ISSN 2375-0863
African Journal of Poultry Farming ISSN 2375-0863 Vol. 6 (1), pp. 211-215, January, 2018. © International Scholars Journals
Full Length Research Paper
A study of the impact of loans to poultry farmers by financial institutions in urban and peri-urban region of Ashanti, Ghana
*Amewu Osei1, Adjei Arthur2 and Akoto Deku2
1Department of Animal Science, School of Agriculture, University of Cape Coast, Ghana.
2Department of Agricultural Economics, Faculty of Agriculture, University of Ghana, Legon, Ghana.
*Corresponding author. E-mail: [email protected]
Accepted 21 February, 2015
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.