HEDONIC PRICE ANALYSIS OF SHEEP AND GOATS IN BAUCHI STATE LIVESTOCK MARKETS: IMPLICATIONS FOR MARKETING STRATEGIES

Abstract

The study determined the factors that influence price of sheep and goats in Bauchi State, Nigeria Multi-stage sampling technique was used to select 321 sheep traders and 220 goat traders. Data were collected with aid of structured questionnaire. Hedonic price regression model was employed for the study. Data analysis was performed using SPSS version 22. Hedonic price models were fitted to a sample of 6,118 sheep and 4,518 goats, respectively, for which data were collected from 14 markets over a 12-month period. The result of the estimated hedonic price regression model explains 74.1% of the variation in prices of sheep and 88.4% of the variation in prices of goats. This shows that about 74.1% and 88.4% of the variation in the prices of sheep and goats was influenced by the combined effects of the independent variables (market location, age of animal, live weight, sex, body condition, breed, coat colour and season) included in the hedonic model. The remaining proportion can be attributed to error term. F-statistics was significant at P<0.05, this statistic suggest goodness of fit of the model. Durbin Watson p-value of 1.02 was also reported, which indicates there is a positive first order auto correlation. Based on the findings of the study, it was concluded that, market location, sex, body condition of animal and season significantly (P<0.05) influenced selling price of sheep and goats in the study area. The study recommended that sheep and goats breeding strategies and activities should duly consider the preferences expressed through the prices paid for animals, these could enhance the efficiency of sheep and goat pricing system and consequently improve the livelihoods of sheep and goat keepers and traders. It is vital to train producers on the importance of market oriented (commercial) livestock production system.