Livestock Research for Rural Development 20 (5) 2008 Guide for preparation of papers LRRD News

Citation of this paper

Market potential for the local Djallonké goat in Southern Benin: empirical evidence from two rural markets

L H Dossa, Barbara Rischkowsky*, Regina Birner** and C Wollny***

Georg-August University of Goettingen, Institute of Animal Breeding and Genetics, Tropical Animal Husbandry,
Kellnerweg 6, 37077 Goettingen, Germany
hdossa@gwdg.de
*International Center for Agricultural Research in the Dry Areas, P.O. Box 5466, Aleppo, Syria
**International Food Policy Research Institute (IFPRI), 2033 K Street, NW, Washington, DC 20006-1002, USA
***Faculty of Life Sciences and Engineering, University of Applied Sciences Bingen, Berlinstrasse 109, 55411 Bingen, Germany

Abstract

A market study was undertaken to examine the effects of selected qualitative and quantitative traits of goats on their market price. Data on breed type, sex, coat color, age, health and live bodyweight were recorded from 288 goats traded in two rural markets in Southern Benin. Buyers were questioned about the purpose for which each animal was bought. A double logarithmic hedonic model was applied to link prices to the animal’s physical attributes.

 

The results indicated that liveweight and sex were significant (p<0.001) characteristics affecting prices. The estimated elasticity of demand for goats with respect to liveweight was 0.99. Given the significant premium associated with these characteristics, goat keepers could significantly improve their profitability through the adoption of appropriate management and marketing practices.

 

The results provide an empirical evidence of the high market potential of the local Djallonké goat.

Keywords: Consumer preferences, goat characteristics, hedonic model, prices


Introduction

Goats are kept in smallholdings in almost all rural households in Southern Benin (Broek van den and Gbego 1994). They are mainly regarded as a valuable and quick source of cash, security and insurance against crop failure and hardship. However, domestic imports of animals on the hoof from Niger, Burkina Faso, Nigeria and Togo, continue to rise annually (DE-MAEP 2004). In the year 2000, Benin officially imported an equivalent of 6% of its total national flock of goats and sheep (DE-MAEP 2002). Between 2000 and 2003, surveys of market prices conducted in different local markets showed an increase of 18% in the average price per head of goat (DE-MAEP 2004). These official figures provide a striking evidence of the growing local demand for small ruminants, especially goats. Hall et al (2004) argue that small-scale farmers form the vital core of the production system that will meet the growing demand for livestock and livestock products in urban centers in developing countries.

Thus, this increased market demand for small ruminants in Southern Benin offers local smallholders with opportunities for raising their incomes and may stimulate them to more actively seek productivity increases. However, these farmers, especially those geographically marginalised, face many challenges in seizing these opportunities.

 

The access to reliable markets for outputs across the year is one of the most important factors that affect the decision of small farmers to undertake production and to adopt improved production systems practices (Rola et al 2003). Drawing from studies conducted in Asia, Devendra (1999) argued that the lack of knowledge of markets and marketing systems combined with the neglect of linking the production of small ruminant to their marketing have resulted in reduced revenue from small ruminants to farmers and made them unable to respond to demand and supply forces.

 

A clear understanding of markets and marketing systems including a better knowledge of the preferences of consumers for particular physical characteristics of the animals should ensure technological improvements that are affordable to small scale farmers, can enable them to respond to the demand of local market and give them better remuneration opportunities.

In Benin, there is a paucity of marketing studies on livestock, especially on small stock such as goats and sheep. The objective of this study was to examine the traits of goats that are important for buyers and how these characteristics affect goat prices in the local markets.

 

Materials and methods 

Data collection

 

The rural markets of Azove and Klouekanme in Southwestern Benin (Figure 1) were purposively selected for this study based upon their relative regional importance.



