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The Case of Chilli Pepper Value Chain

Published: 23, March 2015

With the emergence of globalization and internationalization of trade, development agencies in development cooperation
increasingly aim at a sustainable, growth-oriented integration of developing countries into the world economy. Value chain
development has received more emphasis especially in development projects and programmes. Improvements in the productivity of
subsistent farmers are pre-requisites to the achievement of full contributions of agriculture to overall growth and development.
Recent global policies propose that farmers can get out of poverty by being better linked to markets. Markets in recent times are
changing fast and competition is becoming increasingly erce. If businesses aspire to stay in the market, they need to make sure that
their products and services meet continuously changing market requirements and demand conditions (Matthias et al. 2009).
millions of subsistent farmers and rural communities especially in Africa are working to improve their livelihoods in an environment
with low or little government support for producers, processing companies and supermarkets within agricultural markets (Ren,
2006; Martin, 2006). While access to markets remains an important medium for achieving the Millennium Development Goals (MDGs),
there remain low levels of investment in agriculture, poor infrastructure, as well as limited access to technological innovation,
Business Development Services (BDS), and market information and weak commodity value chains still inhibit smallholder farmers' full
access to markets (Aldonas, 2009).
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Ghana is currently running an agrarian economy and agriculture by no doubt the largest sector. The rate of the country's economic
growth seems to fall on the performance of the agricultural sector. The agriculture sector employs at least 50.6 percent of the
working population, and most of them are small-scale farmers in developing countries. This rises to above 75 percent in the rural
areas (Brempong 2003). More than 35 percent of Ghana's Gross Domestic Product (GDP) comes from agriculture (FASDEP 11, 2007).
Market orientation among producers and processors still remains a stumbling block.
For value chains and marketing systems in agriculture, there exist mutual benets where farmers are hooked-up to the needs of
consumers', working closely with suppliers and processors to produce the specic goods consumers demand (Roduner, 2007).
Similarly, consumers are link-up to the needs of farmers via information ows. Development and promotion of value chains in
agriculture is often about improving access to markets and ensuring a more ecient ow of products with the assurance that all
actors in the chain benet.
Government and Non-governmental Organisation (NGO) promoting value chain development have made it a core responsibility to
supporting farmers to sell their products via value chains. But the question which needs deeper investigation is: do emphases on
value chain development bring about an improvement in market access and income to farmers? The development of the value chain
concept does not automatically result in benets for smallholder farmers. The value chain concept is yet to assume its full potential in
its intervention strategy among the chilli pepper farmers in the Tolon - Kumbungu District.
"Value chains development can only overcome the cycle of poverty if they are deliberately designed to improve farmer livelihoods, so
they need to be pro-poor" (Gertan, 2009: p 2). As a new concept among development practioners, there is the tendency of selection
of inappropriate value chain instruments that is not responsive to the needs of the smallholder farmers.
Market in this context refers to the total supply and demand for a particular product - farm products in both locally and
internationally markets. The process of marketing must be customer oriented and provide prot for farmers, transporters, traders
and processors otherwise they will not be able to stay in business. Value chains in this context refer to all the steps that a product
takes, from its point of origin - farm to the consumer. A value chain represents a specic type of supply chain where the chain actors
actively seek to support each other so they can increase their eciency and competitiveness. The actors invest in money, eort and
time and build relationships with one another to reach a common goal of meeting and satisfying the needs of consumers hence, they
can maximize their prots.
Value chain development in agribusiness treats production as a chain of activities, each of which adds value and cost to the nal
product. As the product makes it way via the value chains, the value of the product increases. Actors are the specic players involved
in producing, processing, trading or consuming a particular agricultural product. They include direct actors - producers, traders,
retailers and consumers which are commercially involved in the chain and indirect actors which provide nancial or non-nancial
support services, such as; business service providers; bankers, credit agencies, researchers and government.
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The German Technical Cooperation of the Market Oriented Agriculture Programme (GTZ/MOAP), International Fertilizer Development
Center (IFDC) and Savanna Agriculture Research Institute (SARI) are currently focusing on employment-oriented private sector
development and agriculture. The value chain development concept has been adopted by these organizations as part of their core
development strategies especially in the chilli pepper industry in the Tolon-Kumbungu District of the Northern region of Ghana since
the year 2005. Their main aim of the intervention in the chilli pepper business is to reduce poverty and to stimulate the growth of the
local economy by fostering sustainable relationships among actors, thereby bringing about their competitiveness in domestic,
regional and export markets (MOAP, 2005). While these seem laudable, the problem of market access still exists.
As a tropical crop, chilli pepper can survived in both tropical and temperate climates. In 2005 the global production amounted to 27.5
million tons (AVRDC, 2005). Considering developing countries in particular, chilli pepper is considered the most popular vegetable
crop, being grown on an area of 0.73 million hectares in sub-Saharan Africa in 2005 (AVRDC, 2005).

