Description

Abstract: Livestock trading is important for pastoral economies in the Greater Horn of Africa. To understand how one might improve livestock markets it is necessary to understand the structure and function of marketing chains. One way to do this is to study traders and trader networks. Preliminary work is described here with regards to quantifying some social and economic features of cattle traders who work the long marketing chain between the southern Ethiopian rangelands and terminal markets in Nairobi. Wealthier traders are key players because wealth promotes their ability to mitigate substantial risks of volatile prices, insecurity, poor information, and a weak infrastructure. Likewise, older traders may be more successful because of their experience and higher degree of capital accumulation to buffer themselves against marketing risks. There is evidence of ethnic clusters in cattle markets. Burji, Boran, and Gabra appear to numerically dominate this market chain. Traders in General have a high fluency in several languages, and this may help them to bridge potential barriers related to ethnicity in cattle marketing networks. A majority (81%) use informal networks to secure capital. Only a minority use the formal banking system.