October 12, 2010

Tanzania sees higher beef prices despite supply surge

Prices of beef in the Dar es Salaam city of Tanzania have remained high despite improved supply of livestock at the main Pugu Market.

Many retail outlets sell a kilogramme of beef at between TZS3,500-5,000 (US$2.32-$3.32), while steak go for TZS6,000-7,500 (US$3.98-$4.98) a kg, according to sources.

Statistics from the Ministry of Industry, Trade and Marketing show that 198,000 head of cattle have been supplied to the Pugu market so far this year, up from 109,494 last year.

A livestock marketing specialist, Julian Gutta, said that the Pugu market operates daily and average of trade in is about 700 to 900 cows.

"Cattle is the source of protein or meat for most of the people in Dar es Salaam and the demand is high, compared to sheep, goats and fish," said Gutta.

The market operates through auction where there is no fixed price for cattle because it depends on agreement between the wholesaler and retailer. The trend of market depends on food security especially cereals situation where availability of provisions lifts cattle prices.

Last year, the output of cereals was low and there were no enough animals coming to Dar es Salaam market, but prices were low. Pugu market also serves Zanzibar, Mtwara and Lindi, as well as the Comoros.