Journal of
Development and Agricultural Economics

  • Abbreviation: J. Dev. Agric. Econ.
  • Language: English
  • ISSN: 2006-9774
  • DOI: 10.5897/JDAE
  • Start Year: 2009
  • Published Articles: 528

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, KNUST-Kumasi, Ghana. 2Department of Agricultural Extension, University of Ghana, Legon-Accra, Ghana.
Email: [email protected]

  •  Accepted: 24 April 2011
  •  Published: 30 June 2011

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.