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Livestock Pricing In The Northern Kenyan Rangelands

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  • Barrett, Christopher B.
  • Chabari, Francis
  • Bailey, DeeVon
  • Coppock, D. Layne
  • Little, Peter D.

Abstract

This paper uses detailed, transactions-level data and a structural-heteroskedasticity-in-mean model 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 a distributionally regressive approach to animal disease control in Kenya.

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Bibliographic Info

Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2001 Annual meeting, August 5-8, Chicago, IL with number 20460.

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Date of creation: 2001
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Handle: RePEc:ags:aaea01:20460

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Keywords: Demand and Price Analysis; Livestock Production/Industries;

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References

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  1. Fafchamps, Marcel, 1998. "The Tragedy of the Commons, Livestock Cycles and Sustainability," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 7(3), pages 384-423, October.
  2. Jabbar, M.A., 1998. "Buyer preferences for sheep and goats in southern Nigeria: A hedonic price analysis," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 18(1), January.
  3. John G. McPeak & Christopher B. Barrett, 2001. "Differential Risk Exposure and Stochastic Poverty Traps Among East African Pastoralists," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(3), pages 674-679.
  4. Andargachew, K. & Brokken, Ray F., 1993. "Intra-annual sheep price patterns and factors underlying price variations in the central highlands of Ethiopia," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 8(2), February.
  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.
  6. Fafchamps, Marcel & Gavian, Sarah, 1997. "The Determinants of Livestock Prices in Niger," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 6(2), pages 255-95, July.
  7. Keister,Lisa A., 2000. "Wealth in America," Cambridge Books, Cambridge University Press, number 9780521627511.
  8. Fafchamps, Marcel & Gavian, Sarah, 1996. "The Spatial Integration of Livestock Markets in Niger," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 5(3), pages 366-405, October.
  9. Keister,Lisa A., 2000. "Wealth in America," Cambridge Books, Cambridge University Press, number 9780521621687.
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Citations

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Cited by:
  1. Bellemare, Marc F. & Barrett, Christopher B. & Osterloh, Sharon M., 2005. "Household-Level Livestock Marketing Behavior Among Northern Kenyan and Southern Ethiopian Pastoralists," Working Papers 14749, Cornell University, Department of Applied Economics and Management.
  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.
  3. Marijke Verpoorten, 2007. "Household coping in war- and peacetime: cattle sales in Rwanda, 1991-2001," Center for Economic Studies - Discussion papers ces0727, Katholieke Universiteit Leuven, Centrum voor Economische Studiƫn.
  4. Barrett, Christopher B. & Swallow, Brent M., 2006. "Fractal poverty traps," World Development, Elsevier, vol. 34(1), pages 1-15, January.
  5. Barrett, Christopher B. & Luseno, Winnie K., 2004. "Decomposing producer price risk: a policy analysis tool with an application to northern Kenyan livestock markets," Food Policy, Elsevier, vol. 29(4), pages 393-405, August.
  6. Sandford, Stephen & Scoones, Ian, 2006. "Opportunistic and conservative pastoral strategies: Some economic arguments," Ecological Economics, Elsevier, vol. 58(1), pages 1-16, June.
  7. 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.
  8. 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.
  9. Campbell, Bruce M. & Gordon, Iain J. & Luckert, Martin K. & Petheram, Lisa & Vetter, Susanne, 2006. "In search of optimal stocking regimes in semi-arid grazing lands: One size does not fit all," Ecological Economics, Elsevier, vol. 60(1), pages 75-85, November.

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