ISSN 2329-9797
International Journal of Agricultural Economics and Extension ISSN 2329-9797 Vol. 7 (5), pp. 001-005, May, 2019. © International Scholars Journals
Full Length Research Paper
Effect of formal credit on the performance of the poultry industry: The case of urban and peri-urban Kumasi in the Ashanti Region
Fred Nimoh1, Addo Kwasi1 and Enoch Kwame Tham-Agyekum2*
1Department of Agricultural Economics, Agribusiness and Extension, KNU. ST-Kumasi, Ghana.
2Department of Agricultural Extension, University of Ghana, Legon-Accra, Ghana.
Accepted 14 January, 2019
Abstract
Farm net income was used as a measure to investigate the effect of formal credit on the performance of the poultry industry. Forty credit and non-credit users each were selected purposively for the study. Regression model was employed for the analysis. Results showed that there was a significant difference (t-value of 0.012 at 5%) between the net income of large poultry farmers who used credit and those who did not. This means that large-scale poultry farmers are likely to perform better than small-scale farmers when credit is made available to both groups. Therefore it is recommended that formal financial institutions should focus on giving loans to large-scale poultry farmers while not neglecting the needs of small-scale farmers.
Key words: Credit, poultry industry, peri-urban, urban, Kumasi.