Product Life Cycle Model of Cowpea Based Products in Ghana

Department of Agricultural and Applied Economics
Clemson University


Clemson, SC 29634

WP 052402






May 2002





Product Life Cycle Model of Cowpea Based Products
in Ghana1
James C. O. Nyankori*
, Department of Ag & Applied Economics
251 Barre Hall
Clemson University
Clemson, SC 29634-0355
jnynkr@clemson.edu
Veronica Wabukawo, Clemson University
Esther Sakyi-Dawson, University of Ghana
Sam Sefa-Dedeh, University of Ghana







*Professor, Graduate Student, Department of Agricultural and Applied Economics,
Clemson University, Clemson, SC and Professors, University of Ghana, Legon, Ghana

Working Papers are not subject to review within the Department of Agricultural and
Applied Economics.

Copyright 2002 by J.C.O. Nyankori, Veronica Wabukawo, Esther Sakyi-Dawson and
Sam Sefa-Dedah. All rights reserved. Readers may make verbatim copies of this
document for non-commercial purposes by any means, provided that this copyright
notice appears on all such copies


1 This work was funded by the Bean/Cowpea CRSP of the United States
Agency for International Development.

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Product Life Cycle Model of Cowpea Based Products in
Ghana
James C. O. Nyankori, Veronica Wabukawo, Esther Sakyi-Dawson
and Sam Sefa-Dedeh



Abstract


An exploratory market study of cowpea products in Ghana using data
from case studies of consumers, personal interviews of processors and
market surveillance of retail outlets indicated that the cowpea processing
industry has low milling capacity, low production level, and few small
operators most of whom have been in the business for less than six
years. Cowpea flour, the main value added product, is typically sold in
bulk or unbranded small packages through retail and wholesale outlets
and directly to consumers including individuals, institutions and the
catering industry. Although a high proportion of processors are aware of
the new cowpea utilization technologies, only a low percentage have
capacity expansion plans within the next two years. A large majority is
uncertain and a small percentage has no expansion plans in the next two
years.

Cowpea products are widely consumed but are facing increasing
competition from soybean especially in weaning mixes. However, there
are several dishes using cowpea flour produced in the household and
these provide a varied nutritious diet and have added desirable attributes
which include easy cooking, availability, and favorable taste.

The cowpea products industry is a nascent industry, apparently in stage
two of the product life cycle, the introduction stage which is
characterized by a limited number of competing firms, low profitability,
and high prices. The full impact of new utilization technologies will be
realized over several years following substantial private capital
investments in processing, marketing and strategic promotional
activities.

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Product Life Cycle Model of Cowpea Based Products in
Ghana
James C. O. Nyankori, Veronica Wabukawo, Esther Sakyi-Dawson
and Sam Sefa-Dedeh

Introduction
Cowpea is an important source of protein in many parts of the
world (Phillips and McWatters, 1991; Sefa-Dedeh, 1978) and is prepared
for consumption in grain, split and ground forms. The ground form has
traditionally been a favorite of rural households in northern Ghana
because cowpea flour is less susceptible to post-harvest pest damage and
can be used in many different dishes thus enhancing food security
between harvests (Bacho, 2002).
However, the growth in the dietary share of cowpeas has been
constrained by high preparation time and labor requirements,
undesirable product characteristics including beanie flavor, low
digestibility and abdominal upset as well as post harvest grain losses to
insect pests.
Food and nutrition technologies developed in the last thirty years
promise to increase the cowpea share of Ghanaian food consumption
through reduction of post harvest losses to insect pests using solar
disinfestations, improved grain milling, more efficient nutrient extraction
and new cowpea based-food products (table 1).

