BM Animal Farms

BM Animal Farms

BM Animal Farms is made up of two categories of animals; Piggery and Poultry

The Major Gap of the Livestock Industry

The piggery sector, and the role that animals play in the household economy in Ghana, are anticipated to change rapidly in the coming decades. Consumers are increasingly demanding high-value agricultural products including pork products. In this fast-changing context, good-quality livestock data are needed for designing and implementing policies and investments that promote the sector’s social and sustainable development. Available livestock data, and the derived statistics or indicators, however, are largely considered inadequate for effective decision making. Ruling governments, agriculture advocates, and livestock stakeholders including farmers have neither adequate facts nor the essential tools essential to analyze the performance and investment decisions affecting the agricultural sectors. Governments and research scientists are under increasing pressure to implement the right management decisions in the face of a dynamic political and socio-economic landscape. The domestic and worldwide challenges currently fronting the livestock sector in Africa (including Ghana) are highly complex in nature. This research gap regarding inadequate information is likely to continue for these several reasons: inadequate support for research, high inflation, administrative complacency, and the use of the traditional approach to addressing livestock challenges often undermine the success of its sustainability. History suggests that these problems cannot be solved with the traditional approach in isolation and with single-dimensional mindsets and tools. Livestock sustainability may benefit from a systemic approach to interventions and capacity-building based on systems thinking and complexity management to address challenges holistically to deliver the desired sustainable outcomes

Analysis of Ghana’s Pork Industry

The growth of Ghana’s domestic livestock industry has been impeded by several constraints such as lack of improved breeding stock and production information leading to importation to subsidize meat consumption. This crisis and change have created new needs and the fulfillment of these needs is a business opportunity with the potential to provide employment and sustainable income generation. Recent developments show that the country has the potential to increase the off-take of livestock and produce good quality meat to satisfy a greater part of the nation’s animal protein requirements. Pork is the most widely consumed meat in the world. People eat many different pork products, such as bacon, sausage, pork chops, and ham. Several valuable products or by-products, in addition to meat, come from swine. These include insulin for the regulation of diabetes; valves for human heart surgery; suede for shoes and clothing; and gelatin for many food and non-food uses. Swine by-products are also important parts of such products as water filters, insulation, rubber, antifreeze, certain plastics, floor waxes, crayons, chalk, adhesives, and fertilizer. However, inflating costs for swine feed and swine production have worsened the plight of pig farmers and result in rising pork prices and contributed to the world shortage of pork products. In the last ten years, Ghana’s market for pork has been rising at an impressive rate which is well above that of other livestock products. This pattern in various regions of Ghana has been shaped by several factors such as demographic growth, economic, scientific, and technological progress as well as policies aimed at increasing production. Other factors contributing to the increasing widespread consumer acceptance concerning pork and pork products include dietary concerns that favor substitution of red meat with white meat and industry effort in creating added values to respond to consumer demand for innovative and high-quality products. From 2008 to 2013, pork prices in Ghana rose rapidly between 115-120 percent i.e. the price of a kilogram of pork ranged between 2.1$ to 4.53$ depending on maintenance.

Industry Potential

In Ghana, the Agriculture sector growth rates declined from 4.6 percent in 2014 to 0.0 percent in 2015. Of all the agriculture activities the livestock subsector recorded the highest growth of 9.3 percent in 2015. The piggery sector which contributes to household income is one of the fast-growing sectors of the livestock industry because of an increase in pork consumption. Pork production rose from 11,173 MT in 1999 to 17,512 MT in 2009 with pork production index ranging from 98 to 154 within the same period. Pork imports in Ghana rose from 358.1 MT in 2000 to its peak of 13,290.5MT in 2006 and dropped to 3150.2 MT in 2009. Piggery represents a form of cash security of the livelihood strategies of many farmers and plays a central role in their socio-economic and cultural identity, and is a source of food, employment, food security, and also assets for store or trade. The multiple roles of pig rearing and other indigenous livestock breeds are significantly acknowledged in different farming systems of Ghana including the intensive, semi-intensive, and free-range systems.

