Quality beef supply chain efficiency and consumption in Arusha and Dar es Salaam cities, Tanzania
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Date
2015
Authors
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Publisher
Sokoine University of Agriculture
Abstract
This study investigated efficiency along quality beef supply chain and consumption
of quality beef in Arusha and Dar-es-Salaam cities, Tanzania. Specifically the study
investigated: (i) efficiency of supplying quality beef (QB) (ii) consumption pattern
for QB (iii) consumers' preferences for QB and (iv) consumers’ willingness to pay
(WTP) for QB. Added cost/kilogram and returns/shilling were used to indicate
efficiency of QB supply. Almost Ideal Demand Systems was used to analyze
consumption pattern of QB while Principal Component Analysis and Contingent
Valuation Method were used to determine beef consumers’ preferences and WTP for
QB respectively. Data were collected using questionnaires administered to two cattle
fattening companies, three auction markets, 10 wholesale meat traders, 106
butchermen.
six beef processors, 11 supermarkets, 34 tourist hotels, one beef
importer and 278 households. Results showed that the cost of processing QB was
almost 9 and 1.5 times the cost of producing and retailing QB, respectively.
Electricity accounted for 84% and 73% of added cost for processing and distribution
of QB respectively. Returns/shilling was highest (83%) and lowest (12%) at retailing
and production nodes respectively. Only 9.5% of sampled households consumed QB
amounted to 32.1kg/person/year priced at 14 250Tsh/kg. The average consumption
of QB in tourist hotels amounted to 449kg/month/hotel priced at 25 608Tsh/kg.
‘Freshness’ and ‘less fat content’ were mainly preferred by household consumers;
while cleanliness, safety and tenderness were mostly proffered by tourist hotels.
Expensiveness, unfreshness and the misconception that QB was preserved using
chemicals were major reasons limiting WTP for QB. To promote production and
consumption of QB this study recommends that: (i) Investors should venture in
local QB supply because it is profitable. However, efforts should be made to use low
cost alternative energy sources such as biogas and solar power to make the venture
more profitable (ii) Tanzania Meat Board and other stakeholders in the beef industry
should promote marketing of QB through introduction of meat consumption
week,advertising, training in schools and participation in trade fairs and (iii)
Linkages of major importers of QB with local QB producers should be made with
proper taxation of imported beef to make locally produced QB more competitive.
Description
Thesis
Keywords
Arusha, Dar es Salaam, Tanzania, Beef supply, Qality beef