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Table 1. Some New Formulations for Utilization of Cowpea Flour



4






Product
Description




(gm)
(#)
Cowpea
Maize
Wheat (gm)
Water (ml)
flour (gm)
Servings
Adunlei
Cowpea straw
60
120
20 8
Agonam
Cowpea pie
60

300 6
Akla
Fried cowpea paste
240

280 6
Apranpransa1
Thick cowpea porridge
60 120
600 8
Atwomo
Cowpea twisted cake
60
120
20 10
Ayikaklo
Fried plantain mixture
60
20
100 NA
Ayitale
Fried cowpea/plantain
60
20
200 10
Ayiwonu
Cowpea vegetable soup
40


5
Cornpea-Pap
Mix
60

720 NA
Cowpea Cake
Cake
60
120
6
Cowpea Stew2
Stew
120

360 5
Cowpea Fritters Fritters
90
90
130 8
Cowpea Pie3
Pie
250 120
500
NA
Danwake
Cowpea dumpling
240

200 6
Frido
Cowpea cutlet
120
60
400 10
Gbalegbale
Cowpea pancake
60
120
10
Kitikiti
Cowpea chips
60
180
50 8
Kpeblo
Cowpea Rock buns
60
120
40 6
Mafele
Cowpea pudding
60
60
2
Majula
Cowpea doughnuts
60
180
10
Tseke
Steamed cowpea flour
240

280 6
Tsintsin
Cowpea sticks
120
60
100 10
Tubani
Steamed cowpea paste 240

300 5
Yikpono
Cowpea biscuits
60
120
6
Source: Randolph et al. 1981. Formulation for Utilization of Cowpea Flour. FRI,
Accra.
Notes:
1Or Dzemkple; 2Cowpea Flour Stew; 3Cowpea Vegetarian Pie.4Maximum
servings.
Non-flour ingredients: water, oil, spices, condiments have been omitted
for brevity.

Solar disinfestations technology is an effective, low cost, non-toxic
pest control process which does not alter the physical, cooking, nutritive

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and other desirable properties of the cowpea grain (Sefa-Dedeh and
Stanley, 1979). This is particularly important since many times people
eat seeds treated with insecticides resulting in serious illnesses and
death.
Traditional milling and other processing practices are time and
labor intensive, cumbersome and expose the product to losses and
adulteration. Innovative processing technologies include decortication
(Henshaw et al., 1996; Hung et al., 1990; McWatters et al., 1988),
fermentation (Djurtoft, 1982; Prinyawiwatkul et al., 1996, 1997; Phillips
et al., 1988), hydration (Phillips and McWatters, 1985), extrusion
(Akinyele et al.;1999; Ringe et al., 1988; Sefa-Dedeh and Mensah, 1988),
and improved domestic processing (Abdel-Gawad, 1993; Marfo et al.
1990; Mensah and Sefa-Dedeh, 1991; Chinnan et al., 1990; Okechukwu
et al., 1991; Abdel-Gawad, 1993).
New cowpea based products include weaning mixes (Abbey and
Nkanga, 1988; Griffith et al., 1998; Malleshi et al., 1989; Mensa-Wilmot
et al., 2001; Uwaegbute and Nnanyelugo, 1987), new food formulations
(Malleshi et al. 1989 ), food items developed through blending (Griffith et
al. 1998; Ringe and Love, 1988, Sefa-Dedeh and Saalia, 1997), and
fortification (Ashaye et al. 2001).
However, aggregate increase in demand for cowpeas due to the
technological innovations is unknown and has not been evaluated.
Nevertheless, the full increase in cowpea demand resulting from multiple

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uses and a steady inter-seasonal availability is attainable through a
partial adjustment process (Nerlove, 1961) typically modeled with a lag
function (Koyck, 1954) in which the full market potential is not realized
instantaneously but is incrementally spread over a period of time. The
non-instantaneous incremental changes are attributable to institutional
and technological rigidities (Labys, 1973)
This paper examines the Ghanaian cowpea market in the
framework of the product life cycle model (Klepper, 1996) with the
specific objective of determining cowpea utilization following
technological innovations in processing, preservation, and utilization.

