A Chicken and Maize Situation: The Poultry Feed Sector in Ghana

52 Pages Posted: 1 Feb 2017

See all articles by Kwaw Andam

Kwaw Andam

International Food Policy Research Institute (IFPRI)

Michael Johnson

International Food Policy Research Institute (IFPRI)

Catherine Ragasa

International Food Policy Research Institute (IFPRI)

Doreen Kufoalor

Ghana Strategy Support Program

Sunipa Das Gupta

International Food Policy Research Institute (IFPRI)

Date Written: January 27, 2017

Abstract

This study focuses on the feed milling industry, which serves as the link between maize and poultry, through a field assessment of feed millers in Ghana. The findings establish the importance of feed in the poultry value chain. In addition, they show how the sector has become more integrated with poultry production, especially on larger-scale poultry farms. Because maize accounts for 60 percent of poultry feed, its availability and price have important implications for the profitability and growth potential of feed and, therefore, for poultry production as well. We illustrate these linkages by means of a simple spatial market equilibrium model that ties together the three sectors of the poultry value chain: the primary inputs (maize and soybeans), intermediate inputs (feed), and final products (meat and eggs). This model also enables us to assess the future growth potential of the poultry industry given alternative policy-driven changes in productivity and the production capacities of all three sectors. The results show that for poultry meat, replacing imports with domestic production in the short term would be nearly impossible. For the egg industry, however, there is potential for Ghana to export to neighboring countries by reducing production costs through improvements in yellow maize production.

Keywords: Ghana, West Africa, Africa South of Sahara, Africa, Poultry, Maize, Livestock, Chickens, Feeds, Livestock Feed, Feed Mill, Value Chain, Spatial Market Model

Suggested Citation

Andam, Kwaw and Johnson, Michael and Ragasa, Catherine and Kufoalor, Doreen and Das Gupta, Sunipa, A Chicken and Maize Situation: The Poultry Feed Sector in Ghana (January 27, 2017). IFPRI Discussion Paper No. 1601, Available at SSRN: https://ssrn.com/abstract=2908518

Kwaw Andam (Contact Author)

International Food Policy Research Institute (IFPRI) ( email )

2033 K Street, NW
Washington, DC 20006
United States

Michael Johnson

International Food Policy Research Institute (IFPRI) ( email )

Development Strategy and Governance Division
2033 K Street, NW
Washington, DC 20006
United States
+1 202-862-5600 (Phone)
+1 202-467-4439 (Fax)

Catherine Ragasa

International Food Policy Research Institute (IFPRI) ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

Doreen Kufoalor

Ghana Strategy Support Program ( email )

2033 K Street, NW
Washington, DC 20006
United States

Sunipa Das Gupta

International Food Policy Research Institute (IFPRI) ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

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