Comparative Economic Analysis of Battery Cage and Deep Litter Systems in Ghana: Animal Welfare Implications
Executive Summary
This policy brief presents empirical evidence of economic benefits from the use of battery and deep litre systems of poultry production. This has become necessary due to the recent reports that farmers in Ghana are transitioning from the use of traditional deep litre systems to the battery cage based on the perception that the latter is more profitable, thereby comprising the welfare of the birds.
The cost and revenue of the cage and cage-free systems of production
The economic or financial indicators such as the net present value (NPV), benefit-cost ratio (BCR), internal rate of returns (IRR), and payback periods were estimated to be GH₵132,873.68, 1.26, 91%, and 1.18 months, respectively, for the battery cage users. Similarly, the deep litter users recorded NPV, BCR, IRR, and payback periods of GH₵118,526.42, 1.23, 96%, and 1.14 months, respectively.
An estimate of the return on investment (ROI) and profitability of each of the farming systems
The results indicate that for every GH₵1.00 invested in layer poultry production, the cage users gained GH₵1.26 while the cage-free users gained GH₵1.23
The numbers of eggs produced per hen, body weight, growth rate and feed conversion ratio of each of the systems
The mortality rate of the birds, however, was about 4% higher in the deep litter houses compared to the battery cages. Additionally, the feed conversion ratio (FCR) of the birds raised under the deep litter system was 0.47 more than those in battery cages, indicating that the caged birds were more efficient in converting feed to eggs
The Herfindahl-Hirschman Indices (HHI) of 0.0077 and 0.0113 for cage and cage-free systems, respectively, suggested that the layer hen or egg markets in the study area were highly competitive during the period.
Conclusion and Recommendation
It was concluded that layer production under cage and cage-free systems was financially viable and resilient to market dynamics.
Also, it was concluded that poultry farmers in the study area were aware of the animal welfare promotion benefits associated with cage-free systems; however, some were willing to compromise the birds' welfare to maximize the perceived “extra” financial benefits associated with the cage systems.
This policy brief recommends awareness creation and sensitization, establishment of Animal Welfare Promotion Units and standards, and certification of eggs produced following the standards to attract premium prices and encourage farmers to prioritize the welfare of the birds.