Economic coordination of poultry value chain: comparative analysis of local and exotic chicken breeds in Kibaha district

Abstract

The study of economic coordination in chicken production targets to a wide continuum of coordination activities in poultry subsector in Kibaha District. It also aims to delineate similarities and differences between the two chicken breeds (local and exotic). The specific objectives include mapping of the two value chains, identifying governance structures in the value chains, assessing of potentials of different actors categories and also determining factors influencing participation in the selected chicken subsector. Data were collected from 90 households rearing chickens in the District; Descriptive analysis was done using comparative statistics, means and frequencies. Further Logit regression model was used to establish factors necessitating farmers to participate in chicken production. Although households participated well in chicken keeping, they lack formal coordination both within and between actors in the Kibaha District. Data analysis has shown that, few exotic chicken keepers are having verbal contracts with other marketing agents. Few local chicken keepers have membership to producer groups established by wards‟ agricultural and livestock officers, but no economic benefits were reported. None of the exotic chicken keeper was organised in groups. Meanwhile, economic benefits of various actors on linkages and roles were mapped. Gross margins for respective keepers and traders used to compare profit between actors. Local chicken have a very long chain compared to exotic chickens before they reached final end. Aggregators, retailers, and wholesalers have great roles in chicken transactions in the market. From the Logit model factors that drove keepers‟ participation decisions were; years of schooling (education level), family size, and experience in poultry keeping