Value chain analysis of sheep in Horro district of Oromia Region, Ethiopia G. 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, 14 th -15 th March 2013
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Value chain analysis of sheep in Horro district of Oromia Region, Ethiopia
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
G. Duguma, K. Degefa, T. Jembere, W. Temesgen, A. Haile and G. LegeseMulti-stakeholder Workshop for Targeting Action Research on Small
Ruminant Value Chains in Ethiopia
Addis Ababa, 14th-15th March 2013
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
Major findings – map of core functions
Input supply Production Marketing Processing Consumptions
Supply of:
Breeding
stock
Veterinary
services
Feeding
Herding
Housing
Breeding
Collection
Transporting
Feeding
Selling
Slaughtering
Frying / cooking
Meat retailing
Chilling
Treating
Packing
Consumption
Hotels, butch
eries,
E. abattoirs
DLHA, B
ARC, ICR
DA, ILRI
Traders
Smallholder
Framers
Farmers,
Collectors,
Traders
E. abattoirs
Consumers
Foreign
Domestic
10 %
H. Shoxi
15 %
10 %10 %
20 %
15 %
10 %
80 %
10 %
50 %
25 %
20 %
10 %
30 %
Sheboka
Major findings – market routes
Gaba
Sanbata
Saqala
Bahirdar
Fincha’a sugar
factory
Shambu
Harato
Baqale
Dongoro
Jare
Bako
Addis
Ababa
Nekmete
Anger
Gute
Sire
Export
abattoirs
Fincha’a
town
Hig
h w
ay to
B
ah
ird
ar
Major findings – market channels and volume of
animals flowing through the different channels
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
Major findings – market margins
Marketing
cost
Marketing
margin
Net margin Producer’s
share of
final price %
Proportion
of value
added (%)
Channel 1 292.2 531.75 239.55 55.0 27.8
Channel 2 190.95 223.0 32.05 70.0 4.9
Channel 4 16.45 250.0 233.55 60.0 21.2
Channel 6 87.5 256.9 169.4 57.0 25.2
Different 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
Major findings – constraints
Input supply
Shortage of veterinary drugs
Shortage of skilled technicians (6)
Lack of transportation facilities
Production 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
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
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)
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