Cocoa farmers’ household income in Ghana : an evaluation of the Sankofa intervention

The limited financial means of Cocoa farmers in Ghana and the resulting poverty lies at the heart of many other issues in the cocoa sector such poor cocoa yields, degrading soil fertility, child labor and gender disparities. To tackle these challenges, several sustainability interventions have been introduced, including the Sankofa project. This intervention aims to improve the livelihoods of cocoa farmers in Ghana while ensuring the sustainability of cocoa production by integrating cocoa cultivation with Dynamic Agroforestry (DAF) systems. This thesis forms part of the “Income Study of Cocoa Producing Households in Ghana” and focuses specifically on evaluating the Sankofa project in the context of income. The study employs a mixed-methods approach, including a quantitative survey of 600 farmers and qualitative research through 22 focus group discussions conducted across Ghana's seven cocoa-growing regions. While this thesis draws on some of the collected data, it does not utilize the entire dataset. The thesis aims to assess the actual income and living income gap of Sankofa farmers, comparing these findings with those of non-Sankofa farmers. It seeks to identify income disparities between male and female Sankofa farmers, examine the impacts and outcomes of the Sankofa intervention on both income and overall livelihoods, and propose strategies to enhance the effectiveness of the intervention. During the 2022/2023 harvest, quantitative findings reveal that the total household income of Sankofa farmers (n=51) averages GHS 28,466, significantly higher than the GHS 21,006 earned by non-intervention farmers (n=109). Cocoa remains the primary income source for both groups, contributing 65% of household income for Sankofa farmers compared to 51% for non-intervention farmers. Despite the higher income levels of Sankofa farmers, 92.2% of Sankofa households and 95.4% of non-intervention households continue to earn below the adjusted living income benchmark (LIB). The living income gap (LIG) averages 56% (GHS 38,557) for Sankofa farmers and 68% (GHS 45,663) for the comparison group. Furthermore, female-headed households face a larger LIG and earn less than their male counterparts, highlighting persistent gender disparities. Key factors influencing the higher income and smaller income gap for Sankofa farmers include larger productive coco areas, increased cocoa yields, higher land productivity, premium pricing from certification, financial support by the intervention (FLID), lower input costs and training. These findings are supported by qualitative data through FGD (n=4) highlighting additional positive impacts, including improved income diversification and stability and health benefits due to reduced chemical use. However, challenges remain, such as increased perceived workload from managing DAF systems, dependencies on project support and limited financial resources for independent adoption of agroforestry practices. The thesis concludes with recommendations to enhance the Sankofa intervention’s effectiveness, including recalibrating the FLID payment, addressing workload concerns, fostering market development for DAF crops, and incorporating farmer feedback to improve DAF performance. These measures can help further reduce the living income gap and promote long-term sustainability for cocoa farming households in Ghana.