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

1. Sheep value chains in Menz Gera district,
North Shewa Zone, Ethiopia: Results of a
rapid value chain assessment
Beneberu Teferra
Multi-stakeholder Workshop for Targeting Action Research on Small
Ruminant Value Chains in Ethiopia
Addis Ababa, 14th-15th March 2013

2. Methodology
• Study area: Menz Gera Midr district
• 283 km away from Addis.
• Districts Area Km2 = 1,644.32
• Population = 121,676.00
• Altitude range = 2800 – 3100 masl
• Farming system - mixed crop-
livestock production system
• Crop production (District level,2012)
• Major crops grown are barley (52%),
wheat (23%), beans (15%) and
others (10%)
• Livestock population (District level,2012)
Study area -
• Sheep= 200676 Menz Gera Midr
• Goats = 63542 2

3. Methodology cont…
For PRA study 2 Kebeles and within
each kebele 15 (12M+3 F) representative
producers were selected
Age, sex, wealth and educational
level were considered
Sheep traders of the district were
interviewed
Hotels, butchers and supermarkets,
and export abattoir (at Addis) were
also interviewed
3

4. Core functions in sheep value chain,
activities and actors
5- Core functions in sheep value chain.
4

5. Input supply
 Input supply for sheep production includes supply of breeding rams, veterinary
drugs and services, feed and credit.
Breeding rams
 The major breed available in the study area is the local breed - Menz breed and few
awassi cross.
 Generally the source of rams is the producer’s own flock and breeding is through
natural mating.
Animal health service
 the most important diseases affecting sheep are foot rot, fasciola, pasteurellosis
and sheep pox.
 One veterinary clinic for three kebeles and only one veterinarian expertise working
with shortage of drugs and inadequate transportation.
Animal feed
 Sources of animal feed in the area are natural grazing, hay, crop residues and oats
and vetches.
 Some improved forage planting materials such as phalaris grass and tree lucerne
have been supplied by the District Agricultural Office. 5

6. Production
Sheep - the main source of income to meet the household’s
immediate cash needs and they protect other household assets.
Farmers produce sheep primarily for sale and occasional
slaughter at home for household consumption.
The average flock size maintained by households in the study
area is about 20 sheep
Sheep flock size trend- increasing - due to increasing demand
for sheep meat.
6

7. Production cont…
Proportions of sheep utilization
The proportions of sheep
used for household
consumption and for
15%
market are about 15% and 35% Household
50% respectively. consumption
Marketing
50%
The remaining (35%) is the Breeding stock
breeding stock.
7

8. Seasonal distribution of feed resources relative to the rainfall pattern
8

9. Marketing
Price of major type of sheep at different markets (birr)
1600
1600 1450
1400
1200 1100
1000 900
Price in birr
825
800 700 farm gate
district market
600
400
200
0
yearling ewe fattend/ castrated
Sheep type
9

10. Proportion of animals sold by farmers to different
type of market actors
Farmers
Big traders
10%
10%
Individual
consumer Small traders
20% 30%
Hotels/Butchers
10%
Brokers
Collectors
10%
10%
10

11. Marketing cont…
Price variation for different sheep type by different type of actors
1600
1400
1200
1000
Price in birr
800
600
400
200
0
Big traders Small traders Collectors Brokers Hotels/Butchers Individual consumer Farmers
Yearly 1025 1000 950 975 1075 1200 1100
Ewe 1050 1000 900 820 950 950 900
Fattened/ castrated 1600 1500 1200 1250 1525 1500
11

12. Processing and consumption
Butcheries slaughter sheep and
supply for domestic consumption
in the form of raw/ roasted meat.
Hotels and restaurants slaughter
sheep mainly to prepare dishes in
different forms.
sheep are mainly consumed by
domestic consumers either in the
form of processed meat from
hotels/butchers and at home.
12

13. Sheep market routes at North Shewa connected to Addis Ababa
Producers Primary Mkt Secondary Mkt Tertiary Mkt
13

14. Sheep VC actors and major channels
Identified channels
for sheep
marketing
CH 1- Sheep purchased for
breeding/ fattening purpose by
farmers
CH 2- Sheep purchased by hotels
and individual consumers in the
study areas
CH 3- Sheep transported to Addis
Ababa butchers , supermarkets
and consumer markets
CH 4- Sheep slaughtered at
Modjo export abattoirs (Luna)
14

15. Costs and margins of actors in a market channel selling
sheep to export abattoirs, butchers and supermarkets
Export abattoirs Butchers Super markets
Producers selling price (Birr/head)
800 1450 1200
to d/t actors
Selling price (Birr/head) 1360 2280 1795
Marketing cost (Birr/head) 87 61 96
Marketing margin (Birr/head) 335 580 245
Net margin (Birr/head) 248 520 149
Producer's share of final price (%) 59 64 67
15

16. Opportunities for sheep Value chain
An increasingly high demand for sheep meat in local markets
Government's commitment and support to increase export of meat
The establishment of Livestock Development and Health Agency
Individuals engaged in fattening practice
Farmers Awareness increasing
Increase in number of export abattoirs
16

