Price predictors in an extended hedonic regression framework: An application to wholesale cattle markets in Ethiopia

Livestock markets influence income generation for producers, but also accessibility and affordability of highly nutritious animal-sourced foods for consumers. Despite their importance, the functioning of livestock markets in lower-income countries is poorly understood and rarely studied compared to...

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Autores principales: Bachewe, Fantu Nisrane, Headey, Derek D., Minten, Bart
Formato: Journal Article
Lenguaje:Inglés
Publicado: Wiley 2023
Materias:
Acceso en línea:https://hdl.handle.net/10568/140386
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author Bachewe, Fantu Nisrane
Headey, Derek D.
Minten, Bart
author_browse Bachewe, Fantu Nisrane
Headey, Derek D.
Minten, Bart
author_facet Bachewe, Fantu Nisrane
Headey, Derek D.
Minten, Bart
author_sort Bachewe, Fantu Nisrane
collection Repository of Agricultural Research Outputs (CGSpace)
description Livestock markets influence income generation for producers, but also accessibility and affordability of highly nutritious animal-sourced foods for consumers. Despite their importance, the functioning of livestock markets in lower-income countries is poorly understood and rarely studied compared to more developed countries. This study analyzes wholesale cattle markets in Ethiopia using a uniquely rich large-scale dataset covering both prices and cattle characteristics in 39 markets (in both highland and lowland areas) over a 10-year period, and hedonic regression models structured to understand both cattle price formation and seasonal and secular price dynamics. We show that cattle prices are influenced by a wide range of factors, including proxies for meat quality, religious fasting practices, climate-based seasonality but also climate shocks and availability of grazing land, competition from animal traction services, and rising consumer incomes. However, the implied effects of these factors are often significantly different in highland mixed crop-livestock areas compared to agro-pastoralist lowland areas, emphasizing the dualistic nature of cattle markets in Ethiopia. The analyses help inform the systemic challenges that Ethiopia will need to overcome to meet rising demand for beef products in the face of sustained income and population growth, as well as the adverse effects of climate change.
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spelling CGSpace1403862025-10-26T12:56:24Z Price predictors in an extended hedonic regression framework: An application to wholesale cattle markets in Ethiopia Bachewe, Fantu Nisrane Headey, Derek D. Minten, Bart income models animal power grazing highlands less favoured areas fasting climate quality religion wholesale markets agriculture markets lowland livestock meat prices seasonality climate change Livestock markets influence income generation for producers, but also accessibility and affordability of highly nutritious animal-sourced foods for consumers. Despite their importance, the functioning of livestock markets in lower-income countries is poorly understood and rarely studied compared to more developed countries. This study analyzes wholesale cattle markets in Ethiopia using a uniquely rich large-scale dataset covering both prices and cattle characteristics in 39 markets (in both highland and lowland areas) over a 10-year period, and hedonic regression models structured to understand both cattle price formation and seasonal and secular price dynamics. We show that cattle prices are influenced by a wide range of factors, including proxies for meat quality, religious fasting practices, climate-based seasonality but also climate shocks and availability of grazing land, competition from animal traction services, and rising consumer incomes. However, the implied effects of these factors are often significantly different in highland mixed crop-livestock areas compared to agro-pastoralist lowland areas, emphasizing the dualistic nature of cattle markets in Ethiopia. The analyses help inform the systemic challenges that Ethiopia will need to overcome to meet rising demand for beef products in the face of sustained income and population growth, as well as the adverse effects of climate change. 2023-03 2024-03-14T12:09:27Z 2024-03-14T12:09:27Z Journal Article https://hdl.handle.net/10568/140386 en Open Access Wiley Bachewe, Fantu Nisrane; Headey, Derek D.; and Minten, Bart. 2023. Price predictors in an extended hedonic regression framework: An application to wholesale cattle markets in Ethiopia. Agricultural Economics 54(2): 289-306. https://doi.org/10.1111/agec.12751
spellingShingle income
models
animal power
grazing
highlands
less favoured areas
fasting
climate
quality
religion
wholesale markets
agriculture
markets
lowland
livestock
meat
prices
seasonality
climate change
Bachewe, Fantu Nisrane
Headey, Derek D.
Minten, Bart
Price predictors in an extended hedonic regression framework: An application to wholesale cattle markets in Ethiopia
title Price predictors in an extended hedonic regression framework: An application to wholesale cattle markets in Ethiopia
title_full Price predictors in an extended hedonic regression framework: An application to wholesale cattle markets in Ethiopia
title_fullStr Price predictors in an extended hedonic regression framework: An application to wholesale cattle markets in Ethiopia
title_full_unstemmed Price predictors in an extended hedonic regression framework: An application to wholesale cattle markets in Ethiopia
title_short Price predictors in an extended hedonic regression framework: An application to wholesale cattle markets in Ethiopia
title_sort price predictors in an extended hedonic regression framework an application to wholesale cattle markets in ethiopia
topic income
models
animal power
grazing
highlands
less favoured areas
fasting
climate
quality
religion
wholesale markets
agriculture
markets
lowland
livestock
meat
prices
seasonality
climate change
url https://hdl.handle.net/10568/140386
work_keys_str_mv AT bachewefantunisrane pricepredictorsinanextendedhedonicregressionframeworkanapplicationtowholesalecattlemarketsinethiopia
AT headeyderekd pricepredictorsinanextendedhedonicregressionframeworkanapplicationtowholesalecattlemarketsinethiopia
AT mintenbart pricepredictorsinanextendedhedonicregressionframeworkanapplicationtowholesalecattlemarketsinethiopia