Structure of imported chicken market and willingness of distributors to accept domestically produced and processed chicken: evidence from Ghana

Figures & data

Table 1. Variables in the double hurdle model.

Variable	Explanation	Expected sign
Dependent variables
Accept	Distributors willingness to accept locally produced chicken, measured as a dummy 1 for accept and 0 otherwise
Start volume	Percentage of poultry capacity distributors are willing to start with (%)
Independent variables
YrsEdu	Years of education (years)	+
YrsBus	Number of years spent in this business (years)	+
FORMBus	The part the firm plays in the supply chain (0= retailer; 1= wholesale; 2= importer	±
FormOwn	Form of ownership, measured as a dummy, 0 for sole proprietorship and 1 for partnership	±
Safety	Distributors perception on the safety of accepting local poultry products, measured as a dummy, 1 for yes and 0 otherwise	±
Tcapacity	The total capacity of the firm(kg)	±
PerPoultry	Percentage of infrastructure for poultry products (%)	±
Accredit	Access to credit, measured as a dummy, 1 for yes and 0 otherwise	±

Table 2. Socio-demographic characteristics of respondents (1).

Variable	Retailers		Wholesalers		Importers		Total sample
	N = 117%		N = 43%		N = 22%		N = 182%
Sex
Female	65	55.6	24	55.8	5	22.7	94	51.6
Male	52	44.4	19	44.2	17	77.3	88	48.4
Marital status
Single	0	0	2	4.7	9	40.9	11	6.0
Divorced	3	2.6	0	0	0	0	3	1.6
Married	114	97.4	41	95.3	13	59.1	168	92.3
Form of ownership
Sole proprietorship	117	100	23	53.5	6	27.3	146	80.2
Partnership	0	0	15	34.9	1	4.5	16	8.8
Limited liability	0	0	5	11.6	15	68.2	20	11.0

Table 3. Socio-demographic characteristics of respondents (2).

Variable	Retailers		Wholesalers		Importers		Total sample
	Mean	Std. dev.	Mean	Std. dev.	Mean	Std. dev.	Mean	Std. dev.
Age	43.94	9.363	42.116	9.622	36.909	8.788	42.66	9.58
Education (years)	10.06	3.687	11.419	1.789	16.00	2.742	11.099	3.74
Business (years)	9.558	7.700	14.209	7.415	6.591	4.113	10.298	7.64
Capacity (kg)	246.18	180.28	24,767.44	18,385.86	25,681.82	15,760.52	9144.56	15,787.05
%Poultry (capacity)	66.94	17.74	57.674	17.56	61.363	33.24	64.077	20.43

Table 4. Gini coefficient analysis for wholesalers.

Importers	Frequency		Proportion of wholesalers (Z)	Cumulated proportion of wholesaler	Sales (GHC)	Proportion of sales	Cumulated proportion of sales (Q)	ZQ
1–5	5		0.227	0.227	627,000	0.043	0.0431	0.010
6–10	5		0.227	0.454	1,104,500	0.0759	0.119	0.027
11–15	5		0.227	0.681	2,905,000	0.199	0.319	0.072
16–22	7		0.318	1	9,897,600	0.680	1	0.318
Total	22		1		14,534,100	1		0.427
Wholesalers	Frequency		Proportion of wholesalers (Z)	Cumulated proportion of wholesaler	Sales (GHC)	Proportion of sales	Cumulated proportion of sales (Q)	ZQ
1–10	10		0.232	0.232	418,500	0.078	0.078	0.0181
11–20	10		0.232	0.465	493,500	0.092	0.170	0.039
21–30	10		0.232	0.697	1,137,000	0.212	0.383	0.089
31–43	13		0.302	1	3,300,000	0.616	1	0.302
Total	43		1		5,349,000	1		0.449
Retailers	Frequency	Proportion of wholesalers (Z)		Cumulated proportion of wholesaler	Sales (GHC)	Proportion of sales	Cumulated proportion of sales (Q)	ZQ
1–20	20	0.170		0.170	4350	0.016	0.016	0.002
21–40	20	0.170		0.341	8920	0.033	0.049	0.008
41–60	20	0.170		0.512	16,516	0.061	0.111	0.018
61–80	20	0.170		0.683	33,782	0.125	0.236	0.040
81–100	20	0.170		0.854	64,660	0.241	0.477	0.081
101–117	17	0.145		1	140,060	0.522	1	0.145
Total	117	1			268,288	1		0.297

Note: Importers: Gini coefficient = 1 − ∑ZQ = 1 − 0.428 = 0.572; wholesalers: Gini coefficient = 1 − ∑ZQ = 1 − 0.450 = 0.550; retailers: Gini coefficient = 1 − ∑ZQ = 1 − 0.297 = 0.702; GHC = Ghana Cedis.

