Livestock Pricing in the Northern Kenyan Rangelands
Document Type
Article
Journal/Book Title/Conference
Journal of African Economies
Volume
12
Publication Date
2003
First Page
127
Last Page
155
Abstract
This paper uses detailed, transactions‐level data and an innovative, structural‐heteroskedasticity‐in‐mean estimation method 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 that Kenya's approach to animal disease control favours wealthier highlands ranchers and consumers at the expense of poorer drylands herders.
Recommended Citation
Barrett, Christopher B., Francis Chabari, DeeVon Bailey, Peter D. Little, and Layne D. Coppock. Livestock Pricing in the Northern Kenyan Rangelands. Journal of African Economies 12(June 2003):127-155.