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Livestock Pricing in the Northern Kenyan Rangelands

Author

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

Abstract

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.

Suggested Citation

  • Christopher B. Barrett & Francis Chabari & DeeVon Bailey & Peter D. Little & D. Layne Coppock, 2003. "Livestock Pricing in the Northern Kenyan Rangelands," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 12(2), pages 127-155, June.
  • Handle: RePEc:oup:jafrec:v:12:y:2003:i:2:p:127-155
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    References listed on IDEAS

    as
    1. Jabbar, M. A., 1998. "Buyer preferences for sheep and goats in southern Nigeria: A hedonic price analysis," Agricultural Economics, Blackwell, vol. 18(1), pages 21-30, January.
    2. 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 255-295, July.
    3. 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.
    4. Barrett, Christopher B., 1997. "Food marketing liberalization and trader entry: Evidence from Madagascar," World Development, Elsevier, vol. 25(5), pages 763-777, May.
    5. Philip Garcia & Raymond M. Leuthold & T. Randall Fortenbery & Gboroton F. Sarassoro, 1988. "Pricing Efficiency in the Live Cattle Futures Market: Further Interpretation and Measurement," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 70(1), pages 162-169.
    6. 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.
    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. 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. 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.
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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. Luc J. Christiaensen & Kalanidhi Subbarao, 2005. "Towards an Understanding of Household Vulnerability in Rural Kenya," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 14(4), pages 520-558, December.
    3. repec:eee:deveco:v:129:y:2017:i:c:p:14-28 is not listed on IDEAS
    4. 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.
    5. repec:eee:jfpoli:v:76:y:2018:i:c:p:33-43 is not listed on IDEAS
    6. Jabbar, Mohammad A. & Benin, Samuel & Gabremedhin, Eleni & Paulos, Zeleka, 2008. "Market Institutions and Transaction Costs InfluencingTrader Performance in Live Animal Marketing in Rural Ethiopia," Research Reports 182149, International Livestock Research Institute.
    7. repec:eee:deveco:v:129:y:2017:i:c:p:58-72 is not listed on IDEAS
    8. 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.
    9. Verpoorten, Marijke, 2009. "Household coping in war- and peacetime: Cattle sales in Rwanda, 1991-2001," Journal of Development Economics, Elsevier, vol. 88(1), pages 67-86, January.
    10. Bachewe, Fantu Nisrane & Minten, Bart & Yimer, Feiruz, 2017. "The rising costs of animal-source foods in Ethiopia: Evidence and implications," ESSP working papers 108, International Food Policy Research Institute (IFPRI).
    11. Barrett, Christopher B. & Swallow, Brent M., 2006. "Fractal poverty traps," World Development, Elsevier, vol. 34(1), pages 1-15, January.
    12. Lauren Gies & Datu Agusdinata & Venkatesh Merwade, 2014. "Drought adaptation policy development and assessment in East Africa using hydrologic and system dynamics modeling," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 74(2), pages 789-813, November.
    13. Jensen, Nathaniel & Barrett, Christopher B. & Mude, Andrew, 2014. "Index Insurance and Cash Transfers: A Comparative Analysis from Northern Kenya," MPRA Paper 61372, University Library of Munich, Germany.
    14. 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.
    15. Gamba, Paul, 2005. "Urban Domestic Consumption Patterns for Meat: Trends and Policy Implications," Working Papers 202626, Egerton University, Tegemeo Institute of Agricultural Policy and Development.
    16. 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.
    17. Sandford, Stephen & Scoones, Ian, 2006. "Opportunistic and conservative pastoral strategies: Some economic arguments," Ecological Economics, Elsevier, vol. 58(1), pages 1-16, June.

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