Chilli pepper is a common agricultural product produced and consumed in Ghana. The crop is used in nearly all Ghanaian dishes. The
annual demand for chilli pepper is estimated at Ghc 27,000 and accounts for about 9.6% of total food expenditure in Ghana (GLSS IV,
2000), while consumption is expected to rise with increasing population. The crop is ranked the fth most important crop in the
Northern Region of Ghana. Quite a number of households and individuals are involved in its production in the region. It is estimated
that about 41.3% of households in the Northern region engaged in chilli pepper production, making the region second only to the
Brong-Ahafo as the region producing signicant quantities of chilli pepper in the Northern sector of the country (Nsiah-Gyabaah, K.
2002). Therefore, any poverty alleviation program that includes the promotion of the crop as part of its strategies could have high
potential for achieving greater impact, as chilli pepper has become an important cash crop for the majority of the people cultivating
and trading in it. However, due to the eects of globalization, liberalization and increasing competition in agriculture markets, it is
apparent that strategies aiming at reducing rural poverty need to move beyond a focus on increasing productivity.

1.1 Problem Statement


Millions of subsistent farmers in developing countries and for that matter Ghana are working to improve their livelihoods with limited
government support for producers, processing companies and supermarkets within agricultural markets (Ren, 2006; Martin, 2006).
While access to markets remains an important medium for achieving the Millennium Development Goals (MDGs), there remain
several factors including weak commodity value chains still hinders smallholder farmers to access markets (Aldonas, 2009).
The main concern in development cooperation is how to reduce poverty. Many development organizations believe that agriculture
value chain development is a strategic means of bringing about market access and income to farmers. Vibrant value chains are said
to be more ecient in bringing products to all actors including small-scale producers and poor consumers should at least benet
from value chain development.
Competitiveness in agribusiness in both local and international markets is noted to be one of the most commonly quoted objectives
of value chain development. But this seems not to hit its full potential with the chilli pepper value chain in the Tolon-Kumbungu
District. Chilli pepper farmers are still faced with an enormous marketing constraint of having to nd credible buyers after harvest.
They remain 'price takers' and face the risk and uncertainties of uctuating markets. The farmers feel highly vulnerable and unable to
withstand the risks and achieve sucient production to participate in value chain (Mitchell et al. 2009).
Against this background, chilli pepper farmers in the study area still grapple with unassured markets for their raw materials and see
themselves as 'price takers' thinking that they have no control over prices and have to accept whatever is oered. Lack of economic
equity among actors endangers the chilli pepper value chain intervention in the study district. Value chain development needs to
priorities the constraints described above if they are to work for poorer farmers.
As a contribution to understanding and solving these problems, an empirical research is needed to investigate into why chilli pepper
farmers in the Tolon-Kumbungu district are not being paid suciently for their produce.

1.2 Research Questions


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1.2.1 Main research question:
What are the prospects and challenges of chilli pepper value chain development in the Tolon-Kumbungu District?

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1.2.2 Sub Questions
1. Does value chain development bring about an improvement in market access and income to farmers?
2 What are the entry barriers faced by farmers in the value chain marketing system?
3. What support do farmers need to function as active players of the value chain?
4. What strategies can be adopted to upgrade value chains in terms of product, process, and functions?

1.3 Research Objectives


1.3.1 Main Objective
The general objective is to assess the prospects and challenges of the chilli pepper value chain development in the Tolon-Kumbungu
District.
1.3.2 Sub Objectives
1. To nd-out ways by which value chain development can lead to market access and income
2. To identify the entry barriers faced by farmers in the value chain marketing system.
3. To identify the requisite support required by farmers to function as active players of the value chain.
4. To identify strategies for upgrading of value chains in terms of product, process and functions.

