Jordan Journal of Agricultural Sciences, Volume 2, No.1, 2006 - 65 - Sheep Price Patterns and Factors Affecting Price Variations in the Highland Markets of North Shewa, Ethiopia T. Beneberu * and Amer S. Jabarin ** ABSTRACT Research on sheep marketing situations and constraints in Ethiopia in general, and north central highlands in particular, remained very limited. This study examined sheep price patterns and factors underlying price variations. It also tried to find out major constraints in sheep marketing system in selected districts of North Shewa Zone (NSZ). Based on their importance of sheep marketing sites, four markets from NSZ were selected. The markets were surveyed on the main weekly market day for a period of two years. Data were recorded on price, weight (kg), sex, age, color, body condition and buyers' expected use of the animal for all transactions. A total of 7976 observations were recorded. Primary data were collected by interviews from 619 sellers and 618 buyers from all selected markets to get insight about market constraints and situations using pre tested structured questionnaires. Econometric model and descriptive analytical methods were used for the analysis based on liveweight price. The results showed that there was a considerable week-to-week variation throughout the year in liveweight prices in the study markets. Animal characteristics that affect liveweight price were weight, sex, age, body condition and color. The sheep market prices varied with respect to these characteristics. This suggests that weekly liveweight average prices vary partly due to varying in sheep characteristics in the markets. The major marketing constraints identified in the study areas were transportation, financial and information services. These constraints were found to make price disparities and instabilities. It is recommended that the government can take measures to help farmers by constructing market infrastructures. These measures include: (i) improving transport infrastructure; (ii) promotion of regional trade (iii) establishing market information systems and (iv) improving communication infrastructure. KEYWORDS: Price variations, sheep marketing, animal characteristics, market constraints. 1. INTRODUCTION Livestock plays a significant role in the national economy of Ethiopia. It is a major activity in the country and contributes about 30 - 40% of agricultural GDP and more than 85% of farm cash income. It also contributes about 13-16% of total GDP. Between 1987/88 and 1995/96, the share of livestock in total exports averaged 16% (Winrock, 1992; Befekadu and Berhanu, 2000). Farmers consider livestock a more reliable form of wealth than the other alternatives and sheep are a readily convertible source of cash at the time of need as well as an important source of meat. On the average, three heads of sheep are slaughtered per family per year and about 40% of farmer’s cash income from animal trade in the central highlands is accounted for by sales of sheep (Gryseels, 1988). * Sheno Agricultural Research Center, P. O. BOX 112, Debre Birhan, Ethiopia. **Associate Professor of Agricultural Economics (Corresponding Author), Department of Agricultural Economics and Agribusiness, University of Jordan, P. O. BOX 13021, 11942, Amman, Jordan. Received on 8/3/2005 and Accepted for Publication on 15/1/2006.