Analysis of Ghana’s Poultry Industry

Commercial poultry production in Ghana can be categorized into large-scale (over 50,000 birds), medium-scale (10,000 – 50,000 birds) and small-scale (less than 10,000 birds) enterprises. Domestic commercial farms are privately owned by individuals or a family. According to the Ghana Poultry Project (GPP) there are 29 large scale commercial poultry farms currently in Ghana and mostly found in the Ashanti region (13), Brong Ahafo (12), and Greater Accra region (4). These form about 20 percent of the total poultry sector, producing mainly eggs. Most operate their feed-mills. Some maintain a hatchery and parent stock. The level of biosecurity practice is high in a large-scale category. The medium-scale and the small-scale categories comprise 80 percent of the poultry sector and rely on hatcheries for their day-old chicks and feed mills for their feed. The medium-scale category also produces primarily eggs. Included in the small-scale category are backyard poultry producers who mainly produce broiler birds. The medium and small-scale operators practice minimal biosecurity. This sometimes allows free-range and wild birds to gain access to these poultry houses, predisposing these operations to disease outbreaks such as Avian Influenza. Some of the commercial poultry farmers produce broiler birds for sale only during the festive seasons (Christmas, Easter, Eid ul Fitr, Eid ul Adha), when Ghanaians buy live chickens. Most of the poultry producers also sell off spent layer chickens at these times. Even though there are local hatcheries that produce day-old chicks, the quality is generally low, so most poultry farmers prefer to buy imported day-old chicks, especially layer day-old chicks. In 2018, Ghana imported 511,960 broiler day-old chicks and 7,130,999 layer day-old chicks (source GPP). Currently, there is limited regulation on local hatcheries. The Government of Ghana is yet to pass into law a hatchery bill, which will ensure that quality day-old chicks are produced from domestic hatcheries. Currently, day-old chicks for commercial production are primarily produced by 15 local hatcheries and 8 importers according to the Ghana Poultry Project survey carried out in 2017. The importers mostly import the day-old chicks from the Netherlands and Belgium. Demand for day-old chicks exceeds supply by both local hatcheries and imports. Broiler and layer birds are kept exclusively indoors on deep litter and/or in battery cages and fed on well-formulated diets. The broiler birds attain 2.0-2.25 kg live weight at six to seven weeks and are ready for the market. Layer birds reach 16 weeks before pullets start laying eggs. The average industry egg production is 230 to 250 eggs per layer per year. The average cost per kg of producing broilers in Ghana is estimated at GH15 (USD 2.7) for large-scale producers and higher for small-scale producers. The average weight of live ready to eat broiler birds is between 2 – 2.25kg and that of dressed birds ranges between 1.5 – 1.9kg.

Trade

Poultry imports to Ghana keep increasing due to increasing demand and the decline in domestic commercial poultry meat production. Ghana poultry imports are supplied mainly from the United States, Brazil, and the EU. Despite decreasing imports between 2014 and 2016, supplies from the United States capture over 40 percent of market share, while European countries and Brazil have 25 percent each of the market share. Ghana continues to be a destination for U.S. poultry due to the strong relationships between importers and exporters and loyalty to U.S. poultry products.

Industry Challenges

The sector is faced with many challenges including the quality of vaccines, a nascent hatchery sector, inability of local feed mills to meet local demand due to inadequate maize and soybean production locally. At the production level, the major challenges include; inadequate bio-security systems, low-quality day-old chicks due to poor quality local hatcheries and lack of regulations to regulate the hatcheries, self-on-farm feed production, inefficient production systems, especially in feed wastage, abuse of antibiotics and poor linkages between input suppliers and marketers. Limited processing and cold chain facilities, high cost of local poultry production and inability to meet consumer preference and competition from imported poultry products are some of the challenges at the processing and marketing level.

Industry Opportunities

The increasing local demand for chicken and chicken products and the challenges faced by the sector currently presents a lot of opportunities for investment. At the input level, there is a high demand for poultry vaccines and feed. Poultry vaccines are not produced locally except the ND I2 vaccine produced to combat New Castle Disease; the rest are all imported to Ghana. This presents an opportunity for investment in poultry vaccines. The over 70 million birds in Ghana provides a huge opportunity to invest in poultry vaccines production locally. There is also a need for a huge investment opportunity in hatcheries and collaborations with existing hatcheries with technical support. Currently, there is limited regulation of local hatcheries. There are also inadequate testing facilities for feed making it difficult for farmers to test locally produced feed. There is also the need for investment in testing facilities for carcass and water due to the low density of such facilities. At the production level, farmers have very limited knowledge in feed formulation making it difficult to optimize their formulations. More than 80% of poultry farmers in Ghana produce their feed because of the cost of feed on the market. Feed cost constitutes about 60%-70% of the total cost of production, making the unit cost per live bird very high. Partnerships with local training institutions to run short courses for poultry farmers in the areas of bio-security systems, feed formulation, use of veterinary medicines, administering of vaccines, etc. can be explored. Opportunities also exist in large scale quality feed production. At the processing and marketing level, the opportunity exists for processing facilities, value addition to poultry meat, packaging materials, cold chain facilities (transport, storage, etc,). Farmers also have a huge installed capacity for bird production but are constrained by inadequate working capital making them good candidates for out-growers for either for broiler or layer production.