HAWASSA UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MARKETING MANAGEMENT

THE ASSESEMENT OF FACTOR INFLUENCING CATTLE MARKET

PRICE(IN CASE OF DALE DISTRICT)

ARESEARCH SUBMITTED FOR PARTIAL FULFILLMENT OF THE

REQUIREMENT S FOR B.A DEGREE IN MARKETING MANAGEMENT

PREPARED BY: GETAHUN ABI ID NO: 1268/07

ADVISOR;GIRMABALCHA(MBA)

JUNE 2017

HAWASSA,ETHIOPIA
TABLE OF CONTENTS

CONTENTS Page

Acknowledgement..........................,................

Abstract.....................................................

Acronyms......................................

CHAPTER ONE

1.Introduction.......................................

1.1Back ground of the study..... .....................

1.2 Statement of the problem.........................

1.3 Research question............................

1.4 Objective of thestudy.......................

1.4.1 General objective............................

1.4.2 Specific objective...............................

1.5 Scope of the study............................................

1.6 Significance of the study..............................

1.7 Limitation of the study.....................................

CHAPTER TWO

2. REVIEW OF LITERETURE..........................................
2.1 Basic concepts and definition......................................

2.1.1 Market and marketing.................................... ........

2.1.2 Marketing system.......................................................

2.2Frame work for evaluetion of marketing system.............................

2.3 Factor influencing price ofcattle......................

2.3.1 Market for livestock........................................

2.4 Aproaches to the study of marketing problem..........................

2.5 Price analysisis..............................

2.5.1 Factors influencing in tra-Annual price variation..........................

CHAPTER THREE

3. METHODOLOGY.......................................

3.1 Discription of the study area.........................

3.1.1Data requarements.......................................

3.1.2 Source of the data..........................................

3.1.3Sampiling techniques.......................................

3.1.4 Methods of data collection...................................

3.2 Method of data analysis...................................... ..

3.2.1 Descriptive analysis..............................................

CHAPTER FOUR

4. DATA PERESENTATION, ANALYSIS AND

INTERPRETATION........................

CHAPTER FIVE

5. CONCULUTION AND RECOMENDATION.............................

5.1 Conculussion.....................................

5.2 Recomendation..................................

Reference...................................................

Appendix...................................................
ACKLNOWLEDGEMENT

Used of all, l would like to expre my heart gratitude to my God who helped me on
my works. Second l would thanks from my heart to my advisor, Mr. Girma balcha
( MBA) for his out standing and constructive advice as well as comments in
completion of this research paper. Thirdly l thank also my parents and relatives
who help me on my education to reach at this higher educational level and my
close friends who assist me financially and through advising me frequently.
ABSTRACT

This study attempted to identify the factors influencingcattle market price in

Sidama zone with particular in dale distirict. The general objective to identify the
determinant factor influencing cattle market price and the specific objective are to
examine cattle market price and identify factors influencing cattle market price . to
acheive these ojectives secondary and primary data were used. Data from primary
source were collected by means of market survey. Two market samples were
purposively selected that was dons cattle price were variably influenced by cattle
attributive , age ,age group , buyer purpose , educational level, effect of health,
effect of a lot size,live weight of cattle,time of scale,seasonal variation,disease and
etc . improving market infrastructure like road electricity and communication
would create favorable condition for cattle market ,market modernization,Protect
the disease caused by tsetse fly and expand delivery services for cattle seasonally.

Reliable market price information all market participant is indispensible, further

research on the factors influencing cattle market price would be necessary
ACRONYMS

AMA American Marketing Association

CSA Central Statistical Agency

FAA Food and Agricultural

GDP Growth Domestic product

DWFDO Dale distirict farm Development office

NGOs Non- Governmental Organizations

SCP Structure Conduct and performance

 CHAPTER ONE

1. INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The Ethiopia ranks the first in African and tenth in the word with respect to
livestock population. Estimates for fiscal tear 2014 it at 82 million cattle
agriculture is backbone of Ethiopian’s economy account for 60% of
gross domestic product (GDP) and livestock subsector contribute 40-
45% and more than 90% of from cash income. the subsector also
accounts 25% to the export earnings (abebe, 2014:342).

Most small holder farmers in the country tend to depend on livestock

as the source of product such as milk, meat, hides, skins and manure
and as the service transport prestige and etc. the primary reason for
selling livestock in the highland is the generation of income to meet
unforeseen expense (jabber and ayele; 2003). Farmers also besides
using livestock as source food, as a form of saving and wealth, sell
animals at the time of cash needs purchase food and other necessities
(tilahun, s., 2004). This implies that livestock markets and price level
is in these market have very important impact on the welfare of
livestock keepers. Price not only impact market access plays an
important role in assuring through various channel by raising income,
market increase purchasing power which creates demand for consumer
goods. The Sidama green land of southern of Ethiopia is one of the
country’s most important livestock area livestock exports form the Sidama
normally contributes to nutritional foreign exchange earring generally, but
particularly form the cattle.
Finally, a focus on price is as price are Central measure of livestock market
performance and efficiency and indicator of producer of incentives and
basis on government revenues from livestock market related service (Jabbar
an ayele ; 2003) understanding price formation allows insight into these and
also provides information critical for forecasting future trends.
However, there has been very limited empirical information on factors
influencing cattle market price of livestock specifically cattle in Sidama
only a few studies have been undertake or the issue after research institution
established in Sidama recently.

