Abstract
This study examines the determinants of participation in broiler contract farming and its impact. The Probit and the Doubly Robust Augmented Inverse-Probability Weighting (AIPW) models were used in analysing the objectives. The findings revealed that education, experience, regular income, extension service and perceived low market risk in contracting and contractors' trustworthiness significantly influenced broiler contract farming participation, but payment terms negatively affected broiler contract participation. The findings also indicated that contract farming participation positively impacts total sales, farm capacity and total expenditure of farmers. The UNITY Model A of contract farming is recommended to boost the broiler industry in Ghana. The study further recommends future research into the survival rate of contract participants in broiler production.
Résumé
Cette étude se penche sur les déterminants de la participation à l'élevage de poulets de chair sous contrat et sur son impact. Le modèle Probit et le modèle doublement robuste de la pondération par probabilité inverse augmentée ont été utilisés pour analyser les objectifs. Les résultats ont révélé que le niveau de scolarité, l'expérience, les revenus réguliers, les services de vulgarisation, la perception d'un faible niveau de risque contractuel et la fiabilité des entrepreneurs influencent de manière significative la participation à l'élevage de poulets de chair sous contrat, mais les conditions de paiement ont un impact négatif sur cette participation. Les résultats ont également indiqué que la participation à l'agriculture contractuelle a un impact positif sur le total des ventes, la capacité agricole et les dépenses totales des agriculteurs. Le modèle UNITY A d'élevage sous contrat est recommandé pour stimuler l'industrie du poulet de chair au Ghana. En outre, l'étude recommande de futures recherches sur le taux de survie des participants contractuels à la production de poulets de chair.
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Source: Authors’ own, 2020


Source Authors’ own, 2020

Source Authors’ own, 2020

Source Authors’ own, 2020
Notes
Contract farming raises the issue of principal and agent where both the principal and the agent are risk-averse, self-seeking and have minimal rational thinking. As a principal, the organisation aims to prevent the risks and costs of the internal production and contracts farmers for rearing and supplying live broiler or broiler chicken meat. It is easier to manage the contract with an agent when the contract contains incentives to motivate the agent to work in the interest of the principal. Such benefits can be public (legal redress), private (contract terms) or a combination of both (Prowse 2012). The sides keep working together as long as there is enough opportunity for both sides to move on. From the principal-agent theory, there is a likelihood of conflict between principal and agent, which needs to be well managed to ensure contract farming success within the poultry sector.
Resource dependence theory is based on the idea of economic sociology that farms are embedded in networks of economic interdependencies and social relations. To acquire resources, farms should rely on their relationships with other entities, including competitors, suppliers, creditors, customers and governments. (Roundy and Bayer 2019). This theory has its own shortcomings which are reflected in a power imbalance and, at best, necessitate a compromise in bargaining power of the less-endowed party (Biermann and Harsch 2017; Casciaro and Piskorski 2005).
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Acknowledgement
We are profoundly grateful to the broiler poultry farmers who spent time to answer our questionnaires. We also express our deepest gratitude to Ms Wilhemina Kwabeng Owusu for her proofreading of the draft manuscript.
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This research did not receive any specific grant from funding agencies in the public, commercial, or not-for-profit sectors.
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Bannor, R.K., Gyekye, Y. Unpacking The Nexus Between Broiler Contract Farming and Its Impact in Ghana. Eur J Dev Res 34, 2759–2786 (2022). https://doi.org/10.1057/s41287-021-00489-8
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DOI: https://doi.org/10.1057/s41287-021-00489-8
Keywords
- Contract farming
- Impact
- Poultry
- Augmented inverse-probability weighting model


