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Farmers’ perspective of the effect of quality attributes on prices of small ruminants in Somaliland N. Mtimet, F. Wanyoike, L.G. Mugunieri, N. Ndiwa, F. Wesonga, K. Marshall 2 nd International Conference on Sustainable Development in Africa Dakar – Senegal 26 th -27 th November 2015

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Page 1: Farmers’ perspective of the effect of quality attributes on prices of small ruminants in Somaliland N. Mtimet, F. Wanyoike, L.G. Mugunieri, N. Ndiwa, F

Farmers’ perspective of the effect of quality attributes on prices of small ruminants in Somaliland

N. Mtimet, F. Wanyoike, L.G. Mugunieri,

N. Ndiwa, F. Wesonga, K. Marshall

2nd International Conference on Sustainable Development in Africa

Dakar – Senegal

26th-27th November 2015

Page 2: Farmers’ perspective of the effect of quality attributes on prices of small ruminants in Somaliland N. Mtimet, F. Wanyoike, L.G. Mugunieri, N. Ndiwa, F

Background

• Somaliland:

• Northern region of Somalia

• 3.5 million persons

• 137,600 km2

Figure 1. Map of Somalia

Page 3: Farmers’ perspective of the effect of quality attributes on prices of small ruminants in Somaliland N. Mtimet, F. Wanyoike, L.G. Mugunieri, N. Ndiwa, F

Background

• Livestock sector:

• 70% of the population

• 60% GDP

• 85% of forex earning

• Export oriented to the Middle-East market (KSA, Yemen, Oman, etc.)

• 3.5 million sheep and goats exported every year

• Existence of grading system in Somalia and also in importing countries

Page 4: Farmers’ perspective of the effect of quality attributes on prices of small ruminants in Somaliland N. Mtimet, F. Wanyoike, L.G. Mugunieri, N. Ndiwa, F

Background

Figure 2. Schematic representation of the Somali sheep and goats grading system

• Which attributes influence selling price of small ruminants from producers’

perceptions and decision making?

Page 5: Farmers’ perspective of the effect of quality attributes on prices of small ruminants in Somaliland N. Mtimet, F. Wanyoike, L.G. Mugunieri, N. Ndiwa, F

• 2 livelihoods zones:

• West Golis: pastoral – sheep, goats, camels

• Togdheer: agro-pastoral – sheep and goats + vegetables

Data Collection & Methodology

Figure 3. Study area and livelihood zones covered (Source: FSNAU, 2011)

Page 6: Farmers’ perspective of the effect of quality attributes on prices of small ruminants in Somaliland N. Mtimet, F. Wanyoike, L.G. Mugunieri, N. Ndiwa, F

• 200 households surveyed (46% men – 54% women)

• Questionnaire: Flock size; Marketing; Etc.…; question on the attributes influencing the selling price of the sheep or

goat – 13 attributes and 13 choice cards presented

• Analysis: standardized scores followed by cluster analysis

Data Collection & Methodology

Standardized Most – Least Score = (No.Most – No.Least)/ (m . n)

No.Most: number of times the attribute was chosen as most important

No.Least: number of times the attribute was chosen as least important

m: number of respondents = 196*

n: number of times the attribute was presented to each respondent = 4

Page 7: Farmers’ perspective of the effect of quality attributes on prices of small ruminants in Somaliland N. Mtimet, F. Wanyoike, L.G. Mugunieri, N. Ndiwa, F

Table 1. Attributes used on the choice cards

Data Collection & Methodology

Attributes

1. Age of the animal

2. Apparent fat of the animal

3. Breed of the animal

4. Coat color of the animal

5. Conformation of the animal

6. Demand season

7. Grade of the animal

8. Health of the animal

9. I know the trader

10. Live weight of the animal

11. Nutritional status of the animal

12. Payment in cash

13. Sex of the animal

Page 8: Farmers’ perspective of the effect of quality attributes on prices of small ruminants in Somaliland N. Mtimet, F. Wanyoike, L.G. Mugunieri, N. Ndiwa, F

