Sheep value chain development in Doyogena District of SNNPR, Ethiopia:Results of a rapid value chain assessment           ...
Gen Intro …..    Description of the study area…4
Gen Intro …..    1.2. Study subjects         Figure: FGD6
2. Results    2.1. Map of the core functions       Core functions                        Input supply                     ...
Results …..    2.2. Description of core functions    1) Input supply     a)   Feed supply: main source-farmer, also use in...
Results …..     2) Production: there are three activities    a) Feeds and Feeding wet season (tethering and cut and       ...
Results …..     Figure 5. Average rainfall and feed availability for both       target kebeles                            ...
Results …     b) Sheep breeding      Purpose : Insurance to secure cattle sell, cash income , for         slaughtering , ...
‹#›
Results …     Preferable months of selling sheep by farmers by farmers     proportion         Proportion (%) of buyers to ...
Results …      Common sheep marketing sites      Price determination        Farmers (demand is high) and trader (Supply...
Results …15
Results …     4) Processing      Slaughtering is the only processing activity done in the area.      Processing (slaught...
Results …     6) Marketing routes                                                Hosanna                                  ...
Results …     7) Marketing channel                                                   Land tenure                          ...
Results …     Channel 1: Sheep purchased by Hotels and individual          consumers     Channel 2: Sheep Purchased by she...
Marketing cost and their proportions (%) of total cost for different market participants                                  ...
Results …     8) Margins     A) Marketing channel to local     hotels/resturarants      Items                       Produc...
Results …       Margins….        B) Marketing channel to Individual consumer at        Addis     Items         Producers C...
Results …     Margins….     C) Marketing channel to local Individual     consumers Producers      Items              Colle...
Results …     Margins….     D) Marketing cannel to export abattoirs                       Items               Producers   ...
Constraints and opportunities     Constraints     1)   Input supply           Feed problems (land shortage, high feed pri...
Constraints and opportunities     4) Week relationship among actors in the VC     5) Credit and working capital problem   ...
Conclusion and recommendation     Conclusions      The livelihood of farmers in the study area mainly depends on crop    ...
Constraints and opportunities     Recommendations      Introducing improved feed/forage technologies      Provision of t...
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Sheep value chain development in Doyogena District of SNNPR, Ethiopia: Results of a rapid value chain assessment

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Presented by A. Mokonen at the Multi-stakeholder Workshop for Targeting Action Research on Small Ruminant Value Chains in Ethiopia, Addis Ababa, 14th-15th March 2013

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Sheep value chain development in Doyogena District of SNNPR, Ethiopia: Results of a rapid value chain assessment

  1. 1. Sheep value chain development in Doyogena District of SNNPR, Ethiopia:Results of a rapid value chain assessment Ashanafi Mokonen Multi-stakeholder Workshop for Targeting Action Research on Small Ruminant Value Chains in Ethiopia Addis Ababa, 14th-15th March 2013
  2. 2. Gen Intro ….. Description of the study area…4
  3. 3. Gen Intro ….. 1.2. Study subjects Figure: FGD6
  4. 4. 2. Results 2.1. Map of the core functions Core functions Input supply Production Marketing Consumption Processing Transporti Local Buying ng consump Feed Feeds & Selling Slaughterin tion supply feeding Transportin g Veterinary Breeding Activities services Housing g Breeding stock supply Credit Feed Traders Hotels retailers Producers Traders Individua Slaughters Producers Extension Producers l Transporte Traders workers Transporte Producer Actors rs Veterinaria Traders rs s Hotels ns Individuals Transpor owners Credit ters institutions Transporte7
  5. 5. Results ….. 2.2. Description of core functions 1) Input supply a) Feed supply: main source-farmer, also use industrial by products (market). One factory and 9 feed retailers, wheat bran oil seed cake b) Veterinary service: supplied by both public and private, public trusted, illegal drug retailers. One vet technician serves 3-4 kebeles. Common diseases (ovine pasteurellosis, Pneumonia, black leg, foot and mouth disease, mastitis, anthrax, tenasaginata and fasciolosis). Licenced by Zonal Agricultural Dep’t c) Breeding stock: source of breeding stock is farmer/market, limited improved breed, but recently some intervention (Bonga Breed) d) Credit services: No special credit service for L/stock. There is Omo micro-financea and there was HAB8
