Development of the Pineapple Industry in Ghana

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High-value horticultural export industry has been receiving attention in recent years for its potential contribution to reduce poverty, particularly in Sub-Saharan Africa. However, empirical studies that show the quantitative effects of the industry and that examine the role of risks in this industry are lacking. In this study, we implemented a simple game to elicit risk preferences among farmers and examined whether their risk preferences have some effects on their decisions to exit the pineapple market. We find that a) risk-averseness increases the probability of exiting the market, b) the exogenous shock in the EU demand increased the farmers' likelihood of exiting the market in the post-incident period, and c) education has a role to dampen the effect of risk preferences on the probability of exit, i.e., education makes farmers more resilient to the risks that they face.