Valuing Traits of Indigenous Cows in Central Ethiopia

This research aimed at identifying and estimating the relative weight assigned to the preferred traits of indigenous cow population in the most dominant crop–livestock mixed production system in Central Ethiopia. A choice experiment approach was employed to elicit the preferences and a random parameters logit model was used to estimate the relative importance of the preferred attributes of indigenous cows. The results show that fertility, disease resistance and calf vigour traits are at least as important as milk. The location the cows are brought from is also an important attribute for buyers. Results from the simulation on the influence of changes in attribute levels showed that fertility and disease resistance affect preferences more than other traits. The findings suggest that the smallholder community in this part of Ethiopia depends on semi‐subsistence agriculture and so livestock development interventions should focus on a multitude of reproductive and adaptive traits that stabilise the herd structure rather than focusing on traits that are only important for commercial purposes.     

Asymmetric information in cattle auctions: the problem of revaccinations

We analyze the problem of asymmetric information between buyers and sellers in cattle auctions, using the problem of revaccinations as the point of departure. We present a simple model to show that if buyers do not know and cannot verify whether sellers have vaccinated their animals, then they may consider revaccination. Revaccination is only a part of the broader problem of information asymmetry that includes other quality issues and costs that can be saved, thereby affecting the welfare of both buyers and sellers. We consider structural characteristics of ranching, traditions, and consumers' preferences as well as proposals regarding third‐party certification to argue that the problem of asymmetric information in cattle auctions is a persistent one. We also argue for a comprehensive empirical study of the incidence and impacts of buyer revaccination.     

Understanding farmers’ preference for traits of chickens in rural Ethiopia

Traditional poultry production plays an irreplaceable role in the sustenance of livelihoods in rural Ethiopia. Ironically, however, much has been done to replace indigenous poultry breeds with exotic genetic resources regardless of the importance producers and consumers attach to attributes of the resources. This study aims at informing policy to establish effective indigenous poultry breeding and conservation programs. Discrete choice experiment (DCE) was employed to generate data. Designing of the DCE involved identification, definition, and measurement of attributes of adaptive, productive, and sociocultural importance considering the multiple functions of village chickens. Random parameters logit and the generalized multinomial logit (G‐MNL) models were used to estimate taste parameters. Economic values of traits of chickens were estimated using the utility in willingness‐to‐pay (WTP) space approach, based on G‐MNL model formulation. The results show that important traits of chickens to farmers are mothering ability, diseases resistance, and meat and eggs taste. These findings question the appropriateness, at least in the prevailing production system, of the Ethiopian national government's effort to improve productivity in village poultry by targeting specialized egg‐layer improved chickens. The findings also suggest that poultry breeding programs aiming to provide readily acceptable breed technology by farmers need to prioritize traits of adaptive importance, and mothering ability, instead of focusing on egg productivity only. The key implication is that the unique qualities of the indigenous poultry breeds need to be carefully identified and prioritized before resorting to those that proved to be successful in different production systems.     

Classical Swine Fever Changes the Way Farmers Value Pigs in South Africa

Although there is growing demand for animal products in Africa, production is stagnating. Appropriate management of livestock diversity could help reinvigorate production, contribute to food security and improve farmers’ livelihoods, particularly in subsistence‐oriented systems. We assess differences in farmers’ preferences and economic values for pig traits across different production systems and across areas that have been affected and unaffected by classical swine fever (CSF). Not surprisingly, market‐oriented farmers derived higher values from the productive traits such as heavy slaughter weight and large litter size found in exotic pig genotypes. Subsistence‐oriented farmers, particularly in swine fever affected areas, placed high value on tolerance to disease. We found that CSF changed farmers’ preferences for adaptive traits, and less so for productive traits. Therefore, indigenous breeds become more valuable for subsistence farmers and crossbreeds for market‐oriented farmers if CSF is a risk. Our results can have implications for breeding and conservation strategies and for compensation strategies after culling, and will become increasingly relevant if, as predicted, heat waves and disease outbreaks become more frequent in pig production systems in South Africa with climate change.     

