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
Highlights
Ethiopia has the highest number of livestock in Africa
Determinants of household’s market participation and supply of live goats Heckman two-steps choice model was found to be applicable to investigate factors touching goat market participation decision and factors touching number of goats brought to the market at the same time since it controls selectivity bias
Specification of the Heckman two-step technique is given in terms of the probability of goat market participation (GMP), and goat market supply (GMS) is: The participation Equation/the binary probit equation www.iiste.org
Summary
Ethiopia has the highest number of livestock in Africa. There is about 30.2 million, 8.13 million and 868,571 goats population in Ethiopia, Oromia region and Borena zone respectively (CSA, 2017). The total number of goat in Moyale district was projected to be 58,792 (MDPDO, 2017). The livestock sub-sector contributes 42% of agricultural GDP, about 16% of total GDP and 62% of the household income on average (Birara and Zemen, 2016). Goats were considered as most important livestock species, and are capable of surviving, reproducing, providing milk, meat, and generating income to smallholder farmers (Gebreyowhens and Kumar, 2018). Goat production provides a lot of socio-economic benefits which improves the livelihoods of communities. Regular cash income from selling of goats was the most important reason for keeping goats, followed by other tangible and intangible benefits (Charles et al, 2015)
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