The economic of commercial beef production in Tanzania: a case study of selected ranches
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Date
1983
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Publisher
University of Dar es Salaam
Abstract
This dissertation reports on a commercial livestock sector study in which several economic analysis tools were used to evaluate the economic performance of three alternative types of ranches in Tanzania based on actual d data for 1970-1974 for four ranches considered as representative of these types. Gross margin analysis by years was used to study the four ranches. Optimum plans were then developed for each of the three types by a direct cost-benefit analysis. Tanzania is one of the 25 least-developed countries in the world, all of which depend on agriculture for socio-economic development. In Tanzania, agriculture contributes 85 per cent of the total export earnings. The livestock sector, which is also important in supplying dietary requirements and offering employment opportunities, contributes 5 per cent of the export earnings. Under the current level of management and resource availability, the ranches as now operated tend to be under stocked. Year to year rainfall is highly variable and stocking many reflect carrying capacity in the poorer years. The plans indicate that optimum holdings are 1.1 to 2.3 times as large as actual 1971-1974 average inventories adjusted for land resources as used for the optimum plan. All ranches for which both fixed and variable costs were available were profitable based on a 1972-1974 average, with net returns largest for the two ranches that specialised either in fattening or breading. The direct cost-returns analyses showed highest net returns for the ranch that operated breeding programs only, but they were only slightly higher than for the ranch specialising in fattening only. The prototype ranch carrying out breeding and fattening programmes had a gross margin and net income which were lower than for the other types of ranches, suggesting an advantage in specialisation. However, each type showed substantial profits under the assumed conditions. If one looks at net income as a ratio to total costs, the ranch specialising in breeding shows a ratio of 2.4, the one which both breeds and fattens shows a ratio of 1.0, while the one that specialises in fattening only has a ratio of 0.7.
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Keywords
Livestock, Beef cattle, Economic aspects, Agriculture
Citation
Mkwama, P. K. W (1983) The economic of commercial beef production in Tanzania: a case study of selected ranches, Masters dissertation, University of Dar es Salaam. Available at (http://41.86.178.3/internetserver3.1.2/detail.aspx?parentpriref=)