1.4 Signicance of the Study

Pro-poor growth approach in recent times has become one of the key concerns of development organizations especially in
developing countries. The matter with this approach lies in the promotion of economic potentials of the smallholder farmer and the
disadvantaged (Altenburg, 2007). Nearly 35% of Ghanaians fall below the poverty line and a majority of these people reside in deprive
communities where agriculture is the main source of livelihood. The introduction of the value chain as a development intervention
tool is not only timely, but it is also appropriate.
The value chain concept has gained more and more recognition in development projects and programmes with the primary aim of
reduction in economic inequality by improvement in market access and income of all actors along the chain.
Well functioning value chains should create a platform for ecient and mutual benets of all actors including small - scale producers
and poor consumers, should benet from value chain development. However, as a new concept among development practioners, it
is likely to be engulfed with many critical operationalization problems. Hence, eorts should be stemmed up to facilitate the eciency
of the value chain development concept to aid in the attainment of the UN number one Millennium Development Goal - eradication
of extreme poverty and hunger. One surest way of doing this is to unearth the challenges and prospects of the value chain
development concept as an intervention tool in agribusiness development among smallholder farmers, hence the study.
The study is also expected to bring to bear the challenges and prospects of the chilli pepper value chain and how it can be improved
to make it more pro-poor. The ndings will also be useful to value chain practioners. Last but not the least, the result of the research
could also serve as a basis for further research on the chilli pepper industry in the Northern Region of Ghana.

1.5 Scope of the Study


The study will be organized into ve chapters. Chapter one will cover the background of the study, problem statement, the research
questions, the objectives of carrying out the study and signicance of the study. Chapter two will explore the pertinent conceptual
and empirical literature on the topic under consideration. Also, chapter three will consider the research methodology with regard to
the study design, sampling method, data sources, study instruments and analytical tools and techniques. Chapter ve will present the
study results.
Chapter ve will present the discussions of the research ndings while chapter six will oer the summary, the conclusion and
recommendation thereof.

Figure 1.1 Conceptual Frame Work


Tolon-Kumbungu Chilli Pepper Value Chain Analysis
1. PRODUCERS
- Grow
- Harvest
- Dry

3. WHOLESALERS
- Fresh chilli pepper
- Dried chilli pepper
- Powdered Chilli pepper

4. TRADERS
- Fresh chilli pepper
- Dried chilli pepper
- Powder chilli pepper

CHALLENGES & PROSPECTS OF CHILLI PEPPER VALUE CHAIN IN THE


TOLON-KUMBUNGU DISTRICT
2. INPUT PROVIDERS
Availability of
Equipment
Seed
Fertilizers
Value chain Supporters: research & extension, nancial service providers, government, regulatory bodies, trust and power relations
etc

6. CONSUMERS

6. CONSUMERS
- Fresh chilli pepper
- Dried chilli pepper
- Powdered pepper

5. PROCESSORS
- Fresh chilli pepper
- Dried chilli pepper

1.4.1 Conceptual Frame Work


The conceptual framework portrays linkages of the main actors of the chilli pepper value chain in the Tolon-Kumbungu District that
may inuence the eciency of the chain.
The framework demonstrates that for chilli pepper value chain to maintain a functional level that will make it ecient and
sustainable, input providers, producers, transporters, processors, wholesalers, retailers and consumers must work and coordinate
eectively.
Producers of chilli pepper are the most essential actors of the chain but face the most constraints and need preferential treatment
though the entire actors involved in the chain must equally function well which among others include: input providers, transporters,
processors, wholesalers, retailers and consumers.
Value chain supporters - service providers (research and extension, rural banks, regional etc), National, district, community
administrations, regulatory bodies, legislations, infrastructure and Socio-cultural factors inuencing business attitudes, trust and
power relations all inuence the eciency and sustainability of the chain.

CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction
This chapter is essentially a review of past works that have been done in the eld of value chain with special emphasis on value
chains in agribusiness. To this extent, both published and unpublished literatures will be reviewed. Gaps in some theories and
concepts will be identied, amendments done and acknowledgement made.

