Analysis of Goat Marketing in Chifra Woreda, Ethiopia

Abstract

The livelihood of pastoralists and agro- pastoralist entirely depends on livestock and livestock products. In support of stimulating growth, economic development, food security and alleviating poverty among pastoralists, the performance of goat marketing plays an important role in any on-going or future goat development plan. This study was aimed at studying the determinants of market supply; examine the market structure, conduct and performance, identifying major constraints and opportunities of production and marketing of goat in the study area. Multiple Linear Regression Model was fitted to identify the factors influencing the variations in supply of goat. According to the result of the survey,4 out of 8 hypothesized continuous variables (land size, herd size, income from goat sale, and off farm income), and 0 out of 4 discrete variables found statistically significant with less than 1% level. The concentration ratio result implies the existence of weak oligopolistic market structure in goat marketing having a CR4 38.88 %. This suggests that there is market imperfection because a few traders seem to have monopolized goat market. Involving licensed goat traders, improving marketing infrastructure, organising and supporting pastoralists through training, provision of transport and credit services, providing reliable market information to all market participants are some of the major findings which needs to be given due attention. Analysis of marketing costs and margins revealed that pastoralists and agro-pastoralists received the highest marketing surplus and wholesaler traders received the least marketing surplus in goat trade business.