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Livestock Pricing In The Northern Kenyan Rangelands

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

Abstract

This paper uses detailed, transactions-level data and a structural-heteroskedasticity-in-mean model 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 a distributionally regressive approach to animal disease control in Kenya.

Suggested Citation

  • Barrett, Christopher B. & Chabari, Francis & Bailey, DeeVon & Coppock, D. Layne & Little, Peter D., 2001. "Livestock Pricing In The Northern Kenyan Rangelands," 2001 Annual meeting, August 5-8, Chicago, IL 20460, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea01:20460
    DOI: 10.22004/ag.econ.20460
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    References listed on IDEAS

    as
    1. Fafchamps, Marcel & Gavian, Sarah, 1997. "The Determinants of Livestock Prices in Niger," Journal of African Economies, Centre for the Study of African Economies, vol. 6(2), pages 255-295, July.
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    4. 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.
    5. Barrett, Christopher B., 1997. "Food marketing liberalization and trader entry: Evidence from Madagascar," World Development, Elsevier, vol. 25(5), pages 763-777, May.
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    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, vol. 5(3), pages 366-405, October.
    9. K. Andargachew & Ray F. Brokken, 1993. "Intra‐annual sheep price patterns and factors underlying price variations in the central highlands of Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 8(2), pages 125-138, February.
    10. Fafchamps, Marcel, 1998. "The Tragedy of the Commons, Livestock Cycles and Sustainability," Journal of African Economies, Centre for the Study of African Economies, vol. 7(3), pages 384-423, October.
    11. Peter D. Little & Kevin Smith & Barbara A. Cellarius & D. Layne Coppock & Christopher Barrett, 2001. "Avoiding Disaster: Diversification and Risk Management among East African Herders," Development and Change, International Institute of Social Studies, vol. 32(3), pages 401-433, June.
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