The current knowledge on livestock pricing is poor and in adequate every

for designing pricing procedures policies to improve livestock market
system, in order to improving information and can be source of others
researcher.
A researcher initiate there study that were identifying factors influencing
market price of cattle in south west Sidama zone especially Dale district

1.2. STATEMENTS OF THE PROBLEM

Dale farmers are one of the Ethiopian farmers which endowed with high
livestock population.
Despite to its large population livestock particularly there different
marketing problem that challenging marketing development in the zone
especially in dale district. Among these challenging the lack of market
information. Problem of unorganized market system from the side broker
involvement system and seasonal cattle price of Dale district is based on
the seasonal variation of climate. The very limited knowledge on the factor
influencig market price of cattle in the dale district, only a fawer studies
have been tried to explain the factors affecting cattle market price.
However, they did not focused on affecting cattle market price like lack of
market modernization, tsetse fly (causes of disease) which is highly affect
cattle market price and it is hinder for the development of socio-economic
activities .these were carried out in the study area and even cannot fill the
gap it would be a good input (source) for those potential researcher.

1.3RESEARCH QUESTION
 What factor would be affected the price of cattle in the market?
 Who determine price of the cattle in the market?
 How to differentiate the cattle the market?
.
 1.4. OBJECTIVE OF THE STUDY
1.4.1 GENERAL OBJECTIVE

The general objective of the study was to identify the determinant factor
influencing cattle market price in dale district.

1.4.2. SPECIFIC OBJECTIVES

 To examine the market prices of cattle

 To identifies the factor affecting market price of cattle.
 To increase the costumer for the cattle market.

1.5. THE SCOPE OF THE STUDY

There are many livestock sold in market, but this research is restricted only to
cattle market price due to financial constraint , and time constraint are factors that
limited the researcher to conduct the research only cattle market price.

1.6.SIGNIFICANCE OF THE STUDY

It is a crucial to formulate cattle marketing strategy and develop the efficiency and
effectiveness of cattle marketing system. This research can help any person who is
capable of using these from the markets, government non –government and other
bodies who want to improve cattle marketing system. At the end it also as
reference materials for the future who want to do further study on this cattle market
price.

1.7. LIMITATION OF THE STUDY

 It was difficult to record all data concerning cattle attributes and market
characteristics.
 Some of selected interviewer (buyer and seller ) were not voluntarily give
the accurate information.
 Time constraint, this means because of time constraint it is difficult to
gain more information or data about there search.
 Lack of budget.

CHAPTER TWO

2.REVIEW OF LITERATURE

In this part of the study the basic concepts and definition of markets marketing
system, factor influencing market price of cattle, attributes related to animal
condition and factor affecting them, the framework for evaluation of marketing has
been discussed.

2.1. BASIC CONCEPTS AND DEFINITION

 2.1.1 MARKET AND MARKETNG

Market: can be defined as area in which one or more sellers of a given product,
service and their close exchange and patronage of a group of buyers. Originally ,
the word the term markets stood for the plea where a buyers and sellers are
gathered to exchange their goods. Market is a point, a place or sphere within which
price marking forces operates ad which exchange of title tend to accompanied by
the actual movement of good affected. The concept of exchange and relationship
leads to the concept of market.

Conceptually, a market can be visualized as processing which ownership goods are

“transferred form sellers to buyers who my be single consumer.

Marketing: is defines as by (AMA) American marketing association as the

activities, a set of institution and process of creating, communicating, delivering
and exchange offering that value for the customers, clients, partners and societies
at large.

The term developed from the original meaning which literally to going to market to
buy or to sell too (William. Jerome, 2000).

2.1.2. MARKETING SYSTEM

The concept of marketing system includes both physical distribution and

economic inputs, products the mechanism of process or coordinating production
and distribute. in broad terms marketing system may be defined as the totality of
products channels. Marking participant and business activities involved in the
physical and economic transfer of goods and service from produced to consumers.
Marketing operates through a set of intermediaries performing useful commercial
function in chain formation all the way form producers to he final consumers.
Marketing operates through a set of intermediaries performing useful commercial
function in chain formation all the way from producer to the final consumer
( William, 2000).

2.2FRAME WORK FOR EVALUATION OF MARKETING SYSTEM

The development of reliable and stable market system has been important elements
in commercialization and specialization in the agriculture sector. Especially on
livestock market in order to supply the functioning of market many researchers
have applied the structure, conduct and performance (SCP) paradigm. The
framework distinguishes between three related levels (SPC)of the market.
(William,2000).

2.3.FACTOR INFLUENCING PRICE OF CATTLE

Price usually builds up toward a peak down based on the influence of different
factors. Factors influencing the formation of livestock price are classified in to two
major categories; attributes related to market actors and hose related to animal
conditions (Tilaun, soiomon, 2004).

2.3.1.MARKET FOR LIVESTOk. Market for livestock and general goods are
important components of the farmer’s activates. The market serves as an
information center for farmers and most of the information they need to make
management decisions is available there. Information about disease prevailing in
certain area available drugs, pasture, water and etc. is sharing during visiting to the
market.When a visit to a market involves the sale of any farmers productive
animals, dairy products.
When farmers offer an animal’s of shale it may be a management related decision
or because of the need for cash. And small grazing are sold through middle men,
broke who inflate the price of animals, as the get commission on every animal sold
(Abebe,Gebeyyo, 2009).

