Abstract
Frozen chicken import, domestic chicken production, and real exchange rates in Ghana: A trivariate causality analysis
Highlights
Ghana is the third major importer of frozen chicken in Africa after Angola and South Africa (USDAERS, 2020, see Graph 2)
The results indicate a bidirectional causal relationship between frozen chicken import and domestic chicken production and a unidirectional causality running from domestic chicken production and frozen chicken import to real exchange rate
The main objective of the study was to establish the existence of a joint causal relationship between frozen chicken import, domestic chicken production, and real exchange rate in Ghana using frequency domain causality test, granger causality test, unrestricted Vector Autoregressive (VAR) framework, and annual data from 1964 to 2016
Summary
Ghana is the third major importer of frozen chicken in Africa after Angola and South Africa (USDAERS, 2020, see Graph 2). Ghana is the third major importer of frozen chicken in Africa after Angola and South Africa Ghana imports over 240,000 MT of chicken, beef, and other meat to make up for its meat deficit costing over US$375 million annually (Ministry of Food and Agriculture, 2019). Evidence shows that the country spends about $300 million annually to import frozen chicken National demand for poultry meat alone in Ghana is projected to be 400,000 MT with domestic production of just about 57,871MT (Ministry of Food and Agriculture, 2019). Poultry meat consumed in Ghana include chickens, guinea fowls, ducks, turkeys and ostrich, chicken is generally consumed (USDA, FAS, 2008). In Ghana, broiler meat imports constitute over 80 percent of the total meat imports (Ministry of Food and Agriculture, 2019). Chicken production has increased, there has been an increase in consumption in Ghana which far outweighs the supply (Amanor-Boadu et al, 2015)
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