August 23, 2013
Prices of feed in Ghana have been increasing rapidly due to the rising cost of corn.
According to a USDA 2013 report on Ghana's poultry industry, the average price of a 100-kilogramme bag of white corn in 2011-12 was US$39, up from US$28 in 2010-11.
The report stated that Ghana requires over 20,000 tonnes of corn for feed production alone to sustain the industry annually. It also added that Ghana has about 15 commercial feed mills with a total installed operating capacity of about 1,000 tonnes daily.
However, the report said that most feed millers are only producing at about 40% - 50% of their capacity due to low demand from the local poultry industry and are mostly small scale operators. The annual average amount of compound feed produced in Ghana is about 100,000 tonnes for the past few years. According to the USDA, poultry feed accounts for about 70% of the total feed output in Ghana.
Meanwhile, the poultry industry consumes nearly 30% of all corn produced in Ghana, with soymeal providing the main source of protein for poultry feed. Ghana's poultry feed industry has shifted to producing layer feed due to an increase in poultry layer producers.
About 90% of feed produced by commercial feed millers is layer feed. Broiler feed is mainly purchased by small scale backyard poultry producers as most large scale operators produce their own feed. However, the USDA contended that there is a seasonal feed demand from the larger producers who raise birds for festive seasons such as Christmas and Easter.
The report said that Ghana requires an estimated 8,000 tonnes of soymeal in the preparation of poultry feed, adding that the inclusion level of soymeal ranges from 10% to 18% of the feed ration for layers and 15% to 25% for broilers. It noted that controlling animal feed costs is critical in the industry since it represents approximately 82% of the variable production cost.
For this reason, feed manufacturers are switching to low cost substitutes such as palm-kernel cake, groundnut cake, fishmeal, and by-products of agro-processing, according to the USDA.
