Livestock Pricing in the Northern Kenyan Rangelands

Journal of African Economies

Posted: 22 Oct 2002 Last revised: 23 May 2011

See all articles by Christopher B. Barrett

Christopher B. Barrett

Cornell University - Charles H. Dyson School of Applied Economics & Management

Francis Chabari

GTZ Marsabit Development Program

DeeVon Bailey

Utah State University - College of Business - Department of Economics

Peter D. Little

University of Kentucky - Department of Anthropology

D. Layne Coppock

Utah State University - College of Natural Resources

Date Written: February 1, 2002

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 favors wealthier highlands ranchers and consumers at the expense of poorer drylands herders.

Suggested Citation

Barrett, Christopher B. and Chabari, Francis and Bailey, DeeVon and Little, Peter D. and Coppock, D. Layne, Livestock Pricing in the Northern Kenyan Rangelands (February 1, 2002). Journal of African Economies, Available at SSRN: https://ssrn.com/abstract=328680 or http://dx.doi.org/10.2139/ssrn.328680

Christopher B. Barrett (Contact Author)

Cornell University - Charles H. Dyson School of Applied Economics & Management ( email )

315 Warren Hall
Ithaca, NY 14853-7801
United States
607-255-4489 (Phone)
607-255-9984 (Fax)

HOME PAGE: http://aem.cornell.edu/faculty_sites/cbb2/

Francis Chabari

GTZ Marsabit Development Program ( email )

Deutsche Gesellschaft fur Technische Zusammenarbe
Marsabit
Kenya

DeeVon Bailey

Utah State University - College of Business - Department of Economics ( email )

3530 Old Main Hill
Logan, UT 84322-3530
United States

Peter D. Little

University of Kentucky - Department of Anthropology ( email )

202 Lafferty Hall 0024
Lexington, KY 40506
United States
859-257-6923 (Phone)
859-323-1959 (Fax)

D. Layne Coppock

Utah State University - College of Natural Resources ( email )

Logan, UT 84322-5230
United States
435-797-1262 (Phone)
435-797-3796 (Fax)

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