Market margin distribution along the beef cattle market chain in Longido district, Arusha
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Date
2024
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Publisher
Tanzania Journal of Agricultural Sciences
Abstract
The distribution of market margins plays a crucial role in the performance of the beef market
chain. However, there is a lack of understanding about the fairness of this distribution among
the chain's participants. This study examines the margin shares among actors in the beef cattle
market chain in Longido and Arusha districts. Data were collected from 270 respondents in these
areas and analyzed using SPSS software. Through a cost-benefit analysis, the study assessed the
distribution of market margins among the actors. The results showed that livestock keepers and
traders receive a smaller portion of the net gross margin, 18% and 29.2% respectively, compared
to their cost shares of 21.1% and 32.8%. Meanwhile, butcher operators obtain 52.8% of the market
margin against a production cost share of 46.1%. These findings suggest that actors are equitably
compensated. However, the study identified issues such as traders' reluctance to use weighing
scales, which negatively impacts livestock keepers. Additionally, there is a regulatory gap with
laws, such as selling livestock by weight at all markets, not being enforced. Addressing these issues
could promote better husbandry practices, increase cattle value, and improve income distribution
for farmers.
Description
Journal Article
Keywords
Market margin, Value distribution, Cost-benefit analysis and asset specificity