Discussion Paper No. 182 of 2015 on the Effects of Climate Variability on Livestock Revenues in Kenya

Abstract

This study examines the effects of climate variability on livestock in Kenya. It uses the Ricardian cross-sectional approach to measure the relationship between climate variability and revenue from livestock. Livestock revenue is regressed against various climatic, livestock diseases shocks, and socio-economic and response variables to help determine the factors that influence variability in livestock revenues. This study is based on data from ASDSP household baseline survey of 10,341 livestock farming households interviewed across the country. The empirical results show that climatic variables (temperature and precipitation) have significant effects on livestock revenues in Kenya. The livestock revenues are affected negatively by increases in temperature and rainfall. An important policy message from the empirical findings is that there is need to come up with measures to address climate-related risks such as livestock diseases and pasture in order to cushion livestock farmers against extreme climatic events and contribute to increased livestock production and productivity.