Cattle marketing: Analysis of traders perceptions and market structures

Dr. Joshua OnonoPHPT- University of Nairobi

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Outline

• Introduction• Objectives • Material and methods• Results• Conclusion and future outlook

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Introduction

• Markets play a role in the exchange of ownership for livestock resources destined for breeding, fattening and slaughter.

• Markets acts as a hub for a bigger network which can enhance disease spread to other production systems and farms.

• A clear understanding on how markets operate and weaknesses in the networks is important information that can be used to strengthen disease surveillance activities.

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Objectives

• Describe perceptions of traders on constraints to cattle trading

• Analysis of market structure in arid and semi arid pastoral areas

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Material and Methods

Map of Kenya and study area

Data collection and analysis

• Participatory workshops

• Market surveys

• Marketing analysis - concentration index

and trader’s market share

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Materials and methods

Flow of animals from Tanzania towards Nairobi (Source: Zaal, 2011).

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Materials and methods

Number of cattle sold in markets, market sheds and destinations (Onono, 2013)

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Perceptions on constraints to trade (Onono, 2013)

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Perceptions on constraints to trade (Onono, 2013)

• Presence of practices which may enhance spread and maintenance of diseases and other health risks along cattle marketing chains

• The presence of drug residues, diseases, trekking of cattle and black market for meat may enhance spread of livestock diseases and also pose health risk to meat consumers

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Market concentration index (Onono, 2013)

Markets

Traders

Cattle

Mean

Med. Range Gini Lower bound

Upper bound

Garissa 29 3091 107 35 20-882 0.74 0.57 0.90

Ilbisil 93 847 9 4 1-128 0.74 0.65 0.83

Suswa 44 554 13 6 1-51 0.72 0.59 0.85

Ewaso 11 333 30 20 3-150 0.67 0.39 0.95

NB: Gini coefficient – this is a measure of market concentration (Ranges from 0 – 1)

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Lorenz curves and trader’s market share (Onono, 2013)

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Lorenz curves and trader’s market share (Onono, 2013)

• The presence of dominant traders along the cattle marketing chains

• The calculated concentration indices suggest an oligopolistic market structure tending to monopoly

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Future outlook

• What are cattle traders attitude towards purchase of animals which are diseased?

• What role does livestock markets play in the spread and maintenance of zoonoses?

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