Profitability, market outlets and constraints to Ghana's pig production

Abstract

Access to profitable marketing outlets by small-scale pig producers is a major concern in Ghana. This study uncovered the market outlets available to small-scale pig farmers and examined the profitability of these outlets, the factors influencing their choice of these outlets as well as constraints to the marketing of small-scale pig farming in Ghana. It used data collected from 398 small-scale pig farmers in selected districts of six regions in Ghana. Descriptive statistics, income statement and multivariate probit model were used in analyzing the data. The results indicate that small-scale pig farmers in Ghana utilize existing market outlets such as direct sales to consumers, retailers, commission agents and sales through farmer associations. The return on investment implies that small-scale pig production is a profitable venture with sales through farmer associations being the most profitable outlet. We therefore conclude that pig farming, although profitable across all outlets, is most profitable when channeled through farmer associations, with an impressive return on investment of 71.54%. The results of the multivariate probit analyses also revealed that the choice of marketing channel for pig farmers is influenced by price per kg of pigs sold, feed cost, gender, herd size, educational level, association membership, land ownership, credit accessibility, availability of storage facilities and access to market information. Finally, the analysis of marketing constraints revealed that price instability, market instability, and access to market information are the most pressing constraints to pig production in Ghana. The findings suggest that small-scale pig farmers can boost their incomes by developing direct sales through farmer associations to help increase their bargaining power and reap more benefits in the pig value chain. Also, the study recommends that addressing key constraints like price instability by providing access to real-time market information through digital platforms could modernize the small-scale pig farming sector in Ghana.