Production and trade of small ruminants in Ghana

Introduction

Small ruminant especially goat and sheep are economically significant in agricultural sector of most developing nations including Ghana. According to Winrock (1983) Sheep and goat are mostly reared by household members and required low maintenance costs, low start-up capital and can increase herd size within a short possible time. Livestock also serves as source of income, provide protein (meat and milk), manure and wool. It also serves as collateral for acquiring loan, saving and risk distribution mechanism for smallholder keepers in different farming systems and agro-ecologies in Ghana (Ehui et al., 2000 and Maikasuwa and Jabo, 2014).

Peacock (2005) corroborated that production of sheep and goats could be regarded as a first step on the ladder to take them out of poverty. Furthermore, Muriuki, (2001) mentioned that sheep and goats immensely contribute to household income and offer employment to majority of holders. Sheep and goats production also plays diverse social roles to natural and financial capital in ways that lead to sustainability of livelihoods and food security among rural poor households (Ange, 2002).

Ghana is enriched with indigenous livestock production, specifically small ruminant (sheep and goats), which are the major components of the pastoral farming. Adzitey (2013), estimated the total domestic population of live sheep and goat between 2001 and 2010 were 3,269,460 and 2,958,568 respectively. Sheep and goats form an integral part of livestock domestication in most urban and peri-urban households in Ghana. Oppong-Anane (2011) reported that 25 percent of 13.3 million small ruminants are produced by urban dwellers. Small ruminants are mostly reared in northern region of Ghana. While Tema, Kumasi and Accra metropolis are the major consumption areas.

Demand for small ruminants is driven by high population growth rate, rapid urbanization, increased income, health consciousness and a shift in consumption pattern (Delgado et al., 1999). While, Okali and Obi (1982) observed that major religious holidays have market effect on supply, demand and prices of small ruminants. Williams et al. (2003) stated that livestock trade in West Africa (live animal and leather) is intra-regionally linked between the Sahelian zones and coastal countries with most stock flowing from the Sahel (Burkina Faso, Niger, Mali)  where climatic conditions are best suited to livestock production to the coastal countries (Ghana, Cote D’Ivoire, Nigeria where the per capita income is higher).

Within Ghana, most small ruminants flow from low income surplus areas in the drier savannas to high income and populous deficit areas via long distance

trade. Currently, the demand for goat and sheep meat outnumber the supply in Ghana. Producers simply cannot meet up as demand has doubled the domestic production leaving a huge potential avenue for employment and income generation (Keyzer et al., 2005).

Livestock marketing encompasses the sale, purchase or exchange of live animals and their products (milk, meat, skins, wool and hides) for income or other commodities (ILCA, 1990). Marketing as an economic activity bridges the gap between production and consumption and creates linkages between sellers and buyers (Girei et al., 2013). Market does not mean a place where buyers and sellers meet, but the exclusive physical interaction between buyers and sellers in livestock trade in Africa and specifically Ghana give a geographical dimension to livestock markets (Godfrey, 2010).

Also, Ghana-Disrticts, (2006)  observed that there exists rural/village and road side markets operating periodically, where sellers of livestock meet to offer animals in trade with collectors, aggregators and middlemen among other buyers. Butchers or middlemen who convey animals to towns/cities or abattoirs are the major buyers from farmers. Most traders/middlemen in turn bear the transaction cost, road harassment, regulatory burden (paperwork, lost time and bribery among others) in moving live animals to district/regional or long distance inter-regional markets.

Regardless of these opportunities, there are marketing issues that hinder the effective performance of small ruminant markets. These issues need to be settled when developing a successful small ruminant’s production and marketing systems. Marketing of small ruminants in urban long distance destination markets in Ghana consist of few square meters open space where the goats and sheep are kept for sale (Asafu-Adjei and Dantankwa, 2001 and Amankwah, 2013).

