Analysis of Live Goats Market Chain: The Case of Pastoralists in Moyale District, Ethiopia

Abstract

Goat production and marketing provide vast socio-economic benefits. However, the subsector has encountered with lack of information about what determines goat market participation, supply, and outlet choice. Therefore, the study was intended to analyze the live goat market chain in the Moyale district. Both primary and secondary data were used. Primary data were collected from a randomly selected sample of 196 goat producers and were analyzed using econometric methods. To investigate the determinants of household market participation and supply, Heckman's two-stage procedure was used. Heckman's 1^st stage result showed that different variables have affected live goats' market participation decisions either positively and negatively. Heckman's 2^nd stage result indicated that the number of live goats supplied to the market is also affected either positively or negatively by different variables. To identify factors affecting outlet choice multivariate probit model was used. Multivariate probit model results showed that distance to market and selling price significantly affected the entire outlets (namely; large scale traders, small-scale traders, cooperatives, collectors, and consumers) either positively or negatively. The study recommended the need to develop market infrastructures, improve the capacity of productive labor, promote credit institutions, and provision of awareness creation training towards goat trading business.

Keywords: Heckman two stages, Live Goats, Market outlet choice, Market participation, Multivariate probit model

DOI: 10.7176/JMCR/79-01

Publication date:May 31^st 2021