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.
Highlights
Competitiveness of the global food market has raised concerns among economist and policy makers about the need for competitive advantage in the agribusiness sector of developing countries (Mugera, 2012; Grznár and Szabo, 2006)
Increasing the number of extension contacts broiler businesses receive in a batch as well as the number of batches of broilers produced will reduce the cost of broiler production to make the local industry gain competitive advantage
The results obtained in this study revealed that feed and one day-old chick costs constitute almost three-quarters of the average variable cost of broiler production
Summary
Competitiveness of the global food market has raised concerns among economist and policy makers about the need for competitive advantage in the agribusiness sector of developing countries (Mugera, 2012; Grznár and Szabo, 2006). This is so because competitive advantage ensures continuous survival and profitability of agribusinesses, and so has heightened the need for more competitive strategies to be developed for growth (Sánchez and Pérez, 2005). According to Porter (1985), the goal of all firms is to achieve a competitive advantage in relation to their rivals.
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