Value Chain Analysis of Commercial Smallholder Pig Farmers in Goromonzi District, Zimbabwe

Abstract

The general objective of the study was to analyse the value chain of commercial smallholder pig production in Goromonzi district. The specific objectives of the study were to identify the key stakeholders, analyse respective marketing margins and determine the income distribution across the value chain, identify the determinants of quantity of pigs supplied to the market in the study area and the determinants of market outlets choice decisions of smallholder pig producers. The total sample for this study was sixty-seven participants drawn from all actors involved in commercial smallholder pig value chain. Purposive sampling was used to select commercial smallholder pig farmers and other actors in the value chain. Snowballing was also be used to create a network of key respondents. Multiple data collection tools were used including the survey questionnaire, key informant interviews, focus group discussions and observations. Key stakeholders in the smallholder pig production value chain, have been identified as the input suppliers, farmers, processors, wholesalers, retailers, consumers, and government departments such as Agricultural Technical Extension Services, and veterinary departments. A value chain was mapped, and the roles played by each actor were identified. Pork production is very capital intensive, across the value chain from primary production through to processing and the result is that significant economies of scale are required to produce profitably. Due to poor coordination within the chain most actors are not taking advantage of the benefits of aggregation but rather operate individually thereby reducing their margins especially the farmers. The study confirms farmers make the least return on investment when compared to eateries and abattoirs who have better market linkages as well as capacity to add value to make more income. The main factors affecting the performance of farmers include, high production costs, lack of adequate funding or formal contract farming, high disease prevalence, price volatility due to inflation and consumers’ food safety concerns. Furthermore, primary producers have limited bargaining power with regards to prices even though they outnumber the wholesalers and retailers. The quantity supplied to markets is highly dependent on litter size, average mortality, and gender of a farmer. Farmers with high litter size and low mortality rate have more produce to supply to the market. Male pig producers also dominate the sector and as a result they supply more pigs to the market. Farmers in the district have an option to market their produce to wholesalers, retailers as well as consumers. Price satisfaction and method of payment where the main determinants of market outlet choice in the multivariate logit model. For the consumers in Goromonzi, price remained an important decision in choosing pork instead of other meats more than religion.