Price Spread Analysis of Cattle in Hadiya Pastoral Areas

Abstract

This study was undertaken in the pastoral areas of Hadiya zone of SNNPR, Ethiopia with the objective of assessing the efficiency of cattle marketing. The required data were generated from both primary and secondary sources. The marketing margin analysis manifested that, butchers incurred the highest cost of 94 Birr per head followed by itinerant and amateur traders while rural collectors made the largest profit (542 Birr per head) followed by butchers (506 Birr per head). The producers share was found largest in the direct sale to consumer followed by sales directly to butchers and to butchers through rural collectors. So as to improve the gain for pastoralists it is better to integrate vertically and since adding activities adds costs and risks, identifying an appropriate technologies, training on marketing systems to be undertaken, and providing information and working capital would alleviate the problem and improve gain from marketing.

Key words: Price spread, Pastoral cattle marketing