Determinants of charcoal production and marketing in the Mankranso forest district in the Ashanti region of Ghana

Nicholas Oppong Mensah; Solomon Addo; Stanley Dickson Sumbayi; Augustine Prosper Osei-Gyabaah; Tekuni Nakuja; Samuel Afotey Anang

doi:10.1016/j.heliyon.2023.e23800

Determinants of charcoal production and marketing in the Mankranso forest district in the Ashanti region of Ghana

Heliyon. 2023 Dec 26;10(1):e23800. doi: 10.1016/j.heliyon.2023.e23800. eCollection 2024 Jan 15.

Authors

Nicholas Oppong Mensah¹, Solomon Addo², Stanley Dickson Sumbayi¹, Augustine Prosper Osei-Gyabaah², Tekuni Nakuja¹, Samuel Afotey Anang¹

Affiliations

¹ Department of Agribusiness Management and Consumer Studies, University of Energy and Natural Resources (UENR), Sunyani, Ghana.
² Department of General Agriculture, Sunyani Technical University (STU), Sunyani, Ghana.

Abstract

This study sought to investigate the determinants of participating in charcoal production and trade as well as explore the marketing strategies used by charcoal value chain actors and the challenges confronting the charcoal business. A multistage sampling approach was employed to sample 120 respondents in five communities in Ahafo Ano South District. Descriptive statistics, binary probit regression and qualitative approaches were used to analyze the data. The results revealed that education, household size, marital status, ethnicity, farm size, proximity to the production site and regulations on charcoal production are the significant determinant of charcoal production with diverse effects. Also, gender, education, marital status, ethnicity, the quantity of charcoal produced, cost of packaging material, FBO membership, availability of storeroom, regulation of charcoal production, and ready market are the determinants of charcoal marketing. The qualitative discussion revealed that charcoal producers and traders utilise a couple of marketing strategies. Thus, pricing strategies such as pan seasonal, pan territorial, cost plus pricing and competitive pricing are all used by the respondents. Also, charcoal is packaged into different sizes and weight which ranges from mini bag, maxi bag and jumbo bags. Again, the margin analysis indicated that retailers make more margins than the other authors in the charcoal value chain. Averagely, retailers make 28.30 per 50 kg bag when dealing directly with farmers. The most pressing challenges faced by the respondents are levies paid, the tedious nature of charcoal production and trade, limited access to credit, lack of government support, limited transport system and lack of storage facilities. It is therefore recommended that other tribes in the producing areas need to be educated on the potential fortunes in charcoal production to orient them towards engaging in the venture. Moreover, investment should be channelled towards developing charcoal markets and also improving accessibility by improving road networks and making available means of transport to the producing areas to aid market access.