2.4.APPROACHES TO THE STUDY OF MARKEING PROBLEME

There are three approaches to the study of agricultural marketing problems these
are the functional approaches, the institutional approaches and the commodity
approaches that combine the first two.

Functional approach: in this approaches each function is analyzed in relation to

the importance of its performance in different products and according to the nature
of its performance by different marketing institutions by carefully investigating
each of the function performed in marketing by examining the problem met in the
performing function it is possible to pain an understanding of marketing problems.

Institutional approach: this approach concentrates on the description and analysis

of he different organization engaged in marketing producers, wholesalersd, agent,
retailers, etc .and pay special attention to the opration and per problems of each
type of marketing institution. The institutional analysis is based on the recognition
of the most marketing channels and it considers the analysis of marketing costs of
margin (Solomon,2004)

Commodity approach: the marketing situation of each product chose for study is
examined from stand point as source and condition of supply, producers,
organization and policies, the different middlemen who take part in the distribution
of he product and the characteristics and extent of the market for the product is
analyzed (Cundiff& Still, 1964).
The combination of functional and institutional approach is applied to selected
product or commodity. (Williiam, 2000)

2.5.PRICE ANALYSIS

2.5.1. FACTORS INFLUENCING IN TRA-ANNUAL PRICE VARIATION

The factors influencing farm price into four gropes, the first one is supply
condition that include production decision weather diseases, harvested acreage, etc.

The second one is demand condition that includes income, prices, taxes and
preferences, populations, etc. the marketing system includes value added price and
cost behavior, and procurement strategies.

Finally, government may influence price through price support supply control trade
policies influencing domestic demand. The price of particular species or breeds on
animals, attributes or charactistics as weight, age ,time of scale, condition buyers
purpose and festival periods (Abebe, Gebeyyo,2014.) the above review of
literature on past works of market structure, factors contributing on he variation in
cattle price per kg of live weight and market integration and precise definition of
concepts provided the basis for the development of empirical model and method of
analysis for the present day.(cundiff 1964)

EMPIRICAL REVIEW

Feeder cattle pried are determined by interaction of many factors. This study uses
1986 and 1987 Kansas feeder cattle auction data to investigate he impact of a wide
variety of physical characteristics, many of which have not been used in previous
studies on feeder cattle prices, unlike previous studies, this analysis explicitly
incorporates changes in feeder cattle market fundamentals during the data
collectioneriod and also allows price differentials to vary by sex and weight.
Weight.health ,muscling from size condition, fill, and breed ,presence of horns and
time of sale are significant factors affecting feeder cattle price.

The discovery of feeder cattle price involve te interaction of many factors price
differentials among iota feeder cattle should reflect difference In supply and
demand of the cattle in various weight and grade categories (marsh) moreover,
prices should reflect the demand for and value of product’s characteristics (Ladd
and Martin).

Demonstrated that the value of breeding bulls corresponded to the implicitly values
of the bull’s characteristics. Similarly, the related price premiums and discount
among lots of feeder cattle at a given location should reflect the demand for
specific traits of a lot such as ; weight, number of head, breed, health grade and
condition. Several studies have investigated the price premiums and discounts
attributable to the characteristics of feeder cattle . marsh demonstrated that long –
run equilibrium price differentials between steer calves and yearlings were a
function of the expected cost of a gain and expected feeder cattle prices bucolic
and jessed found that price differentials for feeder steers and heifers were related
back grounding and finishing costs; expected factor feeder cattle price ; price
differentials between slaughter steers and heifers and inventories of steers and
heifers. Buccola (1980). Using break even analysis to investigate the long- run
interactions in rice differentials heifers and steer, concluded that the related
premiums and discounts depended upon trends in corn price, expected slaughter
cattle prices, soil moisture conditions, and rates of cattle inventory changes.

A similar analysis of long –run steer and heifer price differentials as performed by
Schultz and marsh. These findings help plain the long-run equilibrium relative
price of various types of feeder cattle. However, they do not help quantify the shot
–run premiums and discounts apparent in the feeder cattle auction market. Physical
traits of individual’s iota of feeder cattle are expected to influence short run feeder
cattle price differentials. Mengzi, gum ,and cable determine that Arizona feeder
cattle prices were significantly influenced by the weight, sex ,number of head bred
and grade of cattle in the lot, and fat cattle prices. Sullian and linton concluded that
finish weight and sex significantly affected Alabama feeder cattle prices but
muscling, body size western journal of agricultural economics,13 (1); 71-81.

Cattle is a central to some of the major challenges the world faces to by and how
we deal with these challenges will be have for rating implications on the well bang
of future generation. The demand for cattle product is growing rapidly and this
trend is expected to continue in the force able futures given the resource intensity
of modern cattle production system, this growth is putting tremendous pressure on
global natural resources and biological environment. It is intensive parts of he
world. It is also true that animals are curtails in completing nutrient
cycles ,particularity in mixed crop-cattle forming system . cattle have remained in
on integral part of the socio –economic public rural. India since time immemorial,
as a source f livelihood and a provider of drought energy, manure and fuel. There
functions, however, are changing in importance with economic development
(Abuja, Vinod; 2013)

Just a rise in income and urbanization are now fuelling rapid growth in demand for
animal food products and the cattle are coming under pressure to produce more.

