INTRODUCTION

Tanzania has a cattle population of approximately 13 million (for a human population of 27 million). It has potential to be a cattle exporter for the Region.

Annual cattle offtake is estimated to be about 9% per annum, i.e. 1.2 million slaughters per year. Of this 1.2 million, approx 140,000 per year are sold in Dar es Salaam, 30,000 per year in Arusha, and 20,000 per year in Moshi. These 3 markets therefore account for 16% of total offtake/consumption and 1.5% of total herd size/year.

Most cattle production is extensive, relying on natural rainfed grasslands in the semi-arid and arid interior of the country. Cattle are trekked to the markets in Arusha and Moshi, and are mainly trekked to railheads and then railed to Dar es Salaam from locations such as Dodoma. There is a small dairy sector, which provides only a small proportion of the demand for milk, the majority of which is satisfied by imports of powdered milk.

Beef consumption in Tanzania is moderate to low by international standards, being approximately 7.1 kg per person per year (20 grams per person per day).

Cattle prices at these 3 terminal markets varies between market and by season and other factors, but can be taken as a 1994 average of approximately US$ 100.00 per animal. Thus we total turnover of the 3 major markets is about US$ 20 million per annum. The other markets trade at lower prices, so we can estimate the total Tanzanian wholesale beef business to be in the region of US$ 80 million per annum, 1.3 million animals per year, 130,000 tonnes of edible beef per year, 170,000 tonnes of carcase beef per year.

It is reckoned that approximately 115,000 head (11,500 tonnes) per year are unofficially exported, mostly to Kenya. For comparison of export markets, Europe imports approximately 85,000 tonnes of corned beef p.a., the Middle East 40,000 tonnes of corned beef p.a., and the Middle East 250,000 tonnes of live or unprocessed beef p.a..

Over the years since Independence in 1964, and especially since 1974 when Tanganyika Packers corned beef operation was nationalised, the industry has gone downhill in terms of exports, infrastructure, animal disease, animal quality and revenue. Animal health (or lack of it) is potentially a great obstacle to the exports of live animals and of beef to Regional and International markets.

The retail price of beef is in theory a Government Controlled Price, presently for Dar es Salaam in the region of US$ 1.4/kg for mixed beef and US$ 2.4 / kg for fillet; wholesale cattle prices are not controlled, and although very variable, are in the region of US$ 1.00 per kg of edible tissue (meat plus fat), although they vary by market and by season (see graphs and comment in this Report).

The TLMP is a Project worth approximately US$ 10 million over 5 years. It has inputs in the areas of railway cattle wagons, slaughter facilities, improvements of cattle markets and other infrastructure, and the cattle pricing (MIS) system.

An existing MIS has been active since 1989, and the recent departure of 2 UNFAO experts who were running operations in Dar and in Moshi/Arusha has made 1994/1995 a useful point at which to review the existing operations and to consider making changes and improvements.

The MIS has 2 dimensions - to assist in the workings of the free market system by providing information on which producers, traders, buyers and sellers can base their decisions and behaviour; and also to assist Ministry of Agriculture and other interested parties by providing information regarding trends in the cattle business.