Preference and Willingness to Pay for Small Ruminant Market Facilities in the Central Highlands of Ethiopia

Abstract

This study elicits farmers’ preferences and estimates their willingness to pay (WTP) for selected small ruminant market facilities in Ethiopia. Data were generated using choice experiments from 360 randomly selected farmers. Using the generalized multinomial logit (G-MNL) model, we show that temporary holding barn, toilets, veterinary clinic, watering troughs and feed shops are the facilities small ruminant keepers are most interested in central Ethiopia. In relative terms, the farmers are willing to pay a premium of 1.77, 1.74, 1.23, 1.09, 2.0 and 2.27 times higher for holding barns than for watering troughs, feed shops, veterinary clinics, toilets in the markets, fenced market sheds and unfenced market sheds, respectively. This evidence informs the national agenda of transforming the livestock sector and in particular the livestock market and marketing development initiatives of the country.