Market Structure Conduct and Performance of Live Cattle in Borana Pastoral area: The Case of Moyalle District, Oromiya Regional State
Journal Title: Current Investigations in Agriculture and Current Research - Year 2018, Vol 4, Issue 3
Abstract
The Borana Pastoralists are known as major cattle supplier of cattle for domestic and international markets, yet the benefits they get from the sector is said to be minimal. This study, therefore, was initiated to identify market chain actors and their function in the market, investigate the structure Conduct and performance of live cattle in Moyalle District of Borana Zone. Both primary and secondary data were used for this study. Primary data were collected from 223 sampled pastoralists, 25 traders and 14 brokers. Before the household survey, key informant interview and focus group discussions were conducted using 10 producers, 5 traders and 3 brokers. Descriptive Statistics and qualitative data analysis techniques were employed to analyze the cattle market structure, conduct and performance. The result shows that producers, brokers, traders and consumers were the major cattle market actors. Two major channels identified in the area were formal and informal. Both the channels are also characterized by their sub-channels. Among the formal channels, formal market channel is identified as the preferable marketing channel with better total final price share for producers. Regarding the market structure, cattle market is known to be dominated by few traders. Although the degree of competition varies, cattle market structure varies across cattle type marketed from loose oligopoly to strict oligopoly. This shows that only few traders share the majority of market share and earn abnormal profit. Besides, cattle market is characterized by entry barriers such as distant market point, high trucking cost, seasonality of marketing, information asymmetries and unfriendly relation between actors. These imperfect nature of the market in the district provoked informal trade. As the pastoralists mainly depend on cattle for their livelihoods and other cultural values, traders take advantage of the asymmetric market information towards them. Although it varies with the type of cattle, the larger share of the market gains remains with end of traders thereby limiting the pastoralists a chance to realize the economic gains in cattle production. Hence, linking producers to market and its benefits, establishing in cooperatives and development of infrastructure could play a significant role for optimization of the sector productivity
Authors and Affiliations
Zekarias Bassa, Teshale Woldeamanuel
Keywords
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- EP ID EP572306
- DOI 10.32474/CIACR.2018.04.000189
- Views 61
- Downloads 0
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