India’s cattle respond well to there changes though the small farmers have more
opportunity in demand- driven cattle production, they have a form middle
challenges of in improving scale of production, its efficiency and quality in the
market place (small holed cattle production in india; landless cattle keepers and
agent and their livelihoods and animal agriculture improving through cattle
research there people many of which opportunity for achieving economic growth
and poorest (poverty) alleviation. Today’s will help as to understand how
economies are changing what are the factors driving these changes and how will
there in there influence household decision marking and private sector investments
(carlos,S; 2006).

CHAPTER THREE

3.METHODOLOGY

3.1.DESCRIPTION OF THE STDY AREA

The study was conducted in Sidama zone, Dale district that is far away 315km
from Addis Ababa. Dale is one of the districts in the SNNP region of Ethiopia.
Demographics: based on figures published by the CSA(2014) dale district has an
estimated total population of 53191 of which 26834 male, 26357 female, 4482 or
8.43% of its population are urban dwellers and 48709 or 97.57% are rural dwellers.

Dale has 75157 heads of cattle, heads of goat 17136,heads of sheep 2075, heads of
horse 12105,heads of mule 1933, and heads of donkey 6366.

3.1.2.Data requirements

The study has used a wide variety of information on different variables propose of
selling and bought, age and general body condition of the cattle, live weight of
cattle and time of the sale were all collected using a structure questionnaire.

3.1.3. source of the data

The study was based on both primary and secondary source of data. The primary
source based on the market survey and interviewed while the secondary source
were collected from book, magazine ,internet.

3.1.4.SAMPLING TECHNIQUES

The sample was selected from the total population of 400 customer and employees.
The questionnaires will be distribute for 16 employees and 64 customers. The total
80 sample respondent were considered in the study .for this study, the sample
markets were included and be selected on the basis of location, distance from the
secondary market and the volume of supply.

The researcher used non- probability judgementsampling technique b/c.

The surveyed method for this study was the main cattle market sites. In addition to
this ,the markets large volume of cattle to the domestic as well as cross border
trade. n= N/1+N(e)^2. 400/1+400(0.1)^2
 n=80

3.15. METHODS OF DATA COLLECTION

The researcher use both primary and secondary data. But mainly used primary in
order to fulfill these feuding and data from primary source were collected through
survey method. The market survey was undertaken through visual observation,
physical and measurement by reviewing buyers and sellers at the time of
transaction.

MARKET SURVEY

The market survey was carried out once a week on a major market day. It was
difficult to record data concerning cattle characteristics for all cattle traded
therefore; a simple had to be taken had to be taken. For this study from this study
from each type of cattle sample of 3-5 units were made on livestock weight, age ,
body condition and other factors.

3.2.Method of data analysis

Descriptive methods of data analysis were used to meet the objective of the study.
After all the required and relevant data were collected process and arranged
properly they were collected to descriptive analysis which includes static stools:
such as table, percentage and bar char, in order to achieved the objective of the
study.

3.2.1DESCRIPTIVE ANALYSIS

This method of data analysis refers to the use of figures, percentage, and charts in
the process of examining and desiring marketing functions, market and cattle
characteristics.
 CHAPTER FOUR

4. DATA ANALYSIS AND INTERPRETATION

In this chapter the result and analysis of the study are presented by giving
particular emphasis on factors affect cattle market price. The samples of the study
were taken from the members office of trade and livestock markets development.
Both primary and secondary source of data were used to answer the general as well
as specific objectives of the study.

4.1 DEMOGRAPHIC AND PERSONAL CHARACTERISTICS OF

RESPONDENTS

The following description of characteristic of target population gives some basic

information about the sample population involved in the study such as Age, sex,
And Martital status, Education status, Religion and Occupation of the respondents.

AGE OF RESPONDENTS

Table 4.1 Age of the respondents

No A g e No Of Respondents P e r c e n t a g e

1 1 8 - 2 2 1 0 1 2 . 5 %

2 2 3 - 3 0 1 5 1 8 . 7 5 %

3 3 1 - 3 8 2 5 3 1 . 2 5 %

4 3 9 - 4 6 1 2 1 5 %

5 4 6 - 5 0 1 0 1 2 . 5 %

6 > 5 0 8 1 0 %

7 T o t a l 8 0 1 0 0 %

Source questionnaire, 2017

As indicated on the above table 4.1 more or less the instructions provide loan
service for working age group. Providing cattle market for adult is believed
increase their income because people under work in age group matured and
capable of starting expanding the market which general income for them and
improve affecting cattle market.

