Once a shining beacon in Ghana’s poultry industry, Darko Farms is now struggling to reclaim its former glory after years of steep decline brought on by a flood of cheap chicken imports and operational setbacks. Established in 1966 with only 900 birds, the company steadily rose to become the dominant player in Ghana’s poultry market. By the 1980s, Darko Farms was supplying nearly half of the country’s day-old chicks through a fully integrated model that included feed production, hatcheries, broiler raising, and meat processing. Its vertical integration allowed it to grow steadily, becoming a household name in the poultry sector.
However, Darko Farms’ downfall began in the late 2010s, with 2018 marking a sharp downturn. Ghana’s poultry industry faced immense pressure from imported frozen chicken, primarily from the European Union, Brazil, and the United States. These imports were not only abundant but also significantly cheaper, up to 40% less expensive than locally produced poultry. The sheer volume of imports, exceeding 180,000 metric tonnes annually, quickly swamped the local market. Darko Farms, burdened with ageing infrastructure and recurrent disease outbreaks, was unable to keep up. By 2019, over 1,000 jobs had been lost, and the company was teetering on the brink.
In response to the crisis, the Ghanaian government extended a GH¢22 million bailout to Darko Farms in 2019. The funds were instrumental in upgrading the company’s ageing machinery, tripling processing capacity, and launching an out-grower program that now supports over 200 independent farmers. These measures brought a semblance of stability to the company. Currently, Darko Farms provides direct employment to about 250 people and supports an additional 500 through its supply chain. Despite this progress, profitability remains elusive, with high feed prices and persistent import competition continuing to exert financial strain.
Management at Darko Farms openly acknowledges that the road to full recovery remains long and uncertain. Even with modernized equipment and international-standard processing facilities, the company struggles to compete on price with imported chicken. Local production costs, particularly for poultry feed, which is heavily reliant on imported maize and soybean meal, continue to inflate operating expenses. This makes it difficult for Darko Farms to offer competitive pricing to consumers, many of whom opt for cheaper frozen imports.
There is, however, one light of hope. The Ghanaian government is presently considering imposing a 100% tariff on imported poultry. If enacted, this regulation might level the playing field for local producers like Darko Farms, allowing them to reclaim market share and operate more sustainably. A similar protectionist policy has proven effective in neighboring Nigeria, where tough import limits have protected the domestic poultry business while increasing local production. Ghana, on the other hand, has remained largely reliant on imports, at the expense of its own farmers.
Darko Farms’ continuous battle for rebirth is more than just a corporate comeback story; it is a litmus test for Ghana’s larger agricultural self-sufficiency goals. Whether the government can lessen its reliance on imports and promote domestic enterprises would have far-reaching consequences for food security, employment, and rural development. The company’s fate mirrors, in many ways, the future of Ghana’s poultry sector.
