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: 527

Full Length Research Paper

Econometric analysis of factors affecting competitive advantage of broiler agribusinesses in Ghana

Raymond K. Dziwornu
  • Raymond K. Dziwornu
  • Department of Banking and Finance, University of Professional Studies, P. O. Box LG 149, Accra, Ghana.
  • Google Scholar


  •  Accepted: 19 December 2013
  •  Published: 01 February 2014

Abstract

This paper econometrically analyzed the factors affecting competitive advantage of broiler agribusinesses in Ghana, using multiple regression analysis. Through a multi-stage random sampling technique, structured questionnaire was used to collect farm level data from 441 small-scale commercial broiler agribusinesses in the Greater Accra, Ashanti and Brong Ahafo Regions of Ghana. The average variable cost of producing a broiler at an average market age of 57 days was GH¢8.48 (US$5.93). Of this cost, feed and one day-old chick costs together constitute about 72%. Results of the econometric regression analysis show that feed and day-old chick costs, broiler market age and capacity utilization are the main factors that significantly affect competitive advantage of broiler agribusinesses in the study area. Feed cost, one day-old chick cost and market age of broilers positively and significantly affect cost of broiler agribusinesses while production capacity utilization negatively and significantly affect cost. This suggests that reducing feed and day-old chick costs, market age of broilers and increasing capacity utilization will reduce production cost to promote competitive advantage of broiler agribusinesses. Broiler agribusinesses should be encouraged to adopt better feed management practices and also feed broilers with nutritious feed for the right market weight to be gained by week eight to reduce expenditure on feed. Policies that will encourage broiler producers to increase production capacity should also be encouraged. 

Key words: Competitive advantage, broiler, agribusiness, econometric, Ghana.