Figure 1.
     Map of Benin indicating locations of the study


Since goats and sheep are marketed together, a reconnaissance survey was done and repeated three times on a monthly basis in each market to identify the different types of sellers of small ruminants and to record the composition of the supplies (species, sex, and breed types). Traders were interviewed in the early morning at their arrival in the market place with a short structured questionnaire that included information on their provenance, the composition of supplies (disaggregated by species, sex and perceived breeds) and the three most important traits of goats perceived to affect their sale price. A total of 260 sellers of small ruminants were interviewed at four-day intervals (every market day) between January and March 2002 on a total of 26 market days. On the same days, data on prices and physical traits of purchased goats were collected by trained and experienced enumerators. A total of 288 buyers were interviewed at the most frequented market exit once the transaction between the buyer and the seller was completed.

 

The physical characteristics recorded from each traded goat are summarized in Table 1. The apparent health status of the animal was subjectively rated by the Animal Health Technician representing the local livestock extension services and who was part of the research team.


Table 1.   Description of the variables measured

Variable code

Description

Level of measurement

P

Actual price (in FCFA)

 

BW

Actual live weight (in kg)

 

CCOL

Color of the coat

Bright – dark (dark brown to black)

TEETH

Dentition

Milk teeth, one pair adult incisive, two pairs adult incisive, three pairs adult incisive and four pairs adult incisive

RAC

Perceived breed type

Local Djallonké – Sahelian or crossbred

SEX

Gender of the animal

Female – castrated - male

HEAL

Apparent health status

Good - Poor

AGE

Age estimated from dentition

≤ 1year, 2 years, 3 years and ≥ 4years

All sale prices reported were in Francs de la Communauté Financière Africaine (FCFA; exchange rate in March 2002 was 1US$ = 550 FCFA).


The weight of the animal was obtained using a weighing scale. In addition, the buyer was questioned about the purposes for which the animal was bought. The age of the animal was estimated from its dentition as follows: milk teeth or one pair of adult incisive = 1 year old or less; two pairs of adult incisive = 2 years; three pairs of adult incisive = 3 years and four pairs of adult incisive = 4 years old and more.

 

Data analysis

 

Cross tabulation procedure in SPSS version 10 (SPSS Inc. 1999) was used to explore the relationship between the different categorical variables. Because of unbalanced data sets, Univariate GLM procedure was used to explore the main effect of each categorical variable on the interval variables (live weight and price). Least square means (Lsmeans) generated were compared using LSD means tests. The double logarithmic form of the hedonic price function was used to relate the recorded prices to the traits of traded animals. The hedonic price model treats each characteristic separately and estimates implicit price for each trait through regression analysis. The price of the animal is then computed as a summation of all implicit prices. To improve the statistical power of the regression analysis, only animals old of four years or/and more were considered. They represented about 74% (212 out of 288) of the animals measured. Similar to the variable “Age”, the variable “Apparent health status” was not included in the regression analysis because, out of the 288 animals measured, only 12 were rated as sick.

 

In the double logarithmic specification, the relationship between the recorded prices and the physical attributes of the animals was expressed as follows:

ln (P) = ln a + b1ln (BW) + b2 (RAC) + b3 (CCOL) + b4 (FEM) + b5 (MAL) + μ

Where:

ln (P) is the natural logarithm of the price of a goat in FCFA

ln (BW) is the natural logarithm of the live weight in kg

RAC = 1, if animal is of Sahelian type or crossbred Djallonké-Sahelian (0 otherwise)

CCOL =1, if animal has a bright color (0 otherwise)

FEM = 1, if female animal (0 otherwise)

MAL = 1, if male animal (0 otherwise)

ln(a) is the intercept; b1 is the live bodyweight elasticity; b2 to b5 are the regression coefficients indicating the marginal change of the price with a respect to a change of corresponding characteristic and μ is the error component.