Characterisation of extensive beef cattle systems: Disparities between opinions,practice and policy

Increasing pressure on extensive farming systems in marginal areas requires them to become more resilient and adaptable to extreme conditions brought about by climate change. Yet these rangeland areas must also be protected as refuges for biodiversity and as important carbon stores. Recent United Kingdom policy initiatives are encouraging the use of traditional or native breeds of livestock to preserve genetic diversity, due to their perceived adaption to harsh environments and their value for managing extensive habitats for conservation. It is not clear however, whether these benefits are based on scientific evidence or perhaps more on current opinion; nor whether farm system practices are likely to change in response to these initiatives. This study offers an approach that can support future empirical studies designed to better inform such policy decisions.A survey was carried out to provide insight into current opinions regarding the impacts of cattle on hill environments and the cattle breeds appropriate for hill environments, before more detailed farm interviews provided data for a characterisation of suckler beef farming systems in Scotland using a typological approach. Survey results indicated that the majority of respondents believed cattle have a positive effect on hill environments when carefully managed, yet there was wide diversity in opinion regarding the type of impacts and most suitable breeds. Interview results highlighted the diversity of management systems, decision making processes and cattle types present and indicated significant variation in farmers’ views regarding breed hardiness, suitability and reasons for their choice of breed. Three system groups: Traditionalists, Improvers and Production optimisers, were clearly defined by the typology, with significant variation observed in their management practices and views. This study suggests that hill beef farmers appear to not only adapt their production systems according to their current bio-physical and financial circumstances, but also from personal experience. Accumulation of this kind of evidence is long overdue and could provide support to the development of any future policies regarding cattle and hill environments.     

Economic Analysis of Animal Genetic Resources and the Use of Rural Appraisal Methods: Lessons from Southeast Mexico

Livestock diversity provides genetic alternatives that facilitate sustainable agricultural development. Despite this, animal genetic resources (AnGR) are being depleted at alarming rates. Subsidises available to production systems based on imported breeds are of several orders of magnitude greater than the costs of local breed conservation. Economic arguments for the conservation and sustainable use of threatened AnGR can be an effective means of establishing support for the development of appropriate enabling environments. Despite the importance of the economics of AnGR conservation, the subject has received limited attention. Reasons include: methodological difficulties inherent in valuing genetic resources; limited knowledge about appropriate analytical techniques; and lack of data regarding local breeds. As recent advances in economic valuation have eased methodological/analytical constraints, the issue of data availability has become critical. Data related to livestock keepers' preferences for different genetic resource attributes and the value placed on these across species, breeds and production systems are needed. Based on a study of a local pig breed in Mexico, this paper shows how the use of rural appraisal methods, in conjunction with recently developed analytical techniques, are capable of providing the data required for understanding the type and costs of interventions necessary to promote the conservation and sustainable use of AnGR.     

Cattle Farmers’ Preferences for Disease‐Free Zones in Kenya: An application of the Choice Experiment Method

Management of livestock diseases is important in ensuring food safety to consumers in both domestic and export markets. Various measures are prescribed under the Sanitary and Phytosanitary Standards (SPS) agreement of the World Trade Organization. In order to prevent the spread of trans‐boundary cattle diseases, the SPS agreement recommends the establishment of Disease‐Free Zones (DFZs). These have been implemented successfully in some major beef‐exporting countries, but in Kenya are still at a pilot stage. To understand Kenyan farmers’ preferences on the type of DFZ that would be readily acceptable to them, a choice experiment was conducted using a D‐optimal design. Results show that farmers would be willing to pay to participate in a DFZ where: adequate training is provided on pasture development, record keeping and disease monitoring; market information is provided and sales contract opportunities are guaranteed; cattle are properly labelled for ease of identification; and some monetary compensation is provided in the event that cattle die due to severe disease outbreaks. Preferences for the DFZ attributes are shown to be heterogeneous across three cattle production systems. We also derive farmers’ preferences for various DFZ policy scenarios. The findings have important implications for policy on the design of DFZ programmes in Kenya and other countries that face similar cattle disease challenges.     