4.4 MARITAL STATUS OF RESPONDENTS

TABLE 4.2 MARITAL STUTS OF THE RESPONDENTS

S t a t u s No of respondent P e r c e n t a g e

m a r r i e d 4 5 5 6 . 2 5 %

U n m a r r i e d 3 0 3 7 . 5 %

D i v o r c e d 5 6 . 2 5 %

T o t a l 8 0 1 0 0 %

Source:questionnaire, 2017

The above table 4.2 indicates majority of the member of population are married
which consists 56.25% of a total sample. The remaining 37.5% and 6.25% are
unmarried and divorced respectively. Because the majority of respondents are
married, this may cause factors affecting cattle market price.
 4.3 EDUCATIONAL STATUS OF THE RESPONDEBTS

Table 4.3 educational status of respondents4

No Level of education No of respondents Percentage

1 I I I i t e r a t e 2 5 3 1 . 2 5 %

2 1 - 5 1 3 1 6 . 2 5 %

3 6 - 8 8 1 0 %

4 9 - 1 0 1 2 1 5 %

5 1 1 - 1 2 7 8 . 7 5 %

6 Diploma or Degree 1 5 1 8 . 7 5 %

T o t a l 8 0 1 0 0 %

Source: questionnaire, 2017

table 4.4 indicates that the majority of respondents that means 31.25% and 16.25%
attend only up to grade five. The remaining 10%, 15% 8.75% 18.75% have
attended 6-8, 9-10, 11-12 and diploma or degree respectively. This shows that most
of the clients that customers of the market have illiterate this has a negative impact
on cattle market.
Table 4.4 the occupation of the respondents

N o O c c u p a t i o n No of respondents Percentage farmer

F a r m e r 4 2 5 2 . 5 %

T r a d e r 3 2 4 0 %

B r o k e r 6 7 . 5 %

T o t a l 8 0 1 0 0 %

Source; questionnaire, 2017

As shown from table 4.4 the majority of the respondents were farmers there is also
the member which farming and trade by side according to survey, 52.5% of the
respondents are farmers, 40% and 7.5% are trade and broker i occupation.

4.5 RELIGIONS OF THE RESPONDENTS

Table 4.5 Religion of the Respondents

No R e l i g i o n No of respondents P e r c e n t a g e

1 M u s l i m 2 8 3 5 %

2 Protestant 3 5 4 3 . 7 5 %

3 O r t h o d o x 1 7 2 1 . 2 5 %

4 T o t a l 8 0 1 0 0 %

Source questionnaire, 2017

AS INDICATED ON THE ABOVE TABLE 4.5 MAJORITY OF THE

RESPONDENTS ARE protestantwhich consists 43.75% of total 35% and 21.25%
are Muslim and orthodox respectively. This may cause for affecting cattle market
price especially during autumn seasons because if fast that the doctrine faith.

Table 4.6 factor influence the respondent

F a c t o r Number of respondent P e r c e n t a g e

Lack of the supply 2 5 3 1 . 2 5 %

Lack of conception 2 0 2 5 %

Lack of income 3 4 4 3 . 7 5 %

T o t a l 8 0 1 0 0 %

Source: questionnaire, 2017

Income, this make cause factor affecting cattek the above table indicates majority
of the member of population have lack income in the affect of cattle price which
consist of 43.75% of the total sample. The remaining 31.25% and 25% have of
supply and lack of conception respectively, because the majority of respondents
have lack of price.
4.6 THE MAIN SOURCE OF RESPONDENTS LEVEL OF INCOME

Table 4.7 the respondents level of income

Livestock and livestock product 2 0 2 5 %

C r o p p r o d u c t i o n 2 5 3 1 . 2 5 %

T r a d i n g 1 5 1 8 . 7 5 %

M a x e d f a r m i n g 2 0 2 5 %

T o t a l 8 0 1 0 0 %
Source: questionnaire, 2017

As indicated in the above table 31.25% of the respondent living income is

generated from the crop production the livestock and livestock product is 25% of
the main source of the living income and also 18.75 of the respondents main source
of their living income is depends on the trade activities. So that we can conclude
that crop production is the highest percentage of the respondent living and trading
is the lowest living income of the respondents as compared with the other
economic activities.

4.7 DISTRIBUTION OF SUPPLIERS BY SEASONS OF HIGHER SUPPLY

FOR CATTLE.

Table 4.8 seasons of higher supply for cattle

S e a s o n s R e s p o n d e n t s P e r c e n t a g e

S p r i n g 2 5 3 1 . 2 5 %

A u t u m n 1 0 1 2 . 5 %

S u m m e r 1 5 1 8 . 7 5 %

W i n t e r 3 0 3 7 . 5 %

T o t a l 8 0 1 0 0 %

Source: questionnaire, 2017

As we can from the above table the season affects the market of cattle which
37.5% of the cattle market price is affected in the winter season 31.25% of the
cattle market price is affected in spring season, 18.75% of the cattle market price is
affected in summer season and 12.5% of the cattle market price is affected in
autumn season. As indicated in the table in the atumn season the market price did
not affected so much as compared with the other seasons. But in the winter season
the market price of the cattle is highly affected (deceased) because of the season is
dry, so that there is shortage of grass and water is happen in this season.

In general we can understanding, the market price of cattle varies from season to
season as the result of the problem created above.

4.8 THE ESASON AFFECT CATTLE MARKET PRICE

Table 4.9 the price influencing cattle market price.

S e a s o n Sample number P e r c e n t a g e

D r y s e a s o n 7 2 9 0 %

W e t s e a s o n 8 1 0 %

T o t a l 8 0 1 0 0 %

Source: questionnaire, 2017

as the response of respondents from the sample size 90% of the replied the cattle
price decline during the dry season while the remains 10% said the wet season.
theconclusion from this result is that the cattle market price is influenced by the
season.

