Market Economy vs. Risk Management: How Do Nomadic Pastoralists Respond to Increasing Meat Prices?

Abstract

A growing body of evidence shows that, for nomadic pastoralists, herd accumulation is an efficient strategy for buffering environmental variation and maximizes long-term survival. Pastoralists may thus view livestock as investments, or 'banks on the hoof', that works as insurance against unpredictable environmental conditions. This highlights a different logic than strict market logic where producers are expected to follow the 'law of supply', i.e. that when the price of a product rises suppliers should be willing to offer more of the product for sale. In terms of insurance, increased meat prices may make it possible for pastoralists to slaughter fewer animals for the same financial gain as when prices are low and subsequently convert unslaughtered animals to herd capital. This study

Pasture–livestock dynamics with density‐dependent harvest and changing environment

“…In recent years, several socioecological studies have been published, following the line of thought of Ostrom (). In these studies, the focus is on nomadic herders incentives, the likelihood of cooperation among production units and conflicts between traditional pasture management systems and state administrative systems and policy (Hausner, Fauchald, & Jernsletten, ; Næss & Bårdsen, , ; Næss, Bårdsen, & Tveraa, ; Turi & Keskitalo, ; Tveraa, Stien, Brøseth, & Yoccoz, ; Ulvevadet & Hausner, ).…”

The Saami cooperative herding group: the siida system from past to present

“…Finally, siidas are grouped into districts: formal administration units defined by the Government (cf. Naess andBårdsen 2013, Naess andBårdsen 2015).…”

Smaller Saami Herding Groups Cooperate More in a Public Goods Experiment

“…Individual herders must balance their interests (e.g., generating income and managing the inherent risks of pastoralism) with the interests of their herding group and the wider community facing similar challenges (Næss et al 2012; Næss and Bårdsen 2015). Pastoralists such as Saami reindeer herders in Norway face social dilemmas across a range of scales and have a variety of individual and collective strategies for solving them.…”

“…Quotas may be at odds with the competitive environment of northern Norway, in which herders might follow a strategy of herd accumulation in order to reduce risk (Næss and Bårdsen 2015). Thus a dilemma arises between pursuing the collective interest of acquiescing to the reindeer reduction policy and increasing one’s herd size as a means of ensuring long-term viability, the latter option being the rational, risk-reducing strategy (Næss and Bårdsen 2010, 2013).…”

“…This orientation towards the market incentivised herders to maximise meat production and thus their income (Hausner et al 2011). Rather than simply maximising production, however, Saami pastoralists balance economic gains with the need to manage risk through increasing their herd sizes (Næss and Bårdsen 2015). An enforced shift away from customary land tenure towards ‘common’ or ‘open’ pastures—and, increasingly, privatised pastures—may be partly responsible for the overcrowding of reindeer in this area (Marin and Bjørklund 2015).…”