BREAK EVEN ANALYSIS OF BROILER PRODUCTION IN THE ACCRA-TEMA AND KUMASI AREAS

Authors

  • E.A. Mahama Agricultural Research Centre, University of Ghana, Legon
  • E.K. Andah Dept of Agricultural Economics & Agribusiness, University of Ghana, Legon
  • D.P.K. Amegashie Dept of Agricultural Economics & Agribusiness, University of Ghana, Legon
  • A. Mensah-Bonsu Dept of Agricultural Economics & Agribusiness, University of Ghana, Legon

DOI:

https://doi.org/10.19044/esj.2013.v9n21p%25p

Abstract

The paper examines the profitability of broiler production, using the break even concept. The break even quantities, net present values and internal rates of returns have been estimated for 20 selected poultry farms. Poultry farms located in Kumasi area broke even in the production of broiler while about 38.5 percent of the farms in Accra-Tema area produced below their break even levels. Only 30 percent of the farms registered positive net present value. Under an interest rate scenario of 25 percent about 70 percent of all farms, would be profitable (break even). The results suggest that lower interest rate is essential for more farms to break even (be competitive) and stay in the poultry business.

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Published

2013-07-12

How to Cite

Mahama, E., Andah, E., Amegashie, D., & Mensah-Bonsu, A. (2013). BREAK EVEN ANALYSIS OF BROILER PRODUCTION IN THE ACCRA-TEMA AND KUMASI AREAS. European Scientific Journal, ESJ, 9(21). https://doi.org/10.19044/esj.2013.v9n21p%p

Issue

ESJ June 2013 /special/ edition No.3

Section

Articles

License

This work is licensed under a Creative Commons Attribution 4.0 International License.