Structure of imported chicken market and willingness of distributors to accept domestically produced and processed chicken: evidence from Ghana

Abstract

This study provides an understanding of the structure of the frozen chicken market and examines whether the actors of the frozen chicken supply chain are willing to accept locally produced and processed chicken as one of their product lines. It employs primary data collected from 22 importers, 44 wholesalers and 117 retailers in Ghana. Gini Coefficient and Cragg’s Double Hurdle model were the analytical tools. The results revealed Gini coefficients of 0.702, 0.550 and 0.572 for retailers, wholesalers and importers respectively, indicating high concentration levels. Generally, retailers had the highest level of acceptance of domestically produced chicken, followed by wholesalers. As differences in prices increase, distributors are less likely to accept locally produced chicken into their distribution chain. Business experience, form of business, infrastructure for poultry, form of ownership and access to credit were the determinants of distributors’ willingness to accept domestically produced chicken, while educational level, form of ownership and safety influenced the volume distributors are willing to start with. The study therefore recommends that a business person seeking to venture into the domestically produced chicken market must be ready to invest in infrastructure as this will guarantee the impact one is able to make in the chicken industry.

Keywords

• Domestically produced chicken
• imported chicken
• Infrastructure
• Local chicken price
• Market structure
• Willingness to accept