| dc.description.abstract | The principal objectives of this study were to
evaluate beef ranch income by comparing gross returns
from sale of livestock with costs of production. Using
net income as an indicat6r of ranch profitability, the
study determined factors that influence this level of
profitability from beef ranching in Laikipia.
Data used in this study were collected through a
survey of a sample of ranches. Two types of data were
used. These were cross-section and time-series data
from the sample. Single year cross-section data were
used to determine beef ranch profitability while crosssec~
ion and time-series data were pooled for the
analysis of factors that determine the profitability
and offtake rates. Two distributed lag models were
fitted to the pooled data and regressions were run to
determine the factors. Explanatory variables included
beef price, offtake, income, rainfall, range
condition, stocking rates, and time.
The results of the analysis show that net income
from beef ranching is about Kshs.60/= per hectare per
year. Statistically, this figure is low and is not
significantly different from zero. The net returns on
investment are approximately one per cent per annum and
are also statistically insignificant. The analysis of
factors that influence net income from beef ranching
indicates that the most important factors are beef
price, offtake, and stocking rates. Offtake was itself
shown to be determined by price, income. stocking
rate, rainfall total, and rainfall distribution. These
are the factors that can be manipulated to increase
beef ranch income and offtake. It is expected that
with high income, ranchero will have an incentive to
produco more beef. This would then alleviate the
problem of beef insufficiency in the country. | en |
