Analysis of structure, conduct and performance of small ruminant stock market participants of Isiolo –Nairobi trading market, Kenya

Abstract

The growing population in developing countries has necessitated a shift in preference for indigenous food. Small ruminant meat being one of the preferred indigenous products has registered huge increase in demand over the last few years. Therefore, demand for sheep and goat meat is predicted to rise predominantly in Arid and Semi- Arid Lands (ASAL), thereby creating new meat markets as well as expansion of the existing small ruminant value chain. Isiolo- Nairobi small ruminant value chain is characterized by heavy traffic of small ruminant livestock destined for Nairobi meat markets and its environs. It is therefore expected that, this high volume of livestock trade would empower the livestock keepers and ultimately improve their livelihoods. However, in spite of this economic potential, the livestock keepers still live as low income earners thereby leading to prevalent poverty conditions. In this regard therefore, the study singled out to characterize Small ruminant stock market participants along the Isiolo-Nairobi value chain and examine the nature of the market structure exhibited in the Small ruminant stock trade. Sample size of 210 consisted of Nairobi traders, brokers, butchers and keepers from Isiolo were interviewed. The analytical approach used in the analysis was combined Lerner index and Gini-coefficient model. Results show that 68% of the market participants along the value chain are mainly the brokers with marketing participants highly varied. Lerner index indicated that the 64% of the market gain lies in the hands of the traders along the chain rather than to the farmers. Only 36% gain along the chain go to pastoralists. Among other initiatives that seek to empower livestock keepers by providing adequate support on market infrastructure, the study recommends that livestock keepers (pastoralists) should be facilitated to form vibrant groups (farmer groups) in ASALs to strengthen their participation in the Livestock market. This is because, strong and vibrant farmers’ organizations can provide opportunities to farmers to effectively play a role in the livestock market economy and largely benefit from it by improving household income.