Perceived governance structure and constraints in the pig supply chain in Ghana

Abstract

This study examined farmers’ perceived governance structure including contracting and power relations, and actors’ constraints in the pig supply chain. A multi-stage sampling procedure was used to obtain cross sectional data from producers, collectors and processors. The empirical results revealed that contractual relationships between farmers and other actors are uncommon in the pig supply chain, with only 9.9% of the farmers and 12.5% of processors having verbal contracts with other actors in the supply chain. The two most constraining factors of the producers, collectors and processors were the high cost of inputs and poor access to credit. Overall, the producers are perceived to rank highest in terms of bargaining power and information concentration, while collectors and input suppliers have the highest influence on profit and protection from competition. The role of producers’ speculation of the market power and training on contracting are critical to enhancing their performance in the pig supply chain.