Cattle price gaps reflect market differences

ARUSHA: WIDE cattle price disparities across the country major markets are creating different return prospects for producers and traders.

The Tanzania Meat Board (TMB) data show that average prices for larger cattle ranged from 1.75m/- to 3.5m/- at the end of September with seven markets trading a combined 2,594 cattle.

Themi market in Arusha recorded the highest average price at 3.5m/- for cattle weighing about 300 kilogrammes, followed by Mutukula in Kagera at 2.8m/- for animals averaging 380 kilogrammes and Kizota in Dodoma at 2.5m/- for cattle weighing about 355 kilogrammes.

At the lower end, Wereweru in Kilimanjaro recorded 1.75m/- for cattle averaging 567 kilogrammes, while Mhunze in Shinyanga and Wasso in Loliondo, Arusha, each recorded 1.8m/- for animals weighing about 200 kilogrammes and 380 kilogrammes, respectively.

Igunga recorded 2.1m/- for cattle averaging 230 kilogrammes. The price differences underline the importance of looking beyond the headline price per animal when assessing cattle markets.

A higher price does not necessarily translate into a better return relative to the size of the animal, while differences in the mix of cattle traded can also affect market averages.

Trading volumes also varied considerably, providing another measure of market activity.

Mhunze recorded the highest number of cattle traded at 802, followed by Kizota with 633 and Weruweru with 586.

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Igunga traded 280 cattle, while Themi recorded 122. Mutukula and Wasso had the lowest volumes, at 91 and 80 cattle, respectively.

The combination of price and trading volume shows that the markets differed both in the value of individual animals and the scale of trading activity during the period.

For producers, this makes market selection an important consideration when weighing potential returns against the costs and logistics of taking cattle to different trading centres.

For lighter cattle, average prices ranged from 350,000/- for 80-kilogramme animals at Mutukula to 750,000/- for 180-kilogramme cattle at Weruweru.

Themi recorded 400,000/- for cattle averaging 100 kilogrammes, while Igunga recorded 600,000/- for animals weighing about 65 kilogrammes. The figures further show why animal weight needs to be considered when comparing prices across markets.

Comparing prices per animal alone can give a misleading picture of relative market value when the average size of cattle differs substantially.

The TMB report does not specify the factors behind the price differences, so the figures should be viewed as a snapshot of trading conditions during the week rather than evidence of a persistent price advantage in any particular market.

Nevertheless, the data provide useful market intelligence for livestock producers and traders by showing variations in prices, animal weights and trading volumes across selected markets, which can support decisions on where and when to sell cattle.