Value addition processes


Value addition consists of activities that tend to improve products with the intension to increase returns for operators in the value
chain. Cramer and Jensen (1994) consider value addition in commodity marketing to consist of those eorts that aect transfer of
ownership and create time, place and form utility to commodities. Time utility is created through storage, to make commodity
available over time. Place satisfaction is through transportation services, making the commodity available to those wanting it. Finally,
form utility is added to a commodity through the processing function.
Will (2006) on the other hand identied two possibilities for Value addition: (1) Value Capturing and (2) Value Creation. Value capture
is described as the process of improving current production, processing and trading structures/processes. Value creation is however
seen as the process of innovation in a new product. To create value, it is necessary to identify the promising market opportunities
and assess production and marketing risk.
What these fails to capture is to whether smallholder farmers can position themselves to be able to meet consumer demands and be
able to at least have assured markets. Value addition as preached by development organizations stresses the need for its application
at every stage of the production line. No eorts is been made to nd-out the possibility of participation by low income and
disadvantage farmers to actual stand-up to the task. Also, development organizations operationalizing value chain intervention
models need to be questioned on the successes and the way-forward regarding their methods of intervention especially among
smallholder farmers. This study is geared towards addressing these gabs, and will propose strategies for value chain intervention in
agribusiness among smallholder farmers.
Five value addition processes have identied for horticulture especially chilli pepper (Figure 1.0 below). Chilli pepper traders, through
marketing activities create, time, space and forming utilities, by buying, and/or sorting before selling fresh to capture value or create
value by drying before sales (Schipmann, 2006). Indeed, the transformation processes that take places in the chilli pepper value chain
include grinding of fresh pepper into a hot pepper paste, or drying to obtain a dried chilli pepper which is also the intermediary
product for powdered chilli pepper when milled. The powdered chilli pepper is also used for producing "Shito", a local pepper source,
when cooked with other ingredients.
All the transformational activities of the chilli pepper crop were rudimentarily carried-out before the introduction of the value chain
intervention and even in recent times. Output from functional process by smallholders may probably not meet EuroGAP and
GlobalGAP requirements hence, lacks the competitiveness for both local and international markets. Mainstreaming smallholder
farmers in value chains implies the preparedness to play a facilitating and linkage roles by development organizations through the
provision and maintenances of equipments for the low income farmers.

Even though, the transformational change is mainly carry-out by traders and processors in and outside the district, helping the
farmers to add value through minimal processing (functional upgrading) has the possibility of increasing their prot margins. What
level of processing should be prescribed for producers to make them competitive and increase their prot margins? The study will
unearth the possible avenues for increasing in the prot margins of the chilli pepper farmers.

Figure 1.0: Value Addition Processes in the chilli pepper Chain.


PRODUCTION PROCESSING PRODUCT
Fresh Chilli pepper
None/Sorting
Fresh Chilli Pepper
Chilli pepper paste
Grinding
Dried Chilli Pepper
Drying
Powdered Chilli pepper
Milling
Shitto
Cooking

Adapted from Schipmann, 2006


Smallholders all over the world are faced with increasing imperative to integrate themselves into the market to generate cash income
in other to improve their livelihoods. The development of the chilli pepper value chain in the Tolon-Kumbungu district of the Northern
region of Ghana is therefore seen as a means to improve the crop's potential for improving the livelihoods of the population who
depend on it for their livelihoods.
Improving agricultural productivity through the promotion of market oriented agricultural development program is seen as a catalyst
for growth and development in rural communities.
For, the integration of rural population into the national and international markets is seen as one of the best options for successful
poverty reduction (Stamm, 2004; OXFAM, 2002). Indeed, the development and realization of the value chain development strategy is
expected to contribute to achieving a better competitiveness in the local, regional and international markets. By so doing
smallholders will be empowered to be capable of managing and maintaining connections with diversied and growing markets. This,
it is hoped, will also translate into increased income for all operators along the commodity chain, the creation of employment and
consequently the improvement of the livelihood in rural and urban areas (Will, 2006).
Although, recent economic growth in Ghana has had limited impact in reducing high poverty rates, particularly in rural areas, the
emergence of value chain as a tool for development intervention in the chilli pepper sector will present a new prospects for
promoting agriculture and rural development in Ghana, and expanding opportunities for inclusion of resource poor farmers in a
dynamic and high value markets. The growth in chilli pepper production however poses new challenges for public policy, particularly
if policy markers are concerned about integrating smallholder farmers into the export markets.
Literature is currently being reviewed on the following thematic areas and would be incorporated in the nal thesis document. They
include but not limited to; Standardization in agribusiness in developing countries, Horticulture marketing in developing countries,
FBO development, and contract farming.

CHAPTER THREE
METHODOLOGY
3.1 Introduction
This chapter is devoted to the study design, methods and tools of the research.

3.2 Study Design


This study will be descriptive and cross sectional in the sense that, data will be systematically collected at a particular point in time,
analysed and presented to give a clear picture about the state of the value chain intervention strategy in the Tolon-Kumbungu
District.

