Financial Viability of Battery Cage and Deep Litter Layer Production Systems: A Comparative Analysis for Small-Scale Poultry Farming in Ghana

Alexander Asmah; Michael Oppong

doi:10.17306/j.jard.2026.2.00008r1

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Financial Viability of Battery Cage and Deep Litter Layer Production Systems: A Comparative Analysis for Small-Scale Poultry Farming in Ghana

Journal of Agribusiness and Rural Development

Volume 80 (2026): Issue 2 (June 2026)

By: Alexander Asmah and Michael Oppong

Open Access

|Jun 2026

Abstract

Background

Small-scale poultry farming plays a critical role in food security and rural livelihoods in Ghana. However, financial sustainability remains a challenge due to high input costs, limited access to credit, and competition from imported poultry. This study compares the financial performance and operational viability of two dominant layer housing systems, battery cage and deep litter to inform investment and policy decisions.

Methods

A mixed-methods approach was employed, combining structured surveys, key informant interviews, and focus group discussions with 240 small-scale poultry farmers across Ashanti, Bono, and Western North Regions. Financial indicators, including net present value (NPV), internal rate of return (IRR), benefit-cost ratio (BCR), break-even point, and sensitivity analysis, were used to evaluate the 5-year profitability of a 5,000-layer capacity enterprise under both systems.

Results

The battery cage system required a higher initial investment of GH₵1,717,085.40, 18.2% more than the deep litter system (GH₵1,452,714.81). However, it achieved superior financial performance, with a net present value (NPV) of GH₵777,486 and an internal rate of return (IRR) of 41%, compared to an NPV of GH₵67,956 and an IRR of 27% for the deep litter system. The battery cage system also demonstrated higher egg production efficiency (90% vs. 75%), resulting in 15–18% greater annual revenue. Sensitivity analysis revealed that the deep litter system becomes financially unviable with a 10% increase in feed costs, while the battery cage system maintains positive NPV under the same scenario.

Conclusion

While both systems are financially viable, the battery cage system offers stronger profitability and resilience to cost shocks. However, non-financial factors, such as animal welfare, labour intensity, and land use, must also be considered in investment decisions. Policymakers along with small and medium enterprise (SME) investors should balance economic returns with sustainability, promoting innovation in efficient, welfare-conscious poultry production systems.

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Articles in this issue

DOI: https://doi.org/10.17306/j.jard.2026.2.00008r1 | Journal eISSN: 1899-5772 | Journal ISSN: 1899-5241

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Language: English

Page range: 160 - 187

Accepted on: Apr 27, 2026

Published on: Jun 30, 2026

Published by: The University of Life Sciences in Poznań

In partnership with: Paradigm Publishing Services

Publication frequency: 4 issues per year

Keywords:

cost-benefit analysis

Related subjects:

Business and economics,

Political economics,

Political economics, other,

Business management,

Business management, other,

Life sciences,

Life sciences, other,

Social sciences,

Political science,

Political science, other

© 2026 Alexander Asmah, Michael Oppong, published by The University of Life Sciences in Poznań
This work is licensed under the Creative Commons Attribution 4.0 License.

Volume 80 (2026): Issue 2 (June 2026)