Review on Factors Affecting Livestock Market Price in Lowland Area of Ethiopia

Abstract

The diverse agro-climatic conditions of Ethiopia make it very suitable for the production of different kinds of livestock. Ethiopia is believed to have the largest livestock population in Africa. Factors affecting market prices for cattle, sheep and goat in the export market value chain are absence of Market Information System, inadequate infrastructure, occasions, contraband and clan conflict as important determinants of livestock price formation. Age group and body condition of the traded animals, buyer and seller types are also important observable attributes influencing formation of livestock prices. Current knowledge on livestock market structure, performance and prices is poor and inadequate for designing policies and institutions meant to improve the livestock marketing system. In order to bridge this gap, this work is carried out in the major pastoral livestock markets of Ethiopia to empirically investigate formation of livestock market prices in the supply value chain of the meat and live animal export market of the country.  Access to market information enables these producers to seek out and compare the information available for different market outlets to realize the full potential profit by getting the best prices.

Keywords; Livestock, factor, market, lowland, Ethiopia