Concentration of sales and assets: dairy cattle and tea in Magutu, 1964-1971

Abstract

Section 2 [pp2-21] shows a reduction in measured inequality of production and the holdings of assets over the period 1964-1971. There is some tendency for the proportionate rate of growth of sales and assets to decline with any given increase in the initial levels of sales and size of assets. The variation in the proportionate rates of growth between size groups of sales and assets is however particularly pronounced for smaller producers. If the source of the reduction in measured inequality is to be found in the increased concentration of production within the middle size group of producers, then the variation in proportionate growth accounts for the relatively worsening position of the smaller 20 to 30% of all producers.

Section 3 [pp22-37] gives a more precise account of the relationship between size and growth of assets.

Section 4 [PP37-55] examines the consequences of the transfer of tea stumps and dairy cattle. Of particular interest is the import, behind the inheritance of stumps and enforced sale of dairy cattle, which transfer gives to the tendencies of proportionate growth as shown in Section 2.

Section 5 [55-62] estimates the proportion of households out of the total population of households, which have entered tea and milk production for sale since 1964. The proportionately large number of entrants, of the existing producers in 1964, into production has accelerated the concentration of production around the middle size groups of producers.

Appendix A [pp 67-84] contains an account of the sources of the data used for this analysis and the areas where there is likely to be any bias in the results.

Appendix B [pp 85-88] contains a summary of the distributions of incomes from sales, quantities of sales and holdings of assets.