Poultry sector declines

Ghana’s poultry sector has been on the decline and can now handle about 10 percent of total poultry demand in the country.

This is primarily due to the high cost of production (feed, drugs), inefficient production methods, limited knowledge of modern poultry management and the lack of processing facilities. Energy prices continue to increase production costs by over 60 percent.

This was contained in a report released by the US Department of Agriculture (USDA) that reviewed Ghana’s poultry industry for 2013.

The report titled: “Ghana Poultry Report Annual 2013,” said the price of domestic broiler on the domestic market is not competitive, stating that imported poultry products tend to be 30-40 percent cheaper than locally produced chicken.

According to the report, the growth of the domestic poultry (broiler) industry continues to be slow. It said the supply of broilers in 2011/2012 is about 10 percent of the total market demand, adding that only 10,000 MT of broiler chickens (meat) and 12,400MT of spent layers (meat) are supplied by domestic poultry producers.

“Presently there are seven hatcheries in Ghana that produce day-old chicks for commercial production of broiler and layer birds,” the report said. However, it said most of the poultry hatcheries produce about 60 percent of capacity due to low demand.

The report said the poultry industry does not have a law that would ensure the production of quality day-old chicks from domestic hatcheries, adding that Ghana has no law to ensure the importation of quality and disease-free fertile eggs.

It said Ghana’s poultry imports would increase by five percent from 157,000 MT in 2012 to 165,000 MT in 2013, stating that the country’s poultry imports have more than quadrupled since 2002.

The report said in the last five years, US poultry exports to Ghana increased by between 24 and 31, adding that competition from Brazil and European Union (EU) has also been intense.

It said currently U.S. poultry enjoys a price advantage compared to the others, especially products from EU.

The report stated that the current cost of U.S. poultry per 10kg box is $22 while the same sized box from Brazilian and EU goes for $34 and $32 respectively.

It said Ghana continues to be a destination for U.S. poultry due to price advantage and strong relationships between importers and exporters.