Examining Profitability, Viability, and Commercialization Level of Beef Cattle Production among Pastoralists in the Simanjiro District of the Manyara Region, Tanzania

Abstract

Beef cattle production is significant in wealth creation and improving livelihoods of pastoralists, thus reducing poverty. Nevertheless, most pastoralists continue to live in poverty. This study, thus, sought to assess the profitability, viability, and commercialization level of beef cattle production, as well as the socioeconomic characteristics among pastoralists in the Simanjiro District of the Manyara Region, Tanzania. Cross-sectional data were collected from a sample of 398 pastoralists, using interviews and questionnaires. Descriptive statistics, gross margin (GM), Benefit-Cost Ratio (BCR), and household commercialization index (HCI) methods were used for data analysis. The results revealed that the average age of the pastoralists was 47.7 years with a family size of 10.9. On average, the pastoralists had about 26.4 years of farming experience. Most of the pastoralists (59.3%) had no formal education. Among the pastoralists, only 3% had access to farm credits. Further analysis showed that 98.7% of pastoralists marketed their beef cattle to primary auction markets of which 75.4% of price-setting methods were inappropriate (unprofitable). Among the pastoralists, only 3.8% added value to beef cattle before selling. The average cattle herd size was 119.7 heads, of which 98.4% of cattle herd sizes were local breed cattle. Gross margin and Benefit-Cost Ratio were 136.8 US$ and 2.9, respectively, while household commercialization index was 3.9%. Medication costs constituted 44% of the total variable costs involved in beef cattle production. This study, thus, concluded that beef cattle production is profitable and highly viable to run as a business. However, the commercialization level is low. Furthermore, keeping local breed cattle, inappropriate pricing methods, low-value addition, reliance on primary auction markets, limited access to credits, low level of education, and costs for medications; continue to be critical obstacles to improving profitability, viability, and commercialization level of beef cattle production among pastoralists.