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An analysis of livestock price fluctuations with droughts in eastern Kajiado

1/31/2020

 
PictureFigure 1: Average livestock market prices in eastern Kajiado showing a steady recovery after the 2009 drought and fluctuations with subsequent dry periods.
By Victor N. Mose, David Maitumo, Winfridah Kemunto , Erastus Mwaniki, Paul Kasaine, Sunte Kimiti, Samuel Lekanaiya and David Western
 
The livestock market in eastern Kajiado has steadily recovered after the near collapse in 2009 owing to the debilitating drought that led to losses of cattle, sheep, goats and donkeys. Prices fell below 1,000 Kenya shillings for a bull too weak to walk and surged to 90,000 Kenya shillings with the drought breaks (Figure 1). Amboseli Conservation Program monitors  livestock  market prices  on a monthly basis and is in the process of modelling economic losses due to droughts and the gains when herders sell off their livestock early enough before  periods of extreme  forage shortfall.
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A calibration of livestock prices based on monthly  data collected in the ecosystem from 2009 to 2019 shows that  the  average prices for bulls in 2009 were in the red (Figure 2) falling 80.1 percent below the maximum expected market price. The market recovered steadily up to  2014 with arrival of widespread rainfall  and oscillated with seasonality thereafter.
The early warning model can guide herders on when to sell off their livestock  based on forage conditions and market forces, while estimating economic losses  due to extreme drought.

Picture
Figure 2: Price gauges showing average bull price index in percentages below the maximum price ever recorded. The prices, in the red during the 2009 drought, fell 80 percent below the maximum before recovering steadily up to 2014.
Picture
Figure 3: Annual variations of the livestock prices from 2009 to 2019.

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