LFHCK a.k.a LiFeHaCK

Reviving Poultry: The Power of Managed Trade Policy

TEDDIE


By Raymond Denteh,


Introduction

Ghana used to be a symbol of self-reliance in poultry production within West Africa. During the 1970s and 1980s, poultry farms throughout the nation provided employment for tens of thousands, with the sector fostering a vibrant network comprising maize and soybean growers, feed manufacturers, veterinary service providers, processors, transportation companies, and shopkeepers. Poultry products were freshly sourced, locally produced, and reasonably priced.

This image underwent significant changes during the 1990s. The removal of trade barriers eliminated the protective tariffs that had previously shielded local Ghanaian chicken farmers. As a result, there was a flood of imported frozen chicken products that the home industry struggled to compete with.

With an influx of inexpensive foreign goods, many farms shut down, employment declined, and the markets for corn and soybeans contracted. Currently, Ghana uses about 400,000 metric tons of chicken each year, yet domestic output meets only under 60,000 metric tons. This shortfall is mostly covered through imports.


The EU’s Dominant Role

Of all Ghana’s trade allies, the European Union has made the greatest impression. Following Russia’s prohibition of EU chicken exports in 2014 and South Africa implementing limitations in 2016 because of bird flu, EU sellers shifted their extra supplies towards West Africa. Ghana, featuring an open marketplace and growing consumer interest, emerged as a top choice.

The outcome was catastrophic. Ghanian farmers were driven from the marketplace, struggling to match the price of imported frozen chicken, which cost less than raising a live bird locally. The EU’s approach of shielding local producers with tariffs and subsequently exporting surplus pieces—like wings, legs, and breasts—to Ghana exemplifies classic unjust trading practices.


Brazil’s Growing Influence

Brazil has consistently ranked among the top global poultry exporters. Thanks to significant production capabilities, inexpensive feed expenses, and efficient scaling operations, Brazilian poultry firms have set their sights on Africa as a growing market. For Ghana, imports from Brazil pose two main difficulties:


  1. Price Competition

    Brazilian chicken is one of the most affordable worldwide, frequently selling for less than European products. During periods when the EU imposes trade limits (like during bird flu import bans), Brazilian sellers take advantage to enter the market, adding more instability to Ghana’s chicken industry.

  2. Market Substitution

    If Ghana manages to limit EU imports effectively without an overall trading agreement, Brazilian chicken might quickly take their place, resulting in little improvement for local farmers. This replacement impact highlights the importance of ensuring Ghana’s controlled trade strategy encompasses…

    all key vendors, not only those from the EU

    .

Brazil’s effectiveness relies on inexpensive corn and soy produced through its local agricultural business. For Ghana, this underscores the importance of building up its internal feed production. Should Ghana fail to create low-cost feed in large quantities, its farmers will struggle to match Brazilian exports, which have an inherent cost benefit.


The USA’s Impact

The United States also stands as a significant global supplier of poultry products, particularly frozen chicken pieces that hold lower appeal within the domestic market. Similar to the European Union, the U.S. keeps premium portions for local consumption and sells excess sections at reduced prices to countries such as Ghana.

The arrival of U.S. chicken has made it even harder for local farms in Ghana to survive. Additionally, American agricultural exports present a regulatory difficulty because they rely on extensive industrial farming methods, which frequently face criticism regarding animal treatment and health safety concerns. Ghana lacks significant influence over setting these standards, making it susceptible to an inflow of inexpensive but substandard poultry products.


China’s Emerging Role

China is an emerging yet growing influence in Ghana’s chicken industry. Being the top global consumer and producer of poultry, China usually imports chickens only during periods of local scarcity. Nevertheless, in recent times, Chinese firms have started looking at African markets not just for purchasing purposes, but also as possible areas for investment.

The influence of China on Ghana may manifest itself in two ways:


  1. As an Exporter

    China has sometimes diverted poultry to West Africa when there was an excess supply. This introduces yet another player into a highly competitive import market.

  2. As an Investor

    Chinese agricultural companies have shown interest in investing in chicken farming operations, feed factories, and processing facilities in Ghana. Although this may introduce funding and advanced technologies, it has the potential to push aside domestic investors if not handled properly.

Therefore, China’s increasing involvement brings both chances and dangers. Ghana needs to establish conditions that make sure Chinese investments support but do not overshadow domestic supply networks.


What this means—partner-by-partner


Challenges Within and the Effect on Employment

Although international rivalry has severely impacted Ghana’s chicken industry, internal issues have also been significant. Elevated feed expenses (corn and soybean), insufficient animal health care services, inadequate breeding and hatching facilities, along with unaffordable and unsuitable financial support all lead to increased manufacturing costs.

The effect on jobs has been significant:

This drop has widespread consequences. Feed mills have lost their customer base, corn and soybean growers encounter lower demand, and supporting sectors—including transportation companies and processing firms—are shrinking.


The Necessity of an All-Encompassing Trade Management Strategy

A controlled trading approach does not revolve around protective measures. Instead, it focuses on structuring economic development so that local manufacturers can engage in fair competition. For Ghana, this implies:


The Bigger Picture

With effective management, the resurgence of Ghana’s poultry sector can do more than decrease reliance on imported products; it can enhance food stability, generate employment, and boost full supply networks. The corn and soybean sectors stand to gain from consistent market needs, whereas young business owners will find prospects in agriculture, transportation, manufacturing, and sales.

Recent research indicates that chicken farming initiatives in Ghana continue to be

economically feasible with returns on investment (ROIs) exceeding 20% per cycle

, despite considering death rates. This shows that the industry can succeed if imports are handled to establish the required marketplace.


Conclusion

The drop in Ghana’s poultry industry isn’t unavoidable—it stems from specific policy decisions made at home and abroad. Implementing an organized trade strategy with the EU, USA, Brazil, and China is essential for turning things around.

Without it, Ghana will continue to be stuck in reliance, keeping domestic manufacturers from accessing their own marketplace. With it, Ghana has the potential to establish a

virtuous cycle of growth

—safeguarding employment, rejuvenating feed grain markets, and making sure that future generations of farmers and businesspeople view poultry farming as a promising venture instead of a field of unsuccessful ventures.

Rebuilding Ghana’s chicken industry demands bravery, foresight, and compromise. It’s high time for structured commerce.

Supplied by SyndiGate Media Inc. (
Syndigate.info
).

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