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

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  • Herbert Kyeyamwa
  • Stijn Speelman
  • Guido Van Huylenbroeck
  • John Opuda‐Asibo
  • Wim Verbeke

Abstract

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.

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  • Herbert Kyeyamwa & Stijn Speelman & Guido Van Huylenbroeck & John Opuda‐Asibo & Wim Verbeke, 2008. "Raising offtake from cattle grazed on natural rangelands in sub‐Saharan Africa: a transaction cost economics approach," Agricultural Economics, International Association of Agricultural Economists, vol. 39(1), pages 63-72, July.
    • Handle: RePEc:bla:agecon:v:39:y:2008:i:1:p:63-72
    DOI: 10.1111/j.1574-0862.2008.00315.x
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    References listed on IDEAS

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    1. Rushton, Jonathan, 2003. "Methods for the Assessment of Livestock Development Interventions in Smallholder Livestock Systems," PPLPI Working Papers 23769, Food and Agriculture Organization of the United Nations, Pro-Poor Livestock Policy Initiative.
    2. Turner, Robin L., 2005. "Livestock, Liberalization and Democracy: Constraints and Opportunities for Rural Livestock Producers in a Reforming Uganda," PPLPI Working Papers 23760, Food and Agriculture Organization of the United Nations, Pro-Poor Livestock Policy Initiative.
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    Cited by:

    1. Claudia N. Berg & Uwe Deichmann & Yishen Liu & Harris Selod, 2017. "Transport Policies and Development," Journal of Development Studies, Taylor & Francis Journals, vol. 53(4), pages 465-480, April.
    2. Wantchekon, Leonard & Riaz, Zara, 2019. "Mobile technology and food access," World Development, Elsevier, vol. 117(C), pages 344-356.
    3. Lentes, Peter & Peters, Michael & Holmann, Federico, 2010. "Regionalization of climatic factors and income indicators for milk production in Honduras," Ecological Economics, Elsevier, vol. 69(3), pages 539-552, January.
    4. Chamberlin, Jordan & Jayne, T.S., 2013. "Unpacking the Meaning of ‘Market Access’: Evidence from Rural Kenya," World Development, Elsevier, vol. 41(C), pages 245-264.
    5. Blankespoor, Brian & Emran, M. Shahe & Shilpi, Forhad & Xu, Lu, 2018. "Transport Costs, Comparative Advantage, and Agricultural Development: Evidence from Jamuna Bridge in Bangladesh," MPRA Paper 86630, University Library of Munich, Germany.
    6. Husmann, Christine, 2015. "Transaction Costs on the Ethiopian Formal Seed Market and Innovations for Encouraging Private Sector Investments," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 54(1), pages 1-18, February.
    7. Aggarwal, Aradhna, 2020. "The Concept, Evolution, Impacts and Critical Success Factors of Regional Economic Corridors," MPRA Paper 110706, University Library of Munich, Germany, revised 16 Nov 2021.

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