Abstract

Amewu Osei, Adjei Arthur, Akoto Deku

Farm net income was used as a measure to investigate the effect of formal credit on the performance of the poultry industry. Forty credit and non-credit users each were selected purposively for the study. Regression model was employed for the analysis. Results showed that there was a significant difference (t-value of 0.012 at 5%) between the net income of large poultry farmers who used credit and those who did not. This means that large-scale poultry farmers are likely to perform better than small-scale farmers when credit is made available to both groups. Therefore it is recommended that formal financial institutions should focus on giving loans to largescale poultry farmers while not neglecting the needs of small-scale farmers.