LACK OF MARKET INFORMATION

These information questionnaire enable producers to make decision on what type

of animals to be produced, when to supply, how to supply, to whom to sale and
maximize their gain.
For instance, where producers remain unaware of price differential between
markets where unable to exploit opportunities for profitable market arbitrage
would also have increased market efficiency.

Table 4.10 distribution of producers in usage of market information to supply their

cattle to the market place.

Usage of market information dale cattle market place

Frequency P e r c e n t a g e

F u l l i n f o r m a t i o n 2 0 2 5 %

L e s s i n f o r m a t i o n 5 0 6 2 . 5 %

W i t h n o i n f or m a t i o n 1 0 1 2 . 5 %

T o t a l 8 0 1 0 0 %

Source: questionnaire, 2017

The above table shows out of 80 respondent 62.5% of all sample supply cattle to
marlet with less information and 25% of suppliers based on fullinformation and
12.5% is with not information, but the information which they was used in an
organized and it also not sufficient that means doubtful most of the time is not
reliable.

Informal networks usually exists to provide supplier and traders with information
on markets condition price and the creditworthiness of the other parts, conversely
where suppression of the private sectors has been effective the past the marketing
information system tends to under developed.
4.10 SUPPLIER RIGHT TO SCALE

If one supplier sold their cattle to the market in principle they may have two
option to transfer their ownership to the second part is seller. These options are
either to buy cattle by themselves of through brokers.

Table 4.11 distribution of suppler by status of using brokers.

S u p p l i e r s F r e q u e n c y P e r c e n t a g e

Using brokers 5 0 6 2 . 5 %

Using on brokers 3 0 3 7 . 5 %

T o t a l 8 0 1 0 0 %

Source: questionnaire, 2017

The above table that 37.5% the supplier is used to transfer their cattle to the buyers
62.5% that means the highest proportion of the suppliers used brokers sale their
cattle. The classification of cattle which are supplied on the market.

FIGURE 4.1 THE CLASSIFICATION OF CATTLE WHICH ARE SUPPLIED

ON THE MARKET
 Object 1

According to above figure from number of cattle which is supplied on the market
45% is supplied for the purpose of resale, 25% from the supplied cattle for
reproduction 17% which is supplied on the market is for thepurpose salaught and
12.5% of the supplied cattle is consumption purpose depend on the above
information we can conclude that when we copmpare. The supplied cattle on the
market for resale purpose is the highest one and from supplied cattle which are
used for the consumption purpose is the least one.

Table 4.11 questionnaire

P r i c e s

No Types Low price Medium price High price

1 Oxen 6 0 0 0 - 7 0 0 0 7 0 0 0 - 8 0 0 0 10,000-13,000

2 Bulls 2 0 0 0 - 2 5 0 0 3 0 0 0 - 3 5 0 0 3 8 0 0 - 4 0 0 0

3 Cows 4 1 0 0 - 4 5 0 0 6 0 0 0 - 6 5 0 0 6 0 0 0 - 6 5 0 0

4 Heifers 1 0 0 0 - 1 5 0 0 2 0 0 0 - 2 5 0 0 3 0 0 0 - 3 1 0 0

5 Calves 5 0 0 - 6 0 0 6 0 0 - 7 5 0 9 0 0 - 1 2 0 0
Source:- questionnaire, 2017

Woreda (2015), oxen sale by high price is mostly for slaughter in hotel, for
holiday, medium and lower sale or buy to the purpose of plough land and resale
cows which are bought or sold if for the diary and slaughter medium is only for
production lower is to resale and reproduction.

Generally cattle sold at higher price are highly for slaughter, medium and lower
price for resale, production and other plough land and other purpose.

Table 4.12 determine technique of price of cattle

I t e m No of respondents Percentage

Determining the demand 4 0 5 0 %

Evaluating market potential 1 5 1 8 . 7 5 %

Based on income level 2 0 2 5 %

O t h e r 5 6 . 2 5 %

T o t a l 8 0 1 0 0 %

Source: questionnaire, 2017

As indicated in the above table 50% of the respondents determine market price of
cattle depending on customer demand 25% of the respondents determine based on
income level of the society, 18.75% and 6.25% of the respondents determine by
evaluating market potential and based on the other information respectively, the
majority of the respondent determine based on the society demand.
Table 4.13 distribution season of cattle.

S e a s o n No of respondents P e r c e n t a g e

S p r i n g 1 5 1 8 . 7 5 %

S u m m a r y 7 8 . 7 5 %

A u t u m n 1 3 1 6 . 2 5 %

W i n t e r 4 5 5 6 . 2 5 %

T o t a l 8 0 1 0 0 %

Source:-questionnaire2017

as show on the above table the majority of the respondent about 56.25% distributed
in the winter seasonal, 18.75% of the respondents distributed the spring season,
16.25% and 8.75% of the respondents distributed in the autumn and the summary
season respectively.