3.3 Prole of the study area:


3.3.1 Location and size

3.3.1 Location and size


The Tolon-Kumbungu District is one of the 45 districts created by the erstwhile Provisional National Defense Council (PNDC) Law 2007
in 1988 with Tolon as the capital. It lies between latitude 9 16' and 9 34' North and latitudes 0 36'' and 0 57' West. It shares
common boundaries with Savelugu/Nanton District to the North, Tamale Metropolis to the East and Central Gonja District to the
South (Tolon-Kumbungu District Assembly prole, 2001). The district covers an area of about 2, 741 square kilometers with a
population of 132,338 (female, 66,269, male, 66,069) (PHC, 2000). The current (2006) population is estimated as 145, 876 with the
growth rate of 3%. Population density is approximately around 50 inhabitants per Kilometer Square. The District lies between latitude
10-20 north and longitude 10-50 west, shares border with West Mamprusi District in the west and south and the east with
Savelugu/Nanton District and the Tamale Municipal Assembly (Tolon-Kumbungu District Assembly, 2001).

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The major vegetable crops grown in the area are chilli pepper, tomatoes, onion, okra and garden eggs. Chilli pepper actors are among
the few people to have received support services from development agencies operating in the district and outside the district (TolonKumbungu District Assembly, 2001).

Source: Encyclopedia of the Earth


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3.2.2 Topography and Drainage

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District is located 180 meters above sea level and the topography is generally undulating with shallow valley that serves as

stream
courses and isolated hills. This District is among the few Districts in the Northern region on which the White Volta tress
passes. Other major natural water systems in the metropolis include; Dalun, Bontanga, Golinga, Jaagbo dam and Tolon dams.
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Climate and Vegetation


3.2.3

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There is a unimodal rainfall pattern with a mean annual rainfall of 1100mm in the District between April/May to September/October.
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As a result staple crop farming is highly restricted by the short rainfall duration. The mean dry temperature range from 33 C to 39
C with mean night temperature ranging from 0 C to 22 C. The mean annual day sunshine is approximately 7.5 hours. The
District exhibits both short and tall grass interspersed with drought resistant trees such as shea trees 'Neem', Dawadawa and
Mahogany. During the rainy seasons the Distrct becomes green and making the vegetation more luxuriant. In the dry seasons,
however water becomes scarce as a result of poor vegetation cover. The grasses dry up and the accompanying bushres destroy the
soil nutrients and expose the soils to serious erosion (Tolon-Kumbungu District Assembly prole, 2001).

3.2.4 Soil
The types of soil that can be found in District include sandstone, mudstone and shale. These soil types are inadequately protected
resulting in serious erosion during rain seasons.

3.2.5 Food security and environment


The main crops cultivated per households are cereals 99.8 percent, legumes 88.3 percent, tubers 80.6 percent, vegetables 35.7
percent and 15.3 percent cultivates fruits. The major crops currently grown in the District are maize, groundnuts, yam, cassava,
sorghum, rice, cowpea, millet, pegion pea, and soya-beans. Others are chilli pepper, tomatoes, onion, okra, and garden eggs.
Industrial crops grown are cotton, tobacco (grown as cash crop but also for local consumption), groundnuts, cashew, sheanuts, and
soya-beans (Tolon-Kumbungu District Assembly prole, 2001)..
The main problem facing crop production is the hazardous environment for crop farming reected in perennial ooding of
farmlands. Unfavorable weather conditions (drought), erratic rainfall, perennial bush res and declining soil fertility. Some of these
problems are however due to poor environmental management relating to inecient farming practices and hunting for fuel wood.

3.2.6 Agriculture potential in the District


Despite the challenges facing agriculture production, the District is endowed with numerous potentials which when exploited will
help transform agriculture in the district. Among these potentials are; Land potential resources which is readily available, Irrigation
facilities-Bontanga and Golinga for all year cropping, Research Institutions - SARI, ARI and UDS, Availability of farm labour, Research Extension - Farmer Linkage- to create eective technology transfer and adoption. Others include; commercial production of legumes
(soya-bean) and vegetables (chilli pepper), commercial production of roots and tubers (yam and cassava), small and large ruminant
production and Industrial cash crop production.

3.2.5 Ethnicity and Cultural Values


Apart from Nyankpala community in the District which is ethnic diversity, almost all people in the villages are Dagombas. Towns in the
district are; Tolon, Kumbungu, Nyankpala, Dalun, Wantugu, Tali, Kasulyili, Yoggu, Gbulahagu, Kpendua, Tibung, Lungbunga, Gbullung,
Grimani, Chirifoyilli, Zangbalung, Voggu, Yepeligu, Tingoli and Gundaa.

