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Abstract
This paper describes the structure of the small-ruminant trade in southwest Nigeria, analyses
the factors determining the price of animals, and examines the relationship of prices between
markets. Animals imported from the north dominate the sheep and goat trades, and supply and
prices are highly seasonal. However, multiple regression shows animal prices to be largely predictable
in terms of the characteristics of the animal (breed, sex and live-weight) and the market
in which it is sold (location and month of sale). Prices are relatively closely correlated between
markets over time, and price relationships between markets reflect the respective structures of
the trade in northern and southern animals. Price margins between markets reflect the level of
traders' commission and storage costs in addition to the direct costs of transport. The study concludes
that there is no evidence for market inefficiency or segregation, and that there is considerable
market potential for increased local production of sheep and goats. In policy terms, the
market's efficiency implies that government involvement beyond its present, limited facilitative
role would not be justified.