Product Flow Efficiency and Financial Benefit in the Commercial Soybean Value Chain System in Ghana

Abstract

Soybean is an important economic crop in Ghana contributing to poverty reduction and food security. A key challenge in Ghana's soybean sector is enhancing product flow efficiency and adding value along the chain. This paper examines perceived efficiency in product flow, the nature of value adding, and perceived financial benefits among value chain actors in Ghana. The study combines quantitative and qualitative techniques to investigate product flow efficiency and financial benefits of the soybean value chain. The study was conducted in the Northern, Upper East, Upper West, and Brong Ahafo regions of Ghana, between January and April 2013. The study used sample data from 300 value chain actors including input dealers, producers, aggregators, and processors. The data collected were analyzed using descriptive statistics, process map, principal component analysis (PCA), and Analysis of Variance (ANOVA) along the commercial soybean value chain system in the northern part of Ghana.  The results show that on average, with the exception of financial institutions, chain actors perceived the soybean product flow along the chain as efficient. Also, the PCA showed two key financial dimensions in the soybean value chain including tangible financial benefit and intangible financial benefit. ANOVA showed that on average, there was no significant difference across stakeholders on the effect of tangible financial benefit on their perception of efficiency of product flow in the value chain. However, there was a significant difference on the effect of intangible financial benefit on their perception of efficiency of product flow in the value chain.  The process map mainly showed that the soybean value chain is mainly non-value adding with the exception of the input supply level. The findings revealed that there is less value adding along the soybean value chain in Ghana, requiring that strategic efforts be put in place to improve on value addition along the chain to increase employment creation, poverty reduction and food security.