Key Factors Affecting Beef Cattle Marketing and Its Profitability: The case of Ethiopia's Oromia Regional State's West Showa Zone

Abstract

This research was carried out in the West Showa administrative zone in Oromia regional states, Ethiopia. Analysis of beef cattle marketing profitability and its important determinants among smallholder farmers who raise and market beef cattle was one of the main goals of the research. By adopting the scheduled interview data collection approach, 12 well-trained data collectors who were pooled from Development Agents collected socioeconomic data from 400 beef cattle producers and performers who were selected at random. The collected data was analyzed using a multiple regression econometric model and descriptive statistics techniques. The results of the multiple linear regression showed that family size, the frequency of extension visits annually, the distance from and to the nearest market, the experience of the smallholder farmers in the production, raising, and keeping of beef cattle, and the ownership of beef cattle all had a significant impact on their participation in the market and their profitability. Evidence from a marketing gross margin analysis indicated that beef cattle producers earn the largest profit gross margin (49.63%), followed in their earnings by butcheries (40.35%) and hotels (36%). Compared to beef cattle actors, beef cattle merchants have the lowest gross profit margins (27%). The data analysis result suggested that the concerned body should provide adequate and continuous extension services for the beef cattle producers, the policymakers have to construct sufficient infrastructures such as roads and others in the study area and increase the number of beef cattle owned by the smallholder farmers, provision of adequate veterinary service and provision of improve beef cattle breeds are highly recommended in the future interventions.