Market Assessment

Reformed Cocoa Market Benefits Liberian Farmers, The Nordic Africa Institute, 2015

    This study examines the business environment for smallholder cocoa farmers in Liberia, which has improved significantly in recent years. The Liberian government has made a coordinated effort to increase competition among cocoa buyers, which has led to higher producer prices. Farmers are also encouraged by new investors to improve the quality of cocoa,for which they earn more. In addition, farmers organisations have strengthened their bargaining power. However, the study warns that policy-makers must be alert to a possible backlash if competition is not ensured, and from elite capture of farmers’ organisations.

    This research was conducted by Dr. Gun Eriksson Skoog, Senior Research and Policy Analyst at the Nordic Africa Institute. It is based on primary data collected in October-November 2013. Semi-structured interviews were held with more than 100 smallholder farmers, cooperatives, buyers, exporters and input providers and external market observers.