3.2.6 Religion

According to the 2000 Population and Housing Census, Islam is the predominant religion in the District with 65% of the population
aliated to it.

3.2.7 Land Tenure System


Land tenure systems in the District include free hold/inheritance and negotiations/temporary use.

3.2.9 Occupation
The economy of the Tolon-District Assembly is dominated by agriculture, commerce and trade and services. Until the 1995's over 90%
of all indigenous people in the District were farmers (PHC, 2000).

3. 4 Research Approach
Research methodology is an important component of any study and provides the framework upon which the whole process is
dependent (Brown, 1996). It is recommended that the methodology is conducted thoroughly to eciently produce accurate and
precise data in order to achieve the research goals and objectives. I intend to give an-in-depth explanation of the research approach
and process, methods of data collection, sampling procedure, size and methods, background of study area and scope, and data
analysis.

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on a number
research objectives, practicability and validity, available nancial resources, time, the2 skill of the researcher in data analysis and

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interpretation
and social organization among others.

3.5
Method
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Two
main sampling
techniques prominently used in various research studies will be adopted and applied for the study. These are
probability
and non-probability sampling (Twumasi, 2001). Probability sampling gives every item in the universe an equal chance of
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in the sample. Under this method, the simple random sampling
technique will be used to select respondents from the nine
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(https://m.reddit.com/submit?url=https://www.ukessays.com/essays/marketing/thechilli pepper farmer groups in the study area. This is to make sure that each chilli pepper farmer within the nine farmer groups has an
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equal chance of being included.

Non-probability sampling such as purposive sampling procedures will also be used (Bernard, 1998). According to Preston (2002),
applying purposive sampling can yield insights and in-depth understanding rather than empirical generalizations In this sampling
procedure, the researcher purposively choose the particular units of the universe to constitute the sample on the basis that the small
mass that they so select out of a huge one will be typical of the whole (Yin, 1993). The judgment of the researcher plays an important
part in this sampling technique. The importance of adopting this design is the relative advantage of time and money inherent in the
sampling.
In light of the above, the snowball or chain sampling strategy will be used, because I will be dealing with chilli pepper farmers who are
beneciaries of the value chain development concept and belong to the nine chilli pepper farmer groups and are in a best position to
respond to questions. Group members will serve as linkages - by recommending persons who are members of the group to be
interviewed.
Accordingly, it is useful for the researcher to use more than one method in data collection. The methods are selected to complement
each other and to allow for triangulation. Triangulation "reects an attempt to secure an in-depth understanding of the phenomenon
in question [it is] a strategy that adds rigor, breadth, complexity, richness, and depth to any inquiry" (Denzin and Lincoln,
2000: 8). In light of the above discussion, data will be elicited from primary sources through the combination of interviews, focus
groups, and questionnaires

3. 6 Sampling Size
According to Miller D. C (1991), a researcher needs to select only few items from the universe for the study purpose. It went further to
state that, an ideal sample is often preferable to larger sample or interviewing a larger number of people saying the same thing. The
size of a sample should neither be excessively large, nor too small. It should be optimal. This however should be to the discretion of
the researcher (Karma, 1999. Saunders et al, 1997, also argued that, while deciding on the size of a sample, the desire precision need
to be determined by the researcher and also an acceptable condence level in carrying-out estimates in quantitative research.
The choice of the sample size will also be informed by the size of the population, the specic population parameters of interest and
the cost of study. In light of the above discussions, 90 chilli pepper farmers would be sampled for the survey, approximately 20
executives of chilli pepper farmer groups and three sta members of the above organizations will be interviewed. Focus group
discussions will also be staged in each of the three study communities. This is spelled out as follows:
In the Tolon-Kumbungu district, three communities and nine chilli pepper farmer groups who are among the beneciaries of the
value chain intervention strategy will be sampled.
Ten chilli pepper farmers from each of the nine chilli pepper farmer groups would be sampled. That is, 10 farmers will be randomly
selected from each of the nine chilli pepper farmer group making it to 90 chilli pepper farmers.
Two Executives (Chairman and Secretary) each of the nine chilli pepper farmer groups will be purposively sampled for interview.
Approximately between 16 and 20 interviews will be conducted among the nine chilli pepper farmer groups.

Sta member each of the German Technical Cooperation of the Market Oriented Agriculture Programme (GTZ/MOAP), International
Fertilizer Development Centre (IFDC) and Savannah Agriculture Research Institute (SARI) who are implementers of the value chain
activities in the study district will be sampled. In all, three key informants/subject matter specialist will be sampled and interviewed.
A total of three focus group discussions would be held in the study communities. One focus group discussion would be held in each
of the study communities by drawing two executives each from three chilli pepper farmer groups in each study community to
constitute six farmers for each focus group.

