Market Institutions and Transaction Costs Influencing Trader Performance in Live Animal Marketing in Rural Ethiopian Markets PDF Download
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Author: Mohammad Jabbar Publisher: ISBN: Category : Languages : en Pages :
Book Description
In this paper, the hypothesis that performance of trading firms depends on their assets (physical, financial, human capital and social capital) and trading practices is tested with data from a sample of 131 live animal traders in 38 rural Ethiopian highland markets. Most traders used own capital as access to credit, especially formal credit, was limited. The livestock market was characterised by non-standardised products and lack of information in the public domain about supply, demand and prices. Consequently, livestock trading was largely a personalised business though brokers and regular buyers and sellers, a form of social capital, were sometimes used for gathering information, searching buyers/sellers, price negotiation and contract enforcement. Business relationships with these intermediaries were principally based on trust, without strong ethnic, religious or family ties. Although most transactions were conducted in the physical presence of parties, contract violations were common, which were settled mainly through informal means as formal legal systems were either absent or time-consuming. Estimated costs and margins of most recent transactions showed low returns, and losses in some cases. Market levies, transport, travel and feeds were major items of variable cost, with some variation between cattle and small ruminants. Multiple regression analysis showed that traders' financial and human capital and trading practices such as use of brokers and regular suppliers and customers had varying effects on margins and costs of cattle and small ruminant trade. Unstable price, multiple taxes, non-transparent tax system, limited access to credit and weak demand for the quality of the products traded were perceived by traders as major problems of marketing. All the problems were amenable to public policy to improve the market environment and marketing efficiency.
Author: Mohammad Jabbar Publisher: ISBN: Category : Languages : en Pages :
Book Description
In this paper, the hypothesis that performance of trading firms depends on their assets (physical, financial, human capital and social capital) and trading practices is tested with data from a sample of 131 live animal traders in 38 rural Ethiopian highland markets. Most traders used own capital as access to credit, especially formal credit, was limited. The livestock market was characterised by non-standardised products and lack of information in the public domain about supply, demand and prices. Consequently, livestock trading was largely a personalised business though brokers and regular buyers and sellers, a form of social capital, were sometimes used for gathering information, searching buyers/sellers, price negotiation and contract enforcement. Business relationships with these intermediaries were principally based on trust, without strong ethnic, religious or family ties. Although most transactions were conducted in the physical presence of parties, contract violations were common, which were settled mainly through informal means as formal legal systems were either absent or time-consuming. Estimated costs and margins of most recent transactions showed low returns, and losses in some cases. Market levies, transport, travel and feeds were major items of variable cost, with some variation between cattle and small ruminants. Multiple regression analysis showed that traders' financial and human capital and trading practices such as use of brokers and regular suppliers and customers had varying effects on margins and costs of cattle and small ruminant trade. Unstable price, multiple taxes, non-transparent tax system, limited access to credit and weak demand for the quality of the products traded were perceived by traders as major problems of marketing. All the problems were amenable to public policy to improve the market environment and marketing efficiency.
Author: Bachewe, Fantu Nisrane Publisher: Intl Food Policy Res Inst ISBN: Category : Political Science Languages : en Pages : 30
Book Description
In many developing countries in which staple foods dominate the composition of diets, higher consumption of animal-source foods (ASF) is associated with significant nutritional benefits. Given the importance of prices for consumption decisions in these settings, we analyze ASF price patterns in the last decade (2007-2016), relying on a large-scale price dataset collected in 116 urban retail markets in Ethiopia. We document important seasonal and spatial patterns and we find, worryingly, that real prices of ASF have been increasing in the last decade by between 32 to 36 percent for three major ASF – milk, eggs, and meat. Similar price increases are noted in rural and urban areas and for tradable and non-tradable ASFs. This price trend is in contrast with staple cereals for which real prices stayed at similar levels over the last decade. As we estimate that a price increase of this magnitude would reduce consumption of ASF by approximately 25 percent, holding other things constant, it seems that more investments and attention to the production of ASF and the livestock sector are needed to reduce ASF prices and increase their consumption in Ethiopia.
Author: Dorosh, Paul A., ed. Publisher: Intl Food Policy Res Inst ISBN: 0896296911 Category : Political Science Languages : en Pages : 520
Book Description
Ethiopia has experienced impressive agricultural growth and poverty reduction, stemming in part from substantial public investments in agriculture. Yet, the agriculture sector now faces increasing land and water constraints along with other challenges to growth. Ethiopia’s Agrifood System: Past Trends, Present Challenges, and Future Scenarios presents a forward-looking analysis of Ethiopia’s agrifood system in the context of a rapidly changing economy. Growth in the agriculture sector remains essential to continued poverty reduction in Ethiopia and will depend on sustained investment in the agrifood system, especially private sector investment. Many of the policies for a successful agricultural and rural development strategy for Ethiopia are relevant for other African countries, as well. Ethiopia’s Agrifood System should be a valuable resource for policymakers, development specialists, and others concerned with economic development in Africa south of the Sahara.
Author: Eleni Zaude Gabre-Madhin Publisher: Intl Food Policy Res Inst ISBN: 089629126X Category : Business & Economics Languages : en Pages : 116
Book Description
This report addresses the overarching question regarding the role of institutions in enhancing market development following market reforms. It uses the New Institutional Economics framework to empirically analyze the role of a specific market institution, that of brokers acting as intermediaries to match traders in the Ethiopian grain market in reducing the transaction costs of search faced by traders. Brokers play a key role in facilitating exchange in a weak marketing environment where limited public market information, the lack of grain standardization, oral contracts, and weak legal enforcement of contracts increase the risk of contract failure. Relying on primary data, it analyzes traders' microeconomic behavior, social capital, the nature and extent of their transaction costs, and the norms and rules governing the relationship between brokers and traders.The study uses an innovative approach to quantify the costs of search and demonstrates that the brokerage institution is economically efficient both for individual traders and for global economic welfare.
Author: Williams, T.O. Publisher: ILRI (aka ILCA and ILRAD) ISBN: 9291461873 Category : Animal industry Languages : en Pages : 124
Book Description
This document analyses the economic, institutional and policy constraints to livestock marketing and trade to provide a basis for new policy interventions to improve market efficiency and intra-regional livestock trade.
Author: Gebremariam, S., Amare, S., Baker, D., Solomon, A., Davies, R. Publisher: ILRI (aka ILCA and ILRAD) ISBN: 929146306X Category : Languages : en Pages : 48
Author: Mohammad Jabbar
Author: Mohammad Jabbar
Author: Bachewe, Fantu Nisrane
Author: Dorosh, Paul A., ed.
Author: Eleni Zaude Gabre-Madhin
Author: Omar Hassan El Dirani
Author: 
Author: Williams, T.O.
Author: Eleni Zaude Gabre-Madhin
Author: Ugo Pica-Ciamarra
Author: Gebremariam, S., Amare, S., Baker, D., Solomon, A., Davies, R.