A study of the impact of loans to poultry farmers by financial institutions in urban and peri-urban region of Ashanti, Ghana

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 largescale poultry farmers while not neglecting the needs of small-scale farmers.