Price determinants of bred heifers: Do reputations matter?

Replacement brood cows are among the most significant investments for cow-calf operations, thus crucial to profitability. Many cow-calf producers find it cost effective to purchase replacements from a reliable replacement heifer seller, though by doing so they increase risk of reproductive inefficiency due to unknown characteristics of the heifers. When important information about a product is missing to buyers, a seller can build a reputation over time that acts as signal for quality. Previous work has explored reputation effects in feeder cattle markets, but to our knowledge we are the first to explore reputation effects in bred replacement cattle markets. Using data from an annual replacement heifer sale, we analyze the values of heifer characteristics and test for premiums from reputation development. After controlling for reproductive practices, breed, and other characteristics, we find reputation does not play the role that Shapiro theorized. In this sale, the lot order is strategically chosen and may indicate bred heifer quality to buyers, replacing the need for reputation as a signal. This study highlights the importance of quality signals and regional preferences in bred replacement cattle marketing and lays the empirical groundwork for future studies to test Shapiro's theory.     

Profitability,efficiency and comparative advantage of African cattle meat and milk production: the case of trypanotolerant village cattle production

Trypanosomiasis is a major constraint to increased food production in Africa as it limits livestock production and mixed farming over an area of 10 million km². The use of African trypanotolerant breeds of cattle is one approach to control trypanosomiasis that is being given increasing attention. This paper examines under what circumstances trypanotolerant village cattle enterprises can be economically viable in regions of origin and areas of introduction. On-going production is analysed in four countries using cost-benefit analyses. Comparative advantage and subsidies received are also estimated. Results indicate that resources for trypanotolerant cattle production are efficiently allocated as the sector has a comparative advantage and contributes effectively to the national welfare. Financial returns to producers are attractive and by comparing social and private prices important constraints are identified to improve profitability.     

Measuring Heterogeneous Preferences for Cattle Traits among Cattle-Keeping Households in East Africa

This study employs mixed logit and latent class models to examine preferences for cattle traits with a focus on heterogeneity among cattle keepers, using choice experiment data of 506 cattle-keeping households in Kenya and Ethiopia. The findings indicate the existence of preference heterogeneity based on cattle production systems. Highly valued cattle traits for the cropping systems include traction fitness and trypanotolerance, while traits associated with herd increase are considered important in pastoral systems. Considering heterogeneity within population segments provides a framework for adapting breeding policy interventions to specific producer segments, by integrating preferred traits in a breed improvement program.     

Raising offtake from cattle grazed on natural rangelands in sub-Saharan Africa: a transaction cost economics approach

Farmers in sub‐Saharan Africa are constrained by large transaction costs associated with marketing of their livestock. However, transaction costs are often not taken into account in the analysis of factors hampering the development of livestock marketing in this region. This article empirically measures the influence of transaction costs on the offtake from cattle grazed on natural rangelands in Uganda. The study is based on the monitoring of 696 cattle transactions in three districts of Uganda from August 2004 to August 2005. The estimated models suggest that proportional transaction costs represented by the state of roads, distance to markets, and time taken to reach the market are important variables constraining market participation. In order to raise offtake from the national herd, it is essential to explicitly address these costs. One potential solution is collective action in marketing of livestock in which proportional and fixed transaction costs are reduced and shared among the group members.     