 

Results  

General market characteristics

 

In the two markets studied, small ruminants were sold alive and the animals were not weighed. Two distinct groups of sellers were present: the traders/retailers (54%) and the small-scale producers (46%). The majority (54%) of all traders were women. About 72% of the producers declared that they come occasionally to the market to sell their animals to generate urgent needed cash while the remainder 28% mentioned that they come to the market only to sell their sick animals. All the sellers come from the surroundings of the two markets (8.2 ± 6.2 km). Of the total supply of small ruminants (1510 animals) recorded in the two markets, 56% were goats and 44% sheep. The majority of the goats (81%) were perceived as of local Djallonké breed type, 6% were perceived as of Sahelian breed type and the remaining 13% were perceived as crossbred between Djallonké and Sahelian breeds. The majority (58%) of the animals were castrated males, 25% were female, and 17 % were intact males.

 

Of the total of 288 traded goats recorded in the two markets, 38% were purchased by traders for resale purposes, 38% by consumers for ceremonies or festive purposes, 7% for sacrificial purposes, 8% for rearing purposes and the remaining 9% by caterers. Caterers include people who own a small restaurant and sell food and cooked pieces of meat but also those who have a small butchery.

 

Characteristics and price of the traded goats

 

There were differences between sex, age group and breeds of goats purchased for different purposes (Table 2).  


Table 2.  Composition (%) of goats bought by reasons for buying

Traits

Catering
(n = 26)

Keeping
(n= 23)

Sacrifices
(n = 19)

Resale
(n = 110)

Ceremony
(n = 110)

Total
(n = 288)

Sex

Female

46.2

100

21.1

39.1

60.9

51.7

Intact male

0.0

0.0

73.7

7.3

9.1

11.1

Castrated

53.8

0.0

5.3

53.6

30.0

37.2

Breed

Local (Djallonké)

88.5

95.7

100.0

75.5

95.5

87.5

Crossbred/Sahelian

11.5

4.3

0.0

24.5

4.5

12.5

Age

< = 1 year

7.7

82.6

94.7

0.0

1.8

14.2

2 years

3.8

4.3

5.3

0.9

6.4

3.8

3 years

3.8

0.0

0.0

10.0

10.9

8.3

> = 4 years

84.6

13.0

0.0

89.1

80.9

73.6

Coat color

Bright

92.3

95.7

89.5

91.8

80.9

87.8

Dark

7.7

4.3

10.5

8.2

19.1

12.2

Apparent health

Good

96.2

100

78.9

98.2

95.5

95.8

Poor

3.8

0.0

21.1

1.8

4.5

4.2


Only animals of local Djallonké breed were purchased for sacrificial purposes. The majority of Sahelian/crossbred traded goats (75%) in the two markets were bought for resale purposes. The remaining 25% were mainly bought for catering purposes. Also, animals bought for rearing and sacrifices purposes were younger than those bought for resale, catering and ceremonies.

 

Buyers were bargaining with sellers over the prices and the prices they paid varied significantly (p<0.05) with the purpose for which animals were bought. The average price of a goat was 13,223 ± 6,025 FCFA. The results of observed live bodyweights and prices disaggregated by reasons of buying are shown in Table 3.


Table 3.  Live bodyweight and price paid by buyer per animal and per kilogram of live bodyweight function of reason for buying

Reason for buying

n

Live bodyweight,

kg

Price per head,

FCFA

Price per kg live bodyweight,  FCFA

Lsmean ± SE

Catering

26

16.1 ±  0.9ab

14,460 ± 950 ab

846 ±  33ab

Keeping

23

7.8 ±  1.0c

6,790 ±  1,010c

930 ±  36b

Sacrifices

19

5.2 ±  1.1d

4,230 ±  1,110d

1096 ±  41c

Resale

110

17.9 ±  0.5a

16,520 ±  460a

844 ±  15ab

Ceremony

110

14.2 ± 0.5  b

12,540 ±  460b

817 ±  15a

abc within columns, means with different letters are significantly different at 5% level


Animals bought for resale, catering and ceremonies purposes were heavier and those bought for sacrifices fetched higher prices per kg than the others. Sahelian or crossbred animals were significantly heavier but fetched similar prices per kg than those of local Djallonké animals (Table 4).  


