Market performance of dairy goats and its products in Kongwa and Mvomero Districts, Tanzania

Abstract

Despite the potential of dairy goat in the reduction of rural malnutrition and poverty, the dairy goat sub-sector still faces poor development in both input and output markets. The poor development of these markets has partly been contributed by the direction of past researches on dairy goats, which were focusing on increasing milk production, thus, leaving institutional and community based challenges unresolved. This study therefore, examined market performance of dairy goats and its product in Kongwa and Mvomero districts where the dairy goats were introduced under Crop and Goat Project (CGP) of Sokoine University of Agriculture - Tanzania. Specifically, the study assessed market operations as institutional issues in the project villages of Ihanda and Masinyeti (in Kongwa District) and Kunke and Wami Luhindo (in Mvomero district). Primary data was obtained by surveying 106 project farmers and 60 consumers who were selected randomly in the project villages. Secondary data were collected from project reports and other various sources. The structure-conduct-performance (S-C-P) model was used to assess market performance whereby gross and net margins (GM and NM) were determined. The findings show that dairy goat milk was preferred due to its nutritious value. The price for dairy goat milk prevailed was generally 17% higher than the cow's milk. The supply and demand for dairy goat milk was poor thus, affecting both market performances. There were no actual or specified places for commodity exchange hence affecting market conduct of dairy goat milk and its products. The findings also show further that about 30% of farmers were producing milk which contributed about 64% of the total household revenue. In the case of monthly earnings per individual farmers, the revenue estimated was Tsh. 35 200 for Ihanda; Tsh. 36 000 for Masinyeti; Tsh. 33 100 for Kunke and Tsh. 37 500 for Wami Luhindo. The main cost driver in dairy goat keeping was the feed cost which was estimated to be 76% of the total variable cost. Although the overall GM determined was positive, about 70% of all farmers had negative GM while only 20% experienced positive NM. Therefore, in order to improve the situation, both supply and demand sides should be strengthened through farmers educational and promotional activities. Besides, sensitization on consuming of dairy goat milk is required while the supply side can be strengthened by encouraging farmers to increase the number of dairy goats kept and improvement of management practices.