Analysis of Market Structure, Conduct and Performance of Beef Cattle: The Case of Dugda District, East Shoa Zone, Oromia Regional State, Ethiopia

Abstract

This study was aimed to identifying the major market actors and their role in beef cattle market, and examining the market structure, conduct and performance in Dugda woreda of East shoa zone. Both primary and secondary data were used in this study. Primary data was collected from 120 sampled farmers and totally 39 traders at different levels by using semi-structured interview. Descriptive Statistics data analysis techniques were employed to analyze the beef cattle market structure, conduct and performance. The study result revealed that producers, both small and larger traders, small feedlot operators, butcheries, individual farmers for replacement or draft purposes and the final domestic consumers were the major beef cattle market actors in the study area. The market concentration ratio shows that there is strong oligopoly beef market structure in the study area. This shows only few traders were share the majority of market share and earn more profit than producers. Trading license, initial working capital, the risk of seasonal variation in demand and price offered were considerable barriers to entry to beef trading in the study area. The market conduct on the other hand shows there was no selling activity on credit basis, and the negotiation tool between sellers and buyers was mostly used for price determination in the study area. The marketing margin analysis indicates butcheries and hotels were received highest profit followed by small feedlot operators. The producers' share of final selling price or the consumer's price was found to be the highest in which producers directly sell to consumers. Intervention in improving market infrastructure, credit facilities and adding value is crucial in the study area to improve competitions among beef market actors.

Keywords: Market Structure-Conduct-Performance, beef cattle, Dugda district