This report examines the cattle marketing chain in Bali and Lombok and describes the role of its various stakeholders. It also identifies the role that farmer groups play in assisting smallholders to link to the market chain, and the characteristics of farmer groups and their leaders that result in greater access to markets. The research uses a mix of qualitative and quantitative data collection methods, the latter involving two multiple regression analyses. The study provides new information about cattle marketing chains in Bali and Lombok, factors that influence a cattle group's ability to support smallholders in linking to markets, and factors influencing smallholders' choices of where to sell. The findings have important implications for the way private and public investors form and manage smallholder cattle groups. Policymakers are faced with a choice. If they are distributing cattle via groups to improve cattle productivity and industry efficiency, they will need to form and foster groups and group leaders in a different way than if they are distributing cattle to improve short-term smallholder welfare.

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