Title: Contract farming as a marketing strategy to improve the poultry agribusiness in Ghana

Authors: Helena Oppong-Kyeremeh; Richard Kwasi Bannor; Ernest Darkwah Yeboah

Addresses: Department of Agricultural Economics, Agribusiness and Extension, University of Energy and Natural Resources, Sunyani, Ghana ' Department of Agricultural Economics, Agribusiness and Extension, University of Energy and Natural Resources, Sunyani, Ghana ' Department of Animal Production and Health, University of Energy and Natural Resources, Sunyani, Ghana

Abstract: The local poultry subsector of Ghana is burdened with production and marketing challenges rendering it non-competitive against imported chicken products. One of the suggested strategies to solve this challenge is contract farming. However, empirical studies on contract farming have been widely researched in the crop subsector, with limited studies in the poultry subsector. This study, therefore, examined the choice of contract farming as a marketing outlet among poultry agripreneurs. The propensity score matching technique was used to analyse the impact of contract farming on the total value of sales. The results indicate that several demographic, marketing, production and institutional characteristics influenced contract farming choice. Beyond this, contract farming was revealed to have a significant impact on the total value of sales of broiler products. The study recommends collaboration between the Ministry of Food and Agriculture and local radio stations in the study area to provide farmers with market information on the prices and demand for layers, broilers and eggs in neighbouring markets to ascertain their decision to choose contract farming or otherwise.

Keywords: poultry; chicken; contract; marketing outlet; principal-agent problem; management and development.

DOI: 10.1504/IJVCM.2022.127824

International Journal of Value Chain Management, 2022 Vol.13 No.4, pp.360 - 382

Received: 17 Oct 2020
Accepted: 16 Oct 2021
Published online: 19 Dec 2022 *

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