Avian influenza shock and performance of the chicken markets in Benin

Abstract

Data from a three-year panel (2006–2008) obtained from selected respondents, was used to investigate the impact of the avian influenza (AI) outbreak on the chicken markets in Benin. The trends in sales volume and profit were used as proxy for performance. The Generalized Method of Moments (GMM) regression model was used to examine the factors affecting profit. In general, the AI outbreak adversely affected the performance of the markets during the imposition of restrictions on poultry trade. When AI broke out in Benin and poultry trade restrictions were imposed, the volume of chickens sold per market day per seller declined by 69%. Overall, the AI outbreak did not have an adverse effect on the profit made by the poultry producer/sellers and middlemen. The regression results suggested that the chicken market is more favourable in terms of profit margin for women, literates, young people, middlemen and sellers in Kolokonde regional market. The municipal authority's levy has a negative effect on profitability, while the undersupply of chickens and average volume of sales per market day and provision of market shelters have positive effects. The level of state authority's levy, provision of market infrastructure, women and youth empowerment programmes and behaviour of poultry suppliers have implications for policy measures in the poultry sector.