3.7 Data collection approach.


According to Miller, 1991, they are two major approaches used in social research. These are the primary and secondary sources. It is
should however be conceived that the selection of a particular approach to collect data must be decided upon by the availability of
resources, the purpose of the study, the skills of the researcher and of course the nature of one's problem. In selecting a method for
data collection, the socio-economic demographic characteristics of the study population play an important role.
Some population for some reasons may not feel either at ease with a particular method of data collection or comfortable to express
opinions especially in a questionnaire. According to Grady, 1998, in making a decision for a particular data collection, the researcher
need to have in mined of the social situation and the type of people he is dealing with to so as to help minimize negative tendencies.
Secondary data will be obtained through documentary sources such as books, journals, magazines, baseline and project monitoring
reports and other earlier studies on the subject matter. Details of how these approaches would be applied in the research are
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outlined as follows.

Print

3. 7.1 Interviews

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Karma (https://www.facebook.com/sharer/sharer.php?u=https://www.ukessays.com/essays/marketing/the-case-of-chilli-pepper-value-chain-marketing(1999) dened an interview as any person - to - person interaction between two or more individuals with a specic purpose in
mind. Interviews are classied into unstructured, semi-structured and structured. The semi-structured will be used in the study. In
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using the semi-structured interview approach, a framework would be developed to guide the interview process. The semi-structured
(https://twitter.com/intent/tweet?text=The%20Case%20of%20Chilli%20Pepper%20Value%20Chain&url=https://www.ukessays.com/essays/marketing/theinterview will allow for the use of open-ended questions to elicit information from key informants. An interview schedule consisting of
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specic questions on various aspects of the topic under investigation
to help address the main research question shall be
prepared
for this assignment.
case-of-chilli-pepper-value-chain-marketing-essay.php)

According to Yin, 1993, in analyzing a data, a number of closely related operations are performed with the purpose of summarizing
the data collected and organizing them in such a manner that they answer the research question. The qualitative data analysis from
the interview will be made at the same time during the data collection process and after the overall data is collected. The qualitative
data will be cleaned with the aim of checking accuracy and consistency of information on each interviewed questionnaire in relation
to the set objectives. A coding manual will be designed after knowing the nature of responses. Open -ended questions will be coded.

3.7.2 Focus groups


"A focus group is a planned, facilitated discussion among a small group of stakeholders designed to obtain perceptions in a dened
area of interest in a permissive, non-threatening environment" (Campbell, 2008 p: 3). "Focus group discussion demands a focus in
subject area, interest groups, the use of the experiences and/or opinions of group members, and the generation of intense debates
on the area of focus" (Millar and Apusigah, 2004: p 31). Focus groups typically consist of 6-10 people drawn from a population that
the researcher is interested in. To allow for perfect interaction, homogenous groups are recommended in focus group discussions.
Open-ended questions are used to guide the discussion, taking notes and recording the session so that the information can be
analyzed later (Campbell, 2008). The reason for employing focus group discussion in this study is to have a deeper investigation about
the phenomena.
Three focus groups would be conducted in the three study communities and purposively drawing respondents (three chilli pepper
farmer group executives) from the three groups in each study communities- Kpilo, Mbanaayilli and Bogunayilli.
Themes, hunches, interpretations and ideas generated from the focus group will be analyzed. Issues from the three focus groups will
be compared and contrasted. Where feasible, the entire discussion will be transcribed to provide a complete record of the discussion
and facilitate analysis of the data. The content of the discussion will be analyzed by looking at the trends and patterns within and
among the various groups.

3.7.3 Questionnaire
The questionnaire approach will be adopted for the study. The choice of using a questionnaire is inuenced by a variety of factors
(Saunders et al.1997). These are spelled-out as follows; size of the sample you require for your analysis, type of questions you need to
ask to collect data, number of questions you need to collect your data and the characteristics of reaching a particular person as
respondents.
As a method of data collection, the questionnaire represents an ecient way to collect statistically quantiable information. It is an
ecient method in the sense that many respondents can be reached within a short space of time (Twumasi, 2001). The questionnaire
will be comprised of closed and open -ended questions.
The questionnaire will be pre - tested in a purposively selected community (Kpilo), to determine their appropriateness in collecting
the desired data. This exercise will be used to test the clarity, suitability as well as logical ow of questions. The questionnaire will be
rened on the basis of issues raised and will be noted during the exercise. The pre - test will help eliminate ambiguity and vague
meanings and help make the questionnaire easily understood and adapted to the study objectives. If necessary, appropriate
expertise (lecturers of research methodology) will be called upon to make sure that the questions are worded correctly and can easily

