Ghanas Cocoa Trade Flashcards
What was Ghana’s status in the cocoa market during colonial times?
Ghana was the world’s largest producer of cocoa during colonial times.
Who set the price that Ghanaian farmers received for cocoa during colonial times?
The British government set the price.
What are the three factors that dictate global cocoa prices now?
Commodity traders, overseas tariffs, unequal power.
What role do commodity traders play in the cocoa market?
Traders buy cocoa in advance for TNCs on the futures market, guaranteeing supply, price, and delivery date.
How does the presence of other cocoa growers, like Ivory Coast, affect cocoa prices?
It puts downward pressure on prices by providing traders with alternative sources.
What is the EU’s tariff policy regarding cocoa?
The EU sets tariffs for processed cocoa but none for raw cocoa beans.
What would Ghana gain by processing its cocoa beans into powder or chocolate?
Extra income and employment through higher value-added products.
What challenge does Ghana face when exporting processed cocoa to the EU?
Tariffs are applied on entry, driving up prices for buyers.
When did Ghana join the WTO?
Ghana joined the WTO in 1995.
What condition did the WTO impose on Ghana upon joining?
Ghanaian farmers should not be subsidised.
How does the subsidy policy of the USA and EU affect Ghanaian farmers?
Ghanaian farmers cannot compete with imported and subsidised American or European foods.
What has happened to some Ghanaian rice producers and tomato growers as a result of competition?
Some have given up altogether.
True or False: Ghana is allowed to subsidise its farmers under WTO rules.
False.
Fill in the blank: Ghana’s cocoa farmers are pressured by _______ due to the presence of alternative suppliers.
downward price pressure.
