Modelling of vertical integration in commercial poultry production of Ghana: A count data model analysis
Faizal Adams,
Amos Mensah,
Seth Etuah,
Robert Aidoo,
Bright Owusu Asante,
James Osei Mensah
Affiliations
Faizal Adams
Corresponding author.; Department of Agricultural Economics, Agribusiness and Extension, College of Agriculture and Natural Resources, Kwame Nkrumah University of Science and Technology Kumasi, Ghana
Amos Mensah
Department of Agricultural Economics, Agribusiness and Extension, College of Agriculture and Natural Resources, Kwame Nkrumah University of Science and Technology Kumasi, Ghana
Seth Etuah
Department of Agricultural Economics, Agribusiness and Extension, College of Agriculture and Natural Resources, Kwame Nkrumah University of Science and Technology Kumasi, Ghana
Robert Aidoo
Department of Agricultural Economics, Agribusiness and Extension, College of Agriculture and Natural Resources, Kwame Nkrumah University of Science and Technology Kumasi, Ghana
Bright Owusu Asante
Department of Agricultural Economics, Agribusiness and Extension, College of Agriculture and Natural Resources, Kwame Nkrumah University of Science and Technology Kumasi, Ghana
James Osei Mensah
Department of Agricultural Economics, Agribusiness and Extension, College of Agriculture and Natural Resources, Kwame Nkrumah University of Science and Technology Kumasi, Ghana
Poultry production has significant potential to reduce protein deficiency, food insecurity and poverty in Ghana. However, limited vertical integration and high cost of production in the sector have stifled growth and exposed poultry farms in the country to many risks, leading to poor business performance. This study uses cross-sectional data from 102 commercial poultry farms to assess the determinants of vertical integration in the Ghanaian poultry industry by employing zero-inflated Poisson (ZIP) and Zero-inflated Negative Binomial (ZINB) models. The results show that one in every four poultry farms in the country are vertically integrated, either partially or fully. The ZINB model, which best fits the data, reveals that the degree of vertical integration in the poultry business is significantly influenced by a set of personal (education, occupation, and farming experience) and farm level (land tenure, flock size, production cost, and farm revenue) characteristics as well as institutional factors (credit access, extension access and membership of association). The paper discusses the implications of these findings and provides appropriate recommendations for strengthening the poultry industry in Ghana.
