Sheep Price Patterns and Factors Affecting Price Variations in the Highland Markets of North Shewa, Ethiopia

Research on sheep marketing situations and constraints in Ethiopia in general, and north central highlands in particular, remained very limited. This study examined sheep price patterns and factors underlying price variations. It also tried to find out major constraints in sheep marketing system in selected districts of North Shewa Zone (NSZ). Based on their importance of sheep marketing sites, four markets from NSZ were selected. The markets were surveyed on the main weekly market day for a period of two years. Data were recorded on price, weight (kg), sex, age, color, body condition and buyers expected use of the animal for all transactions. A total of 7976 observations were recorded. Primary data were collected by interviews from 619 sellers and 618 buyers from all selected markets to get insight about market constraints and situations using pre tested structured questionnaires. Econometric model and descriptive analytical methods were used for the analysis based on liveweight price. The results showed that there was a considerable week-to-week variation throughout the year in liveweight prices in the study markets. Animal characteristics that affect liveweight price were weight, sex, age, body condition and color. The sheep market prices varied with respect to these characteristics. This suggests that weekly liveweight average prices vary partly due to varying in sheep characteristics in the markets. The major marketing constraints identified in the study areas were transportation, financial and information services. These constraints were found to make price disparities and instabilities. It is recommended that the government can take measures to help farmers by constructing market infrastructures. These measures include: (i) improving transport infrastructure; (ii) promotion of regional trade (iii) establishing market information systems and (iv) improving communication infrastructure