  6. 6. Results ….. 2) Production: there are three activities a) Feeds and Feeding wet season (tethering and cut and carry), dry season (free grazing and browsing) on grazing lands and crop after math. • Feeding type depends on purpose of production  E.g. Sheep for fattening purpose fed tethered in the barn (separated from other flock). More feed with better quality is given for fattening sheep than other flock.  Wheat bran is offered for fattening sheep whereas ‘’Hamicho’’ is given for both twin nursing ewe and fattening sheep.  Major feed types: natural grazing, fresh cut, browses, Amicho (Enset corm), tinny potato tubers and leaves ,Household feed scraps and residues , wheat bran, oil seed cake, oat forage and local brewery by products.  Better feed availability:9  From June to September - in Bekafa kebele  From October to January - Serara kebele
  7. 7. Results ….. Figure 5. Average rainfall and feed availability for both target kebeles 100 5 Feed availability (%) Rainfall score (0-5) 80 4 60 3 40 2 20 1 0 0 Enset root Grass Straw Browsing Bran & Cake Grazing Cultivated forage HH feed residue Vegetables Rainfall (score 0-5)10
  8. 8. Results … b) Sheep breeding  Purpose : Insurance to secure cattle sell, cash income , for slaughtering , as source of manure  No introduced breeds, Adilo breed: adaptive, horny, long (thin) tailed, twin birth, fast growth and attractive coat color.  No controlled mating practice  Selection practice: Rams with longer height and larger size; ewes based on their good mothering ability and twining, breeding age (1-2 years).  Lack of improved breeding ram and inbreeding problem c) Housing  No separate house (with in larger dwelling house).  Type of house: wall -wood and plastered , roof -grass and some corrugated iron sheet  Lambs and fattening sheep stay in separate barn. Barn is11 cleaned daily  Less awareness on how shelter type affects productivity
  9. 9. ‹#›
  10. 10. Results … Preferable months of selling sheep by farmers by farmers proportion Proportion (%) of buyers to whom farmers sell their animal in Sarara Kebele (A) and Bakafa Kebele (B)13
  11. 11. Results …  Common sheep marketing sites  Price determination  Farmers (demand is high) and trader (Supply high)  Taxes: per animal tax is paid once (ETB 5)  Demand and Supply trend for Sheep is increasing  Seasonality of supply and demand: High supply (fertilizer, improved seeds, clothing and stationery for school children, household consumable items). High14 demand (religious and holidays)
  12. 12. Results …15
  13. 13. Results … 4) Processing  Slaughtering is the only processing activity done in the area.  Processing (slaughtering) in the area is mainly done in municipal slaughtering houses.  The carcass which is processed at municipal slaughtering houses directly goes to hotels and restaurants 5) Consumption  In the study area, sheep are consumed by different types of consumers.  The sheep are mainly consumed by domestic consumers either in the form of finished meat at hotels/butchers or buy live sheep and slaughter at home.  Farmers are also the other consumers that buy sheep for rearing and16 fattening purposes
  14. 14. Results … 6) Marketing routes Hosanna Addis Ababa Shashamane 30% Angacha Dunna Halaba 10% 20% Hamacho Marie Kosha 10% 15% Bakafa Adilo 15% 20% 30% 40% 25% Doyogena 20% Shinshicho 25% 10% Fandida 15% 80% 15% 10% Durame Keleto 10% Sarara Hadero17
  15. 15. Results … 7) Marketing channel Land tenure Rules and Security Weather Enabling (access to land) regulations condition environments Individual Farmers Individual Foreign Consumption consumers (Breeding &fattening) consumers in Addis consumers and big towns (export market) 80% 100% 100% 15% 5% % 100% Export abattoirs Processing Local Hotels & Butchers Butchers & Hotels in Big cities 10% 15% Addis Ababa 20% 10% 10% 20% traders (retailers) 25% 15% 80% Marketing Collectors Small traders Big traders (Adilo 80% 45% market) 5% 25% 15 % Production Small holder farmers Feed Input supply Veterinary Breeding stock Credit Forage seeds Extension Wheat bran Dorper rams & planting Wheat midlings services services services Bonga rams materials Oilseed cakes18 Fig: Sheep value chain mapping of the study area
  16. 16. Results … Channel 1: Sheep purchased by Hotels and individual consumers Channel 2: Sheep Purchased by sheep retailers/individual consumers Channel 3: Sheep purchased by sheep fatteners and big traders (Adilo area) Channel 4: Sheep purchased by farmers for breeding purpose19 Channel 5: Sheep purchased by export abbattoirs
