Agriculture Reference
In-Depth Information
2.9.5 Other marketing challenges
Other marketing challenges include lack of marketable livestock numbers and poor
condition of livestock. According to Stevens and Jabara (1988), livestock numbers in
communal areas are generally low per producer and the average weight of animals are
generally lower compared to those of the commercial farming sector. The lack of marketable
livestock numbers is also as a result of livestock theft. Excellent prices offered for Nguni
cattle are likely to increase theft cases from this breed (Van den Bos, 2004; Dzimba and
Matooane, 2005). Furthermore, farmers often have inadequate or no insurance coverage
on livestock (Smith, 2002). Lack of marketable livestock numbers and poor condition of
livestock therefore results in buyers not coming to purchase livestock since they will face
very high transactional costs (Makhura, 2001).
Poor condition of livestock results in farmers getting low farm gate prices especially during
dry spells (Makhura, 2001). More often, it results in farmers refusing to sell their livestock.
Livestock auctioneers and speculators often raise concerns that they cannot pay competitive
prices for animals that are in poor condition or not ready for the market (Nkhori, 2004).
In addition to this, Nkhori (2004) also highlighted that the poor condition of livestock is
important, but the age of animals affect prices. The animals are often too old when farmers
do sell and this equally contributes to poor prices.
2.10 Existing market opportunities for Nguni cattle
A number of cattle market outlets are available to the beneficiaries of the Nguni cattle
project; however access to formal markets is limited by a number of factors, chiefly of which
are the distance from the market and inadequate infrastructure. There are many marketing
channels that the beneficiaries can use when selling their cattle. These include private sales,
auctions, butcheries and abattoirs.
2.10.1 Private sales and informal markets
The shortest, simplest, and the most popular option, especially amongst smallholder
livestock owners, is private sales directly to the ultimate consumer (Nkosi and Kirsten,
1993). Private sale occupies an important position in the livestock marketing arena of the
emerging sector. Private sales include individuals buying livestock for different reasons
which include slaughter, investment or for socio-cultural functions such as funerals,
weddings, customary and religious celebrations (USAID, 2003).
Due to the important functions performed by livestock in African societies, there exists
a market amongst individual households (Nkhori, 2004). Private selling is a common
practice to communal farmers as they are in a position to determine prices for their animals.
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