cocoa sector

Ghana's COCOBOD-regulated farm-gate cocoa price limits direct price competition among licensed buying companies (LBCs), increasing the importance of sustainability requirements and other non-price mechanisms. This study examines the gap between farmers' awareness of LBC sustainability requirements and self-reported compliance, identifies factors associated with compliance, and tests whether compliance differentiates farmers across buyers. Cross-sectional survey data were collected from 380 cocoa farmers enrolled with Touton (21 requirements), Ecom (5), and Nyonkopa (4) in the Juaboso and Bia West Districts of Ghana. Weighted indices and multinomial probit models were used to analyse awareness, compliance, and associated factors; a multinomial logit likelihood-ratio test assessed buyer sorting. Awareness exceeded compliance for all 30 requirements. The farmer-level mean awareness-compliance gap was 0.106 (p < 0.001). Participation in cocoa marketing workshops and training provided by LBCs showed the most consistent positive associations with high compliance across alternative specifications, while contractual agreements were significant in the main model. Compliance did not significantly explain LBC choice (LR χ²(2) = 2.81, p = 0.245). The findings indicate that communicating standards is not sufficient to ensure implementation. More intensive, standard-specific support and better-aligned incentives may be required as traceability and deforestation-free production become increasingly important for cocoa market access.