| dc.description.abstract | The objective of this study Was to examine
the pattern of the variation in supply of slaughter
cattle, occurring differently j n pastoral and agricultural
areas, and also to analyses the problem of pricing
efficiency in the ~1C market for these cattle. For
this purpose, Kajiado and Nakuru districts were chosen
to represent the pastoral and agricultural areas
.respectively. The beef cattle supply figures used in
the analysis are mainly from the Prerecords from
1966-1974. In few instances figures from the LMD and
County Council auctions have been used.
The thesis can be divided mainly in two parts:
a very descriptive one (chapters one to three) and a
more analytical oriented part (chapters four to six) .
. Chapter one starts with the introduction which
gives the role of the livestock in the Kenyan economy,
the contribution in terms of Gross Farm Revenue, GDP,
export earnings, nutrition, land use and employment.
This chapter in addition gives the importance of the
beef cattle subsector, and its problems before finally
laying down the objectives and the hypotheses of the
study. The methodology used in-the whole analysis and
the limitations that characterize the study are also
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given in this ..chapter.
Chapter two deals with theliterature review.
It is here that &attention is focused OL the various
work that have b8en done on any aspo,ct of the supply
and pricing of beef cattle, or any other considerations
that the author considers pertinent to this study. It
is evident from these wrings that pricing efficiency
and supply patterns have been given only implicit attention
or completely neglected.
In chapter three such important aspects of the
beef industry e.g. the role of the KMC as a major beef
cattle marketing institution, and the Kenya government
policy in improving the beef industry are dealt with.
-Institutions such as the LMD, feedlot schemes and the
non-KMC markets are also considered.
Chapter four is devoted exclusively to examining
major -aspects of the beef cattle supply in Kenya.
Emphasis is however laid on Kajiado and Nakuru districts
-." '(
isolated from this study. The seasonality of supply
and analysis of supply determinants are presented. By
use of some statistically simplified basic models, the
supply situation for a period of nine years (1965-1974)
is analyzed. Factors left out in the model but which
in the author's opinion are critical in determining beef
cattle supply volumes are given before finally putting
the hypotheses to test in the light of the findings.
v
In chapter five, examination of all aspects of
the KMC pricing, including the analysis vf efficiency
of thjs pricing are given. The implication of th3 ~~C t S
beef cattle pricing is given in the last part of this
chapter.
Lastly, chapter six gives the summary of the
thesis, poses some issues of policy considerations before
giving the conclusion.
The thesis has clearly demonstrated as illogical,
the isolation of one or two economic factors for the purpose
of explaining the supply behaviour amongst the cattle
producers. It has been shown that supply of beef cattle
is dependent on an interplay of a number of factors
ranging from economic, cultural, natural, etc. The supply
patterns are thus hard to predict before the supplies
are delivered. The supply conditions change every now
and then.
Slaughter cattle supply from Kajiado district to
the KMC was found to be influenced by the rainfall. An
inverse relation between supply and rainfall over the
nine year period (1966-1974) was detected. In Nakuru
district on the other hand the supply of slaughter cattle
to the KMC appear unaffected by the rainfall. Although
the rainfall coefficient is positive, it emerges as
statistical}y insignificant •
T~e importance of price level in determining
the supply levels f'r-orn Ka.i iado a::1<1 Nakuru to the Kf.IC
was not estabL .. shed. The study showed tl18.tthe sLaugh ter
cattle supply to the KMC from Nakuru district, unlike
that from Kajiado district is price elastic but only very
2 slightly so. There also emerged very low R value which
warn against great reliance on KMC prices as main
slaughter cattle supply influence factor.
On the question of pricing efficiency, KMC
pricing has been given due consideration and the author
using both verbal and graphical arguments has recommended
use of price discriminatory policies in place of the
present 'static pricing policy' imposed by the government
on the KMC. Fixed prices over time make it first and
foremost hard for the KMC to adopt a rational pricing
policy i.e. adapting itself like other competitors to
the dictates of the market environments. This aspect
as shown in chapter five, is the main cause of various
Lne f'f'Lc Lenc i es, and the author has recommended in conclusion
amongst other things, that KMC should be set free from
government restrictions and be run on purely commercial
basis thus be able to compete effectively with other
beef purchasing organisations and individuals. The
government intervention would only be applauded if
it is evident that the position of the cost of living
and the rate of ~development of the beef industry warrant
such intervention ... | en |