Table 4.14 of customer expectation

L e ve l of e xp ec t a t i on No of respondents P e r c e n t a g e %

Highly expected 2 8 3 5 %

Level expected 4 3 5 3 . 7 5 %

Low expected 9 1 1 . 2 5 %

T o t a l 8 0 1 0 0 %

SOURCE; questionnaire, 2017

According to the table indicated above 53.75% of the respondent are expected
medium, 35% of the respondent expected highly toward cattle production and the
other 11.25% of the respondent are expected low because the majority of the
respondent from the sample size expected medium in the production of the cattle.

Table 4.15 employee’s attraction in the cattle market

Method of attracted Number of respondent P e r c e n t a g e

By providing information 3 1 3 8 . 7 5 %

By producing access cattle 1 8 2 2 . 5 %

By encouraging farmers 2 0 2 5 %

O t h e r m e t h o d 1 1 1 3 . 7 5 %

T o t a l 8 0 1 0 0 %

Source: questionnaire, 2017

As we can see from the table above 38.75% of the respondents attract the
employees in the cattle market by providing information,25% of the respondents
are attract by encouraging farmers, 22.5% and 13.75% of the respondents attract
employees by producing access cattle and other method the majority of the
respondents are attract employees in the cattle market.

4.2.7 RESEARCH HYPOTESIS

AGE GROUP:- this is refers to age group of cattle, it can be categorized as

mature, immature and young and it is expected to be affecting the price. When that
the age group of cattle become mature and young are prefer by consumer rather
than immature, because of it not fully developed.
As age group of cattle increase and become old. This condition was affect on the
cattle market price and also many suppliers has not get excess mature and young
cattle around their nearest market due to this factor the supplier obligate to bring
away from another place by transportation cost and this situation effect on
increasing cattle market price.

WEIGHT; - this is live weight of cattle ; it is continuous variables and anticipated

to be affecting the cattle price. The weight of the cattle depends on seasonal
variation ,types of cattle supply for the market.

The increase of the price the cattle is depends on the weight of either for
consumption or production purpose.

Time of scales: - This is refers to the time of sales which continues variables and
expected to affect the price. Infarm season the price of the cattle rise and also the
time of holiday a fatten cattle more expensive and less in time of fast and in winter
season. Additionally, in dale districts the available of market is less in amount per
week it only one day in a week on Thursday, this affect the price of cattle in both
buyer and seller side.

Effect of lot size:- let size have a significant impact umpire with buyers preferring
situation. Effects of lot size and lot uniformity lot size also had significant impact
on price with buyers preferring large uniform lots of cattle. The maximum of
premium for light weight ofcattle, while the minimum of premium is low. These
lot sizes reflect common truck leads.

Effect of health:- this health would be the most profound influence on price. The
health of horns condition and fill of the characteristics examined health and had the
most profound influence on price of cattle that were not in good health and
physical impairments humpy received large disease testes fly (cause of disease)
which highly affects health of cattle, reduce cattle market price and lack of market
modernization.

RESULTS

Bread muscling and frame size are important feeder cattle characteristics
influenced through genetic section pricing results for genetically influenced factors
are different from their body condition. Cattle buyers paid greatest premium for the
great cattle. The greater discounts were applied to dayir and long horn influenced
calves.

The large discounts for dairy and loan horn are based on their attractive colors. The
price changes amonge remaining bread categories were relatively small. Feeder
cattle buyers likely prefer heavily muscled cattle as they are excpected to improve
desirable condition. Increased concern about growth patterns and finish weights
apparently contributed to large discounts for cattle feeding and meat processing
specification.

Feeder cattle prices explicitly account can be attributed to different expectation

about anticipated feeding performance and interest. The effect of the other
management factors and feeder cattle prices are buyers discounted that appeared to
be non-healthy. Her horns or that were in too thin or too fat condition. It is evident
that buyers prefers health cattle as unhealthy cattle increase the possibility of death
loss and poor feeding performance. Moderately condition cattle were preferred as
they show the ability to convert feed to gain.

Discounted for horned cattle are likely attributed to increased injury in

confinement and increased handlings costs. Marketing factors that affected pricing
were weights uniformly. Los sis gut sale location, and time of sale, weight
uniformity significantky impacted feeds cattle prices as no- uniform lots of cattle
were discounted.

Although non- uniform lots received discounts, the relationship between weights.
Uniformity and lot size needs to be considered. price paid for cattle were at their
highest for los size approaching truck- load size. as lot sizes succeeded truck- load
siz prices leveled off and even decreased likely because buyers bidding on these
very large lot size feeder cattle buyers to purchase large lot size as the increace of
health problem decrease with in mixed cattle or cattel convenience of large
purchases and less transportation costs.

