Vertical Integration Strategies and the Performance of Poultry Firms in Ghana

Figures & Tables

Outcome indicators	Tests	Balanced mean	Partial mean	Mean difference	Standard error	T
Profit Margin Ratio (GHS)	Unmatched (T test)	0.38	0.26	0.12*	0.05	2.40
Profit Margin Ratio (GHS)	Nearest neighbor matching	0.37	0.29	0.08*	0.06	1.33
Value Added to Sales Ratio (GHS)	Unmatched (T test)	0.31	0.14	0.17**	0.06	2.83
Value Added to Sales Ratio (GHS)	Nearest neighbor matching	0.32	0.17	0.15**	0.07	2.14

Type	Activity	Partial (%)	Balanced (%)
Backward integration	Maize farm	10	10
	Feed mill	100	100
	Hatchery plant	3.3	6.7
Forward integration	Processing plant	0	13.3
	Distribution van	0	76.7
	Retail outlet	0	40

Variables	Coef.	St. err.	t-value	[95% conf. interval]
Balance integration	0.091**	0.046	1.990	−0.001	0.183
Direct cost	−0.303***	0.069	−4.400	−0.441	−0.165
Size of firm	0.184***	0.047	3.950	0.091	0.278
Marketing cost	0.220***	0.053	4.180	0.114	0.326
Experience of manager	0.017	0.026	0.650	−0.035	0.068
Managers education	−0.003	0.005	−0.660	−0.014	0.007
Age of firm	−0.040	0.026	−1.550	−0.093	0.012
Constant	0.464	0.316	1.470	−0.169	1.098

R-squared	0.448	Number of obs.	60
F-test	6.039	Prob > F	0.000
Akaike crit. (AIC)	−36.458	Bayesian crit. (BIC)	−19.703

Variables	Balanced		Partial

	Mean	Standard error	Mean	Standard error	Mean difference
Age of firm	18.90	3.72	16.20	3.18	2.70
Size of farm	47 484.00	13 835.37	22 116.33	6 229.03	25 401.00
Experience of managers	12.40	1.31	13.73	1.88	−1.33
Years of education of manager	15.03	0.79	14.37	0.79	0.67
Direct cost (GHS)	1 997 359.96	554 367.03	1 096 085.80	302 092.11	901 274.17
Marketing cost (GHS)	61 428.00	14 667.27	37 795.00	10 662.19	23 632.90