Most Important Attributes Least Important

Breed

Sex

Age

Coat color

Card 5Please indicate which to you is the most and least important attribute that influence the price when you sell a sheep or a goat? (Tick only one case as most important and one case as least important)

Figure 4. An example of a choice card

Data Collection & Methodology

Page 9: Farmers’ perspective of the effect of quality attributes on prices of small ruminants in Somaliland N. Mtimet, F. Wanyoike, L.G. Mugunieri, N. Ndiwa, F

Results

Figure 5. “L-W” average scores of attributes influencing small ruminants’ price

Age

Apparent fat

Breed

Coat Colour

Conformation

Demand season

Grade

Health of the animal

I know the trader

Live weight

Nutritional status

Payment in cash

Sex

-0.60 -0.40 -0.20 0.00 0.20 0.40 0.60

Page 10: Farmers’ perspective of the effect of quality attributes on prices of small ruminants in Somaliland N. Mtimet, F. Wanyoike, L.G. Mugunieri, N. Ndiwa, F

Results

Figure 6. “L-W” average scores by groups

Age

Apparent fat

Breed

Coat Color

Conformation

Demand season

Grade

Health of the animal

I know the trader

Live weight

Nutritional status

Payment in cash

Sex

-1 -0.8 -0.6 -0.4 -0.2 0 0.2 0.4 0.6 0.8 1

Group 3

Group 2

Group 1

Page 11: Farmers’ perspective of the effect of quality attributes on prices of small ruminants in Somaliland N. Mtimet, F. Wanyoike, L.G. Mugunieri, N. Ndiwa, F

Results

Variable level Group 1(n1=60)

Group 2(n2=63)

Group 3(n3=73)

Gender of the respondent*** Man 52% 59% 30%

  Woman 48% 41% 70%

HH head only sales decision Yes 66% 40% 63%

making*** No 34% 60% 37%

Gender of HH head* Man 88% 77% 79%

  Woman 12% 23% 21%

Age of HH head** Years 45.1 40.9 47.9

Selling more younger animals** Yes 26% 20% 9%

No 74% 80% 91%

Selling more older  animals*** Yes 44% 14% 76%No 56% 86% 24%

Selling animals with Yes 58% 61% 31%

better body conformation*** No 42% 39% 69%

Selling more of males animals*** Yes 81% 61% 83%  No 19% 39% 17%

Table 2. External characterization of the groups

Page 12: Farmers’ perspective of the effect of quality attributes on prices of small ruminants in Somaliland N. Mtimet, F. Wanyoike, L.G. Mugunieri, N. Ndiwa, F

Conclusions

• 3 main factors affecting small ruminants selling price: health of the

animal, body conformation and demand season reflect specifications

of Somali livestock market (export driven)

• Women: more engaged in the local market where lower quality animals

are exchanged closer dissemination and capacity building work with

women group is essential to improve in overall the quality of the animal

produced in Somalia

• Perceptions influence the type of efforts made to earn higher prices.

One policy implication is that where the perceptions are not correct,

rectifying this – probably through extension services – would lead to

farmers focusing the in the right direction.

Page 13: Farmers’ perspective of the effect of quality attributes on prices of small ruminants in Somaliland N. Mtimet, F. Wanyoike, L.G. Mugunieri, N. Ndiwa, F

This research brief is one of a series of outputs of a capacity building

program for the IGAD Sheikh Technical and Veterinary School (ISTVS) that

was implemented by ILRI in partnership with Terra Nuova.

We acknowledge funding from the Denmark’s development cooperation

(Danida) through the project ‘Reducing Vulnerability of Somali

Communities by Raising the Capacity of Indigenous Systems and

Enhancing Market Access and Consumer Welfare’.

Acknowledgement

Page 14: Farmers’ perspective of the effect of quality attributes on prices of small ruminants in Somaliland N. Mtimet, F. Wanyoike, L.G. Mugunieri, N. Ndiwa, F

Contacts:

Nadhem Mtimet: [email protected]

International Livestock Research Institute www.ilri.org

Thanks