9. Many African governments attempt to control live animal and meat prices by (a) fixing minimum prices per unit of liveweight which slaughterhouses and butchers can pay, and/or (b) fixing wholesale and retail meat prices which they can receive. The presumed intention of these price controls is to limit the margins of traders and butchers and thus protect both producers and consumers from exploitation.
10. Although there are legal provisions for the frequent review of these prices, this is seldom done. Few governments in Africa have the analytical and administrative resources or the political will to alter the gazetted prices as market conditions change. As a result, the prices remain fixed despite radical shifts in market conditions arising from seasonal changes in supply and demand, changes in transport costs etc. A good example of this is provided by Zaire. Maximum producer, wholesale and retail prices for livestock and meat were fixed by the government in February 1973. They remained unchanged until May 1976. Meanwhile, actual producer prices had risen by 40% and retail prices by 100%. The only price which remained fixed at the official controlled level was that paid by traders for animals they bought from government ranches.
11. In most African countries the controlled prices are totally or partially ignored by all parties; examples are Sudan (Abdalla, 1974) and Kenya (Matthes, 1979). In countries where price controls are enforced the result is often a shortage of meat which leads to black market operations, and in the end consumers pay higher prices than would otherwise be the case, e.g. in Tanzania (Farris and Stokes, 1976) and Uganda (FAO, 1980).
12. When fixed retail prices are maintained below market prices, an income transfer from the farmer to the urban consumer takes place. It also discourages the farmer from improving productivity or expanding production. Furthermore, it encourages illegal exports in countries which share a 'cattle-shed' with their neighbours. Livestock movements across the borders of Tanzania, Kenya, Somalia and Ethiopia in response to price differentials often take place in large numbers and their existence is well known.
