The Market For Animal-Sourced Foods In Tanzania: Business Opportunities For Small-Scale Livestock Producers?

Abstract

Developing countries' consumption of high-value agricultural products, including animal-sourced foods, is anticipated to grow rapidly in the coming decades, fuelled by population growth, gains in real per capita income, and urbanization. Given that a large share of rural households in such countries keep some animals, a question arises as to whether the expanding market for animal protein represents a business opportunity for small-scale livestock producers. If consumers are anticipated to demand high-quality, highly-processed food products and do their shopping in supermarkets, there will be few opportunities for small-scale producers, who typically have insufficient human and financial capacity to meet that type of demand. Conversely, should consumers demand relatively low-quality and low-processed food products, then the growing market for animal-sourced foods will represent a major business opportunity for small-scale livestock producers. Available datasets and projections, however, while providing information on current and projected quantity of the different livestock products consumed at the commodity level, do not give details of preferred retail forms, outlets used and the desired safety and quality attributes. This paper presents the results of a rapid consumer survey undertaken by the Tanzanian Ministry of Livestock and Fisheries Development in collaboration with the World Bank-FAO-ILRI Livestock Data Innovation in Africa Project in Tanzania. The survey aimed at identifying preferred quality and safety attributes, retail forms and retail outlets for major livestock products and by type of consumers. Results of the survey, combined with nationally representative household datasets, allows describing both the quantitative and qualitative dimensions of the coming market for animal-sourced foods, which is anticipated to provide major business opportunities for smallscale livestock producers in the medium and short term.