Is it profitable and viable to invest in commercialization of rabbit production? Implication on rural enterprise development

• Published in: Sustainable Technology and Entrepreneurship 2023-09, Vol.2 (3), p.100048, Article 100048
• Main Authors: Wongnaa, Camillus Abawiera, Afful-Kwadam, Kwesi, Asempah, Micheal Kwame, Hagan, Margaret Aba Sam, Awunyo-Vitor, Dadson
• Format: Article
• Language: English
• Subjects: Commercialization; Discounted measures of project worth; Investment; Profitability; Rabbit; Viability
• ISSN: 2773-0328; 2773-0328
• DOI: 10.1016/j.stae.2023.100048

•The rabbit industry has a lot of livelihood and economic potentials.•Commercialization of rabbit production establishment is profitable and viable.•It will take 3 months to repay the initial investment in a commercialized rabbit farm.•Stakeholders should consider investments in commercialization of rabbit production. The rabbit industry has a lot of livelihood and economic potentials. However, constraints such as inadequate production of rabbit to meet customer demand serve as hindrances to the growth of the industry. Commercialization of rabbit production will increase rabbit products which will be beneficial to both farmers and consumers. This paper examines the profitability and viability of commercialization of rabbit production among rabbit farmers in Ghana. The study used primary data collected from 200 rabbit farmers in Upper Denkyira East Municipal of Ghana using a multi-stage sampling approach. Descriptive statistics, income statement as well as discounted and undiscounted measures of project worth were the methods of analysis. The results showed that the gross margins for commercialized and non-commercialized rabbit producers were GH¢1,309.49 (US$221.95) and GH¢907.19 (US$153.76) respectively. Also, whereas the net income and return on investment for commercialized rabbit producers were GH¢689.14 (US$116.80) and 50% respectively, those of non-commercialized producers were GH¢511.07 (US$86.62) and 60% respectively. In addition, at a discount rate of 30%, the viability analysis revealed an NPV of GH¢1,456.10 (US$246.80), BCR of 1.37 and IRR of 36.53%. Finally, the results of the payback period analysis showed that it will take three (3) months to repay the initial investment. We conclude from the aforementioned results that commercialization of rabbit production is both profitable and viable. Government, investors and other stakeholders are therefore encouraged to consider investments in commercialization of rabbit production or its promotion as a way of improving livelihood and reducing poverty in especially rural communities where production inputs are relatively cheaper and poverty is endemic.