the market for animal-sourced foods in tanzania: business opportunities for small-scale livestock...

Joint project of the World Bank, FAO, AU-IBAR, ILRI with support from the Gates Foundation

The market for animal-sourced foods in Tanzania:

Business opportunities for small-scale livestock producers?

Derek Baker (International Livestock Research Institute, Kenya), Ugo Pica-Ciamarra (Food and Agriculture Organization, Rome),

Nsiima Longin (Ministry of Livestock and Fisheries Development, Tanzania), and Nadhem Mtimet (International Livestock Research Institute, Kenya)

19 th International Farm Management Congress

Transforming agriculture – between policy, science and the consumer 21-26 July 2013,

Warsaw University of Life Sciences Warsaw, Poland

Livestock Data Innovation in Africa Numbers for Livelihood Enhancement www.africalivestockdata.org

Outline

1. The issue: measuring market opportunities

2. Available data are not amendable to investment and exploitation of opportnities

3. Methodology: preferred retail forms / outlets and safety and quality attributes in developing countries

4. Evidence from Tanzania

5. Summary and conclusions

Acknowledgements • Livestock Data Innovation Project

https://www.africalivestockdata.org/ • Consultative Group on International Agricultural Research – Policies,

Institutions and Markets Program (PIM) http://www.pim.cgiar.org/

https://www.africalivestockdata.org/

http://www.pim.cgiar.org/


The issue

• Growing demand for animal-source foods in developing countries

• Large share of rural households keep livestock

• Opportunities for a demand-driven and inclusive growth of livestock

• Smallholder-based supply chains need to be promoted

Sourc

es: E

labora

ted f

rom

FA

OS

TA

T, W

orld B

ank W

DI and F

AO

RIG

A d

ata

base


The issue




• Smallholder-based supply chains need to be promoted

• Information available on quantity consumed

• Scattered if any information on retail forms / outlets and safety & quality attributes


The issue




• How to promote smallholder-based livestock supply chains ??

• Information available on quantity consumed

• Scattered if any information on retail forms / outlets and safety & quality attributes


Methodology: consumer preferences

• Identification of major livestock products consumed

• Typologies of retail outlets

• Typologies of retail forms

• Identification of 5 ‘safety and quality’ attributes, which are visible (no experience / credence attributes) - simple quality score

• Questionnaires developed and administered to > 144 consumers in 36 retail outlets

(stratification criteria: urban-rural / retail outlets)

• Data analysis based on consumer typologies (less-well off / middle class / better-off)


Retail forms / outlets and quality: e.g. beef

Retail forms Retail outlets Safety / quality

attributes*

Large piece Abattoir Freshness (blood)

Small cut Butchery Fat content

Mixed beef Roadside outlet / wet

market Marbling

Ground beef Small retail shop Cleanliness of premises /

presence of flies

Offals Supermarket Packaging

*unweighted sum of presence/absence of safety/quality attributes = quality score


Consumer type – means of transport as an income proxy

Less well off

40%

Middle class 33%

Better off

27%

Income bracket for 144 consumers

Consumers Less

well off Middle

class Better

off Total

Urban 26 25 21 72

Rural 32 22 18 72

Total 58 47 39 144


0.0

1.0

2.0

3.0

4.0

5.0

Urban

Rural

Quality – scores achieved by outlets


Consumers’ preferred retail outlets

0

20

40

60

80

100

Roadside Small retailshop

Wet market Supermarket Butchery Milk kiosk /vendor

Typ

e o

f co

nsu

mer

s (%

)

Less well off Middle Class Better Off


Consumers’ preferred retail outlets

0

20

40

60

80

100

Roadside Small retailshop

Wet market Supermarket Butchery Milk kiosk /vendor

Typ

e o

f co

nsu

mer

s (%

)


Quality

dimension

Quality

dimension

Size dimension


Preferred retail forms

Beef

Poultry

0

20

40

60

80

100

mixed pieces live bird dressed bird

Co

nsu

mer

typ

e (

%)


0

20

40

60

80

100

Offals Mixed beef Steak Sausage

Co

nsu

me

r ty

pe

(%)



Preferred food ‘quality’

0

10

20

30

40

50

60

70

1 2 3 4 5

%

Quality/safety score

less well off middle class better off


Preferred food ‘quality’

0

10

20

30

40

50

60

70

1 2 3 4 5

%

Quality/safety score

less well off middle class better off

Quality is valued by all consumers’ income classes

Less well off feature strongly at the higher quality end (due to occasional purchases?)


Summary findings

• Rapid techniques developed for identifying market opportunities – larger samples needed

• Consumers’ product quality demands not greatly different across income classes

• Quality / safety attributes relevant for consumers in all income brackets

• Consumers’ retail outlet preferences are markedly different across income classes

• Consumers’ retail product form preferences are markedly different across income classes


Discussion and conclusion

• 68 % of population live below the US$ 1.25 / day poverty line (HBS, 2007)

• Proportion of (rural) HHs keeping livestock = 51% (61%) (NPS, 2008/09)

• Proportion of HHs that currently do not consume livestock products = 38 % (NPS, 2008/09)

• Estimated growth of GDP (per capita) in 2011-2015 = 6.9 (3.7%) year (WB, 2013)

• Large high-volume / low value market coming: major opportunities for smallholder –based livestock supply chains!

the market for animal-sourced foods in tanzania: business opportunities for small-scale livestock...

Technology

livestock opportunities

livestock producers

livelihood enhancement

africa numbers

preferred retail forms

available data

retail forms beef poultry

urban rural quality