Revealed Preference Based Valuation of Indigenous Sheep Traits

Abstract

In this study, hedonic pricing model is fitted to examine the determinants of observed sheep price. Transaction data were generated from rural markets of Horro-Guduru, Wollega Zone of Ethiopia. Both OLS and Heteroscedasticity consistent estimations were made. The empirical results consistently indicate that phenotypic traits of traded indigenous sheep (age, color, body size, and tail condition) are major determinants of price implying the importance of trait preferences. Season and market locations are also very important determinants of price suggesting the need to target season and market place in breeding programs so that sheep keepers benefit from the intervention and hence the program become sustainable. Therefore, development of comprehensive breeding program is crucial.