Greener Journal of Business and Management Studies

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Greener Journal of  Business and Management Studies  Vol. 3 (6), pp. 298-308, August 2013

 ISSN: 2276-7827 ©  2011 Greener Journals

Research Paper

Manuscript Number: 072313748

 

An Analysis of the Socio-Economic Determinants of Cocoa Production in Meme Division, Cameroon

 

*1Joseph Tosam Ngoong, 2Njimanted Godfrey Forgha

 

1Graduate Research Assistant, Department of Economics and Management,

University of Buea, SWR.

2Associate Professor of Economics , Department of Economics and Management,

University of Buea, SWR.

 

Email: 2unicalub@yahoo.com, Tel: (237) 779 244 71

 

*Corresponding Author’s Email: jtosam @ yahoo.co.uk


Abstract:

This study presents a vivid assessment of the socio-economic determinants of cocoa production, which remains the mainstay of the economic life of Meme Division. A systematic random sample of 200 households out of 153,568 was chosen in the three subdivisions that make up Meme Division. In addition, secondary information on cocoa output for 33 years (1980-2012) was obtained. The data were analyzed with the use of the Generalized Method of Moments (GMM) and Trend analyses for cocoa output show that unusual variations were experienced in some years. Based on the regression analysis on the socio-economic determinants of cocoa production, capital, labour and price, they all show a positive effect on the output of cocoa. The dummy variables (political influence and gender) have both a positive and negative influence on cocoa output respectively; however, their influences on output are insignificant. In addition, more than 61% of variations in the output of cocoa were observed to be the result of variations in these variables in our regression equation taking into consideration the number of years and the number of variables included in the analyses. Based on the findings, the study concluded that the observed socio-economic variables affect cocoa production in Meme Division but the degree and direction to which each variable affect output varies. The study recommends, among others, the need to improve on the storage facilities of farmers so as to avoid price fluctuations while the institution of an Economic Pricing Policy that will continuously stabilize cocoa prices and hence farmers’ income is imperative. 

Keywords: Socio-economic Determinants, Cocoa Production, Price Fluctuation, Storage Facilities.

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