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Price expectations of sheep and goats by producers and intermediaries in Quetta market, Pakistan

Listed author(s):
  • Rodriguez, Abelardo
  • Ali, Imran
  • Afzal, Muhammad
  • Shah, Nisar A.
  • Mustafa, Usman

Analysis of producers' and intermediaries' livestock price expectations was used to describe the market in Quetta, the largest livestock market in the highlands of Balochistan Province, Pakistan, and to identify factors that determine price expectations of small ruminants. A total of 4800 expected prices for sheep and goats were collected from producers and market intermediaries at monthly intervals between January 1991 and December 1992. In addition to the expected price of the animal, liveweight, species, sex, breed, body condition (fatness), calendar day and month were recorded, and whether data were collected on a meat or meatless day. Monthly rainfall data were also collected. Models of goat and sheep price expectations were built to compare the similarity of the behaviour of producers and intermediaries. Results indicated that producers and intermediaries expected high prices from November to January and during religious holidays. They expected premiums and discounts related to animals' attributes. Liveweight and seasonality had the strongest effect on prices. Rainfall in the current and previous month was positively related to seller's expected prices suggesting that livestock are retained to take advantage of favourable grazing conditions. The models of price expectations showed that producers adjusted expected goat prices (P ~ 0.10) for seasonality, liveweight, body condition, age, sex and breed, while they adjusted sheep prices for seasonality and liveweight only. High pay-offs could be expected if extension efforts focused on factors that determine sheep meat quality; however, the retail ceiling price of meat and the lack of grading are a disincentive to work in this direction. Seasonality of supply and demand is important in determining prices and this study provides baseline information for market scheduling; however, scheduling of sales of transhumant pastoralists may be difficult to achieve. Further investigation is justified to understand the gap in

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Article provided by Blackwell in its journal Agricultural Economics.

Volume (Year): 12 (1995)
Issue (Month): 1 (April)
Pages: 79-90

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Handle: RePEc:eee:agecon:v:12:y:1995:i:1:p:79-90
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  1. Francis, Paul A., 1990. "Small-ruminant marketing in southwest Nigeria," Agricultural Economics, Blackwell, vol. 4(2), pages 193-208, June.
  2. Andargachew, K. & Brokken, Ray F., 1993. "Intra-annual sheep price patterns and factors underlying price variations in the central highlands of Ethiopia," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 8(2), February.
  3. Francis, Paul A., 1990. "Small-Ruminant Marketing in Southwest Nigeria," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 4(2), June.
  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, Blackwell, vol. 8(2), pages 125-138, February.
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