Table 4.  Main effect of sex, breed, age, color and apparent health on live bodyweight and price of goat

Variables

n

Live bodyweight,
kg

Price per head, FCFA

Price per kg of live bodyweight, FCFA

Lsmean ± SE

Sex

 

 

 

 

    Male

32

13.0 b ± 1.1

10,860 b ± 1,039

802 a ± 28

    Castrated

107

15.6 a ± 0.6

14,945 a ± 568

952 b ± 14

     Female

149

14.4 ab ± 0.5

12,495 b ± 481

878 c ± 12

Breed

 

  Local (Djallonké)

252

13.5 a ± 0.3

12,130 a ± 333

895 a ± 10

   Crossbred/Sahelian

36

22.8 b ± 0.9

20,880 b ± 882

910 a ± 25

Color

 

     Dark

35

12.8 a ± 1.0

10,800 b ± 1,010

838 a ± 25

     Bright

253

14.9 a ± 0.4

13,560 a ± 375

905 b ± 9

Age

 

     ≤ 1 year

41

5.8 c ± 0.7

4,955 c ± 725

875 a ± 24

     2 years

11

9.8 b ± 1.4

8,440 b ± 1,399

857 a ± 46

     3 years

24

11.3 b ± 0.9

10,170 b ± 948

894 a ± 31

     ≥ 4 years

212

17.0 a ± 0.3

15,415 a ± 318

904 a ± 10

Apparent health#

 

     Poor

12

10.1 b ± 1.8

8,025 b ± 1,715

778 a ± 43

     Good

  276

14.9a  ± 0.4

13,450 a ± 360

902 b ± 9

abc within columns and for each group of characteristics, numbers with different letters are significantly different at 5% level

# unbalanced group sizes


Differences of prices between castrated, female and intact male animals were significant (p<0.05); and highest prices per kg were paid for castrated animals.

 

Traits of goats determining the price

 

The 260 sellers ranked the healthiness of an animal (77%) followed by its heaviness (54%) and its perceived breed type (66%) as the most important factors determining its sale price. The hedonic price estimated for goat is presented in Table 5.


Table 5.  Estimated hedonic price model for goats

Predictors

Unstandardized
coefficients

Standardized
Coefficients

t-value

p-value

B

S. E

Beta

(Constant)

6.85

0.10

 

67.1

0.00

Live bodyweight, kg

0.99

0.04

0.90

26.7

0.00

Sex

 

 

 

 

 

Castrated

0.00

 

 

 

 

Female

- 0.11

0.02

- 0.18

- 5.96

0.00

Non castrated male

- 0.14

0.04

- 0.11

- 3.68

0.00

Coat color (1 = bright, 0 = dark)

0.03

0.03

0.03

1.14

0.26

Breed (1 = Sahelian/Crossbred, 0 =local)

0.01

0.03

0.02

0.54

0.59

Model: n = 212, F = 194, df = 5, p = 0.000, R² = 0.82


Live weight and sex affected significantly (p<0.001) the price. All other variables tested did not prove significant in determining sale price. The overall regression model could explain 82% of the variation in the dependent variable.

 

Discussion  

The results clearly indicate that live weight is the most significant factor affecting price of goats. The estimated elasticity of demand for goats with respect to live weight 0.99 is almost close to 1 and indicates that holding other characteristics constant, an increase of 1% of the live bodyweight of a goat will result in 1% increase in its sale price. Although the transactions were done by visual appraisal, buyers seemed to be well skilled to estimate live weights. In addition, the buyers showed a preference for castrated animals and when all other characteristics being constant castrated animals were likely to fetch higher prices than females and intact males. This price differential could probably be explained by the fact that sex influences carcass composition and meat properties of goats. It is known that castrated goats produce significantly heavier carcass and higher dressing percentage than females and intact males (Dawa et al 1996; Mourad et al 2001).

