Factors that influence beef meat production in Tanzania. A Cobb-Douglas production function estimation approach

by Cornel Anyisile Kibona, Zhang Yuejie, Lu Tian

Beef meat production is the key to reducing poverty, achieving food security and nutrition, promoting exports, economic growth, and industrialization. Despite a large number of beef cattle, Tanzania continues to import beef meat and its contribution to GDP is low. Thus, this study used time-series panel data to analyze the beef meat industry in Tanzania from 1990 to 2019, with a particular focus on identifying the reasons and direction of the correlation between beef meat output and its determinants in the production processes. The study applied both descriptive statistics and the Cobb-Douglas production function model, using the Ordinary Least Squares (OLS) based estimator to analyze the data. Descriptive analyses revealed that Tanzania’s beef meat production increased by 283,871 tons (59.3%-a positive trend) between 1990 and 2019. This increase was accompanied by approximately 29.75%, 53.05%, and 42.42% increases in beef cattle yield (carcass weight (hg) per head, beef cattle inventory, and the number of beef cattle slaughtered, respectively). However, the analysis further revealed that a 2.8% decrease in beef cattle extraction (low harvesting) rate due to low market participation, continues to be a critical barrier to increasing beef meat production in Tanzania. Furthermore, econometric estimates showed that the key factors that positively influenced beef meat output at a 5% significance level (P < 0.05) included beef cattle population (inventory), beef cattle yield (carcass weight (kg) per head, and the number of beef cattle slaughtered, with elasticity coefficients of 0.146, 0.469, and 0.564, respectively). While the number of beef cattle exported positively influenced beef meat production at the 10% significance level (P < 0.1) with an elasticity coefficient of 0.028. Surprisingly, invested credit to agriculture (farm credits) and imported pure-bred beef cattle had a negative impact on beef meat output but were statistically insignificant at P < 0.05. The results of this study have implications as to what factors need to be addressed to further improve beef meat production, thereby reducing its reliance on imports. We suggest that the Tanzania government and policymakers need to establish balanced policies for beef farmers and appropriately manage them so that beef meat development can be induced, contributing to poverty reduction, food security, and economic development.