An Economic Analysis of Livestock Marketing: The Case of Cattle Marketing along the Trade Route from Bele (Arssi) to Addis Ababa
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Date
1988-06
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A.A.U
Abstract
A livestock market study to identify the typology of
livestock markets, to estimate marketing margins and mareket
participants ' share in the distribution of income from live stock
trade and t o identify factors determining cattle prices
was made using a case study method . Seven livestock markets,
located along the trade route from bele (Arssi) to Addis Ababa,
were selected. Data on cattle prices, factors identified to
determine cattle prices, market costs and factors specified
to characterize market types were collected . Cattle prices
were deseasonalized using price indices in order to remove
the seasonal component. A semi-log general model was fitted
to both adjusted and unadjusted price data in order to see
the relationship between cattle prices and factors determining
cattle prices. The Chow test was conducted to see
whether or not the same type of factors which determine cattle
prices are to be found in all types of livestock markets .
The results indicate that the livestock markets of the
country can be classified as primary , secondary and terminal
on the basis of such classificatory criteria as type of market
participants , reseasons for purchase , type of cattle marketed ,
mode of transaction and location of the market place . The
share of producers in the final price of cattle was found to
be affected by the distance of the location of the producers
with respect to the terminal market . Those producers located
relatively nearer to the terminal market received higher
share than those located far from the terminal market . In
the regression analysis, the coefficients of the variables
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identified to determine cattle prices were found to be
different among market types . It was further noted that
the cattle marketing system of the country is inefficient
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due to lack of market information, poor trekking arrangements
and inadequate market facilities . The study , therefore ,
concluded by pointing out policy measures to be pursued
in order to promote the efficiency of the domestic cattle
marketing system of the country.
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Keywords
Analysis of livestock, Cattle Marketing