Table 5. Willingness to accept locally produced chicken.

	Retailers		Wholesalers		Total sample
WTA category	N = 117	%	N = 43	%	N = 160	%
Same price
Yes	115	98.3	41	95.3	156	97.5
No	2	1.7	2	4.7	4	2.5
10% More price
Yes	105	89.7	27	62.8	132	82.5
No	12	10.3	16	37.2	28	25.3
25% More price
Yes	39	33.3	11	25.6	50	31.25
No	78	66.7	32	74.4	110	68.75
50% More price
Yes	28	23.9	11	25.6	39	24.4
No	89	76.1	32	37.2	121	78.6
100% More price
Yes	12	10.3	4	9.3	16	10
No	105	89.7	39	90.7	144	90

Note: WTA means willingness to accept.

Table 6. Percentage of poultry capacity distributors are willing to start with.

	Retailers		Wholesalers		Total sample
Percentage	Mean	Std. dev.	Mean	Std. dev.	Mean	Std. dev.
Same price	24.304	11.217	24.815	12.082	21.943	12.273
10% More price	22.286	9.633	21.220	8.932	22.279	9.848
25% More price	19.231	10.101	18.182	9.558	19.000	9.897
50% More price	18.889	9.337	16.364	10.023	18.158	9.474
100% More price	17.546	11.716	13.750	11.087	18.000	11.464

Table 7. Factors that determine willingness to accept and extent of acceptance.

	Probit		Truncated		Tobit
Variable	Coeff	SE	Coeff	SE	Coeff	SE
Years of education	0.046	0.047	−0.58**	0.24	−0.67***	0.24
Years of business experience	−0.03*	0.018	−0.057	0.14	−0.023	0.13
Form of business	−1.12***	0.32	−1.45	2.44	−2.67	2.48
Capacity	0.00	0.00	0.00	0.00	0.00	0.00
% of infrastructure for poultry products	0.01**	0.086	0.041	0.048	0.04	0.48
Form of ownership	−1.79	0.44	8.98*	4.62	9.76**	4.69
Safety	0.22	0.38	11.5***	2.57	12.1***	2.43
Access to credit	−1.62***	0.79	13.6*	7.67	10.34	6.57
Constant	4.56***	1.22	2.65	8.95	5.95	7.99
Number of obs.	182		135		182
LR chi^2(8)	100.40***		39.21***		45.54***
Log-likelihood	−43.87		−477.86		−461.74
Pseudo R^2	0.53				0.047
Sigma			8.86	0.60	9.04	0.58
Likelihood ratio statistic	119.98

Note: The asterisk; *, ** and *** means 10%, 5% and 1% significance levels, respectively, and LR is likelihood ratio.

Table 8. Factors that determine willingness to accept and extent of acceptance (Heckman model).

	Stage 1		Stage 2
Variable	Coeff	SE	Coeff	SE
Years of education	−0.48*	0.25	0.046	0.047
Years of business experience	−0.08	0.14	−0.033*	0.018
Form of business	−2.39	4.23	−1.12***	0.32
Capacity	0.00	0.00	0.00	0.00
% of infrastructure for poultry products	0.015	0.06	0.019**	0.008
Form of ownership	4.29	10.46	−1.79***	0.44
Safety	10.53***	2.48	0.22	0.38
Access to credit	8.02	10.21	−1.62**	0.79
Constant	9.97	11.50	4.56	1.22
Number of obs.	175
LR chi^2(7)	43.92
Sigma
Mills ratio	5.01

Note: The asterisk; *, ** and *** means 10%, 5% and 1% significance levels, respectively, and LR is likelihood ratio.

Table 9. Perceived opportunities and constraints of accepting locally produced chicken by actors in the frozen chicken supply chain.

Opportunity	Freq	%	Constraint	Freq	%
Alternative to consumers	103	38.3	High prices	82	26.7
Economic benefits	58	21.6	Small size of cutting	56	18.2
Fresh products	26	9.7	Poor quality	55	17.9
Less transport cost	24	8.9	Difficulty in penetrating the market	55	17.9
Ability to authenticate production process	21	7.8	Poor packaging	38	12.4
No duty and related charges	19	7.1	Unreliability of supplies	19	6.2
Low prices	18	6.7	Importers may be out of business	2	0.7
Total	269	100	Total	307	100

Figure A1. Lorenz curve for importers.

Figure B1. Lorenz curve for wholesalers.

Figure C1. Lorenz curve for retailers.

Data availability statement

We, the authors of this manuscript, would like to confirm that all raw data will be available with a reasonable request.