Approaches to value chain analysis for
sheep and goat value chains development
in Ethiopia
Getachew Legese
(ICARDA consultant)
ICARDA-ILRI Training on Tools for Rapid Assessment of
Sheep and Goat Value Chains in Ethiopia
Addis Ababa, 5-8 November 2012

Outline of presentation
• Selection of sites
• PRA tools to be used
• Number of people to interviewed
• The checklists and their expected outputs

Sites selected for SR VC development and the
VCA
• The CRP 3.7 intervention sites have already been identified
(7 sites) through a series of stakeholders consultative
meetings
• Two Kebeles/villages per district were also identified as
specific intervention sites
• The VCA will be carried out in these locations

PRA Tools to be used
• Review of relevant literature: reports, documents,
databases, and websites relevant for the study
• The aim is to familiarize the team with the industry, its market
and the business environment in which it operates, as well as
to identify sources for additional information.
• Secondary data will be collected from CSA, CRA, woreda
and zonal offices, and other relevant sources
– price and marketing data,
– number of different market actors in the specific rural
markets,
– credit provided,
– technology supply and distribution,
– storage and transport facilities,
– information on processing, packaging and grading will be
collected.

PRA Tools to be used
• In depth Key Informant Interview (KII): This is one the
widely used PRA tools in order to get information from
knowledgeable people in the area.
• At the beginning of the exercise, it is very important to
have discussions with district offices of agriculture,
cooperative promotion, trade and marketing.
• This helps to get an overview of shoats production and
marketing, the nature of input/services delivery, gaps
in the policy/rules and regulation etc.
• KII will be made with 5 input/service providers, 10
traders and 5 transporters per district
• KII will also be made with 4 butchers, hotels, and meat
supermarkets (where available) and 2 export abattoirs.

PRA Tools to be used
• Focused group discussions (FGD): a useful way to explore
concepts, generate ideas, determine differences in opinion
between stakeholder groups and triangulate with other data
collection methods
• FGD can better capture the social interaction and
spontaneous thought processes that inform decision
making, which is often lost in structured interviews.
• At least two FGDs of farmers/pastoralists (10-15 people) per
district (one in each village) will be conducted.

PRA Tools to be used
• Visits: marketing and processing facilities and transactions in
market places will be visited in all the sites.
• At least one livestock market per district, Processing facilities
such as feed processors and export abattoirs will be visited.

Checklists for data collection
• Different checklists are prepared to collect data for the VCA.
– Experts
– Feed suppliers
– Veterinary services
– Credit providers
– Livestock transporters
– Livestock Traders
– Processors
– Producers

Expected outputs from Checklist prepared for
experts
• This helps in guiding discussions with experts in different offices
and come up with:
– An overview of shoat production and marketing in the area
– The major actors in the shoat value chain, their characteristics
and relationships
– The nature of price setting
– Gaps in the rules and regulations affecting shoat production
and marketing
– Supports given by different offices to develop shoat VC
– Major constraints and opportunities in shoat production and
marketing
– Suggested strategies to overcome these constraints and make
use of opportunities
– Interventions made so far and their outcomes.

Expected outputs from Checklist prepared for
traders
• Their major suppliers of shoats and proportion of flow from
each
• Where transaction takes place
• Seasonality in supply and demand
• Quality parameters by different buyers
• Relation ships between traders and producers, traders and
their buyers and among traders
• Types of their buyers by proportion of volume of flow
• Characteristics of buyers

Cont’d
• The marketing routes and estimated volume of flow
• The nature of price setting
• Trends in demand and supply of animals
• Major marketing costs
• Sources of market information, mechanism of
transmission, reliability
• Rules and regulations impeding development of
shoats value chain
• Major constraints and opportunities in shoat
production and marketing

Expected outputs from Checklist prepared for
processors
• Major suppliers of live animal by proportion of
volume of supply
• Major buyers and proportion of volume of
product flow
• Characteristics of their suppliers and buyers
• Effect of seasons on supply of animals and
demand for meat
• Quality parameters to be considered when
buying for supply to different markets
• Number of animals needed annually
• Whether there is supply shortage and strategies
to resolve it

Cont’d
• Relationship between processors and suppliers,
processors and their buyers
• Incentive mechanisms to attract more number of
animals
• Costs of marketing (procurement, processing and
distribution)
• Gaps in processing capacity (human, machinery, other
facilities)
• Nature of price setting
• Constraints in supply of animal, processing and
marketing of products and possible solutions

Expected outputs from Checklist prepared for Feed
suppliers
• Types of feed available in the market
• Whether there are feeds prepared and sold for shoats
• Sources of different feeds and the impact of seasons
• Feed price trends, their causes and solutions
• Forage seeds availability, sources, quality,
marketability
• Availability of credit for feed traders
• Rules and regulations limiting the development of
feed production and marketing
• Technical support services available to feed suppliers
• Major constraints in feed marketing & solutions

Expected outputs from Checklist prepared for Vet
service providers
• Major livestock diseases and parasites in the area
• Number of vet clinics and drug shops in the area
• Capacity gaps of these clinics and drug shops and
strategies to fill them
• Sources of drugs and if there is difficulty in getting
access to these sources
• If there are rules and regulations governing the
licensing of private vet clinics and drug shops,
monitoring their activities and taking corrective
measures like that of human health system.

Cont’d
• The impact of informal vet drug retail business
on the welfare of animals and formal system
in area
• Sources of vet drugs for the informal system
• Major constraints restraining the development
of animal health services and suggested
intervention measures

Expected outputs from Checklist prepared for
credit providers
• This is intended to guide discussions that will generate
the following information
– The major credit service providers
– The capacity of the credit providers.
– Whether there are credit services for shoat production
and marketing
– The terms and conditions of credit services
– How the terms and conditions of credit services are
communicated to beneficiaries
– Whether farmers/pastoralists understand these
conditions and make use of the credit services
– Major constraints in the credit service delivery system and
possible solutions

Expected outputs from Checklist prepared for
transporters
• How animals are transported to markets of
different level
• the considerations for animal welfare during
transportation
• Perception of transporters about the feasibility of
dedicated livestock transportation trucks
• Any awareness creation trainings given about
animal handling during transportation
• Whether rules and regulations have been enforced
on livestock transportation

Cont’d
• The mortality rates during transportation
• Rate of weight loss during transportation
• Major opportunities and constraints in
livestock transportation

http://livestockfish.cgiar.org