aistand south~ern afrkca - (PDF, 101 mb) - USAID

argaed that the only way to improve performance
was through increased government
intervention. However, such inferences were
largely based on casual impressions of activities
in traditional market places.
Detailed studies on the performance of
marketing systems for live animals in sub-
Saharan Africa tend to give somewhat conflicting
results (Ariza-Nino et al, 1980; Herman,
1979; Staatz, 1979; Solomon Bekure et al, 1982).
Whereas the results of the studies in West Africa,
Madagascar and Ethiopia suggest that the
performance of traditional marketing systems is
more satisfactory than that of the formal
systems, a study in Kenya (Solomon Bekure et
al, 1982) suggests that there is no uniform
picture. This study also gives a less favourable
impression of the efficiency of informal
marketing systems for live animals.
Marketing options for live animals appear to
be relatively limited with respect to flexibility
and ability to manipulate elements in the
marketing mix. The channels ofdistribution are
relatively limited and so is the ability to ask for
different prices in the same market. One is able
to differentiate live animals primarily on the
basis of sex, age, body condition and liveweight.
This factor limitsi the scope for product
promotion, even though prices may differ on the
basis of the factor itself. However, flexibility in
pricing is more likely to be possible in the
informal marketing system, but one expects that
the pricing structure sysem illsomhowinfuenegogrphial
in the formal te marketing
system will somehow influence the geographical
pattern
system.formal
The scope for the promotion of the marketing
of live animals would appear to exist at the
institutional level. A certain region (or large
farm) may become known nationally for
producing good quality animals, as could a
cortain country become known internationally
for producing good quality animals. Such a factor
can be exploited when promoting the product
(live animals) in both domestic and export
markets, through the creation of individual,
regional and national brand images. For
example Botswana beef off the ranch is very
acceptable in the European Economic
Community.
Options for livestock products
Dairy products (fresh milk and milk products)
and meat (especially beef) are the major types of
livestock products which have been accorded
development priority in most countries in sub-
Saharan Africa. This is especially true of
donor-aided projects. As in the case of live
animals, there are both formal snd informal
marketing systems for livestock products in most
of the countries in the region. However, the
channels through which livestock products are
marketed are relatively more diverse and
complex than in the case of live animals.
Dairy marketing options
The main types of dairy products consumed in
most countries in eastern and southern Africa
include fresh milk, butter, sour milk, cheese and
yoghurt. The relative importance of the
consumption ofthe different types of products (or
their local equivalents 1 ) in different countries
may he expected to vary, but fresh milk
consumption is common in all countries. Dairy
producers have the option either to sell fresh
milk or to process it into various types of dairy
products and then sell such products, depending
on local market circumstances.
Anumberofcountriesintheregingenerally
regulate and control the prices of the dairy
products that are marketed through the formal
marketing system. For instance, until 21 May
1992 Kenya regulated and controlled the prices
of dairy products sold through the formal
channel. Ethiopia is an example of a country
where prices are still regulated and controlled.
Where price controls exist, a lucrative
informal channel will always arise and compete
with the formal channel even in the presence of
government decrees or laws prohibiting trade in
the informal channels. Prices of products
marketed through the informal channels tend to
exhibit great instability within and between
years and as one moves from one region to
another within a country. However, such prices
tend to be influenced by the prices set in the
channels (Mbegoh, 1992).
Some relevant experiences
The International Livestock Centre for Africa
(ILCA) has in the past initiated and undertaken
two major studies on dairy marketing options in
Ethiopia, focusing on the systems in Addis Ababa
and its immediate environs (Debrah and
Anteneh, 1991; Mbogoh and Tilahun, 1992).
Mbogoh and Tilahun (1992) focused on the dairy
purchasing patterns forAddis Ababa households
and thus identified the alternative marketing
systems through which these households
procured their dairy products from the retail end
of the marketing chains. Debrah and Anteneh
(1991) focused on the producers' marketing
options by characterising the markets of first
sale for fresh milk and butter. Debrah and
Anteneh (1991) and Mbogoh and Tilahun (1992)
revealed some interesting issues related to
marketing options for livestock products.
Mbogoh and "ilahun (1992) identified the
major marketing Jy-tems through which the
Addis Ababa households purchasd their milk
and milk products. These systems basically
defined the marketing options for the produusrs
1 For example, sour milk is normally consumed in many countries as the equivalent of conventional yoghurt.
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