Herders smile as price of cattle rises after naira crunch
The price of cattle has gone up in major cattle markets in Taraba State following availability of naira notes. Cattle owners are now smiling to the banks as a cow that was sold for N120,000 during the cash crunch now goes for between N230,000 and N240,000. A visit to two of the major cattle markets […]
The price of cattle has gone up in major cattle markets in Taraba State following availability of naira notes.
Cattle owners are now smiling to the banks as a cow that was sold for N120,000 during the cash crunch now goes for between N230,000 and N240,000.
A visit to two of the major cattle markets in the state at the weekend indicated that increase in the price of cattle and other animals started soon after banks started accepting the old N500 and N1,000 notes.
The markets visited by Daily Trust on Sunday include those at Garba-Chede and Iware located in Ardo-Kola and Bali LGAs of Taraba State.
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At the two cattle markets, it was discovered that there are cows sold at the rate of N340,000 and N400,000 each and buyers from different parts of the country are available and have bought hundreds of cows despite the increase in the price of the animal.
At Iware cattle market which operates every Thursday, hundreds of cattle are brought for sale, same as the Garba-Chede market.
Cattle dealers from across the country patronize the market and many other cattle markets located in different part of the state every week.
A dealer, Sani Musa, told our reporter that during the scarcity of naira notes, cows were sold at give-away prices.
He said a cow sold for N120,000 during the period is now N240,000.
Musa explained that cattle markets operate on cash and carry basis and the naira crunch seriously affected the cattle business in the state.
He also said there were about twelve cattle markets in the state and they include that of Tella, Marraban Baissa, Bantaje, Garba-Chede, Jatau, Nguroje and Mayo Ndaga.
Other markets are Maraban Kunini, Jamtare, Maihula, Sansanin Bali, Kungana and Iware.
Another cattle dealer, Dauda Yakubu, said between 4,000 and 5,000 cattle are sold on every market day.
He however said during the period of cash crunch, only about 1500 cows were sold on market days in Iware.
“Fulani herdsmen who bring about 90 per cent of the total cattle sold in the market refused to accept bank transfer because they do not have bank accounts.
“Similarly, majority of those who buy cattle in the market do not have cash to pay for the cows they buy and that seriously affected business transaction in the market,” he said.
Dauda Yakubu stated that there was no commercial bank in Iware despite the big cattle and grain market in the town.
Findings further revealed that business in the cattle market has picked up greatly compared to the cash crunch period.
A cattle merchant from Enugu State, Mr John Chuks, agreed that the prices of cattle had gone up compared to the period of naira scarcity.
He said he made huge profit in his business because he was able to come to the market with huge amount of money with which he bought cattle at almost a give-away price throughout the period of scarcity of naira notes.
“During the period of scarcity of naira notes, l used to buy a big cow at the rate of N120,000 but now the same cow is sold at between N230,000 and N240,000,” he said.
At Garba-Chede cattle market, the business is the same.
The prices have gone up and buyers from across the country were at the market and bought hundreds of herds of cows.
The increase in the price of cattle now is as a result of availability of naira notes and the approaching Sallah festivities, our finding further revealed.
Nuhu Ali, a cattle dealer from Kano State told our reporter that despite the increase in the prices of cows in cattle market in Taraba State, it is cheaper compared to Kano State.