In the drylands of northern Kenya, pastoralist communities sell sheep and goats mainly to local traders who connect them to different markets. This pastoral livestock supply chain is characterised by inadequate market information, without which it is difficult to improve the coordination of seller–buyer activities. The article “Making decisions without reliable information: the struggle of local traders in the pastoral meat supply chain” by Guyo Roba and colleagues from the CELEP member organisation DITSL (German Institute for Tropical and Subtropical Agriculture), published in 2018 in Food Policy, examined the information needs and constraints of producers and traders. They found that the traders need information on the range of prices in different markets, the extent of competition, grades of animals in high demand and further animal specifications. However, some of the information tends to change rapidly. Analysis of weekly prices for different grades revealed high price variability such that the prices were known only on the market day. This unpredictability made it difficult for traders to offer better prices to pastoral producers. The authors recommend strengthening links of local traders with meat processors and wholesalers to structure information exchange so that the traders can make better decisions to improve their margins.
Roba G, Lelea MA, Hensel O & Kaufmann B. 2018. Making decisions without reliable information: The struggle of local traders in the pastoral meat value chain. Food Policy, 76:33-43. https://doi.org/10.1016/j.foodpol.2018.01.013
Posted on 14 April 2018 in Pastoralism & Marketing