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Factors Influencing Beef Cattle Sales in the Pastoral Communities of Western and Central Uganda

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Presentation by Ruhangawebare Godfrey, Mpairwe Denis, Bashaasha Bernard, Mutetikka David and Jorgen Madsen at the 5th All Africa conference on animal production, Addis Ababa, Ethiopia, 25-28 October ...

Presentation by Ruhangawebare Godfrey, Mpairwe Denis, Bashaasha Bernard, Mutetikka David and Jorgen Madsen at the 5th All Africa conference on animal production, Addis Ababa, Ethiopia, 25-28 October 2010.

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    Factors Influencing Beef Cattle Sales in the Pastoral Communities of Western and Central Uganda Factors Influencing Beef Cattle Sales in the Pastoral Communities of Western and Central Uganda Presentation Transcript

    • Factors Influencing Beef Cattle Sales in the Pastoral Communities of Western and Central Uganda
      • Presented by 1 Ruhangawebare Godfrey, 1 *Mpairwe Denis, 1 Bashaasha Bernard, 1 Mutetikka David and 2 Jorgen Madsen for the 5th All Africa Conference on Animal Agriculture and the 18th Annual Meeting of the Ethiopian Society of Animal Production (ESAP), Addis Ababa, October 25-28, 2010
    • Background
      • Livestock contributes 9% of Gross Domestic Product and 17% of Agricultural Gross Domestic Product of Uganda
      • 90% of national cattle herd is raised in traditional pastoral and mixed smallholder crop-livestock farming systems.
      • Produce 85% of the milk and 95% of the beef consumed in the country
    • Problem Statement
      • Despite Government’s policy to commercialize agriculture through market liberalisation,
      • Marketed livestock output is still low (12%) contributing to meat deficit 41.2 kg/head
      • Survival strategy of risk minimization rather than maximizing off take per animal
      • Most Patoralists hold onto their animals instead of responding to demand; sell when cash constrained
      • Offered low prices yielding low income levels
    • Methodology
      • The study was conducted to establish the factors affecting the cattle sales rates of the pastoral livestock keepers
      • It was done in four districts covering the Western and Central regions of the cattle corridor
      • Statistical analysis to estimate the socio-economic characteristics was executed in SPSS
      • A Tobit model was used to determine the factors affecting the livestock keepers’ sales rate
    • Socio- economic Characteristics
      • The average years of formal education were 8 years(p< 0.1) and an average household size of 10 members
      • Average owned grazing land size was 151.7 hectares and significantly (p<0.01) reduced the farmers’ sales rate
      • Indigenous cattle breeds (51%) were the most owned followed by crossbreeds (45%) and exotic breeds (1%)
      • Reproductive female cows (50.4%) dominated herds followed by heifers (24.3%), calves and mature bulls ( Fig.1 )
    • Results continued
      • 96% of the respondents had participated in livestock marketing indicating that pastoralists in Uganda sale their cattle
      • Cattle sales were mostly cows (38.1%), weaner bulls (36.2%), heifers (12.5%), steers (8.7%), bulls (3.9%) and weaner heifers (6.6%)
      • Little importance was attached to keeping cattle for commercial purposes (33.1%) compared to providing household insurance (78.9%) ( Table 1 )
      • Cattle were sold mostly to finance both the expected and unexpected expenses such as school fees and household needs
      • Pastoralist used market more to sell than buy - are net sellers Restock from births than purchases
      • Abattoir dealers formed the major outlet - they were source of information to farmers, offered higher prices and over the years had built a close relationship the with farmers
      • Local markets were second - offered fair prices due to relatively many traders thus minimizing collusion amongst themselves
      • Fellow farmers bought animals with desired traits for breeding; thus offered better prices than local butchers – expecting some help in future in case of emergency ( Fig.2 )
      Cattle Marketing Outlets
    • Factors affecting Cattle Sales rates
      • The sales rate of 17.6% was recorded which is close to 18% reported in other grassland cattle production systems
      • Low and fluctuating cattle prices (p<0.05), quarantine, limited number of traders, inaccessibility to market information
      • (p< 0.05) and poor roads (p<0.05) were the major livestock marketing constraints (Tables 2 and 3 )
      • The four constraints were interlinked and influenced each other
    • Conclusion and Recommendation
      • Pastoral livestock keepers sold their cattle to finance immediate cash needs
      • Provision of sufficient market information enables them to make informed decisions.
      • Government should increase acceptable investment alternatives to cattle and initiate well functioning information systems accessible to the widely dispersed producer populations
    • Acknowledgements
      • DANIDA through IGMAFU project
      • African Economic Research Consortium (AERC)
      • Makerere University
    • THANK YOU
    •  
    • (Table 1) 1. Purposes for Keeping Cattle by Pastoralists Cattle Purpose N= 180 Strongly Agree (%) Agree (%) Disagree (%) Strongly Disagree (%) Prestige 25 53.3 16 5.6 Way of Life 42.7 53.3 4.4 00 Store of Wealth 66.3 30.0 2.8 1.1 Security/insurance 78.9 21.1 00 00 Food 50.2 47.8 2.0 00 Source of Income 44.6 48.3 7.1 00 Commercial Purposes 33.1 16.2 26.7 23.9
    •  
    • Table 2. Major Cattle Marketing Constraints Constraint Rank ( Mean) 1 Low and fluctuating prices 1 (1.6) Quarantine 2 (1.96) Limited Cattle traders 4 (4.9) Inaccessibility to market information 6 (6.8) Poor roads 7 (6.9) ’ s Coefficient (W) 2 0.75*** 1 The lower the rank, the greater the importance of the constraint. 2 W ranges from 0 (* no agreement) to 1 complete agreement and the higher its value the higher is the level of agreement between groups. *** P ≤ 0.001
    • Table 3. Tobit model Estimates for Factors affecting Livestock keepers’ Sales rates Explanatory variable Coefficient Standard Error P Value Sex 0.85559 0.3283 0.013** Household size 0.00532 0.01701 0.756 Education level -0.04994 0.27677 0.082* Grazing Area owned -0.05014 0.01617 0.004*** Alternative source of income -0.36418 0.19731 0.073* Distance to nearest market 0.16555 0.08382 0.056* Farming organization -0.18194 0.19322 0.353 Cattle Prices 0.11407 0.04986 0.035** Road condition -0.17608 0.07360 0.022** Access to Market information 0.11398 0.04897 0.026** Total value of milk sold 0.00003 0.00001 0.021** Constant -1.32666 0.5884 0.131 Pseudo R 2 0.2590 ; *** 1 %, ** 5% * 10% level of significance