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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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    Cited by:

    1. 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.
    2. Bianca AVRAM POP & Simona SABOU, 2018. "The Role Of Agriculture In Romanian Development," Business Excellence and Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 8(1), pages 5-18, March.
    3. 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.
    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. Alphayo I. Lutta & Oliver V. Wasonga & Lance W. Robinson & Moses M. Nyangito & Jason Sircely, 2021. "Determinants of livestock market participation among pastoral communities of Tana River County, Kenya," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(5), pages 7393-7411, May.
    6. Barrett, Christopher B. & Swallow, Brent M., 2006. "Fractal poverty traps," World Development, Elsevier, vol. 34(1), pages 1-15, January.
    7. Jensen, Nathaniel D. & Barrett, Christopher B. & Mude, Andrew G., 2017. "Cash transfers and index insurance: A comparative impact analysis from northern Kenya," Journal of Development Economics, Elsevier, vol. 129(C), pages 14-28.
    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. 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.
    10. 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.
    11. 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, vol. 14(4), pages 520-558, December.
    12. 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).
    13. 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.
    14. Sarah A Janzen & Michael R Carter, 2019. "After the Drought: The Impact of Microinsurance on Consumption Smoothing and Asset Protection," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 101(3), pages 651-671.
    15. Roba, Guyo M. & Lelea, Margareta A. & Hensel, Oliver & Kaufmann, Brigitte, 2018. "Making decisions without reliable information: The struggle of local traders in the pastoral meat supply chain," Food Policy, Elsevier, vol. 76(C), pages 33-43.
    16. Barrett, Christopher B. & Swallow, Brent M., 2006. "Fractal poverty traps," World Development, Elsevier, vol. 34(1), pages 1-15, January.
    17. Bevis, Leah E.M. & Naschold, Felix & Rao, Tanvi, 2019. "An unequal burden: Intra-household dimensions of seasonal health in Tanzania," Food Policy, Elsevier, vol. 89(C).
    18. Girma Kassie & Awudu Abdulai & Clemens Wollny, 2011. "Heteroscedastic hedonic price model for cattle in the rural markets of central Ethiopia," Applied Economics, Taylor & Francis Journals, vol. 43(24), pages 3459-3464.
    19. Sandford, Stephen & Scoones, Ian, 2006. "Opportunistic and conservative pastoral strategies: Some economic arguments," Ecological Economics, Elsevier, vol. 58(1), pages 1-16, June.
    20. 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.
    21. 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.
    22. 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.
    23. Anagol, Santosh, 2017. "Adverse selection in asset markets: Theory and evidence from the Indian market for cows," Journal of Development Economics, Elsevier, vol. 129(C), pages 58-72.

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