Ghana’s poultry industry revival hailed

Calls for government support from the poultry sector in Ghana have been answered in the form of low-interest loans.

(Andrea Gantz)
(Andrea Gantz)

Calls for government support from the poultry sector in Ghana have been answered in the form of low-interest loans.

To support the West African state’s poultry producers, the Agriculture Development Bank (ADB) is offering loans totaling 500 million cedi (GHS; US$87 million) until 2022. This support aims to reduce Ghana’s dependence on imports of poultry products, as well as to create employment opportunities for the nation’s young people.

Help for the sector may have arrived just in time. Earlier this month, analysts were predicting the imminent collapse of the Ghanaian poultry industry. Poor structure of the industry and record imports of cheaper chicken meat were blamed for the approaching crisis, which has been exacerbated by the coronavirus (COVID-19) pandemic.

First tranche of the program — GHS23 million — will support six poultry companies in the Bono region in the west of the country, reports Ghana Web. The loans will help each recipient to reduce risks in their business, and to raise production.

With the initiative, the ADB is demonstrating its support of the government’s Broiler Revitalisation Programme, according to managing director Dr. John Kofi Mensah.

Import substitution, other benefits

Dr. Mensah said the program will support the development of the whole poultry chain in Ghana from feed milling and hatcheries to the processing and marketing of meat. He added that it will also indirectly stimulate domestic production of corn (maize) and millet, and create thousands of jobs in these businesses, as well as in related areas such as hospitality and food service.

Ranging from GHS1.5 million to GHS9.0 million each, the loans are primarily aimed at existing businesses with experience in the sector. Recipients are expected to double their capacity for poultry meat production.

Partnering the ADB in the program are the Ministry of Food and Agriculture (MoFA), the Bank of Ghana (BoG), the Ghana Incentive-based Risk Sharing System for Agricultural Lending (GIRSAL), and the Out-grower and Value Chain Fund (OVCF). The ministry’s role is to ensure that the chicken rearing and meat quality meet the required standards.

Annual interest rates on these loans will be below 10%, which is significantly lower than the 20% or more on traditional loans in the Bono region, according to Dr. Mensah.

Subsequently, the loans will be offered to poultry industry stakeholders in other regions — including Ashanti, Greater Accra, and the Eastern and Central regions, reports Ghana Web.

By the end of the program in 2022, Dr. Mensah forecasts that locally produced poultry meat will have largely replaced imports. Furthermore, he said, the locally produced chicken will be cheaper than imported products.

Chicken accounts for 80% of Ghanaian meat imports

The West African nation’s total annual demand for poultry is around 400,000 metric tons (mt), according to MoFA.

Of this total, local production amounts to around 58,000 mt or approximately 15% of demand. With imports of poultry meat of 180,000 mt, MoFA estimates the current shortfall stands at more than 162,000 mt.

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