Features And Profitability of Domestic Grass cutter Production in the Brong Ahafo Region
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Date
2009-07-14
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Abstract
The study determined the features and profitability of domestic grasscutter production in the Brong Ahafo Region. To achieve the study objectives, 100 domesticated grasscutter farmers were purposively selected from 7 out of the 15 districts in the Region. Data collected were analyzed using descriptive statistics, Net Present Value (NPV), Internal Rate of Return (IRR), Benefit Cost Ratio (BCR), and regression analysis. Results of the study revealed that domestic grasscutter production was dominated by small scale farmers who constituted 72 % of the total respondents, with an average stock size of 42 animals. Majority of the farmers (62.5%) were into grasscutter farming with income generation as the primary motive of production. The grasscutters were housed mainly in three-tier wood and mesh cages (80%) and concrete block cages (18%). With an NPV of GH¢982.075, a BCR of 1.350, and an IRR of 88% the project was found to be profitable. Sensitivity analysis revealed that the NPV of domestic grasscutter production is most sensitive to the combined effect of a 25% increase in cost of production and a 25% decrease in revenue, a condition that results in net losses. Results of the regression analysis also showed that discounted housing cost was the most important factor in determining profitability of domestic grasscutter production. High cost of housing, lack of access to credit, and dry season feeding were among the most critical problems listed by respondents. In addition to employment and food, promoting natural resource conservation by reducing bush burning for game, were identified as some externalities of domestic grasscutter production. It is recommended that credit facility be made available to existing and prospective domestic grasscutter farmers at reasonable repayment terms in order to facilitate farm expansion and start-ups.
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A Thesis Submitted To the School Of Graduate Studies, Kwame Nkrumah University of Science and Technology, Kumasi-Ghana
By
Cecilia Adomah Yeboah Jnr.
June, 2009