Analysis of Cocoa Production

Ruth Odamea Anim

Bakalářská práce

Abstract:

The aim of the bachelor thesis is to find the factors that affect the production as well as the price of cocoa in the top three cocoa producing countries in the world, namely; Cote d Ivoire, Ghana and Indonesia. The study used a multiple regression model (Ordinary Least Square) to analyze the determinants of cocoa production and price in the top three cocoa producing countries in the world. The multiple regression was done on a sixteen years time series data from 2000 to 2016 whiles considering the difference in development among the countries of the study across the study period. Data used was obtained from the data base of recognized international and local organizations such as Food and Agriculture Organization (FAO), the World Bank (WB) and Ghana statistical services. Results obtained from the multiple regression analysis showed that, government expenditure, technology improvement, land available for production and the cost of production significantly affects the production of cocoa in all three studied countries. On the price side, exchange rate and the price of a competitive commodity were found to significantly affect the price of cocoa in the countries of study. However, the analysis showed that, inflation had no significant impact on price of cocoa in all three studied countries. Based on the findings of the study, factors such as government expenditure, technology improvement, land available for production and the cost of production were deemed as determinants of production whiles exchange rate and the price of a competitive commodity (Coffee) were found to significantly affect the price of cocoa and hence are deemed as determinants of cocoa price. It is therefore important for policy makers of the various countries studied, introduces policies that will revamp the cocoa industry and the agricultural sector as a whole based on the obtained results of the study.

Keywords

Cocoa, Cocoa production, World Cocoa Price, Ordinary Least Square, Regression model, Economy, Development, Agriculture, Land, Income

Jazyk práce: angličtina

Datum vytvoření / odevzdání či podání práce: 18. 4. 2017

Obhajoba závěrečné práce

• Vedoucí: Ing. Petr Procházka, MSc Ph.D.
• Oponent: Mansoor Maitah, Ph.D. Ph.D.

Česká zemědělská univerzita v Praze

Provozně ekonomická fakulta

Bakalářský studijní program / obor:
Economics Policy and Administration / Business Administration