Financing Cocoa Production and Trade in Liberia
Many smallholder farmers are marginalised from market systems and formal financial services. This is a multi-faceted issue linked to the challenge faced by financial service providers in delivering rural financial products. Smallholder cocoa farming methods are not optimally productive due to a lack of access to finance to purchase inputs designed to boost yields, and due to an inability to cover operational & expansion costs such as under-brushing, pruning, harvesting, fermenting & drying.
This qualitative research study was commissioned by Adam Smith International and examined the financial requirements, existing options, and financial bottlenecks for stakeholders in the cocoa value chain in Liberia. Recommendations for future interventions included deepening and widening the capacity of formal farmer groups and cooperatives to improve quality & yield; strengthening legislation around Value Chain Finance agreements to improve lender confidence; and developing market information dissemination platforms.