Role of policy frameworks and social cohesion for sustainable value chains and livelihoods in Ghana

Case Study 5: Role of policy frameworks and social cohesion for sustainable value chains and livelihoods in Ghana

How can enhanced policy frameworks and governance mechanisms improve the competitiveness and sustainability of domestic poultry meat and thus contribute to protein self-sufficiency at the country level and decent livelihoods for farmers and others involved in poultry value chains?

Need for integrated, systemic, and participatory approaches in policy and governance to enhance poultry sector’s sustainability and competitiveness.
The lack of awareness and misalignment between policies and interventions and the poultry sector’s needs underscores the importance of enhanced communication, collaboration, and mutual support among stakeholders to foster a more cohesive and resilient community in addition broadening scope of interventions in the sector.
Without economic interventions to reduce operational costs for poultry farmers and enhance the sector’s competitiveness (e.g., subsidies for feed, tailored technology transfer and capacity building services), the financial viability of poultry farming remains precarious.
The high membership rates of poultry farmers in associations point to their potential as critical conduits for information dissemination, capacity building, and advocacy. Although there is a wide range of benefits from being a member of associations, poultry farmers do not perceive in practice all the benefits recognized in theory. This gap indicates areas where farmers’ associations could benefit from policies that help them to strengthen scope and services to better meet the needs and requirements of association’s members.

Over six decades, a variety of policy measures have been instituted, ranging from development plans to strategies focused on poverty alleviation, enhanced productivity, and environmental sustainability. These policies, coupled with targeted projects and reforms in trade and import regulations, highlight attempts at a comprehensive approach to fostering a resilient and prosperous poultry industry.

The key policy related to the poultry sector in Ghana is the Ghana Livestock Development Policy and Strategy (GLDPS, 2016), which aim is to alleviate poverty, improve livestock production and productivity, and ensure environmentally sustainable practices. It provides a comprehensive framework to enhance the poultry sector’s productivity and sustainability. Furthermore, it supports small-scale farmers, promoted disease control, and encourages value addition to livestock products.

The Food and Agriculture Sector Development Policy (FASDEP) directly impacts the poultry sector by encouraging diversification and value addition, contributing to improved local production and market stability.

The Medium-Term Agricultural Devleopment Plan (MTADP) aims to modernize agriculture through increased investment, technological advancement, and improved practices, which are essential for the growth of the poultry sector.

The tax regimes in Ghana are responsible for establishing high import tariffs on poultry to protect local production. Customs duties on poultry imports such as feed additives and veterinary drugs should be removed to support local production.

Furthermore, Ghana’s trade agenda follows the Economic Community of West African States’ (ECOWAS) regulation, and the regional partnership agreement with the EU (FAO, 2015). According to the interim iEPA, Ghana will gradually remove its import duties for 78% of EU exports between 2020 to 2029; however, in Ghana’s iEPA, poultry meat is excluded from liberalization and hence makes provisions for 35% tariff on poultry meat and 5% for feed (Zamani et al., 2022).

Domestic poultry meat in Ghana is currently not able to compete with imported products – often subsidized and processed – for four main reasons:

High production and transaction costs
Increased incidence of emerging and re-emerging animal diseases, particularly the Avian Influenza.
Lack of improved breeding stock and increased dependence on imports.
Inadequate infrastructure for poultry and livestock production, processing and marketing.

This case study employs a research methodology that is fundamentally qualitative, complemented by a mixed-methods approach. Central to this methodology is the application of the TEEB Agrifood framework, a tool designed to explore the complex interactions within the food system and its impact on diverse types of capital, including environmental, social, human, and produced capital. This framework will be used in combination with the following methods and tools:

Literature review
Key informant interviews: 48 poultry farmers, 3 policy makers, and 4 feed millers and input dealers.
Causal Loop Diagram Modeling: To inform collective exploration and discussions about interrelationships and dynamics.
Cost-Benefit Analysis: Evaluation of the financial feasibility of investments in the poultry sector – broilers and layers.

The analyses are based on (i) the secondary data collected during the literature review; and (ii) primary data collected by way of interviews with farmers and policy makers.

The data emanating from interviews with farmers detail various aspects of their operations, which can be broadly categorized into the following areas: basic information, farm details, type of bird produced, operational and economic data.

The data collected via key informant interviews with policymakers include sections dedicated to describing various components of the poultry sector, including: Production (imports, distribution, market structures, and input dealer network and density), challenges and solutions, policy interventions, regulatory environment, access to finance, R&D, market access and trade policies, capacity building and training, and sustainability and environmental policies.

The case study allowed us to derive policy recommendations based on a comprehensive and systemic analysis of the poultry sector situation in Ghana.

Review and streamline regulatory processes to support the poultry sector. Enforce quality standards to enhance local products’ quality and competitiveness.
Invest in poultry infrastructure to reduce transportation and operational costs. Modernize local hatcheries to reduce reliance on imported day-old-chicks.
Strengthen local feed production through subsidies, technical assistance, and research into alternative feed ingredients.
Implement biosecurity measures (incl. vaccination and training programs) to control the spread of diseases.
Facilitate access to finance by offering products tailored to poultry farmers’ needs.
Promote and strengthen farmers’ associations and cooperatives to reduce costs, improve market access, and amplify the voices of poultry farming community in policy and decision-making.
Encourage the adoption of sustainable farming practices that improve efficiency and reduce environmental impacts.
Promote the consumption of local poultry products through marketing campaigns and incentives.