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Unconditional factor demands and supply response for livestock products: A farm-level analysis of the Southern Rangelands of Kenya

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  • Manyeki, John Kibara
  • Kotosz, Balázs
  • Kanó, Izabella Szakálné

Abstract

This paper evaluates output supply and input factor demands for livestock products in the Southern rangelands of Kenya. A flexible translog profit function that permits the application of the primal approach to the output supply and factor demand analysis was estimated using household-level data. The results indicate that the own-price elasticities of supply for cattle, sheep and goats were all positive. The own-price elasticities for the supply of sheep and goat products were elastic, while the own-price elasticities for the supply of cattle products was inelastic. Cross-price and scale elasticities were found to be within the inelastic range in all cases, with goat production complementing both cattle and sheep production. All factor input demand elasticities for cattle, sheep and goats had the expected negative sign and were inelastic. These results offer a valuable opportunity for the development of pro-pastoral price policies that reduce factor market imperfections and thus enhance livestock productivity in the rangelands of Kenya.

Suggested Citation

  • Manyeki, John Kibara & Kotosz, Balázs & Kanó, Izabella Szakálné, 2021. "Unconditional factor demands and supply response for livestock products: A farm-level analysis of the Southern Rangelands of Kenya," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 16(3), September.
    • Handle: RePEc:ags:afjare:333945
    DOI: 10.22004/ag.econ.333945
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    References listed on IDEAS

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