 

The significant discount for intact male goats may also be explained by their bad smell. Although the price for local goats were lower than for Sahelian or crossbred goats, all other characteristics the same, breed had no significant effect on price. It implies that Sahelian and crossbred animals fetched higher prices than animals of local Djallonké type only because they were heavier but not because of the breed. The technique of hedonic pricing has been previously applied to investigate factors affecting selling prices of small ruminants in Nigeria (Francis 1990; Jabbar 1998), in Pakistan (Rodriguez et al 1995), in the Philippines (Orden et al 2005) and in Ethiopia (Andargachew and Brokken 1993; Ayele et al 2006).

 

The findings of the current study are similar to those reported by Okali and Upton (1985) in Southern Nigeria and by Rodriguez et al (1995) in Pakistan. But, they contradict results from others studies conducted in the Philippines (Orden et al 2005) and in Nigeria (Francis 1990 and Jabbar 1998). These authors reported a significant effect of the breed on pricing goats with significant premiums paid for non-native or/and crossbreds. Similarly to the findings of Jabbar (1998), there were preferences for a specific breed among buyers related to the purpose of purchase. More than 75% of Sahelian and crossbred goats were bought by retailers for resale in urban markets where they are mainly bought by Muslim communities at high prices for religious festivals purposes. Local Djallonké animals were preferred by small scale farmers who bought goats for keeping them probably because farmers are more familiar with their management and productive characteristics than for Sahelian goats. They were also preferred for sacrifices because of the strong cultural value attached to them by the local traditional institutions; for catering and ceremonies probably because they generally give a better carcass composition and characteristics than animals of Sahelian and crossbreds (Attah et al 2006). In the two rural markets surveyed, the overall market share of Sahelian and crossbred animals is very low.

 

These results clearly show a strong consumption preference for local Djallonké goats in the rural area in Southern Benin. The results also spotlight the existence of a high market potential for increased production from the local breed and call for an urgent need to develop national long-term strategies to support the local production through a sustainable use of the Djallonké goat. Small-scale goat producers traditionally keep the Djallonké goat (Broek van den and Gbego 1994) and they participate as sellers in the two rural market surveyed. By making them more aware of market information and of the need to pay close attention to the management of their flocks of goats, they could produce more healthy and heavy animals to satisfy the local market demand. Several studies have shown that optimal growth and reproductive performances of Djallonké goats could be achieved just by improving their traditional management systems (Hofs et al 1985; Amégée 1986; Amégée 1988; Clément et al 1997). The purpose for which the animal was purchased also significantly affected price. These findings confirm results of previous studies in the Central Highlands of Ethiopia (Andargachew and Brokken 1993) and in Nigeria (Francis 1990; Jabbar 1998) and suggest that producers and sellers could achieve higher returns to their enterprise by targeting specific buyer categories.

 

Conclusions

 

Acknowledgment 

Financial support from the GTZ - Benin based Project “Appui à la Gestion de la Recherche Agricole Nationale (AGRAN)” is gratefully acknowledged

 

References 

Amégée Y 1986 Performances d’engraissement et qualités bouchères de la chèvre Djallonké. Revue d’Elevage et de Médecine Vétérinaire des Pays Tropicaux  39: 75-80

 

Amégée Y 1988 Performances de reproduction de la chèvre Djallonké au Togo. In: Smith O B (editor): Goats Production Systems in the Humid Tropics. Proceedings of International Workshop, Ile-Ife, Nigeria, 20 – 24 July 1987, Pudoc Scientific Publishers, Wageningen, The Netherlands 137 – 139

 

Andargachew K and Brokken R F 1993 Intra-annual sheep price patterns and factors underlying price variations in the central highlands of Ethiopia. Agricultural Economics 8: 125 – 138

 

Attah S, Omojola A B and Adesehinwa AOK 2006 Yield and carcass composition of goats as affected by breed and slaughter weight. World Applied Science Journal 1: 8 – 11

 

