Vertical and Spatial Integration of Live Animal and Meat Markets in Ethiopia

Course ID
Ethiopian Economics Association (EEA)
Tadesse Kuma

Knowledge About The Extent Of Market Integration And Pattern Of Price Interdependence Is Useful To Guide Subsequent Agricultural Policy Decisions. Towards This End, The Study Aims To Investigate (1) Vertical Integration Between Producer And Retail Price Of Live Animal (2) Vertical Integration Between Oxen Retail And Meat (I.E., Beef) Prices, And (3) Spatial Integration Of Retail Prices Of Live Animals Within Each Region. Threshold Autoregressive (Tar) Model Was Employed To Capture The Dynamics Of The Arbitrage Process Underlying Interconnected Markets. Besides, The Study Extends The Standard Tar Model By Including A Time Trend In Both The Threshold And The Adjustment Parameter. Monthly Time Series Price Data (September 1998 To March 2011) On Live Animals And Meat Prices From Ethiopia Central Statistical Agency (Csa) Were Used For Analysis. The Study Covers Fifty Zonal Markets Drawn From Eight Regional States. Both Transaction Cost And The Speed Of Adjustment Were Calculated For Different Market Pairs. As The Findings From Tar Model Indicate, Despite Considerable Efforts Towards Market Reform In Ethiopia, Still A Large Number Of Zonal Live Animal Markets Are Found Non-Integrated. Out Of Three Categories Of Analysis, Spatial Integration Of Live Animal Retail Prices Exhibited Relatively Stronger Interrelationship While Vertical Integration Between Producer And Retail Prices Of Live Animals Were Found To Be Weak. Virtually No Integration Was Observed Between Retail Prices Of Live Animals And Meat. These Could Call For Improving Bargaining Power Of Producers Through Strengthening Market Institutions At Different Levels, Reducing Marketing And Transaction Costs Facing Producers And Traders As Key Areas Of Policy Interventions For Future Development Of The Sector

Corporate Author:Getnet Alemu & Worku Gebeyehu (Editor) & Ethiopian Economic Association/Ethiopian Economic Policy Research Institute
Publisher:Ethiopian Economic Association (EEA)
Primary Descriptors:Live Animal and Meat Market

Secondary Descriptor:Retail and Producer Price

Geographic Descriptors:Ethiopia
Cataloge Date:02/27/2013
Broad Subject heading:Vertical Integration
Call Number:330.963 PRO 2012
Serial Key Title:Proceedings of the Ninth International Conference on the Ethiopian Economy
Publication catagory: International Conference
Content type: EEA Publication
Publication date:2013-06-27 23:12:00
Forum or Discussion date:2013-02-27 15:57:54
Place of publication: Addis Ababa, Ethiopia
Type of material:Book
Current frequency: Annualy
Author: Tadesse Kuma and Seneshaw Tamru Beyene