Broiler production systems in Ghana: economics and the impact of frozen chicken imports

Abstract

Chicken meat consumption in Ghana has significantly increased in the last two decades. However, production has stagnated, and domestic producers are struggling to satisfy the local market. Consequently, Ghana is dependent on chicken imports. The imports have attracted criticism as they are believed to be negatively affecting producers. This paper uses typical farms to analyze broiler production systems in Ghana and the impact of chicken imports. The typical farms represent the most common broiler production systems in the most important producing regions (Accra, Kumasi, and Dormaa). Large-scale integrated, medium-scale, and small-scale production systems were identified as the most common broiler production systems. The study demonstrates that feed and day-old chick costs are the most significant production cost items. The study also shows that broiler production is profitable for all systems when only considering cash-costs. Medium-scale farms located in Dormaa are unprofitable in the medium and long-term, when depreciation and opportunity costs are reflected, respectively. Cost comparisons show that imports make it difficult for broiler producers to market their chickens in the local market throughout the whole year. Therefore, broiler production in Ghana is seasonal. Furthermore, small-scale producers are the most negatively affected by the competition from the imports.