Contract Farming Resource Centre

Unpacking the nexus between broiler contract farming and its impact in Ghana

Organization Department of Agricultural Economics, Agribusiness and Extension, University of Energy and Natural Resources, Sunyani, Ghana; Ministry of Food and Agriculture, Ghana
Year 2022

[Bannor, R.K. and Gyekye, Y. 2022. Unpacking the nexus between broiler contract farming and its impact in Ghana. The European Journal of Development Research, pp.1-28.]

This study examines the determinants of participation in broiler contract farming and its impact. The Probit and the Doubly Robust Augmented Inverse-Probability Weighting (AIPW) models were used in analysing the objectives. The findings revealed that education, experience, regular income, extension service and perceived low market risk in contracting and contractors' trustworthiness significantly influenced broiler contract farming participation, but payment terms negatively affected broiler contract participation. The findings also indicated that contract farming participation positively impacts total sales, farm capacity and total expenditure of farmers. The UNITY Model A of contract farming is recommended to boost the broiler industry in Ghana. The study further recommends future research into the survival rate of contract participants in broiler production.