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The Dynamics of Livestock Trade in Northern Kenya: Trust and Social Relations in Market Networks. Hussein A. Mahmoud Uni

The Dynamics of Livestock Trade in Northern Kenya: Trust and Social Relations in Market Networks. Hussein A. Mahmoud University of Kentucky. Project Description. Examines social relations of livestock trade in northern Kenya Explores how trust operates:

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The Dynamics of Livestock Trade in Northern Kenya: Trust and Social Relations in Market Networks. Hussein A. Mahmoud Uni

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  1. The Dynamics of Livestock Trade in Northern Kenya: Trust and Social Relations in Market Networks.Hussein A. MahmoudUniversity of Kentucky

  2. Project Description • Examines social relations of livestock trade in northern Kenya • Explores how trust operates: • in the context of economic and other uncertainties, • encourages certain kinds of social relationships, • facilitates livestock trade, and • reduces market transaction costs.

  3. The Study Area • Northern Kenya (Moyale), • Southern Ethiopia (including the administrative units of Moyale, Mega, Yabello, Nagelle, Arero, and Hagere-Mariam, • Nairobi (Njiru market)

  4. Preliminary findings • Trust relationships (northern Kenya and southern Ethiopia): • Socioeconomic status (wealth) • big Ethiopian traders give credit to Kenyan traders • Age • Ethnicity

  5. Age of cattle traders, Moyale, Nairobi, 2001

  6. Preliminary findings (cont’d) • Keep a written account of trading activities • Yes 44% • No 56% • Own a bank account • Yes 19% • No 81%

  7. Ethnic composition of cattle traders, Northern Kenya, 2001 (N=70)

  8. Ethnic trading relationships (N. Kenya/S. Ethiopia) • Boran and Burji in southern Ethiopia • good relationship • Boran and Burji in northern Kenya • strained relationship • Ethiopian Boran and Kenyan Burji • excellent business relationship • *NOTE: trading relationships affected by larger conflicts in study region

  9. Trading Networks:

  10. Trading Networks (cont’d)

  11. Scale of categories of cattle traders in Southern Ethiopia

  12. The Cycle of Cattle Trade • The Thursday - Wednesday Cycle • Dubluq Market - Friday • Mega Market - Saturday • Moyale Market - Daily (Wednesday, major)

  13. Main Actors in cattle trade • Herders (Ethiopians and Kenyans) • Small traders (Ethiopians and Kenyans) • Medium traders (Ethiopians and Kenyans) • Big traders (Ethiopians and Kenyans) • Transporters to Nairobi (Kenyans) • Brokers in Moyale (Ethiopians and Kenyans)

  14. Main Actors in cattle trade (cont’d) • Brokers in Nairobi (from northern Kenya) • Wholesalers in Nairobi (multi-ethnic) • Transporters in Nairobi (multi-ethnic) • Butchers in Nairobi (multi-ethnic)

  15. Cattle quality and credit • No relationship • Further investigation required • Credit is determined by volume of animals

  16. Constraints in cattle trade (N. Kenya/S. Ethiopia) • Security • Political differences • Banditry on Moyale - Isiolo highway • Trucking costs • unstable and highly unpredictable • determined by number of livestock in Ethiopian markets

  17. Trucking costs:

  18. Constraints in cattle trade (N. Kenya/S. Ethiopia) (cont’d) • Buying arrangements in Nairobi

  19. Positives • An increasing trade • Cattle movement, Moyale-Nairobi, 1996-2000

  20. Positives (cont’d) • Trader Associations (at least three in Moyale, one in Marsabit, and one in Nairobi) • National organization for livestock traders • Improved dialogue on border trade relations between Ethiopia and Kenya

  21. Positives (cont’d) • Experienced cattle traders: • Ave. # of years involved in livestock trade = 8 years • Minimum 1 year, Maximum 26 years

  22. Further research needed • Cattle quality and credit facility • Insecurity and cattle trade • Women cattle traders • Butchers and wholesalers in Nairobi • Cattle credit in Nairobi, why? • Problems involved • Buying relationships with herders and herder benefits

  23. Further research needed (cont’d) • The role of trader associations • Trust enforcing institutions • local • legal

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