A gross margin analysis for Nguni cattle farmers in Limpopo Province, South Africa.

Factors such as increases in population, urbanization, growth in per capita income and changes in consumer taste and preferences are causing gradual increases in livestock product consumption and demand. South Africa is addressing this predicted increase in livestock products demand by commercializing smallholder livestock producers. The Limpopo Industrial Development Corporation (IDC) Nguni Cattle Development Project is an example of such effort. The economic performance of these efforts needs to be evaluated. We use gross margin analysis to evaluate the performance of the Limpopo IDC Nguni Cattle Development Project. Additionally, we use regression analysis to identify factors influencing gross margins. Our results indicate that although smallholders show potential to commercialize, they lack commercial farming experience and require that a strong extension support system be used as one of the strategies to improve profitability. We also noted that individual farmers were more profitable than group farmers. Multiple regression analysis shows that three variables could be used to stimulate gross margin among the Limpopo IDC Nguni Cattle Development Project farmers. These are herd size, distance to market and farm size. Since farm size is a given, policy should focus on assisting farmers to build their herds and to have better access to markets.

Perception, risk attitude and willingness to pay for safety and innovative attributes of processed chicken meat in Oyo State, Nigeria.

This paper examined the perception and willingness to pay (WTP) for safety and innovative attributes of processed chicken meat among consumers in Oyo State, Nigeria, taking into consideration their risk attitudes. The study revealed that the majority of the consumers were more aware of existing attributes than innovative attributes of processed chicken meat. Also, the majority of consumers (73.3%) were risk-neutral. Only 35% of respondents had lowered chicken consumption due to safety concerns and about 51.7% of respondents claimed to be satisfied with the level of safety and quality of chicken meat sold in the Nigerian markets. Sex, household size, major occupation, being a grocery shopper, income and age significantly affected the willingness of consumers to pay a premium for safety and innovative attributes of processed chicken meat. A positive mean WTP of 1,613.16 Naira was estimated. It was therefore recommended that key players in the value chain should adopt relevant marketing strategies in line with these attributes and target a specific niche of consumers based on their socioeconomic characteristics. Furthermore, government and other regulatory bodies should put measures in place to ensure that processors are sensitized about the safety of chicken.

Consumers' preference and willingness to pay for graded beef in Polokwane municipality, South Africa.

Consumers around the world are progressively becoming more concerned and aware about food standards, quality and safety issues. The purpose of this study was to determine consumers' preference regarding safe and quality beef and willingness to pay (WTP) for graded beef in Polokwane municipality, Limpopo Province, South Africa. The research surveyed 150 consumers using a structured questionnaire to collect data on consumer characteristics and responses to different bid levels for graded beef. Analytical methods were descriptive statistics, Likert scales, contingent valuation method to evaluate respondents' mean WTP for graded beef and logit model to determine the dependence of WTP on consumers' socioeconomic characteristics. Results showed that consumers prefer their beef tender, with less fat and bones and labelled with price, grade/class, size or quantity of the product and lastly quality inspection or certification indicator. Over half of the respondents (53%) were aware of grading or classification systems. The results further revealed that most respondents are willing to pay an increase of 16.04% over the current price for beef. This could be an opportunity for investments in beef label industry. Consumer characteristics including age, income, gender and household size significantly influenced WTP for graded beef in Polokwane Municipality. Marketing strategies considered by beef product investors should target young, female and wealthier consumers. Grading with respect to quality attributes would make beef sales at differentiated prices possible. This will eventually enhance sales volume and returns for all stakeholders along the value chain.