Does population pressure induce farm intensification? Empirical evidence from Tigrai Region,Ethiopia

The scarcity of land for crop and livestock production is critical in countries with growing populations. The idea that increasing population density leads to natural resource depletion and economic failure, as predicted by Malthus, or rather to farm intensification, as hypothesized by Boserup, motivates this research. This article examines how high population pressure in northern Ethiopia influences smallholders’ farm intensification by applying recursive estimation with a control function approach using data from 518 randomly selected farmers. Although our empirical results are more in favor of the Boserupian hypothesis, the findings also reveal that both Malthusian and Boserupian forces coexist. Consistent with Malthus theory, high population pressure is found to be associated with small farm size and herd size. Population pressure affected both technology use (breed cow, stall feeding, and modern cattle feed) and output supply (milk yield, milk income, and straw output). As predicted by Boserup's theory, the use of modern input and output supply initially increases with increasing population pressure but declines again when population densities pass a critical threshold (800 persons/km²), supporting Malthus’ hypothesis. The estimation results also revealed that both milk and straw supply responded positively to prices. Free grazing and stall feeding are found to be complementary activities. Likewise, crop farm income and off‐farm job have a nonlinear relation with population pressure, implying that both initially increase and then decrease with rising population pressure.     

Optimal Drug Control under Risk of Drug Resistance – The Case of African Animal Trypanosomosis

We examine two widely used treatment strategies for African animal trypanosomosis in West Africa: preventive drug control ex‐ante trypanosomosis infection and curative drug control ex‐post trypanosomosis infection. We investigate which combination of these alternative strategies is economically optimal for cattle farmers. We apply a dynamic optimisation framework to consider both the negative externality of drug resistance development and human behaviour. We develop a bio‐economic model to simulate the economic consequences of treatment strategies in a dynamic scenario that takes into account the interactions among the vector, host and livestock farmers. This model allows for the evolution of drug‐resistant trypanosomes through trypanocide misuse and simulates the observed behaviours of cattle farmers based on the elicited risk and time preferences of a sample of 202 cattle farmers in Mali and Burkina Faso. The results show that the private optimal mix of treatment strategies for a risk averse and patient farmer involves preventive treatment for susceptible cattle, supported by a small number of curative treatments for infected cattle. Compared with the treatment strategies observed in the field, this optimal mix of treatment strategies would save approximately 5% of the annual income of a livestock farmer in the study area and would reduce the prevalence of trypanosomosis. In addition, we demonstrate that a reduction in a farmer's risk aversion is associated with higher treatment rates that can avoid additional losses. By contrast, a decrease in a farmer's patience is related to lower treatment rates that thwart additional benefits. Our results suggest that individual risk and time preferences need to be considered in the development process of disease control interventions.     

Tenure security, resource poverty, public programs, and household plot-level conservation investments in the highlands of northern Ethiopia

Land degradation poses a serious problem for the livelihoods of rural producers. Furthermore, there is rarely enough private investment taking place to commensurate the scale of the problem. This article examines the role of tenure insecurity, resource poverty, risk and time preferences, and community‐led land conservation on differentiated patterns of household investment in land conservation in northern Ethiopia. We control for biophysical, household characteristics, market access conditions, and village level factors. Investments in soil bunds and stone terraces are specifically studied so as to capture the link between these various factors and the durability of conservation investments. We introduce the distinction between the determinants of the decision to invest and how much to invest in conservation. Regression results show that publicly led conservation programs seem to significantly stimulate private investment. A host of plot‐level variables and household perceptions of returns on conservation investments, expressed in terms of perceived improvements in land quality and increased crop yields, were found to be critical to the decision to invest and intensify soil conservation. The evidence on the significance of households' attitudes toward risk aversion suggests the important role of risk and the household's risk‐bearing capacity in the decision to intensify conservation measures. At the same time, tenure security indicators and households' resource endowments (resource poverty) had weaker effects in increasing willingness to invest and the level of investment made. The policy implications of these results point to the importance of agricultural research and extension efforts that target technologies which reduce household risk and poverty while enabling sustainable investments in conservation measures by individual households.     