be analysed properly. Unlike the interviews, the questionnaires can be relatively simple to analyse and are more easily generalized, it
however yields less rich data as compared to the interviews. The sub-research objectives shall be used to separate the headings of
the questionnaires. This strategy will help ensure that the objectives of the study are being met.
In carrying-out data analysis, a number of closely related operations are performed with the purpose of summarizing the data
collected and organizing them in such a manner that they answer the research question (Yin, 1993).
In preparation for quantitative analysis, simple quantitative operations from questionnaires will be tabulated and processed using
SPSS. The quantitative output from SPSS shall be in histograms, tables, line graphs, charts frequencies and averages for simple
reporting purposes. The central tendencies such as the mode, mean, and median couple with dispersion in terms of range shall be
used to present data.

3.8 Data analysis


The data analysis will employ both qualitative and quantitative approaches to examine key issues at stake. Quantitative data will be
analyzed by means of elementary statistical analysis. Qualitative data will be cleaned with the aim of checking accuracy and
consistency of information on each questionnaire in relation to the set objectives. A coding manual will be designed after knowing the
nature of responses. Both open and closed-ended questions will be coded. Statistical Package for Social Scientist (SPSS) shall be
employed to sort data for interpretations. Thus, the key issues that are identiable with the study topic shall be grouped accordingly.

3.9 Organization of Thesis

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2

organized into six chapters. Chapter

overview of the study, chapter


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ThePrint
report will be
one will deal with the general
two will contain
literature;
the
methods
used
in
the
research
will
be
discussed
in
chapter
three.
The
study
results
will
be
presented
in chapter four

while chapter ve will contains discussion on major ndings. Chapter six concludes the study and draws up recommendations for the
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of knowledge on value chains development processes

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3.10
Time frame

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Duration
Activity
April
May
June
July
Aug
Sept
Oct
Nov
Literature search and review
Proposal writing and completion
Submission and defense of proposal
Drafting of questionnaire
Preliminary visits to communities and
identication of target groups
Pre-testing of questionnaire
Questionnaire redesign to meet ground realities. Identication and training of eld assistance
Data collection
De - coding data collected
Write - up

Proofreading
Submission
Final write -up and submission

BUDGET
ACTIVITY
ITEMS & UNIT COST
TOTAL AMOUNT (GH)
PRE-FIELD WORK
Literature search (use of internet & purchase of relevant reading material)
50.00
Three reams of A4 sheet for questionnaire and draft work
@ Gh
Print 7.20 x3

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2

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21.60

Subsistence
allowance for training of three eld assistance (UDS Undergrads) for one day
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Gh 20.00/person

60.00

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sub total

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case-of-chilli-pepper-value-chain-marketing-essay.php)

131.60
RECONNAISSANCE SURVEY WITH PRE -TESTING OF QUESTIONNAIRES
Transport (return) for four people
@ Gh10.00 x 4
40.00
Subsistence allowance for three eld assistance
@ Gh 20.00 x 3
60.00
Printing and Photocopying of 20 pre-test questionnaire of at least 12 pages each.
@ Gh 0.5/page printed and 0.1/page copied
30.00

sub total
130.00
FIELD WORK/DATA COLLECTION
Photocopying of questionnaires for data collection of at least15pages/questionnaire of 111 copies
@ Gh 0.1/page x15pages (1.50 x 111)
166.50
Transport (return) of four persons to communities for six days
@ Gh 10/person/per day ( 40.00 x6)
240.00
Daily subsistence allowance for three research assistance for six days
@ Gh 20/person/day (120.00 x 6)
750.00

sub total

sub total
1156.50
DATA ANALYSIS AND REPORT WRITING
Computer analysis of data

--------------------------------------Printing of at least 115 pages of rst draft copy


@ Gh 0.50/page x 115
57.50
Second draft
@ Gh 0.50/ page x 115
57.50

Print

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Printing of original work at least 115 pages including graphs, maps, tables etc

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@ Gh 1.00 x 115

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Additional
ve
copies
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120.00

Binding of ve copies
@ Gh7.50 x6
45.00

sub total
395.00
Grand Total
1813.10
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