Abstract

Fred Nimoh, Addo Kwasi and Enoch Kwame Tham-Agyekum

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 (tvalue 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 large-scale poultry farmers while not neglecting the needs of small-scale
farmers.