The Product Life Cycle Model
A five-stage product life cycle (Rink et al., 1999) includes
pioneering, introduction, growth, maturity and decline stages. During
the pioneering stage new products are developed and test marketed,
followed in the introduction stage with the beginning of full scale
marketing of the new product. The introduction stage is characterized by
a limited number of competing firms, low profitability, and high prices.
The growth stage is characterized by fast rising sales volume and
there are substantial profits, a rapid expansion in demand, as well as
increasing competition. However, during the maturity stage, sales
volume continues to increase at a decreasing rate and eventually levels

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off and in the decline stage sales volume continues to drop more rapidly,
prices fall and profits are extremely low.

Methods
Without time series data we adopted a snapshot approach by
examining current market structure and conduct as well as consumption
behavior and establishing correspondence to a product life cycle stage
since each stage is uniquely characterized by specific production,
marketing and managerial strategies (Anderson and Zeithaml,1984, Ho
et al. 2002; Chi and Liu, 2001; Shankar et al., 1999; Bolle, 1999).
This exploratory study of cowpea based products was conducted in
Accra and southeastern area of Northern region. Production data are
from a random sample of thirty food processors and manufacturers
drawn from the national directory of the Association of Ghana Industries,
a non-profit voluntary business association with five hundred members
consisting of large, medium and small indigenous and foreign firms in
several sectors1. Marketing data are from market surveillance of a
random stratified sample of fifty retail stores in Accra drawn from
business directory and the consumption data are from case studies of a

1Automotive Services, Drugs and Chemicals, Electrical and Electronics, Food,
Beverages and Tobacco, Garments and Knitting, Leather, Rubber and Plastic, Metals
and Building Products, Printing, Stationery and Packaging, Textiles, Toiletries and
Cosmetics, and Wood Processing.

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purposive sample of four rural women groups in southeastern area of the
Northern Region (Fig. 1 and table 2).




















Figure 1. Exploratory Study Areas of Cowpea Products (Shaded).

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Table 2. Data Sources for the Cowpea Based Exploratory Study

Item
Production
Marketing
Consumption
Population
Processors
Retailers
Households
Sample size
25
50
120
Location
Accra
Accra
Northern Region
Data source
Personal interview
Surveillance
Case studies



Results

Production data (Table 3) show percentage distribution of food
processors according to milling capacity, business tenure, production
level, product lines, marketing and expansion plans. Most of the
processors (76%) have been in the business for one to five years, 8% over
five years and 16% under one year. There is considerable milling
capacity in Accra but the majority (52%) consists of small scale millers
with hourly capacity under 1 ton per hour and only 20% of millers have
milling capacity equal to or greater than 3 tons per hour.
A low percentage of processors (4%) mill cowpea exclusively but
72% does not mill cowpea at all while 28% mill cowpea and other grains2.
The majority of the processors are small scale operators of whom over

2 Mainly maize, cassava, rice, and sorghum.

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ninety percent produce less than five tons a day and only four percent
produce more than five tons a day.
A majority of the processors (68%) sell the flour in bulk to retailers
and directly to consumers who bring in cowpea grains in batch or
consignments for milling. Twenty eight percent of processors sell
packaged generic flour and four percent sell branded flour.
Table 3. Some Aspects of Cowpea Flour Production in Ghana

Item
Categories
Sample Percent
Capacity
Under 1 Ton/hr
52.0

1 to 2 tons/hr
28.0

3 to 5 tons/hr
16.0

Over 5 tons/hr
4.0
Tenure
Under 1 year
16.0

1 – 5 years
76.0

Over 5 years
8.0
Production
Under 0.25 tons/day
60.0

0.25 to 5 tons/day
32.0

Over 5 tons/day
4.0
Product line
Cowpea only
4.0

Cowpea and other grains
28.0

No cowpea
72.0
Products
Bulk/Batch flour
68.0

Packed flour
28.0

Branded flour
4.0
Distribution
Wholesale
8.0

Retail
24.0

Direct
68.0
Customers
Individuals
64.0

Institutions
24.0

Catering industry
12.0
Expansion Plans
Yes
16.0

No
12.0

Not Sure
72.0
Technology Awareness Yes
32.0

No
68.0

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