The livestock market structure is characteristically lengthy (about 3 to 5 stages between producers and consumers) without significant value addition (Aklilu et al., 2013; Gebremedhin et al., 2007). Gebremedhin et al. (2007), observed that animals sold are mostly male, local breads with prices determined by bargaining, time of sale, distance travelled, body condition, colour, weight, ease of holding broker involvement and others. A controversial role of brokers was found in livestock markets as they are useful to traders in long distance marketing, involved in transactions and transportation.

But are said to charge too high unfixed commissions from buyers, sellers and transporters, engage in price misinformation, hindrance of transactions (Gebremedhin et al, 2007). They also assert that concentration of market power is limited in livestock markets as traders will rather keep holding to animals rather than accept very low prices, a situation they claim to as being arguably indicative of competiveness in the market.

Another unmistakable feature of livestock markets spatial disconnection between production zone and high consumption zones (Girei et al., 2013). The market structure includes producers, traders, retailers, food service providers and consumers. Public and private inputs and service providers as well as regulatory institutions (taxation, licensing and warranties) are involved (Negassa et al., 2011 and Gebremedhin et al., 2007). A malfunctioning market as revealed by its structure and conduct, however, has the potential to bring up higher transaction costs and inequities in income distribution among others.

Thus, excommunicates smallholder ruminant producers from market participation and put the realization of the potential of the livestock sub-sector in jeopardy. This work intends to share some light on the performance of the domestic urban live small ruminants market. Its contribution is in addressing the shortfall in the commercialisation agenda of previous interventions (NLSP 1993-1999 and LPD 2003-2009), where such motives are imputed without a comprehensive assessment of the market.

The approach is suggestive that unimpeded increase production naturally leads to increase commercialisation and efficient market performance and thus sidesteps the organisational and behavioural patterns of livestock markets. Whereas there is evidence of the capability of such factors turning markets into mechanisms for exploitation. Agricultural markets are analysed from a variety of theoretical perspectives including the functional, institutional, commodity, behavioural and managerial approaches. Even more robust is the Structure, Conduct and Performance (SCP) approach which is adopted in this study.

The purpose of this study is to analyse the performance of urban small ruminants markets in Ghana as well as identifying ways of protecting producers, traders and consumers welfare (food security, income poverty and nutrition). It will also build a better understanding of the challenges facing livestock traders in urban centres. This will inform policy and the decision makers on the best strategies to boost livestock productivity by gaining access to first-hand information. Finally, findings of the study will help bridge the information gap identified in the livestock market and enhance existing knowledge in structure, conduct and performance approach of agricultural markets.

Materials and methods

Description of Study: Areas

The study was conducted in two urban Metropolis Kumasi and Tamale of Ghana based on the predominant and consumption of small ruminant in these locations. Also another reason for choosing these urban towns is due to the numerous sheep and goats markets found in different locations of these Metropolis. Kumasi is the second largest city in Ghana, situated at the transitional forest zone and is about 270 Km north of Accra. Kumasi municipality is the most populous district in the Ashanti region and has a population of 2,396,458 with an annual growth rate of 4.8% (GSC, 2010). While Tamale city is located in the central part of the Northern Region and has population of 562,919 (GSC 2012 census). Tamale is third largest settlement in Ghana and the fastest growing city in West Africa (Ghana district report 2010). Most Tamale residents are moderate followers of Islam, as reflected by the multitude of mosques in Tamale (Ghana district report 2010).

Sampling Procedure and Sample Size

A multi-stage sampling method was employed for this research. Two urban cities were purposively selected due to distribution patterns of sheep and goats in the country. Furthermore, the selection of the study areas was due to the geographical disjoint in production and consumption of livestock. A pilot survey was conducted in Kumasi and Tamale towns in order to identify the existing markets and to develop the sample frame.

Data were collected from key informants such as market heads and experienced traders. Ten (10) major markets were selected in both Kumasi and Tamale based on the appreciable number of small ruminant traders. A disproportionate stratified sampling technique was used to meet the sample of marketers in each stratum representing (market) the proportion of the chosen sample size. Finally, a total of 284 small ruminant traders consist of 149 traders in Kumasi and 135 traders in Tamale were randomly selected from a population of 510 traders. Table 1 shows the distribution of traders in the selected clusters.