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Cattle marketing: Analysis of traders perceptions and market structures Dr. Joshua Onono PHPT- University of Nairobi 1 Outline • • • • • Introduction Objectives Material and methods Results Conclusion and future outlook 2 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. 3 Objectives • Describe perceptions of traders on constraints to cattle trading • Analysis of market structure in arid and semi arid pastoral areas 4 Material and Methods Data collection and analysis • Participatory workshops • Market surveys • Marketing analysis - concentration index and trader’s market share Map of Kenya and study area 5 Materials and methods Flow of animals from Tanzania towards Nairobi (Source: Zaal, 2011). 6 Materials and methods Number of cattle sold in markets, market sheds and destinations (Onono, 2013) 7 Perceptions on constraints to trade (Onono, 2013) 8 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 9 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) 10 Lorenz curves and trader’s market share (Onono, 2013) 11 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 12 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? 13