Ayele G, Jabbar M A, Teklewold H, Mulugeta E and Kebede G 2006 Seasonal and inter-market differences in prices of small ruminants in Ethiopia. Journal of Food Products Marketing 12: 59 -77

 

Broek A van den and Gbego T I 1994 Sustainability of small ruminant production on the Adja Plateau (South Benin). Netherland Journal of Agricultural Science 42: 69 – 76

 

Clément V, Poivey J P, Faugère O, Tillard E, Lancelot R, Gueye A, Richard D and Bibé B 1997 Etude de la variabilité des caractères de reproduction chez les petits ruminants en milieu traditionnel au Sénégal. Revue d’Elevage et de Médecine Vétérinaire des Pays Tropicaux 50: 235-249

 

Dawa O, Tawah C L and Mawaina T 1996 Carcass characteristics of adult sheep and goat breeds in the subhumid and semi-arid zones of Cameroon. Bulletin of Animal Health and Productivity in Africa 44 : 145-149

 

DE-MAEP (Direction de l’Élevage, Ministère de l’Agriculture de l’Élevage et de la Pêche) 2002 Rapport annuel 2000, Cotonou, République du Bénin

 

DE-MAEP (Direction de l’Élevage, Ministère de l’Agriculture de l’Élevage et de la Pêche) 2004 Rapport annuel 2003, Cotonou, République du Bénin

 

Devendra C 1999 Goats: Challenges of increased productivity and improved livelihoods. Outlook on Agriculture 28: 215 – 226

 

Francis P A 1990 Small-Ruminant marketing in Southwest Nigeria.  Agricultural Economics 4: 193 – 208

 

Hall D C, Ehui S and Delgado C 2004 The livestock revolution, food safety, and small-scale farmers: why they matter to us all. Journal of Agricultural and Environmental Ethics 17: 425 - 444

 

Hofs P, Montsma G and Nabuurs S 1985 Growth and reproduction rates of West African Dwarf goats under high levels of feeding and management. In: Sumberg J E and Cassaday K A (editors), Sheep and goats in humid West Africa. Proceedings of the workshop on Small Ruminant Production systems in the Humid Zone of West Africa, held in Ibadan, Nigeria, 23-26 January 1984. ILCA, Addis Ababa, Ethiopia, 25-28

 

Jabbar M A 1998 Buyer preferences for sheep and goats in southern Nigeria: A hedonic price analysis. Agricultural Economics 18: 21 – 30

 

Mourad M, Gbanamou G and Balde I B 2001 Carcass characteristics of West African dwarf goats under extensive system. Small Ruminant Research 42: 81-85

 

Okali C and Upton M 1985. The market potential for increased small ruminant production in Southwest Nigeria. In: Sumberg J E and Cassaday K A (editors), Sheep and goats in humid West Africa. Proceedings of the workshop on Small Ruminant Production systems in the Humid Zone of West Africa, held in Ibadan, Nigeria, 23-26 January 1984. ILCA, Addis Ababa, Ethiopia, 68 – 74

 

Orden M E M, Jamandre W E, Brown E O, Orden E A, Cruz E M, Alo A P and Villar E C 2005 Traders’ preference for goat characteristics in selected markets of Pangasinan, Philippines. Animal Science Journal 76: 179-185

 

Rodriguez A, Ali I, Afzal M, Shah N A and Mustafa U 1995 Price expectations of sheep and goats by producers and intermediaries in Quetta market, Pakistan. Agricultural Economics 12: 79 – 90

 

Rola A, Rola W, Tiongco M and Delgado C 2003 Livestock intensification and smallholders: A rapid reconnaissance of the Philippines hog and poultry sectors, MTID Discussion Paper 59, International Food Policy Research Institute (IFPRI), Washington, D.C., U.S.A

 

SPSS Inc. 1999 SPSS for Windows, Release 9.0.1 Standard version



Received 13 February 2008; Accepted 10 March 2008; Published 1 May 2008

Go to top