What determine the price of Bonga sheep at the market level in Southwestern Ethiopia? A hedonic price analysis

Abstract

Abstract Background Bonga sheep is a mutton type breed with a long-fat-tail and better body weight at maturity. The breed is especially located in the Southwestern mid and highland land areas of Ethiopia. Currently, the breed was well known in Ethiopia and also its price is higher as compared to other sheep breeds in the country. However, empirical evidence is lacking on price determinants of the breed in Ethiopia. Therefore, this research aims at identifying sheep attributes and other factors that determine the market prices of Bonga sheep in Southwestern Ethiopia. Methodology Data from 300 traded sheep and sheep marketers were collected from five major sheep marketing centers in the Kaffa zone. A hedonic price model adjusted for heteroscedasticity was employed to analyze the observed price data. Results The model result showed that the attributes of the sheep are important guiding criteria in price formulation. Among the attributes age, sex (male), colour (red), body condition (good), tail type (very fat) and absence of horn significantly and positively determine the sheep price. As well, market place (Gojebi and Bonga) near to big cities and season (holiday) and purpose of purchase are also significant determinants of bong sheep price out of the sheep attributes in Southwestern Ethiopia. Conclusion Targeting in systematic improvement of the significant attributes which are demanded by the market and establishment of a breeding program to make sheep improvement in a sustainable way. Besides, effort should be geared to transform the system into a market-oriented system using a value chain framework by improving access to market information.

Keywords

• Bonga sheep
• Attributes
• Hedonic pricing
• Heteroscedasticity consistent