Profitability and Constraints of Broiler Production: Empirical Evidence from Ashanti Region of Ghana

Empirical Evidence from Ashanti Region of Ghana

Abstract

This research was aimed at examining the profitability and constraints of
broiler production in the Ashanti region of Ghana. Through multi-stage
sampling technique, 114 broiler farms (farmers) were chosen as respondents
for the study. Gross margin analysis, net returns and returns per Ghana Cedi
invested were used to determine the profitability of broiler production. A
multivariate regression (OLS) analysis was employed to examine the factors
that influenced the profitability of the farms. Kendall’s coefficient of
concordance was then employed in ranking of constraints of broiler
production. The gross margin from broiler production among the farmers
ranged from GH¢1.08 to GH¢3.95 per bird (1.5kg live weight) with the mean
of GH¢3.42. However, the net income (profit) ranged from GH¢0.90 to GH¢
3.80 per bird with the mean of GH¢2.97. The result of the analysis further
showed that the return per Ghana cedi invested among the farmers ranged
from GH¢0.09 to GH¢0.29 with the mean of GH¢0.27. This implies that for
every GH¢1.00 invested the farmers get GH¢0.27 as profit. Major
production constraints identified, in order of severity, were high feed cost
(ranked 1st), lack of access to credit (ranked 2nd), competition from cheap
poultry import (ranked 3rd) and lack of government support (ranked 4th).