2009
DOI: 10.1017/s1355770x08004610
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Price response of herd off-take under market liberalization in a developing cattle sector: panel analysis applied to Kenya's ranching

Abstract: The influence of price, in view of macro-economic policy change and a set of other factors, on herd off-take rates from ranches in Kenya over a period of 17 years was assessed. An AR(1) equation, based on Nerlove's classical dynamic supply model, was derived and fitted to panel data using the Cochrane–Orcutt procedure. Pooling of data was done to circumvent data insufficiency, thereby improving the statistical power of the analysis. Results indicate that price change has had a significant effect on ranch herd … Show more

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Cited by 7 publications
(11 citation statements)
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“…A number of statistical techniques that are available in the literature have been used to model the lagged response while estimating the supply response functions for various livestock products. Most of the previous studies applied Nerlovian model [16], which specified output as a dynamic function of the expected price, output adjustment and some other exogenous variables with minor modification [17,18,19,20,21]. Most of these models suffer serial correlation problem, causing Ordinary Least Square (OLS) estimates to be biased.…”
Section: Model Specificationmentioning
confidence: 99%
“…A number of statistical techniques that are available in the literature have been used to model the lagged response while estimating the supply response functions for various livestock products. Most of the previous studies applied Nerlovian model [16], which specified output as a dynamic function of the expected price, output adjustment and some other exogenous variables with minor modification [17,18,19,20,21]. Most of these models suffer serial correlation problem, causing Ordinary Least Square (OLS) estimates to be biased.…”
Section: Model Specificationmentioning
confidence: 99%
“…Herd structure categorises livestock into different classes based on purpose and nature of production, specifically cows in milk, non-milk cows, bulls, heifers, calves and steers (Mwanyumba et al 2015). Using the herd structure averages from Nyariki et al (2009) in Maasai Mara and from Otte and Chilonda (2012) in the pastoral areas of Kenya, the herd structure for the pastoral households was as follows: cows in milk, 17%; non-milk cows, 23.7%; bulls, 5.5%; steers, 17.9%; and steers/heifers, 19.6%. These figures were used on pastoral herds in Table 1 to generate a pastoral cattle herd structure shown in Table 2.…”
Section: Traditional Pastoral Values Livestock Numbersmentioning
confidence: 99%
“…Offtake may be defined as the removal of live animals or their products from the herd to within the household mainly for consumption, or to outside destinations through gifts, and cultural and religious practices, or markets for sale (Nyariki 2009;King-Okumu et al 2016). The most important livestock-related offtake is the live form.…”
Section: Pastoral Herd Offtakementioning
confidence: 99%
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“…Furthermore, degradation reduces the productivity of land, the value of ecological services and the ability to properly sustain an economy. Commercial ranches and pastoral livestock production systems are among the principal economic activities in the semi-arid environments (Nyariki, 2009).…”
Section: Introductionmentioning
confidence: 99%