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
Six Myths about Ontologies: The Basics of Formal Ontology
Sheep value chain development in Doyogena District of SNNPR, Ethiopia: Results of a rapid value chain assessment
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
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
Transporte
7
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 HAB
8
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
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 is
11 cleaned daily
Less awareness on how shelter type affects productivity
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. 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). High
14 demand (religious and holidays)
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 and
16
fattening purposes
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
price
21
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
price
22
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
price
23
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 66.49
24
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 tax
25 Transportation problem
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 improvement
26
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. 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 credit
28
service