Value Chain Analysis of Tilapia in the Eastern and Greater Accra Regions of Ghana

Abstract

The value added along the tilapia value chain is undefined in Ghana, and as such, the benefits associated with the various costs along the chain was not fully realized. The study sought to investigate four issues: the profile of the actors and their existing linkages; assess the value added at each stage of the value chain; determine the profitability and their determinants among the various actors in the value chain and identify and analyze the constraints facing the actors in the study area. The study was done in the Eastern and Greater Accra Regions of Ghana. Primary data was collected using well-structured and pre-tested questionnaires administered to 100 respondents. These include 40 tilapia producers (farmers), 30 tilapia processors and 30 tilapia distributors (Assemblers, Wholesalers and Retailers). Returns on Investment (ROI), Net Farm Income (NFI) and profit margins amassing to actors were estimated and were used to measure the distribution of benefit among the actors. The value added by each actor was also computed. A flow chart was used to map the actors in the value chain, whilst a paired sample t-test was used to test for the significance of the differences in the NFI for all the actors. Constraints facing actors in the chain were analysed using the Kendall’s coefficient of concordance. The study used STATA version 14 to analyse the data. It was observed from the analysis that the actors (producers, processors and distributors) along the tilapia value chain added a substantial amount of value along the chain of which the producers added the highest value (GHS 2449.65). An informal relationship existed among the actors and were bounded by a verbal contractual agreement. 35.9% of tilapia harvested by producers were sold directly to processors at the farm gate while 63.4% was sold out to distributors. Average values of Net Farm Income (NFI) of GH₵ 12756.33, GH₵ 3979.85 and GH₵ 3750.88 were realised by the various actors (producers, processors and distributors) in that succession. Their Return on Investment (ROI) were 176.25, 51.24 and 49.61 for producer, processor and distributor respectively. Results from the t-test revealed that returns were unequally distributed along the chain with producers having the greatest margin of 5.17/kg and distributors accruing 4.03/kg. Regression results showed that ownership of the farm, time of harvesting, pond size and membership of association were significant determinants of profitability of tilapia producers. Gender, experience and association were also significant determinants of profitability for both processors and distributors. Producers were faced with high cost of feed and inadequate government incentives and policies as their major constraints while processors and distributors were faced with high cost of inputs and lack of storage facilities as constraints. It was concluded in the study that producers, processors and distributors were the main actors in the tilapia value chain; a positive value was added by the various actors along the chain; Net farm income (NFI) and Return on Investment were significantly inequitably distributed. It is recommended, among others, that clear strategic framework involving all actors and stakeholders (government and private) should be drawn to ensure the expansion and sustainability within the tilapia value chain. This could be done by enhancing favourable policy environment as well as good governance system with the help of Public-private partnership (PPP).