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Livestock Pricing in the Northern Kenyan Rangelands

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

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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Article provided by Centre for the Study of African Economies (CSAE) 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
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  1. Jabbar, Mohammad A., 1998. "Buyer Preferences For Sheep And Goats In Southern Nigeria: A Hedonic Price Analysis," Research Reports 182945, International Livestock Research Institute.
  2. 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.
  3. repec:cup:cbooks:9780521627511 is not listed on IDEAS
  4. 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.
  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 of Agricultural Economists, International Association of Agricultural Economists, vol. 8(2), 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. 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.
  8. repec:cup:cbooks:9780521621687 is not listed on IDEAS
  9. 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.
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