Ghana now accounts for as much as 30 percent of all poultry products imported into West Africa sub region from the European Union. These imports of live birds, frozen chicken parts and full chicken are posing serious threats to the local poultry industry.
According to a report in 2005, 50,000 tonnes of chicken was imported into the country. Unfavourable domestic policies, where there had been a low tariff regime have contributed to the continuous dumping of subsidized poultry products from the EU and the US.
Demand for local poultry has collapsed, threatening the livelihoods of over 1,000 poultry farmers in both small and large-scale poultry farming in Ghana.
In 2002 alone, more than 26,000 tonnes of chicken was imported into the country, mostly from the EU. In 2004, that figure was estimated to be as high as 40,000 tonnes. Cameroon, Togo, Senegal and South Africa are among the other nations receiving imported frozen chickens and chicken parts.
Ghana's position was further made hopeless when the poultry industry lost the battle with government not to reduce tariffs on imported poultry. The tax on imported poultry was reduced from 40% to 20%, whilst that on rice also came down from 25% to 20%. This was seen by farmers as a reversal of the government's pledge in 2003 to increase tariffs on imported poultry products and rice to boost their production in the country.
The European Union, the source of most of the imported chicken, provides 43 billion euros to its farmers annually.
The President of Ghana National Poultry Farmers’ Association, Kenneth Quartey, said the decision to pass the law is a symptom of weak leadership in the country which had bowed to external pressure.
The current situation of the poultry industry would be compounded when the Economic Partnership Agreement with the EU takes effect in 2008. The total opening of borders under this agreement can only lead to a paralysis of productive sectors in the countries of the South such as Ghana, with the invasion of European goods and services, especially in the agricultural field, where Ghanaian producers would face up to largely subsidised products.
On the other hand, it is not obvious that the removal of tariff barriers in Europe means free access of ACP exports to this market. Several limitations can exist which are related to quality standards or to phytosanitary measures.
The poultry sub-sector might be in danger of collapse. Already, big and small poultry farms in Ghana have cut down output and staff considerably because they can not compete with the cheap imports from EU and USA.
The Statesman