Ghana’s poultry industry faces a major competitiveness challenge as high intermediary margins push the price of locally produced chicken above imported alternatives, threatening domestic producers’ efforts to capture a larger share of the market.
Deputy Minister of Agriculture John Dumelo said middlemen were significantly increasing poultry prices between the farm gate and the final consumer, making locally produced chicken less affordable despite farmers selling at relatively lower prices.
Speaking at a Ghana-Netherlands poultry round-table discussion in Accra, Mr Dumelo said the pricing structure was making locally produced poultry less competitive and undermining efforts to expand domestic production and reduce reliance on imports.
He explained that poultry sold by farmers for about GH¢80 could reach consumers at approximately GH¢200, reflecting the substantial price difference along the distribution chain.
“One thing that is of concern to me is the cost of producing poultry. If you look at the cost of production, the number of middlemen that carry it to the consumer, so yes, even though the farmer sells at affordable prices, maybe GH¢80 before it gets to the final consumer, it is around GH¢200,” he said.
The price difference raises concerns about the ability of local poultry businesses to compete with imported products, particularly when consumers prioritise affordability.
Even where domestic farmers can increase production, high distribution costs and limited direct access to consumers could weaken demand for locally produced chicken, restricting the commercial incentives for businesses to expand their operations.
The situation also highlights the importance of improving market access and distribution systems alongside efforts to increase production capacity.
Mr Dumelo said the government was taking the poultry sector seriously, particularly in view of Ghana’s heavy reliance on imported chicken.
The Netherlands Ambassador to Ghana, Hans Akerboom, disclosed that about 80% of Ghana’s poultry supply was imported, underscoring the scale of the domestic market currently served by foreign producers.
Ghana imported poultry worth approximately €18 million from the Netherlands alone in 2024, in addition to supplies from Belgium, the United States and Brazil.
The figures highlight the commercial opportunity available to Ghanaian poultry producers if they can improve their competitiveness, expand production and supply the market at prices consumers can afford.
However, increasing domestic output alone may not be sufficient if the cost of moving poultry from farms to retail markets continues to inflate prices.
To address some of the challenges facing the industry, Mr Dumelo and Mr Akerboom signed a memorandum of understanding to strengthen cooperation between Ghana and the Netherlands in the poultry sector.
The agreement is expected to provide a framework for technical support, knowledge exchange, innovation and investment to help develop Ghana’s poultry industry.
Mr Akerboom said the partnership would seek to create conditions for Ghanaian poultry farmers to expand their businesses, supply the domestic market consistently and benefit from existing demand.
He said the Netherlands’ experience in developing its poultry industry through sustained investment in knowledge and innovation could offer useful lessons for Ghana.
The cooperation could support improvements in production methods, technical capacity and business operations, although the scale of investment, funding arrangements and implementation timelines were not specified.
For Ghana, the economic stakes extend beyond poultry farmers to feed suppliers, processors, distributors, retailers and other businesses along the value chain.
A stronger domestic poultry industry could create opportunities for local businesses, support employment and reduce the share of consumer spending directed towards imported products.
The partnership also aligns with the government’s Feed Ghana programme and its 24-Hour Economy initiative, which seek to expand agricultural production and create opportunities for business growth.
Ultimately, the success of the initiative will depend on whether improved technical capacity and investment translate into more competitive production costs, efficient distribution and affordable locally produced chicken.
