Assessment of the Market for Poultry By-Products and their Contribution to Poultry Farmers’ Revenue in Ghana

Abstract

The study set out to assess the market for the poultry by-products and their contribution to poultry farmers’ revenue in the Ashanti and Bono regions of Ghana. The study identified poultry by products being commercialized by poultry farmers in the study area and estimated how much in revenue the by-products are contributing to their total revenue from poultry production. The study analyzed the factors influencing the revenue proportion contributed from the by-product. The study finally, identified and ranked constraints poultry farmers encounter in marketing their poultry by products. The study employs descriptive statistics and a diagram to assess the nature of the poultry by-products market, and uses a Tobit model to analyse the factors that influence the proportion of revenue contributed from poultry by-products. A Kendall’s Coefficient of Concordance (W) was used to measure the level of agreement between the identified constraints. Data was collected from 120 poultry farms located in the Bono and Ashanti regions. The findings revealed that, the poultry by-product market in the Ashanti and Bono regions has only one poultry by-product (poultry dropping) being commercialized of which Côte d’Ivoire is the largest end user. Côte d’Ivoire consumes about 7000 metric tons of poultry droppings annually representing 75% of the total annual production. The findings indicated that the average price for which poultry dropping is sold per 80Kg is GHS 6.00. The results also revealed that, the average revenue accrued by a poultry farmer from the sale of poultry droppings annually is GHS 6,730.00, with standard deviation of GHS 8,338.00. This constitutes less than 1% of their annual revenue from poultry production. Analysis from the Tobit regression model indicate that ownership, litter size, membership of PFA and number of spent layers sold are variables that influence the proportion of revenue contributed from poultry droppings. The four most prevalent constraints among respondents in the study area, in order of magnitude, are low prices for droppings, lack of processing and storage facilities for poultry dropping, seasonal demand, and buyers’ distance. Government should support the development of value chains that would purchase, process and sell poultry dropping and other poultry by-products to expand the market under the circular economy framework.