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. 2022 Dec 1;8(12):e11961.
doi: 10.1016/j.heliyon.2022.e11961. eCollection 2022 Dec.

Modelling of vertical integration in commercial poultry production of Ghana: A count data model analysis

Faizal Adams  1 , Amos Mensah  1 , Seth Etuah  1 , Robert Aidoo  1 , Bright Owusu Asante  1 , James Osei Mensah  1
Affiliations

Modelling of vertical integration in commercial poultry production of Ghana: A count data model analysis

Faizal Adams et al. Heliyon. .

Abstract

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.

Keywords: Food security; Poultry production; Poverty reduction; Transaction cost.

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Conflict of interest statement

The authors declare no conflict of interest.

Figures

Figure 1
Figure 1
Levels of vertical integration among poultry farms.
See this image and copyright information in PMC

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