Impact of Traders Competitive Rivalry on Supply and Demand Relations in Livestock Markets in the Drylands of Kenya

Abstract

Globally, the livestock sector is rapidly growing and contributing 40% of the total value of agricultural output. Livestock keeping is one of the main vibrant economic sectors in many Africa countries. In Kenya, livestock contributes 12% to the national Gross Domestic Product (GDP) and 42% to Agricultural GDP. 80% of Kenya’s landmass is Arid and Semi-Arid, home of about 16 million people dependent on agro-pastoral livelihoods. Though the largest Kenya region, Turkana County is the poorest, with 70% of the population depending entirely on livestock keeping. While many impediments retard the development of livestock in Kenya’s drylands, using the case of Turkana County, the study objectives focused on the effects of competitive rivalry evident in many markets and its effects on the supply and demand relations, and the impact of theory integration on the supply and demand in markets. 168 primary respondents (Livestock traders) and 24 secondary respondents (Government and Civil Society employees) were sampled to participate in the study. The study results showed that competitive rivalry significantly influences supply and demand relations in livestock markets in the pastoral areas, hindering the adoption of formal business models for market organization, functionality, and better performance. As a result, livestock prices, marketing and market governance systems, coordination of livestock trade in the county, and access to cross-border markets remain negatively affected. Recommendations for application include empowerment of traders, youth, and women through business training, exposure, and introduction of adult literacy programmes to help improve the ability of the local traders to read, write, and use technology to share market information, and do transactions. Access to capital financing, infrastructure development, and organization of marketing performance will reinforce linkages between livestock production zones and various market segments. Strengthening the governance of livestock markets by promoting leadership and management practices, and enforcement of business principles will inculcate in markets ethical competition while rooting out rivalry tendencies. Supply, demand, and theory integration in livestock trade remain critical areas for future research. Despite many limitations to the growth of livestock economy in pastoral areas, the drylands still pose significant opportunities to nurture healthy and productive livestock resources that can compete in internal and external markets while attracting substantial economic returns to empower rural economies, strengthen entrepreneurship, and make pastoral livelihoods more resilient.