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The Role of Kongwa Ranch to Link Smallholder Beef Producers to Profitable Markets

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THE ROLE OF KONGWA RANCH TO LINK SMALLHOLDER BEEF PRODUCERS TO PROFITABLE MARKETS A research report submitted to Van Hall Larenstein University of Applied Sciences in partial fulfilment of the requirements for the degree of Master of Agricultural Production Chain Management specialising in Livestock Chains OMARY ATHUMAN NKULLO SEPTEMBER-2013 i Permission to use In presenting this research project in partial fulfilment of the requirements for a Master degree, I agree that the library of this university may make it freely available for inspection. I further agree that permission for copying of this research project in any manner, in whole or in part, for academic purposes may be granted by Van Hall Larenstein director of research. It is understood that any copying or publication or use of this research project or parts thereof for financial gain shall not be allowed without my written permission. It is also understood that due recognition shall be given to me and to the university in any academic use which may be made of any material in my research project. Requests for permission to copy or to make other use of material in this research project in whole or part shall be addressed to: Director of Research Van Hall Larenstein University of Applied Sciences Forum- Gebouw 102 Droevendaalsesteeg 2 6708 PB, Wageningen Postbus 411 Tel: 0317- 486230 i Acknowledgements All the praises and thanks are to ALLAH, the LORD of mankind and all that exists. I thank ALLAH for giving me and my family good health throughout my studies. This work has been completed through a number of contributions from different organisations and individuals, just to mention few includes; The Royal Dutch Government through the Netherlands Fellowship Programme (NFP) for granting scholarship for my studies in Master of Agricultural Production Chain Management specialising in Livestock chains. Without this support, I wouldn’t undertake this valuable master degree. My sincere thanks go to my supervisor Mr. Frans Verweij for his tireless support, valuable inputs, encouragement and timely feedback. His efforts enlighten the success of this research. I appreciate the inputs of Mr. Marco Verschuur, our course coordinator for his continuous support from the beginning of my studies. These achievements would be difficult without his support. My special thanks go to all staffs and Lecturers of Van Hall Larenstein University of Applied Sciences for their support throughout my studies. I am very grateful to my organisation; Kongwa district council for giving me a study leave to undertake my studies. The inputs and positive cooperation from Mr. Heslon Kashalankoro manager of NARCO- Kongwa ranch, smallholder beef producers of Mautya, Machenje and Kongwa villages, village executive officers and extension workers of these villages, traders and input suppliers are highly appreciated. ii Dedication This work is dedicated to my lovely wife Fatuma Kaniki for encouragement, patience and for taking a good care of our son Adil during my absence and to my entire family especially my lovely mother, brothers and sisters. iii TABLE OF CONTENTS PERMISSION TO USE ............................................................................................................... I ACKNOWLEDGEMENTS .......................................................................................................... II DEDICATION.............................................................................................................................III LIST OF TABLES ..................................................................................................................... VI LIST OF FIGURES ................................................................................................................... VI LIST OF PHOTOS .................................................................................................................... VI EQUIVALENTS ........................................................................................................................ VI ABREVIATIONS ...................................................................................................................... VII SUMMARY ............................................................................................................................. VIII 1.0 INTRODUCTION ............................................................................................................. 1 1.1 BACKGROUND ............................................................................................................... 1 1.2 RESEARCH PROBLEM ..................................................................................................... 1 1.3 PROBLEM OWNER .......................................................................................................... 2 1.4 JUSTIFICATION OF THE STUDY ......................................................................................... 2 1.5 RESEARCH OBJECTIVES ................................................................................................. 2 1.6 RESEARCH QUESTIONS .................................................................................................. 2 1.7 CONCEPTUAL FRAMEWORK ............................................................................................ 3 1.8 DEFINITION OF CONCEPTS .............................................................................................. 3 2.0 LINKING SMALLHOLDER BEEF PRODUCERS TO MARKETS ................................... 5 2.1 TYPES OF MARKET LINKAGES .......................................................................................... 5 2.2 BEEF PRODUCTION IN TANZANIA ..................................................................................... 6 2.2.1 Demand conditions, beef marketing and marketing information ............................ 6 2.2.2 Market access challenges ..................................................................................... 8 2.2.3 Beef production systems ....................................................................................... 9 2.2.4 Herd size, structure and dynamics .......................................................................10 2.2.5 Related and supporting industries ........................................................................10 2.2.6 Government regulations .......................................................................................11 2.2.7 Chance: Drought and diseases ............................................................................12 2.3 BEEF RANCHING ...........................................................................................................12 2.3.1 Ranch Management process ...............................................................................13 2.3.2 The National Ranching Company (NARCO) ........................................................14 3.0 METHODOLOGY ...........................................................................................................15 3.1 STUDY SITE ..................................................................................................................15 3.2 RESEARCH DESIGN .......................................................................................................16 3.2.1 Desk research ......................................................................................................16 3.2.2 Case study ...........................................................................................................17 3.2.3 Observations........................................................................................................17 3.2.4 Survey .................................................................................................................17 3.3 DATA PROCESSING .......................................................................................................18 4.0 RESULTS ......................................................................................................................20 4.1 RESULTS FROM THE CASE STUDY : .................................................................................20 4.1.1 Actors and their roles in the beef chains ..............................................................22 iv 4.2 RESULTS FROM THE SURVEY : ........................................................................................27 4.2.1 Smallholder beef producers’ demography ............................................................27 4.2.2 Relative share of each actor in the chains ............................................................29 4.2.3 Quality control measures existing in the beef chains ............................................29 4.2.4 Challenges facing smallholders, NARCO, traders and supporters .......................31 4.2.5 Impact of herd size and structure on market participation among smallholders ....32 4.2.6 Methods used by smallholder beef producers to access market information ........34 4.2.7 Criteria for competitive farmers to be linked to NARCO .......................................34 5.0 DISCUSSION .................................................................................................................35 5.1 THE SITUATION OF BEEF SUBSECTOR IN KONGWA DISTRICT .............................................35 5.1.1 Actors and their roles in the beef chains ..............................................................35 5.1.2 Relative share of each actor in the chain .............................................................36
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