The study identified buyers’ preference for goat characteristics in four markets in Pangasinan, an important trading center for goats in Luzon, and analyzed if these characteristics as well as buyers’ traits are important price determinants of goat. Knowledge of these information is important to goat raisers and animal scientists as basis of their production plans and programs in order to respond to the needs of the local market and the industry.
The study involved 42 goat traders composed mostly of assemblers-wholesalers (48%) and wholesaler-retailers (29%) interviewed using structured schedule during market transactions from January 29 to February 9 in Urdaneta, Villasis, Calasiao, and Malasique. Implicit price, Pi, of goat given characteristics, Xi, such as breed (upgrade=1), sex (male=1), age (months), size (kg), meatiness (thickness of meat in forequarters in cm) was computed using a double logarithmic model:
[ aP1X1b1 aP2X2b2 … X6b6] e
Ln ePg = Ln [e ] Where: Pg = price of goat, in pesos per head, bi = regression coefficients and e = error term. The Ordinary Least Squares (OLS) was used to estimate the function.
Meatiness, size, breed, sex and age (in descending order) were the dominant characteristics of goats preferred by traders. Meatiness as indicated by well-muscled body, had the largest positive influence on price because it connotes higher dressing and carcass yield. Buyers have the highest willingness to pay for these characteristics of Php331. Traders preferred medium animals (12-15 kg) because they were easier to sell at prevailing market price of Php1, 200 than large animals at Php1, 600 per head. The price premium attached for a change in size was Php301. Preference for upgraded comes only third, after meatiness and size, thus a lower premium of Php249. But, size and meatiness were manifestations of good breeds. Therefore, continued efforts to improve breeds in order to produce good quality goats are imperative to cater to the needs of the market. In addition, added benefit in terms of higher value of sales or cost savings due to shorter rearing period could be achieved through upgrading. Male goats has premium of Php260. Young goats were preferred because the meat is tender and required less time in cooking, thus a premium of Php197. Meanwhile, buyers’ traits were found insignificant determinants of goat prices.