Using proportional modeling to evaluate irrigator preferences for market‐based water reallocation

Irrigators’ policy preferences for water reallocation programs usually take the form of proportional data, where one option will be relatively more or less favored than another in the composition of a government's total budget apportionment to address water reform. This study applies a zero‐one inflated beta regression to model Murray–Darling Basin irrigators’ preferences for market‐based water policy programs. Market‐based arrangements are more likely to provide efficient solutions to water reallocation problems, particularly where future uncertainty and appropriate pricing induce irrigator preferences for such programs. Our modeling of drivers of irrigator preferences for government expenditure on market‐based programs identified different determinants of zero (a corner solution) and proportional outcomes for the reallocation of Murray–Darling Basin water. In addition, the proportional modeling identifies some variables (namely, state regional influences, the type of farm production and recent debt, low income, or water allocation stressors) that increase engagement with market‐based programs. Interestingly, while price variables are important and statistically significant, they appear to be less relevant to program engagement than other influences.     

Buyer preferences for sheep and goats in southern Nigeria: A hedonic price analysis

A survey of two rural markets in southwest Nigeria over 14 months showed that supplies, sales and prices of sheep and goats varied widely during the period with a sharp peak during the Muslim festival of' Eid-el-Kabir and a smaller peak during the Christmas-New Year period. Local West African Dwarf (WAD) sheep and goats and northern Y'ankasa sheep and Red Sokoto goats were traded in the markets and animals were purchased for rearing, trading, ceremonies, butchering/catering, sacrifice, and festivals. There were significant differences between species/breeds purchased for various purposes. A hedonic price model was fitted to determine factors influencing price. After adjustments were made for age, weight, sex, time of transaction and market, WAD sheep commanded higher prices than WAD goats and Red Sokoto goats for all purposes except for butchering/catering; Red Sokoto goats commanded similar or lower prices than WAD goats depending on the purpose for purchase; and Y'ankasa sheep, principally purchased for the Eid-el-Kabir festival, commanded marginally higher prices than WAD sheep. The market share of WAD sheep is currently small and is under competition from northern sheep and goats, so increased production of WAD sheep in the south will benefit both producers and consumers in the area. In general, the results indicate that buyers have preferences for specific breeds and species for specific purposes, so producers and sellers may benefit by targeting specific buyer categories and times of the year.     

Food quality in domestic markets of developing economies: a comparative study of two countries

Food quality has become an important determinant of success in global food trade and growers for international markets have to continuously adjust to buyers’ requirements. It is, however, not clear to what extent there is a demand for food quality—and how much buyers are willing to pay for it—in domestic food markets of developing economies. Based on unique comparable price and trader data in a poor country in Africa (Madagascar) and an emerging economy in Asia (India), we compare food quality and quality's pricing. We find significantly better quality and higher quality premiums (using revealed as well as stated preference methods) in India than in Madagascar. These findings are consistent with a simple theoretical model, solely based on average income gaps between the two countries.     

Testing errors, supplier segregation, and food safety

Diagnostic tests provide valuable information to buyers about credence attributes such as food safety and GMO content. Errors in testing, however, can mislead buyers and lead to problems such as adverse selection. The ability to segregate suppliers who can deliver safe food from suppliers who cannot depends on the accuracy of the test procedure. In this article we examine the effect of test sensitivity, specificity, and sampling error on the ability to segregate safe and unsafe suppliers. We find that there is a maximum level of error below which unsafe suppliers are deterred from accepting a utility maximizing buyer's bid price. The maximum error depends on the probability that a supplier's production is unsafe and the cost of producing an unsafe lot, among other things. Understanding this relationship makes it possible to design contracts and government regulations that discourage unsafe suppliers from trading.     

Costs and benefits of livestock systems and the role of market and nonmarket relationships

In developing countries livestock are kept not only for their physical products, but also for insurance, financing, and to display status. Though this range of purposes is acknowledged, livestock policies nevertheless often emphasize physical production: a limited perspective that hampers the formulation and implementation of effective livestock policies. This article presents a comprehensive appraisal of costs and benefits of livestock systems that takes into account the institutional environment of livestock keepers. Indicators are developed that capture, quantify, and organize not only the benefits resulting from the physical production, but also those from the intangible functions. The method is illustrated by an analysis of cattle in the Western Province of Zambia. The results indicate that the perspective on livestock systems developed more closely reflects the observed decisions of the livestock keepers.