Market margin distribution along the beef cattle market chain in Longido district, Arusha

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.