Economist and New Patriotic Party (NPP) Deputy Director of Research, Dr. Kwasi Nyame Baafi, has warned that Ghana’s efforts to strengthen the local poultry sector could be undermined by policies that artificially appreciate the cedi.
Speaking about the government’s Nkokonketenkete revitalization programme with Ama Konadu in an interview on ‘Adea Akye Abia’ morning show at Sompa Fm-Sunyani,  Dr. Nyame Baafi questioned whether some economic decisions taken by the current administration truly support the growth of Ghana’s poultry industry.

According to him, feedback from poultry farmers suggests a disconnect between the government’s stated intention to boost local production and the practical effects of its economic policies.

“When you speak with poultry farmers, you realise the government is saying something different while doing something different,” he said.

Dr. Kwasi Nyame Baafi explained that imported frozen chicken remains cheaper largely because of what he described as the “over artificial appreciation” of the Ghanaian currency. 

He argued that if the Ministry of Finance and the Bank of Ghana pursue exchange rate policies that make imports cheaper, it contradicts efforts to promote domestic poultry production.

Using a hypothetical example, he noted that if one US dollar equals GH¢20 and a locally produced chicken sells for GH¢40, the local product would effectively cost about two dollars. If imported chicken also costs two dollars, consumers would likely choose the locally produced option.

However, he warned that if government actions lead to a rapid strengthening of the cedi, such as pushing the exchange rate down to around GH¢10 to the dollar, the dynamics would change.

“In that situation, the local chicken may still sell for GH¢40, but imported frozen chickens would become cheaper in cedi terms,” he said. “People will naturally prefer the cheaper imported ones.”

He noted that under initiatives like the Nkokonketenkete poultry policy, the government aims to supply chickens to farmers and increase local production to lower prices and boost consumption, which could create jobs across the value chain.

But he cautioned that exchange rate management that artificially strengthens the cedi could undermine those gains.

“By trying to create an over-appreciation of the currency, you are not boosting local poultry production,” he said. “If consumers have the money, they will prefer imported chicken because it will be cheaper than the local one.”

Dr. Nyame Baafi warned that such dynamics could ultimately harm poultry farmers in major production areas such as Sunyani and other parts of the country.

He clarified that his concern is not about currency appreciation itself, but about what he described as artificial appreciation driven by policy choices rather than market forces.

“When the currency appreciates naturally, it reflects market dynamics and local industries can adjust,” he explained. “But if the cedi is kept artificially strong for political reasons, exporting becomes expensive while importing becomes cheaper.”

According to him, that imbalance could push businesses toward importing rather than producing locally, weakening the domestic poultry sector the government says it wants to protect.

Sompaonline.com/Derrick Djan