Full Length Research Paper
Abstract
The study examined the factors that can influence the supply of cattle to the market in Namibia, with a specific focus on four communal areas of the Omaheke Region. A total of 100 cattle farmers were interviewed and the weighted least square (WLS) model was applied to analyse the data. The study found that the number of cattle owned, cost of production inputs, accessibility to market information, accessibility to local markets and rainfall have a strong influence on the sales volume. The study strongly recommends the formation of cattle marketing groups that can be employed to lower transaction cost, increase bargaining power, access to information and participation in formal markets. There is a need to improve access to institutions and to remove current distortions in the livestock marketing in Namibia. The study shows that there is an inverse relationship between source and information and volume of sales. When the barrier to source of information increases, the volume of sales decreases. The current policy advice should focus on the effects of policy distortions and adequate attention should be given to the serious, embedded institutional deficiencies that limit many communal farmers from taking advantage of market opportunities.
Key words: Supply factors, cattle marketing, weighted least square.
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