17. Suggested interventions and implementation strategies
Stages of Challenges Suggested interventions Implementers Time
value chain horizon
Input supply Shortage of improved rams, Community based genetic improvement, - Woreda office of medium
agriculture term
- D/B research
center
- ICARDA/ILRI
- Farmers
Shortage of forage seeds timely delivery of seed, - Woreda office of Short term
improving seed production agriculture
- D/B research
center
- Farmers
Shortage of drug supply Provision of sufficient revolving fund for drug - Woreda office of Short term
purchases agriculture
- ICARDA/ILRI
Shortage of Strengthening health posts (manpower, vet - Woreda office of Short term
manpower, equipment and equipment, transportation) agriculture
transportation at vet health - ICARDA/ILRI
posts
Credit - high interest, group Strengthening credit and saving associations in - Woreda office of Short term
collateral terms of finance and management agriculture
- Woreda
Cooperatives
promotion office
- ICARDA/ILRI
Land shortage Renovation of grazing land, feed development, - Woreda office of Medium
17
maintaining optimum and productive sheep flock agriculture term

18. Stages of Challenges Suggested interventions Implementers Time
value horizon
chain
Production Low feed quality Over sowing with improved - Woreda office of Short term
varieties, feed treatment, agriculture
supplementation with high - D/Birhan ARC
nutritious feed, developing - Farmers
improve feed varieties
Diseases Provision of Regular - Woreda office of Short term
(fasciola, pasteurellosis vaccination and treatment, agriculture
and sheep pox.) Strengthen health post, - D/Birhan ARC
Training more CAHWs for - ICARDA/ILRI
remote villages - Farmers
Traditional feeding Training farmers and DAs in - Woreda office of Short term
practices improved feeding methods agriculture
such as Best Cost Ration - D/Birhan ARC
Formulation and feeding - ICARDA/ILRI
Low performance level of Promoting Community based - Woreda office of Medium
local breed Genetic improvement program agriculture term
- D/Birhan ARC
- ICARDA/ILRI
18

19. Stages Challenges Suggested interventions Implementers Time
of value horizon
chain
Marketing Lack of reliable source of market Link with National Livestock Market - Woreda offices of agriculture, Medium term
information Information System and marketing and cooperative
promotion
Devise mechanisms of delivery system - D/Birhan ARC
- ICARDA/ILRI
Poor livestock marketing Construction of well-designed livestock - Amhara Bureau of Agriculture Long term
infrastructure. (Poorly constructed marketing yard with all the necessary - Woreda administration,
marketing yards, lack of facilities facilities - Offices of marketing and
such as vet clinics, watering and cooperative promotion
feeding troughs, loading and
unloading ramps etc.)
High cost of transportation due to Road development Amhara Regional Government Long term
rough road network (road authority)
Unlicensed ( informal) traders and Enforcing the government rules and Woreda office of customs and Short term
brokers negatively influencing the regulation on business registration and revenue
proper marketing environment licensing.
Woreda Office of marketing and
Coaching the market operation and taking cooperative
action on unlicensed actors
Double taxation Create multi stakeholder platforms Federal and regional customs and Short term
involving Federal, regional and local level revenue authorities
There is double taxation –at d/t administrators, customs authorities, traders
checkpoints as traders cross regional and other to discuss on such cross cutting Regional bureaus of agriculture
boundaries to reach terminal markets issues and come up with solutions and livestock agencies
ICARDA/ILRI (facilitation)
In adequate training (Skills and Provision of training on sheep production - Woreda office of Short term
knowledge) on sheep production and and management for producers, DAs and agriculture
marketing Woreda SMSs - D/Birhan ARC
19
- ICARDA/ILRI

20. Stages of Challenges Suggested interventions Implementers Time
value chain horizon
processing Awareness creation on slaughtering, District Office of marketing Short term
Inadequate local market meat quality, and cooperative
Searching for new market,
Consumption Awareness creation, introducing and - Woreda office of Medium term
Low quality animals supplied strengthening community based sheep agriculture
to the market improvement programs. - D/Birhan ARC
- ICARDA/ILRI
Improving the production of sheep - Woreda office of Medium term
through community based sheep agriculture
Inconsistent supply of animals improvement program - D/Birhan ARC
- ICARDA/ILRI
Improve linkage among the sheep
value chain actors,
20

21. Conclusion
Farmers sell their best animals to meet household expenses, to settle social obligations
and to purchase food items during severe drought.
Coping strategies to alleviate the food shortage during severe drought season through
credit etc. need to be devised to ease pressure on the sheep enterprise.
This would provide scope for more retention of good quality animals for breeding
purposes and this could reap long-term dividends in terms of animal performance
Household level sheep fattening management is common and involves an extended
period using generous inputs.
The strong seasonality of demand for sheep represents an opportunity to focus short-term
fattening to produce animals in the appropriate condition to coincide with periods of peak
prices.
In the smallholder systems farmers have to be equipped with new knowledge that can
enable them improve the management and storage of crop residues and proper
supplementation with forage legumes,
21

22. Recommendations
Interventions need to be matched to the household flock holdings and be
aimed at improving breed quality within small household flocks.
Research needs to provide information on efficient and economic
utilization of the available resources to improve the traditional fattening
practice.
There is a need to provide timely and reliable market information to
enhance informed decision making by farmers
Support the private sector actors willing to invest in sheep and feed
production by availing appropriate information including the costs and
benefits production.
Interventions in the improvement of pastures and fodders, over-sowing
pastures with forage legumes, using multi-purpose trees and establishing
22
fodder banks