Assessing the profitability of local live cattle trade in Teso region

Abstract

The livestock sector contributes between 1 and 1.5 percent to Uganda’s export trade value (UBOS, 2017). Despite the challenges faced in the trade of cattle many traders are still actively involved. This could be due to high profit margins realized from the cattle trade. This study therefore seeks to assess the profitability of local live cattle trade. Majority of the cattle traders were adults between the age of 36 – 60 (48.6) this is because cattle trade is hectic, requires enough capital were by these people have at least accumulated wealth. Most of the traders are married (72.9%) because they have a lot of pressing needs, most traders had acquired the ‘‘O’’ level certificate of education implying that they had knowledge on how to handle the business. In trading with live cattle, it was realized that trading in bulls is more profitable than heifers since the bulls tend to weigh, more than the heifers and their prices are determined by their weight. The socio-economic factors that affect profitability included the years spent at school and access to extension services. And the recommendations included; Trader’s associations leaders should always mobilize traders and invite extension workers to provide extension services to the traders so as to acquaint them with knowledge on how to handle the enterprise, cattle markets and management practices for cattle. The government should provide programs that encourage farmers and traders to embrace education.