  17. 17. Marketing cost and their proportions (%) of total cost for different market participants Butcheries/Hote Individual Producers Collectors Small Traders Big Traders Export abattoirs ls consumer Cost category % Cost Cos % TC % TC % TC % TC % TC % TC Costs TC s Costs ts Costs Costs Costs 175.0 Feed cost 0 97.22 4.00 49% 10.00 38% 11.20 6% 2.00 11% 10 7.41 Vet cost 5.00 2.78 2.00 24% 5.00 19% 0% Barn cost 2.00 1% labor cost 0% 5 3.70 Search cost 0.20 2% 0.20 1% 0.40 1% 0.20 0% Spices 82.00 45% Processing cost 0% 0% 20.00 11% 10.00 53% 80 59.26 35.0 Transportation 2.00 24% 3.00 11% 0 69% 2.00 1% 5.00 26% 40 29.63 Total Tax Payment 5.00 19% 5.00 10% 5.00 3% 0% Loading and 10.0 unloading 3.00 11% 0 20% 0% 0% Other costs (Rope) 2.00 1% 2.00 11% 180.0 100.0 50.4 Totla cost/head 0 0 8.20 1.00 26.20 1.00 0 1.00 124.40 0.68 19.00 1.00 135 100.0020
  18. 18. Results … 8) Margins A) Marketing channel to local hotels/resturarants Items Producers Collector Small Trader Hotels/Butcherie s Selling price 800 975 1063 1234 Total marketing cost 8.2 26.2 62.4 Marketing margin 175 88 171 Net margin 166.8 61.8 108.6 Total cost 180 808.2 1001.2 1125.4 Value addition 620 166.8 61.8 108.6 Share of value added (%) 65 17 6 11 Producers share of final 82.05 75.26 64.83 price21
  19. 19. Results … Margins…. B) Marketing channel to Individual consumer at Addis Items Producers Collector Small Big traders Addis Abeba Trader Selling price 750 1000 1116 1234.00 1336.00 Total marketing cost 8.2 26.2 50.4 Marketing margin 250 116 118.00 102.00 Net margin 241.8 89.8 67.60 102.00 Total cost 180 758.2 1026.2 260.00 1234.00 Value addition 570 241.8 89.8 974.00 102.00 Share of value added 29 12 5 49.25 5.16 (%) Producers share of final 75 67 60.78 56.14 price22
  20. 20. Results … Margins…. C) Marketing channel to local Individual consumers Producers Items Collector Small Trader Individual Consumer Selling price 850 1150 1450 1600 Total marketing cost 8.2 26.2 19 Marketing margin 300 300 150 Net margin 291.8 273.8 131 Total cost 180 858.2 1176.2 1469 Value addition 670 291.8 273.8 131 Share of value added (%) 49 21 20 10 Producers share of final 73.91 58.62 53.13 price23
  21. 21. Results … Margins…. D) Marketing cannel to export abattoirs Items Producers Collector Small Big Export abattoirs Trader traders Selling price 750 800 875 960.00 1128.00 Total marketing cost 8.2 26.2 50.4 135.00 Marketing margine 50 75 85.00 168.00 Net margine 41.8 48.8 34.60 33.00 Total cost 180 758.2 826.2 925.40 1095.00 Value addition 570 41.8 48.8 34.60 33.00 Share of value added (%) 79 6 7 4.98 4.75 producers share of final price 93.75 86 78.13 66.4924
  22. 22. Constraints and opportunities Constraints 1) Input supply  Feed problems (land shortage, high feed price, lack of improved forage)  Breeding problems (inbreeding pbm, shortage of breeding ram) 2) Production  Lack of training on improved sheep production (feeding, breeding, housing)  Credit problem (no special credit arrangement for l/stock)  Land shortage for feed production (conversion of grazing land to cropping) 3) Marketing  Shortage of working capital  Multiple tax25  Transportation problem
  23. 23. Constraints and opportunities 4) Week relationship among actors in the VC 5) Credit and working capital problem 6) Lack of technical skill/awareness (SMS, DAs) 7) Problems related to rules and regulations (multiple taxation) 8) Nature related constraints (Drought) Opportunities  Increased farmers interest to rear small ruminants  Large sheep population  Existence of many rural sheep markets in the surrounding area  Increasing trend in sheep demand  Establishment of private flour factories and feed suppliers  Increased intervention by government and non-government organization in sheep improvement26
  24. 24. Conclusion and recommendation Conclusions  The livelihood of farmers in the study area mainly depends on crop and livestock production.  Livestock contribution to the household income reaches above 30%.  Adilo breed: adaptive, horny, long (thin) tailed, twin birth, fast growth and attractive coat color. However, the management of sheep production is poor in terms of feeding, inbreeding problem, lack of rams for breeding purposes, limited access to veterinary services .  A number of constraints were identified that undermines the productivity of sheep (feeding pbm, breeding, lack of knowledge,…)  Support from different institutions (extension, credit, etc) is limited.  The largest producers share of final price is obtained from Channel 5: Sheep purchased by export abattoirs for export (66.49%).27
  25. 25. Constraints and opportunities Recommendations  Introducing improved feed/forage technologies  Provision of training to farmers, DAs and experts  Strengthening community based sheep improvement programs  Formation of farmers’ cooperatives and strengthening existing saving and credit associations  Supporting agricultural offices and marketing and cooperative office (Extension service)  Support the linkage among value chain actors  Strengthening micro-finance institutions and credit28 service

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