Value chain analysis of sheep in Horro  district of Oromia Region, EthiopiaG. Duguma, K. Degefa, T. Jembere, W. Temesgen, ...
Objectives To identify major constraints and  opportunities that influence development  of sheep value chain To suggest ...
Major findings – map of core functionsInput supply   Production     Marketing      Processing           Consumptions Suppl...
Major findings – market routes                                                                           Fincha’a sugar   ...
Major findings – market channels and volume ofanimals flowing through the different channels
Major findings – major channels• Six major sheep marketing channels identified:   – Channel 1: Sheep slaughtered at hotels...
Major findings – market margins            Marketing   Marketing   Net margin   Producer’s      Proportion            cost...
Major findings – constraints Input supply     Shortage of veterinary drugs     Shortage of skilled technicians (6)     Lac...
Major findings – opportunities–   Population size and the ecological niche /geographical    locations the breed inhabited–...
Conclusion•    Both domestic and export markets prefer young and fattened animals•    However, due to the following factor...
Recommendation• Strengthening and scaling up of the CBSBP – to ensure  continuous supply of quality animals• Use of fatten...
Future plan• Interventions based on recommendations  resulting from the study   – e.g. well conditioned/fattened animals a...
Acknowledgment• USAID for the financial support through the  Africa RISING Program• BARC – for financing the project in te...
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Value chain analysis of sheep in Horro district of Oromia Region, Ethiopia

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Presented by G. Duguma 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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Value chain analysis of sheep in Horro district of Oromia Region, Ethiopia

  1. 1. Value chain analysis of sheep in Horro district of Oromia Region, EthiopiaG. Duguma, K. Degefa, T. Jembere, W. Temesgen, A. Haile and G. Legese Multi-stakeholder Workshop for Targeting Action Research on Small Ruminant Value Chains in Ethiopia Addis Ababa, 14th-15th March 2013
  2. 2. Objectives To identify major constraints and opportunities that influence development of sheep value chain To suggest key intervention areas for intervention To document important elements and modalities of market strategies to develop sheep value chain
  3. 3. Major findings – map of core functionsInput supply Production Marketing Processing Consumptions Supply of: Feeding Collection Slaughtering Consumption Breeding Herding Transporting Frying / cooking stock Housing Feeding Meat retailing Veterinary Breeding Selling Chilling services Treating Packing Farmers, Hotels, butch DLHA, B Collectors, Smallholder eries, Consumers ARC, ICR Traders Framers E. abattoirs Foreign DA, ILRI E. abattoirs Domestic Traders
  4. 4. Major findings – market routes Fincha’a sugar Bahirdar factory Export abattoirs 20 % Fincha’a town Dongoro Saqala 10 %High way to Bahirdar 30 % 20 % 10 % Addis H. Shoxi 10 % Ababa 10 % Shambu Anger Gaba 25 % Gute 15 % Sanbata Baqale 15 % 10 % 10 % Harato Jare 50 % Sheboka 80 % Sire Bako Nekmete
  5. 5. Major findings – market channels and volume ofanimals flowing through the different channels
  6. 6. Major findings – major channels• Six major sheep marketing channels identified: – Channel 1: Sheep slaughtered at hotels – Channel 2: Sheep slaughtered at butcheries – Channel 3: Sheep purchased by individual consumers – Channel 4: Sheep purchased to Addis Ababa markets – Channel 5: Sheep purchased by other farmers for breeding purposes – Channel 6: Sheep slaughtered at export abattoirs
  7. 7. Major findings – market margins Marketing Marketing Net margin Producer’s Proportion cost margin share of of value final price % added (%)Channel 1 292.2 531.75 239.55 55.0 27.8Channel 2 190.95 223.0 32.05 70.0 4.9Channel 4 16.45 250.0 233.55 60.0 21.2Channel 6 87.5 256.9 169.4 57.0 25.2Different animals are required by the different market actors: • Channel 1 & 2 mature barren ewes and some times castrates • Channel 4 mostly castrates • Channel 6 young with good body condition
  8. 8. Major findings – constraints Input supply Shortage of veterinary drugs Shortage of skilled technicians (6) Lack of transportation facilitiesProduction constraints Feed shortage (seasonality of feeds) (1) Poor/traditional housing High incidence of liver fluke and lice infestation (2) Knowledge /skill on market oriented sheep production and management (4)Market constraints Transportation problems – road problem Limited access to market information and low bargaining power (3) Animal theft and gaps in the law to penalize the criminals Shortage of consistent supply of quality sheep and multiple taxation (5) Lack of vertical linkage (8) Weak horizontal linkages (7) Seasonality of demand for sheep
  9. 9. Major findings – opportunities– Population size and the ecological niche /geographical locations the breed inhabited– Market access and conduciveness of the areas for sheep, other livestock species and various crops– Production & reproduction performances of the breed under good managemnt– respond well to supplementary feeds (150-200g/h/d)– An increasing demand for live sheep and sheep meat– CBSBP and the possibility of scaling up CBSBP to wider areas– Gov’ts commitment and support to increase export of meat– The involvement of international institutions (ICARDA, ILRI, BOKU, etc)– The presence of higher learning institutions in the areas– Skilled and enthusiastic research staff
  10. 10. Conclusion• Both domestic and export markets prefer young and fattened animals• However, due to the following factors producers are not benefited from the huge sheep population – The existing production system is not market oriented – poor quality animals, supply is inconsistent – Shortage of feeds particularly during dry seasons – Animal health problems (liver fluke, lice infestation, etc.) – Lack of flexible credit system – Seasonality of demand for sheep Source: Duguma et al. (2012, unpublished)
  11. 11. Recommendation• Strengthening and scaling up of the CBSBP – to ensure continuous supply of quality animals• Use of fattening technologies• Provision of training to producers and extension workers on market oriented sheep production and management Strengthening of breeding and marketing coops Training community-health workers• Strengthening horizontal linkage among farmers to improve their exchange of breeding stock and their market supply• Conservation and wise utilization of crop residues• Assigning skilled manpower Provision of transportation facilities
  12. 12. Future plan• Interventions based on recommendations resulting from the study – e.g. well conditioned/fattened animals are needed both for domestic and export – Seasonality of feed and market• Strengthening, scale up & scale out the CBSBP• Strengthening of the breeding and marketing coops
  13. 13. Acknowledgment• USAID for the financial support through the Africa RISING Program• BARC – for financing the project in terms of staff time• ILRI (Dr. Alan Duncan) for the support and collaboration• To the smallholder farmers, hotel owners, butcheries, traders, export abattoirs and others for their cooperation in providing necessary information

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