| Summary: | The cocoa pod husk, a waste in most cocoa farms, has recently received alternative uses in various industries. To cocoa farmers, potash and black soap are their main products from the husk. This alternative use presents an excellent opportunity for improving the livelihoods of cocoa farmers. Nevertheless, there is sparse evidence of farmers' willingness to produce black soap and its potential implication on their welfare. We employed a multistage sampling approach to close this gap to draw data from 150 cocoa farmers from Ahafo Ano North District, Ghana. We analysed the data with binary probit, ordered probit and Inverse Probability Weighted Regression Adjustment. We found that marital status, membership of FBO, knowledge of black soap production, and credit access influence farmers' willingness to produce (WTP) black soap. Again, gender, marital status, age, farm income, farming experience and knowledge of black soap have a significant but heterogeneous effect on the tipping point that stimulates farmers' willingness to accept (WTA) black soap production. The impact assessment revealed that black soap production has substantial welfare gains. Thus, it increases farmer's per capita expenditure. Therefore, stakeholders like the Cocoa Research Institute, Ghana COCOBOD and cocoa-licensed buying companies should invest in procuring portable ashing kilns at subsidised prices and train farmers on packaging and labelling to expedite, revitalise and modernise black soap production. Notwithstanding, future research could look at the profitability analysis of black soap production.
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