Looming poultry products scarcity may hit this Christmas season, according to recent reports.

Looming poultry products scarcity may hit this Christmas season, according to recent reports.

Hittin' a Rough Patch in Ghana's Poultry Sector

Local Chicken Shortage Might Impact Festive SeasonOver 200 Farms Wiped Out by COVID, Avian FluSoaring Broiler Prices Loom

Worries are mounting for Ghanaian poultry lovers ahead of the holiday season as the local industry grapples with a perfect storm of challenges, threatening a shortage of locally-produced chicken. From COVID-19 to avian flu, and worries over supply chain issues for day-old chicks, the sector appears to be in deep trouble.

In an exclusive sit-down, Michael Nyarko-Ampem, a leading player in Ghana's poultry sector, painted a grim picture of the current state of affairs.

"I can confidently say that close to 200 farms have gone under because of COVID-19. The price of raw materials for feed has shot up, margins are slashed, and obtaining day-old chicks on time for Christmas has become a challenge," he lamented.

The Harsh Reality of COVID-19

According to Nyarko-Ampem, the pandemic's devastating impact extended beyond sales and production cutbacks, leading to a mass exodus of farmers from the industry. "In regions like Ashanti, Bono East, and Bono, where we have the bulk of poultry farmers, I'd fate about 200 farmers have had to call it quits," he said.

Further compounding the doom and gloom, avian flu has been striking poultry farms across the Ashanti and Bono Regions, putting additional pressure on the industry's fragile recovery.

A Combative Government

Despite the government's good intentions and support for the sector, Nyarko-Ampem suggests that the looming local chicken shortage couldn't have been averted. He remarks that most of the problems facing the industry are external in nature.

"The Ministry of Agriculture is doing its best, supplying raw materials for feed and importing day-old chicks. However, global shortages mean even licensed importers can't secure supplies," he anxiously admitted.

These crippling supply issues have left some day-old chick suppliers unable to meet their obligations, leading to refunded deposits for farmers.

As it stands, Ghana still imports around US$400 million worth of chicken annually, representing 200,000 to 250,000 metric tons. Although local producers are striving to increase their market share, sitting at roughly 10%, Nyarko-Ampem expresses concern that this year's struggles could erase all previous gains, leaving the industry in the hands of importers.

Government's Broiler Revitalization Program

Amid this bleak landscape, the Government of Ghana introduced the Broiler Revitalization Program to resuscitate the sector. In collaboration with the Ministry of Food and Agriculture, Bank of Ghana, Ghana Incentive-based Risk Sharing System for Agricultural Lending (GIRSAL), and the Out-grower and Value Chain Fund, the program aims to provide GH¢500 million in soft loans to businesses in Ghana's poultry value chain.

The initiative intends to de-risk agricultural operations, boost production, lower imports, and generate employment opportunities for the youth. The ultimate goal? Make Ghana self-sufficient in poultry products.

Despite these efforts, the challenges facing Ghana's poultry sector are severe, and time is running out. With Christmas just around the corner, many poultry farmers find themselves in a race against time to restock and meet the season's high demand.

Avian Influenza: A Threat Beyond Ghana

• The global poultry industry has been rocked by outbreaks of Highly Pathogenic Avian Influenza (HPAI). The resulting culling of poultry flocks and disruption of supply chains has reduced the bird population and increased concerns over local shortages.
• International trade partners have enacted import bans or restrictions, further complicating the situation.
• Local farms in Ghana are at risk if outbreaks occur or if preventative measures (such as import restrictions) limit the availability of day-old chicks.

COVID-19: Labor and Supply Chain Woes

• COVID-19 caused labor shortages and supply chain bottlenecks, idling meat plants and poultry farms and disrupting the movement of goods.
• Despite easing COVID-19 restrictions, legacy issues such as reduced investment, delayed logistics, and higher costs for inputs continue to plague the sector.

Day-Old Chicks Supply: Questions of Cost and Availability

• Ghana relies heavily on imports for day-old chicks, particularly from countries with advanced poultry genetics. Disruptions to international shipping, increased tariffs, and disease-related bans limit the availability of these chicks.
• Supply chain snarls increase the cost and reduce the availability of day-old chicks, making it difficult for local farmers to restock and expand production to meet seasonal demand.
• Beyond chicks, feed prices and availability are also affected by global supply chain issues, challenging production efforts.

Conclusion

A perfect storm of challenges, including avian influenza scares, ongoing COVID-19-related supply chain disruptions, and issues obtaining day-old chicks, is brewing in Ghana's poultry sector. The result? A potential chicken shortage ahead of the holiday season.While some global markets are adapting to these new threats, the cumulative effect on local production and imports is significant. It remains to be seen whether Ghanaian poultry farmers can weather the storm, or if Christmas will bring surprising increases in chicken prices or a shift to imported poultry products.

1. The decline in Ghana's poultry sector, exacerbated by COVID-19 and avian flu, has led to the closure of over 200 farms, causing significant worry for the local youth involved in agriculture business and lifestyle.
2. The Government of Ghana, through the Broiler Revitalization Program, is offering soft loans to businesses in Ghana's poultry value chain to boost production, lower imports, create jobs for the youth, and ultimately make Ghana self-sufficient in poultry products.
3. Despite government support, the poultry industry faces challenges in obtaining day-old chicks for the festive season due to global supply chain disruptions, affecting food-and-drink businesses that cater to this sector.
4. The high prices of raw materials for feed and the difficulties in securing day-old chicks are putting additional pressure on businesses and farmers in the poultry sector, potentially impacting the economy and the country's Finance industry.
5. The ongoing hardships in the poultry sector threaten to erase previous gains made by local producers, shifting the balance further towards imports in Ghana's food-and-drink and lifestyle markets.

Read also: