Potential for Upgrading in Financialised Agri-Food Chains: The Case of Ghanaian Cocoa

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Main author: van Huellen, Sophie
Other authors: Abubakar, Fuad Mohammed
Format: Journal Article           
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id eprints-34412
recordtype eprints
institution SOAS, University of London
collection SOAS Research Online
language English
language_search English
description We revisit functional upgrading opportunities for developing and emerging market companies in the context of highly financialised food systems. We argue that the assessment of upgrading potential within the global value chain literature lacks consideration of constraints posed by financialisation, not only of the sector within which upgrading takes place but also by the global financial architecture more broadly. For the Ghanaian cocoa–chocolate sector, we show that financialisation acts as limiting factor to upgrading, with contradicting tendencies. First, financialisation of lead firms, eager to outsource non-core activities, has promoted cocoa processing in Ghana, but the resulting consolidation of power hinders further functional upgrading. Second, Ghana’s dependency on cocoa for foreign exchange earnings necessitates upgrading into higher value-added segments, while also undermining feasible upgrading strategies that build on domestic or regional markets first. These contradicting tendencies constitute a middle value-added trap, which is difficult but not impossible to overcome.
format Journal Article
author van Huellen, Sophie
author_facet van Huellen, Sophie
Abubakar, Fuad Mohammed
authorStr van Huellen, Sophie
author_letter van Huellen, Sophie
author2 Abubakar, Fuad Mohammed
author2Str Abubakar, Fuad Mohammed
title Potential for Upgrading in Financialised Agri-Food Chains: The Case of Ghanaian Cocoa
publisher Palgrave Macmillan
publishDate 2021
url https://eprints.soas.ac.uk/34412/

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