CHAPTER FIVE

5.CONCLUSION AND RECOMMENDATION

5.1.CONCLUSION

 The age of the cattle and live weight of the cattle are the important
factors influencing cattle market price.
 The market cattle and price in cattle markets has positive relation that
indicates buyers paid significantly higher price for the cattle with
mature age group.
 Thus, these should be a proper market information system that updates
producers with there requirements ,so that they would try to tune their
marketing activates accordingly.
 A significances influence of the season is another issue needing due
attention, cattle price are depressed during dry season as compared to
wet seasons.
 This is because farmer cannot feed the cattle during dry season due to
lank of forage conservation system in there areas, thus the extension
system should teach the farmers to conserve the available resource to
use them in dry season. Analysis was conducted in this paper to identify
factors influencing formation of market prices of cattle.
 Furthermore, market characteristics like, the type of sellers, buyers’
purpose, festivals, time of transaction in a market day and a time trend
are also fond to have signification effects on cattle prices
 To protect the disease caused by tsetse fly government and society
deliver vaccination services for cattle seasonally.
 These pieces of information are useful in designing appropriate cattle
pricing as well as cattle marketing procedures and provision of services
like reliable marketing information to avoid unfair cattle pricing
practices.
 These measures could enhance the efficiency of cattle pricing system
and consequently improve the livelihoods of cattle keepers and
handlers.
 Feeders’ cattle prices are affected by the interaction of many factors
physical characteristics of the feeder cattle are important components.
 Furthermore, the price impacts of several physical traits were
dependents on the seasonal.
 During the fall, buyers bid up the prices of heavier and bulkier animals
and bid down the prices of lighter and thinner cattle. In the occasion of
spring the opposite trend prevails.
 Lack of income is the factor that influencing cattle price.
 Based on technique of price cattle
  The majority of the respondents distributed cattle in the winter season
 Based level of customer expectation 53.75% of the respondents has
medium expectation.
 Providing information is the major factor to attract employees in the
market.

5.2. RECOMMENDATIONS

Government has a great role to improve factor influencing cattle market price.

 The government should give the formal and informal education for
the society, in order to sole the problem of cattle market price.
 To solve the problem of market channels, the government has to
expand infrastructure services such as road, electricity,
communication, and other services.
 Marketing information is critical in marketing actives. Most of the
producers and traders could not able to earn revenues equivalent to
their expectation due to lack of pertinent market information.
Therefore, pertinent market information flow needs o be established
or which all the stockholders, producer, traders, GOs and NGOs
should work in systematically established network system.
 Improving cattle market at national level and seeking for alternate
international market for exports.
 In the surveyed cattle market places there is lack of modern market
infrastructure give well protected (fenced) market, watering, feeding
the through to the animals, health service for cattle, shade and toile
to all the market participants. Etc
 The major cattle market must make research on employees and
improve current performance.

 Therefore, necessary maintenance, construction of new market places

and relocation should be undertaken. The government should
improve veterinary service throughout the woreda.
 REFERENCE

• Abebe gebeyo:2014;The farmer who lives in dale district

• American marketing association

•Buccolo.Steven T."Price trended at live stock

auctions."Amer.J.Agr.Econ.64(1982):63-69)

• carlos, s; 2006: Influencing house holde decision making and private sector
investment

• cunduff &Still ,1964; Fundamental of modern marketing

• Jabbar and Ayele : 2003; Determinants of livestock price in Ethiopia pastoral

livestock markets

• Livestock marketing information center.future Prices data based from chikago

Mercantile exchange. summer 2011

• National Agricultural Statistics Service :USDA 2007 census of Agriculture 2008.

• Tilahun Solomon ;2004;Manager of Dale Woreda Farm Development office .

• Western journal of agricultural economics , 13 (1) ; 71-81

• William Jarome ;2000 : Basic marketing a global managerial approach, 19

edition
 Appendix

Appendix I

Hawassa University

College of business and economics

Department of marketing management

This questionnaire is required for the purpose of gathering relevant information on the factors that influencing
cattle market price in dale district. All information will be used for academic purpose only. Therefore I kindly
request your genuine response for each of the following question with best regard.

Instruction

I. Don’t write your name

II. Circle or tick the answer for your choose for close ended question.
III. Fill in the space provided for open ended questions.
IV. Leave the questions which are not relevant.

Part I demographic and personal information address dale districts.

1. AGE
A. 18-22 B. 22-30c.30-31 D.39-46

2. Sex male  Female 

3. Marital status A. Married B. Unmarried  C divorced 

4. Educational background A. illiterate B. 1-5 C. 6-8 D. 9-10 E.11- 12 F. diploma G. degree

5. Occupation A. Farmer B. Trader C. broker

6. Religion A. Muslim B. Protestant C. Orthodox 

Part II information about market attributes

1. When is the factor that can as seat cattle practice?

A. Lack of supply
B. Lack of consumption
C. Lack of income
2. What is the main source of your income?
 A. Livestock and livestock product
B. Crop production
C. trading
3. In which season you distribute high supply seer cattle?
A. spring C. winter
B. autumn D. Summery
4. Which factor can asset cattle market price based on season?
A. Dry season B. wet season
5. Did you have full market information about market or price?
A. Full information B. less information C. no information
6. Based on the question number 3 what is the asset of asset of supplies fight to scale with using inform
diaries?
A. Using brokers B. using no brokers
7. What is the purpose of cattle supply on the market?
A. Resale B. slaughtering C. reproduction D. Consumption E. for other purpose

F. If only specify____________________________

8. How to determine market price of cattle?

A. determine the demand

B. evaluating market potential 

C. based on income levels

D. On others

9. What is the level of customer expectation of found cattle product?

A. highly expected
B. medium expected
C. law expected

10. How to attract by employees within the cattle market?

A. by providing information
B. by providing access cattle
C. by encouraging farmers
 D. by other methods

11. How much price can you incur when to buy different cattle?

A. low price
B. medium price
C. high price

THANK YOU