ISSN 2329-9797
International Journal of Agricultural Economics and Extension Vol. 1 (1), pp. 010-016, February 2013. © International Scholars Journals
Full length Research Paper
Sheep market price determinants in the Central Rift Valley of Ethiopia
Aklilu Nigussie1,2*, Dawit Alemu1 and Ayalineh Bogale3
1Ethiopian Institutes of Agricultural Research, P. O. Box 2003, Addis Ababa Ethiopia.
2Department of Agricultural Economics, Haremaya University, P. O. Box 138, Dire Dwa Ethiopia.
3School of Agriculture, Earth and Environmental Sciences, University of KwaZulu-Natal Pietermaritzburg,
Scottsville 3209, South Africa.
*Corresponding author. E-mail: [email protected]
Received 06 November, 2012; Accepted 05 February, 2013
Abstract
This study has attempted to identify determinants of sheep price per kilogram live weight using a log-linear regression model. The estimated model explains about 48% of the variation in market prices of sheep. Price per kilogram live weight increases with animal characteristics such as age, live weight and grade. Type of sellers, buyers’ purposes, and buyer type are also important variables in affecting prices. Pastorals, agro-pastorals, and farmers tend to sell their animals at price discounts as compared to trader sellers. Sellers suffer from price discounts in selling to buyers with business purposes in comparison to selling to ultimate consumers. Price per kilogram live weight increases with the time of transaction suggesting that sellers tend to obtain higher prices by selling at later hours of a market day. The policy implications of these empirical results are that efforts to benefit producers and/or sellers need to pay attention to animal characteristics, seller types, and buyers’ purposes. It is vitally essential to train keepers on the above issues. Provision of reliable market (price) information to market participants, and investment in different sheep marketing facilities (like weighing scale), and services need to be given due attention in order to avoid unrewarding sheep-pricing practices.
Key words: Sheep, live weight, body condition, age, central rift valley.