Valuation of traits of indigenous sheep using hedonic pricing in CentralEthiopia

Abstract

This study estimates the implicit prices of indigenous sheep traits based onrevealed preferences. A hedonic pricing model is fitted to examine thedeterminants of observed sheep prices. Transaction data were generated fromrural markets of Horro-Guduru Wollega Zone of Ethiopia. Both OLS andheteroscedasticity consistent estimations were made. The empirical resultsconsistently indicate that phenotypic traits of traded indigenous sheep (age,color, body size, and tail condition) are major determinants of price implyingthe importance of trait preferences in determining the price of sheep in localmarkets. Season and market locations are also very important price determinantssuggesting the need to target season and market place in sheep improvementprogrammes. Therefore, the development of a comprehensive breeding program thathas marketing element is crucial to make sheep improvement sustainable and sheepkeepers benefit from the intervention.