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Policy Options for Improving Market Participation and Sales of Smallholder Livestock Producers: A case study of Ethiopia

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  • Ehui, Simeon K.
  • Benin, Samuel
  • Paulos, Zelekawork

Abstract

Market access plays an essential role in assuring better income and welfare levels for smallholder livestock producers, and thus contributes to poverty alleviation. This is even more so in the Ethiopian context where livestock play an essential role in the economy. Making use of the Heckman estimation procedure, this paper identifies policy and technology options to increase participation and sales of smallholder producers in livestock markets in Ethiopia, based on data from 934 household surveys conducted between 1999 and 2001 in the highlands of Tigray and Amhara regions in northern Ethiopia. The analysis demonstrates that physical capital (ownership of different species of livestock and landholding) and financial capital (crop income and non-farm income) are the main factors influencing market participation and sales. Education was also found to positively affect value of sales of dairy products. Distance to markets and towns were not found to be significant. We conclude that in the case of Ethiopia, constraints to production of livestock and livestock products (e.g. capital to purchase animals, feed, and processing equipment) are the main factors limiting participation and sales in livestock markets.

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Bibliographic Info

Paper provided by International Association of Agricultural Economists in its series 2009 Conference, August 16-22, 2009, Beijing, China with number 51789.

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Date of creation: 2009
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Handle: RePEc:ags:iaae09:51789

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Keywords: market participation and sales; livestock markets; Ethiopian smallholder farmers; Livestock Production/Industries; Marketing;

References

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  1. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
  2. Holloway, Garth & Nicholson, Charles & Delgado, Chris & Staal, Steve & Ehui, Simeon, 2000. "Agroindustrialization through institutional innovation: Transaction costs, cooperatives and milk-market development in the east-African highlands," Agricultural Economics, Blackwell, vol. 23(3), pages 279-288, September.
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Cited by:
  1. Lubungu, Mary & Chapoto, Antony & Tembo, Gelson, 2012. "Smallholder Farmers Participation in Livestock Markets: The Case of Zambian Farmers," Food Security Collaborative Working Papers 140902, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  2. Shiimi, T. & Taljaard, Pieter R. & Jordaan, Henry, 2010. "Transaction Costs and Cattle Farmers' Choice of Marketing Channels in North-Central Namibia," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 96641, African Association of Agricultural Economists (AAAE);Agricultural Economics Association of South Africa (AEASA).
  3. Olwande, John & Mathenge, Mary K., 2012. "Market Participation among Poor Rural Households in Kenya," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126711, International Association of Agricultural Economists.

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