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Cattle As Assets: Assessment Of Non-Market Benefits From Cattle In Smallholder Kenyan Crop-Livestock Systems

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  • Ouma, Emily Awuor
  • Obare, Gideon A.
  • Staal, Steven J.

Abstract

This paper uses data from a survey of two hundred and fifty cattle households in three cattle keeping systems; intensive, semi-intensive and extensive systems to estimate the value of non-market, socio-economic benefits of cattle in Kenya. These benefits of cattle keeping are of special importance in developing countries, where financial markets function poorly and opportunities for risk management through formal insurance generally absent. However, when estimating the total contribution of livestock, these non-market functions are often ignored since they are difficult to value, yet they may contribute to a better understanding of livestock production systems. The use of contingent valuation method is employed in this study to elicit these non-market values. Econometric estimations are then used to assess the factors influencing the non-market benefits function. The results indicate that these benefits are highly valued by cattle keepers and comprise approximately 20% of the animal's total value across the three systems. They are influenced by various production system and household related factors. Implications for policy are drawn.

Suggested Citation

  • Ouma, Emily Awuor & Obare, Gideon A. & Staal, Steven J., 2003. "Cattle As Assets: Assessment Of Non-Market Benefits From Cattle In Smallholder Kenyan Crop-Livestock Systems," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25895, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae03:25895
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    File URL: http://ageconsearch.umn.edu/record/25895/files/cp03ou04.pdf
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    References listed on IDEAS

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    1. Staal, S. J. & Baltenweck, I. & Waithaka, M. M. & deWolff, T. & Njoroge, L., 2002. "Location and uptake: integrated household and GIS analysis of technology adoption and land use, with application to smallholder dairy farms in Kenya," Agricultural Economics, Blackwell, vol. 27(3), pages 295-315, November.
    2. McDonald, John F & Moffitt, Robert A, 1980. "The Uses of Tobit Analysis," The Review of Economics and Statistics, MIT Press, vol. 62(2), pages 318-321, May.
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    Cited by:

    1. Siegmund-Schultze, M. & Rischkowsky, B. & da Veiga, J.B. & King, J.M., 2010. "Valuing cattle on mixed smallholdings in the Eastern Amazon," Ecological Economics, Elsevier, vol. 69(4), pages 857-867, February.
    2. Bettencourt, Elisa Maria Varela & Tilman, Mário & Narciso, Vanda & Carvalho, Maria Leonor da Silva & Henriques, Pedro Damião de Sousa, 2015. "The Livestock Roles in the Wellbeing of Rural Communities of Timor-Leste," Brazilian Journal of Rural Economy and Sociology (Revista de Economia e Sociologia Rural-RESR), Sociedade Brasileira de Economia e Sociologia Rural, vol. 53(Supplemen), pages 1-18, March.
    3. Staal, Steven J., 2015. "Livestock Marketing and Supply Chain Management of Livestock Products," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 70(1), pages 1-22.

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    Keywords

    Livestock Production/Industries;

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