Economic evaluation of existing and potential market opportunities for quality beef in Tanzania: a case of Dar Es Salaam and Arusha cities

MSc-Thesis

Despite potential contribution livestock marketing has in Tanzania to national economy, quality beef marketing has received less priority in national investments, research and export development. This study attempts to bridge the gap by assessing beef marketing efficiency focusing on Dar es Salaam and Arusha. The general objective of the study was to evaluate the relative efficiency of existing beef marketing system and explore potential market opportunities for quality beef in Tanzania. Specifically the study aimed to identify existing and potential market opportunities for quality beef, to describe quality beef attributes desired by consumers, to examine efficiency of beef marketing system operating in the two cities and to propose strategic marketing decision for the firms to improve their competitive position in the market. The study involved cross section data collected using structured questionnaires and a checklist through which a total of 198 respondents including consumers, hoteliers, butcheries and super marketers were administered. Descriptive as well as multiple response analysis techniques were used to handle the data. Marketing costs and gross margins were calculated. Results show that butchers were the main source of beef purchase by consumers. Beef marketing was generally profitable, the level of profits varied across types of beef marketed. Highest marketing margin were found in supermarkets. The study also found that, there is great potential market for quality beef in supermarket and hotels particularly tourist hotels and this potential is spreading to butchers and households as the income increases. As assessed by percentage of respondents, attributes desired by consumers in Dar es Salaam were freshness (31.4 %), tenderness (27.5 %) and carcass composition as reflected in amount of fat (27.5 %) while in Arusha customers were attracted by tenderness (61.5 %), freshness (28.1 %) and safety of the product (4.2 %). The average marketing efficiency ratios were 0.81 and 0.84 for butchers in Arusha and Dar es Salaam respectively and 0.63 at Shoprite supermarket level. Based on the study results it is recommended that measures should be taken to improve the quality of cattle and thereby the quality of beef sold.