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Cocoa Market Liberalization in Retrospect

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  • Christopher L. Gilbert

Abstract

World cocoa production and exports are dominated by West Africa. Post-independence governments inherited and maintained marketing board or caisse de stabilisation institutions which organized and, in certain cases also monopolized, both internal and external marketing of cocoa exports. These institutions were dismantled or otherwise reformed in a move towards liberalized marketing which started in the mid nineteen eighties. The liberalization objectives were to increase competition in the marketing chain, reduce the costs associated with bureaucratic administration, to ensure that cocoa marketing ceased to be a burden on the state and on donors and to obtain a higher share of world prices for the farmers. I assess the extent to which these objectives have been realized and comment on the current policy agenda.

Suggested Citation

  • Christopher L. Gilbert, 2009. "Cocoa Market Liberalization in Retrospect," Review of Business and Economic Literature, KU Leuven, Faculty of Economics and Business (FEB), Review of Business and Economic Literature, vol. 0(3), pages 294-312.
    • Handle: RePEc:ete:revbec:20090305
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    Citations

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    Cited by:

    1. Rashid, Shahidur, 2015. "Commodity Exchanges and Market Development: What Have we Learned?," 2015 Conference, August 9-14, 2015, Milan, Italy 212488, International Association of Agricultural Economists.
    2. Francis Tsiboe & Bruce L. Dixon & Lawton L. Nalley & Jennie S. Popp & Jeff Luckstead, 2016. "Estimating the impact of farmer field schools in sub-Saharan Africa: the case of cocoa," Agricultural Economics, International Association of Agricultural Economists, vol. 47(3), pages 329-339, May.
    3. Maile, Felix, 2020. "Cooperation or confrontation? Public and private governance and smallholders' incomes in the cocoa sector in Ghana and in Côte d'Ivoire," ÖFSE-Forum, Austrian Foundation for Development Research (ÖFSE), volume 74, number 74.
    4. Tsiboe, Francis & Nalley, Lawton Lanier & Dixon, Bruce L. & Popp, Jennie S. & Luckstead, Jeff, 2014. "Cost-Benefit Analysis of the Cocoa Livelihoods Program in Sub-Saharan Africa," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 195775, Southern Agricultural Economics Association.
    5. Cornelia Staritz & Bernhard Tröster & Jan Grumiller & Felix Maile, 2023. "Price-Setting Power in Global Value Chains: The Cases of Price Stabilisation in the Cocoa Sectors in Côte d’Ivoire and Ghana," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 35(4), pages 840-868, August.
    6. Grumiller, Jan & Grohs, Hannes & Raza, Werner & Staritz, Cornelia & Tröster, Bernhard, 2018. "Strategies for sustainable upgrading in global value chains: The Ivorian and Ghanaian cocoa processing sectors," Policy Notes 24/2018, Austrian Foundation for Development Research (ÖFSE).
    7. Casaburi, Lorenzo & Reed, Tristan, 2017. "Competition in Agricultural Markets: An Experimental Approach," CEPR Discussion Papers 11985, C.E.P.R. Discussion Papers.
    8. Seneshaw Tamru & Bart Minten & Johan Swinnen, 2021. "Trade, value chains, and rent distribution with foreign exchange controls: Coffee exports in Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 52(1), pages 81-95, January.
    9. Gabriel Felbermayr & Wilhelm Kohler & Rahel Aichele & Günther Klee & Erdal Yalcin, 2015. "Potential impact of the Transatlantic Trade and Investment Partner (TTIP) on developing and emerging countries," ifo Forschungsberichte, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 67.
    10. Tröster, Bernhard & Staritz, Cornelia & Grumiller, Jan & Maile, Felix, 2019. "Commodity dependence, global commodity chains, price volatility and financialisation: Price-setting and stabilisation in the cocoa sectors in Côte d'Ivoire and Ghana," Working Papers 62, Austrian Foundation for Development Research (ÖFSE).
    11. Gilbert, Christopher L., 2011. "Food Reserves in Developing Countries: Trade Policy Options for Improved Food Security," Price Volatility and Beyond 320199, International Centre for Trade and Sustainable Development (ICTSD).
    12. Mizuno, Nobuhiro, 2016. "Political structure as a legacy of indirect colonial rule: Bargaining between national governments and rural elites in Africa," Journal of Comparative Economics, Elsevier, vol. 44(4), pages 1023-1039.
    13. Kwarteng Asamoah Kwame & Awuku Tonorgbevi Emefa, 2023. "Understanding Sustainable Value Capture for Ghana’s Cocoa Farmers on the Cocoa-Chocolate Value Chain," Journal of Sustainable Development, Canadian Center of Science and Education, vol. 16(5), pages 145-145, September.

    More about this item

    Keywords

    cocoa; Africa; quality; liberalization;
    All these keywords.

    JEL classification:

    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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