Sheep price formation in smart marketing intervention sites in central highland of Ethiopia: Panel data based analysis

Abstract

This study employs a hedonic price model adjusted for heteroscedasticity to examine factors that influence sheep prices in the rural markets of Menz-Gishe area of central highlands of Ethiopia. Results indicate that animal attributes including age, sex, size, and tail type and as well as buyers age, sex, and level of education found to be important factors for formation of sheep price in the market. Market outlet targeted and occasion of selling were also found to be important variables in affecting prices. The results imply producers need to consider market preferences for different traits of sheep and act as the needs of the market. Provision of targeted training can enhance smallholder farmers to become market responsive in their production and marketing strategies. Improved market infrastructure, access to market information and collective action at the market help farmers to take advantage of periodic and spatial price changes. These measures could enhance the efficiency of sheep marketing and improve the livelihoods of sheep keepers