Assessing the synergy: exploring the effects of income diversification on cocoa productivity in Western and Ashanti Regions of Ghana

Purpose This study investigates the effects of cocoa farmers’ income diversification strategies on cocoa productivity in the Western and Ashanti Cocoa Regions of Ghana. It highlights how alternative income sources improve cocoa farm productivity. Design/methodology/approach Primary data from 402 cocoa farmers from 15 cocoa farming communities in two cocoa regions was used. Herfindahl’s diversification index, an inverse probability weighted regression adjustment (IPWRA) and propensity score matching (PSM) analyses were employed. Findings Significant differences in cocoa productivity exist between farmers who engage in income diversification and those who do not. Cocoa farmers practicing non-farm income diversification significantly increased their cocoa productivity, whilst the productivity of farmers into off-farm income sources remained unaffected. Originality/value Utilizing advanced econometric techniques, such as inverse probability weighted regression adjustment (IPWRA), the study points to the neglected link between consolidating efforts at creating conducive (agri)business environments that drive value addition efforts and increases in cocoa productivity. Peer review The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-02-2025-0200