Factors Affecting Structure, Conduct and Performance of Livestock Markets in Butana Area, Sudan

Abstract

Structure, Conduct and Performance (SCP) is used as an analytical framework, to make relations amongst market structure, market conduct and market performance. The objective of this study was to analyze the factors, which affect SCP of livestock markets in the Butana area, Sudan in 2011. A total sample of 222 livestock traders were surveyed using structured questionnaire in seven primary and secondary markets distributed in Butana area. Both descriptive statistics and econometric methods were used to analyze data collected from traders using SPSS19 and STATA10 software. The logit regression model was employed to estimate the variables affecting the SCP of livestock markets in the area under study. Poor infrastructure of livestock markets, prices of livestock and high transaction cost had negative and significant effect (P<0.0) on structure, conduct and performance (SCP) of primary markets. As expected, lack of access to credit had negative effects (P<0.05) on SCP. Policies are required to improve livestock markets facilities, to encourage a higher price for the sale of animals at a younger age and to provide credit services to livestock traders in order to develop the sector and improve the livelihoods of pastoralists in the Butana area.