A triple-hurdle model of small-ruminant production and marketing in the highlands of Ethiopia: Implications for commercial transformation
Journal Article
This paper analyses factors that influence Ethiopian households’ decisions to produce and market
small ruminants using a triple-hurdle econometric model. The model integrates production, market
position and volume of sales, allowing us to make inferences relating to the study population. The
results are based on a dataset collected from 5 000 households and 497 rural communities in the
highlands of Ethiopia. Our results show that, among other things, younger household heads, maleheaded
households, and households with relatively higher labour supply are more likely to engage
in small-ruminant production. Flock size is an important determining factor of market participation
and volume of sales. In addition, in areas where small-ruminant production is likely, market access
stands out as an important determinant of household market position. Finally, our results show that
the small-ruminant sub-sector is price nonresponsive, suggesting that households liquidate their
animals in need of cash, not necessarily to maximise profit.