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Livestock Pricing in the Northern Kenyan Rangelands

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Author Info
Christopher B. Barrett
Francis Chabari
DeeVon Bailey
Peter D. Little
D. Layne Coppock

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Abstract

This paper uses detailed, transactions-level data and an innovative, structural-heteroskedasticity-in-mean estimation method to identify the determinants of livestock producer prices for pastoralists in the drylands of northern Kenya. The empirical results confirm the importance of animal characteristics, periodic events that predictably shift local demand or supply and, especially, rainfall on the prices pastoralists receive for animals. Price risk premia are consistently negative in these livestock markets. The imposition of quarantines has a sharp negative effect on expected producer prices in the pastoral areas, revealing that Kenya's approach to animal disease control favours wealthier highlands ranchers and consumers at the expense of poorer drylands herders. Copyright 2003, Oxford University Press.

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Publisher Info
Article provided by Oxford University Press in its journal Journal of African Economies.

Volume (Year): 12 (2003)
Issue (Month): 2 (June)
Pages: 127-155
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Handle: RePEc:oup:jafrec:v:12:y:2003:i:2:p:127-155

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Fafchamps, Marcel & Gavian, Sarah, 1997. "The Determinants of Livestock Prices in Niger," Journal of African Economies, Oxford University Press, vol. 6(2), pages 255-95, July.
  2. McPeak, John G & Barrett, Christopher B, 2001. " Differential Risk Exposure and Stochastic Poverty Traps among East African Pastoralists," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 83(3), pages 674-79, August. [Downloadable!] (restricted)
  3. Fafchamps, Marcel & Gavian, Sarah, 1996. "The Spatial Integration of Livestock Markets in Niger," Journal of African Economies, Oxford University Press, vol. 5(3), pages 366-405, October.
  4. Fafchamps, Marcel, 1998. "The Tragedy of the Commons, Livestock Cycles and Sustainability," Journal of African Economies, Oxford University Press, vol. 7(3), pages 384-423, October.
  5. Andargachew, K. & Brokken, Ray F., 1993. "Intra-annual sheep price patterns and factors underlying price variations in the central highlands of Ethiopia," Agricultural Economics, Blackwell, vol. 8(2), pages 125-138, February. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Bellemare, Marc F. & Barrett, Christopher B. & Osterloh, Sharon M., 2004. "Household-Level Livestock Marketing Behavior Among Northern Kenyan and Southern Ethiopian Pastoralists," Working Papers 14749, Cornell University, Department of Applied Economics and Management. [Downloadable!]
  2. Christiaensen, Luc. J. & Subbarao, Kalanidhi, 2004. "Toward an understanding of household vulnerability in rural Kenya," Policy Research Working Paper Series 3326, The World Bank. [Downloadable!]
  3. Barrett, Christopher B. & Luseno, Winnie K., 2001. "Decomposing Producer Price Risk: An Analysis Of Livestock Markets In Northern Kenya," 2001 Annual Meeting, July 8-11, 2001, Logan, Utah 36154, Western Agricultural Economics Association. [Downloadable!]
  4. Marijke Verpoorten, 2007. "Household Coping in war- and peacetime: cattle sales in Rwanda, 1991-2001," LICOS Discussion Papers 18907, LICOS - Centre for Institutions and Economic Performance, K.U.Leuven. [Downloadable!]
    Other versions:
  5. Barrett, Christopher B. & Luseno, Winnie K., 2002. "Decomposing Producer Price Risk: A Policy Analysis Tool With An Application To Northern Kenyan Livestock Markets," Working Papers 14753, Cornell University, Department of Applied Economics and Management. [Downloadable!]
    Other versions:
  6. Adugna, Teressa, 2006. "Determinants of Market Prices of Cattle in Eastern Ethiopia," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25336, International Association of Agricultural Economists. [Downloadable!]
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This page was last updated on 2009-11-28.

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