Livestock marketing practices and determinants of livestock market supply among pastoralists and agro-pastoralists in the arid and semi-arid areas of Ethiopia

Abstract

The pastoral and agro-pastoral production system is the second most common livestock production method in Ethiopia, playing a crucial role in sustaining livelihoods through food provision, income generation, and social capital. However, livestock marketing in these regions face multifaceted challenges. This study investigated livestock marketing practices and identified key determinants influencing livestock market supply among pastoralist and agro-pastoralist communities in the South Omo zone, a major pastoral area in Ethiopia. A cross-sectional research design was employed, integrating both quantitative and qualitative approaches. The quantitative component involved a structured survey of 383 households across four districts, while the qualitative data were collected through eight focus group discussions and 24 key informant interviews. Livestock sales volume, measured as Total Livestock Units (TLU), was analyzed using multiple log-linear Ordinary Least Square (OLS) regression with robust standard errors. Findings revealed that 60.1% of respondents were male and 39.9% female. Market dynamics indicate that goats are the most frequently traded livestock, with 60.1% of households participating in their sale, followed by cattle and sheep. Livestock transactions predominantly take place in formal markets—both primary and secondary—accounting for 88.5% of all transactions, while only a small fraction occurs in informal markets, such as bush and street venues. A significant 61.4% of respondents cited price advantage as the primary factor influencing their market choice. Although 82.6% of participants observed an increase in demand for pastoral livestock, 76.4% primarily sell to domestic traders, indicating a limited integration into formal and higher-value markets. Key positive predictors of livestock sales include: education levels (β = 0.108, p < 0.001), access to credit (β = 0.344, p < 0.001), having diversified income (β = 0.444, p < 0.001), herd size (log-TLU; β = 0.130, p < 0.001), and market information access (β = 0.997, p < 0.001). Conversely, distance to market negatively affected sales (β = –0.057, p < 0.001). The findings suggest that expanding education, credit access, information flow, and infrastructure could significantly enhance market participation and livelihoods in pastoral contexts.