Value Chain Analysis of the Broiler Industry in the Southern Sector of Ghana

The livestock subsector especially broiler production plays a significant role in the livelihood and food security in Ghana. Several researchers in developing nations have employed value chain methodologies to investigate the linkages and the interactions of the various actors in the poultry sector....

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Main Authors: Edward Ebo Onumah, Sarah Naa Okailey Mensah, Prince Addey Owusu, Amos Mensah, Peter Boamah Otokunor
Format: Article
Language:English
Published: Universitas Sebelas Maret, Faculty of Agriculture 2023-09-01
Series:Caraka Tani: Journal of Sustainable Agriculture
Subjects:
Online Access:https://jurnal.uns.ac.id/carakatani/article/view/74187
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author Edward Ebo Onumah
Sarah Naa Okailey Mensah
Prince Addey Owusu
Amos Mensah
Peter Boamah Otokunor
author_facet Edward Ebo Onumah
Sarah Naa Okailey Mensah
Prince Addey Owusu
Amos Mensah
Peter Boamah Otokunor
author_sort Edward Ebo Onumah
collection DOAJ
description The livestock subsector especially broiler production plays a significant role in the livelihood and food security in Ghana. Several researchers in developing nations have employed value chain methodologies to investigate the linkages and the interactions of the various actors in the poultry sector. However, none of these studies comprehensively captured each actor’s strengths, weaknesses, opportunities and threats, as well as the governance structure and profitability of the broiler industry. This paper fills this gap by analyzing the governance structure, value addition, determinants of profitability and prospect of the broiler industry using 290 respondents (180 broiler producers, 65 distributors and 45 retailers) from the Greater Accra, Ashanti and Bono Regions of Ghana. The study adopted the scoring analytical technique, net farm income (NFI), the modified Cobb-Douglas function and the SWOT (strengths, weaknesses, opportunities, threats) matrix for the analyses. The results revealed producers as the key governors with the highest value addition and return on investment. Distributors and processors on the other hand form informal cartels to monopolize their activities to increase bargaining power. Whilst credit access, education, business training, age and feed type influenced profitability, the broiler industry is threatened by high importation of frozen chicken, high taxes, lack of capital access and high cost of operation. The study recommends that the government should pursue measures to minimize the cost of operations through input-tax exemptions and reduce the importation of chicken products. Stakeholders should invest in input supply, processing technologies and transportation facilities to boost local production for profit gains.
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spelling doaj.art-166577f6dcc54164918170f26fe8aeef2023-10-06T13:16:03ZengUniversitas Sebelas Maret, Faculty of AgricultureCaraka Tani: Journal of Sustainable Agriculture2613-94562599-25702023-09-0138237138610.20961/carakatani.v38i2.7418739307Value Chain Analysis of the Broiler Industry in the Southern Sector of GhanaEdward Ebo Onumah0Sarah Naa Okailey Mensah1Prince Addey Owusu2Amos Mensah3Peter Boamah Otokunor4Department of Agricultural Economics and Agribusiness, University of Ghana, AccraDepartment of Agricultural Economics and Agribusiness, University of Ghana, AccraDepartment of Agricultural Economics and Agribusiness, University of Ghana, AccraDepartment of Agricultural Economics, Agribusiness and Extension, Kwame Nkrumah University of Science and Technology, KumasiDepartment of Economics and Actuarial Science, University of Professional Studies, AccraThe livestock subsector especially broiler production plays a significant role in the livelihood and food security in Ghana. Several researchers in developing nations have employed value chain methodologies to investigate the linkages and the interactions of the various actors in the poultry sector. However, none of these studies comprehensively captured each actor’s strengths, weaknesses, opportunities and threats, as well as the governance structure and profitability of the broiler industry. This paper fills this gap by analyzing the governance structure, value addition, determinants of profitability and prospect of the broiler industry using 290 respondents (180 broiler producers, 65 distributors and 45 retailers) from the Greater Accra, Ashanti and Bono Regions of Ghana. The study adopted the scoring analytical technique, net farm income (NFI), the modified Cobb-Douglas function and the SWOT (strengths, weaknesses, opportunities, threats) matrix for the analyses. The results revealed producers as the key governors with the highest value addition and return on investment. Distributors and processors on the other hand form informal cartels to monopolize their activities to increase bargaining power. Whilst credit access, education, business training, age and feed type influenced profitability, the broiler industry is threatened by high importation of frozen chicken, high taxes, lack of capital access and high cost of operation. The study recommends that the government should pursue measures to minimize the cost of operations through input-tax exemptions and reduce the importation of chicken products. Stakeholders should invest in input supply, processing technologies and transportation facilities to boost local production for profit gains.https://jurnal.uns.ac.id/carakatani/article/view/74187broiler productionghanagovernance structureprofitabilityvalue-addition
spellingShingle Edward Ebo Onumah
Sarah Naa Okailey Mensah
Prince Addey Owusu
Amos Mensah
Peter Boamah Otokunor
Value Chain Analysis of the Broiler Industry in the Southern Sector of Ghana
Caraka Tani: Journal of Sustainable Agriculture
broiler production
ghana
governance structure
profitability
value-addition
title Value Chain Analysis of the Broiler Industry in the Southern Sector of Ghana
title_full Value Chain Analysis of the Broiler Industry in the Southern Sector of Ghana
title_fullStr Value Chain Analysis of the Broiler Industry in the Southern Sector of Ghana
title_full_unstemmed Value Chain Analysis of the Broiler Industry in the Southern Sector of Ghana
title_short Value Chain Analysis of the Broiler Industry in the Southern Sector of Ghana
title_sort value chain analysis of the broiler industry in the southern sector of ghana
topic broiler production
ghana
governance structure
profitability
value-addition
url https://jurnal.uns.ac.id/carakatani/article/view/74187
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AT princeaddeyowusu valuechainanalysisofthebroilerindustryinthesouthernsectorofghana
AT amosmensah valuechainanalysisofthebroilerindustryinthesouthernsectorofghana
AT peterboamahotokunor valuechainanalysisofthebroilerindustryinthesouthernsectorofghana