Implicit prices of indigenous cattle traits in central Ethiopia: Application of revealed and stated preference approaches

The diversity of animal genetic resources has a quasi-public good nature that makes market prices inadequate indicator of its economic worth. Applying the characteristics theory of value, this research estimated the relative economic worth of the attributes of cattle genetic resources in central Ethiopia. Transaction level data were collected over four seasons in a year and choice experiment survey was done in five markets to generate data on both revealed and stated preferences of cattle buyers. Heteroscedasticity efficient estimation and
random parameters logit were employed to analyse the data. The results essentially show that attributes related to the subsistence functions of cattle are more valued than attributes that directly influence marketable products of the animals. The findings imply the strong need to invest on improvement of attributes of cattle in the study area that enhance the subsistence functions of cattle that their owners accord higher priority to support their livelihoods than they do to tradable products.