ISSN 2375-0863
African Journal of Poultry Farming ISSN 2375-0863 Vol. 3 (1), pp. 073-077, January, 2015. © International Scholars Journals
Full Length Research Paper
Impact of formal credit on the operation of the poultry industry
Rashid Wakaso Boahen1, John Armah Boyd1 and Wakaso Kwei Annan2*
1Department of Agricultural Economics, Agribusiness and Extension, KNU. ST-Kumasi, Ghana.
2Department of Agricultural Extension, University of Ghana, Legon-Accra, Ghana.
*Corresponding author. E-mail: [email protected]
Accepted 24 December, 2014
Abstract
Farm net income was used as a measure to investigate the effect of formal credit on the performance of the poultry industry. Forty credit and non-credit users each were selected purposively for the study. Regression model was employed for the analysis. Results showed that there was a significant difference (t-value of 0.012 at 5%) between the net income of large poultry farmers who used credit and those who did not. This means that large-scale poultry farmers are likely to perform better than small-scale farmers when credit is made available to both groups. Therefore it is recommended that formal financial institutions should focus on giving loans to large-scale poultry farmers while not neglecting the needs of small-scale farmers.
Key words: Credit, poultry industry, peri-urban, urban, Kumasi.