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Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:Efficiency of Beef Retailing in a Metropolitan Area: The Case of the City of Nairobi
Authors:Mbogo
Odhiambo
Karugia, J.T.
Year:1993
Periodical:Eastern Africa Economic Review
Volume:9
Issue:1
Pages:177-183
Language:English
Geographic term:Kenya
Subjects:market
meat
Economics and Trade
Urbanization and Migration
Abstract:This study examines economic efficiency in beef retailing in Nairobi, Kenya. Economic efficiency is evaluated from both technical and price efficiency criteria. The Cobb-Douglas production function is fitted and used to describe the operations of butchery groups classified as high and low-class butchers on the basis of their selling practices and the level of sales respectively. Primary data were collected from a random sample of 54 butchers drawn from a total of 324 butchers which had been licensed to operate in Nairobi during the 1988 period. The empirical results of the study showed that low-class butchers were less technically efficient than the high-class butchers and that low-volume butchers have a lower technical efficiency than high-volume counterparts. With regard to pricing efficieny all categories of butchers were found to be inefficient. They were not equating marginal value products of resources to their marginal factor costs. The results of this study suggest that economic efficiency in beef retailing in Nairobi could be greatly improved if butchers raised the volume of their sales. Bibliogr., sum.
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