International Journal of Agricultural Economics and Extension

Full Length Research Paper

Effect of formal credit on the performance of the poultry industry: The case of urban and peri-urban Kumasi in the Ashanti Region

Fred Nimoh¹, Addo Kwasi¹ and Enoch Kwame Tham-Agyekum²*

¹Department of Agricultural Economics, Agribusiness and Extension, KNU. ST-Kumasi, Ghana.

²Department of Agricultural Extension, University of Ghana, Legon-Accra, Ghana.

Accepted 14 January, 2019

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.