Presentation by Derek Baker, Ugo Pica-Ciamarra, Nsiima Longin and Nadhem Mtimet at the 19th International Farm Management Congress, Warsaw, Poland, 21-26 July 2013.

1. 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

2. 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/

3. Livestock Data Innovation in Africa Numbers for Livelihood Enhancement www.africalivestockdata.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
Sources:ElaboratedfromFAOSTAT,WorldBankWDIandFAORIGAdatabase

4. Livestock Data Innovation in Africa Numbers for Livelihood Enhancement www.africalivestockdata.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
• Information available
on quantity consumed
• Scattered if any
information on retail
forms / outlets and
safety & quality
attributes

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

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

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

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

9. Livestock Data Innovation in Africa Numbers for Livelihood Enhancement www.africalivestockdata.org
0.0
1.0
2.0
3.0
4.0
5.0
Urban
Rural
Quality – scores achieved by outlets

10. Livestock Data Innovation in Africa Numbers for Livelihood Enhancement www.africalivestockdata.org
Consumers’ preferred retail outlets
0
20
40
60
80
100
Roadside Small retail
shop
Wet market Supermarket Butchery Milk kiosk /
vendor
Typeofconsumers(%)
Less well off Middle Class Better Off

11. Livestock Data Innovation in Africa Numbers for Livelihood Enhancement www.africalivestockdata.org
Consumers’ preferred retail outlets
0
20
40
60
80
100
Roadside Small retail
shop
Wet market Supermarket Butchery Milk kiosk /
vendor
Typeofconsumers(%)
Less well off Middle Class Better Off
Quality
dimension
Quality
dimension
Size
dimension

12. Livestock Data Innovation in Africa Numbers for Livelihood Enhancement www.africalivestockdata.org
Preferred retail forms
Beef
Poultry
0
20
40
60
80
100
mixed pieces live bird dressed bird
Consumertype(%)
Less well off Middle Class Better Off
0
20
40
60
80
100
Offals Mixed beef Steak Sausage
Consumertype(%)
Less well off Middle Class Better Off

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

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

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

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