sheep value chain development in doyogena district of snnpr, ethiopia: results of a rapid value...
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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 2013TRANSCRIPT
Sheep value chain development in Doyogena District of SNNPR, Ethiopia:
Results of a rapid value chain assessment
Ashanafi MokonenMulti-stakeholder Workshop for Targeting Action Research on Small
Ruminant Value Chains in EthiopiaAddis Ababa, 14th-15th March 2013
Gen Intro …..Description of the study area…
4
Gen Intro …..
1.2. Study subjects
6Figure: FGD
2. Results 2.1. Map of the core functions
7
Processing
Marketing
Production
Feed
supply Veterinary
services Breeding
stock supply
Credit
Local consumption
Transporting
Slaughtering
Buying Selling Transportin
g
Feeds &
feeding Breeding Housing
Input supply
Consumption
Core
func
tions
Activ
ities
Acto
rs
Feed retailers
Producers Traders Veterinaria
ns Credit
institutions Transporte
Producers Extension
workers Traders
Traders Producers Transporte
rs Individuals
Traders Slaughters Transporte
rs Hotels
owners
Hotels Individua
l Producer
s Transpor
ters
Results …..2.2. Description of core functions1) 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 HAB8
Results …..
2) Production: there are three activitiesa) 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 productionE.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:
From June to September - in Bekafa kebele From October to January - Serara kebele
9
Results …..Figure 5. Average rainfall and feed availability for
both target kebeles
Jan
Feb
Mar
chApr
ilMay
June Ju
lyAug Se
pOct
Nov Dec0
20
40
60
80
100
0
1
2
3
4
5
Enset root Grass StrawBrowsing Bran & Cake GrazingCultivated forage HH feed residue VegetablesRainfall (score 0-5)
Fe
ed
ava
ila
bil
ity (
%)
Ra
infa
ll s
co
re (
0-5
)
10
Results …b) Sheep breeding Purpose : Insurance to secure cattle sell, cash income , for
slaughtering , as source of manureNo 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 cleaned
daily Less awareness on how shelter type affects productivity11
Results …3) Marketing
January
Febru
ary
March
April May
June
July
August
Septem
ber
October
November
December
0%2%4%6%8%
10%12%14%16%18%20%
0% 0%
15%
19%
13%
8%6%
13%
6%8%
4%
8%7% 7% 7%
17%
4%
17%
10%
13%
3% 3%4%
10%
Demand Supply
Months of the year
Prop
ortio
n (%
) So
ld in
eac
h m
onth
January
Febru
aryMarc
hApril
MayJune
July
August
Septem
ber
October
November
December
0
400
800
1200
1600
2000
Yearlings (male)Yearlings (female)Old ewesFattened sheepKids
Months of the year where different class of animals sold
Price
per
hea
d of
diff
fern
t cla
ss o
f ani
mal
(ETB
)
12Fig: Average prices of different classes of animals in different months of the
year as estimated by traders
Fig: Seasonality of demand and supply for sheep expressed as proportions sold in each moth
Results …Preferable months of selling sheep by farmers by farmers' proportion
13
Proportion (%) of buyers to whom farmers sell their animal in Sarara Kebele (A) and Bakafa Kebele (B)
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 demand (religious and holidays)
14
Results …
15
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 fattening purposes
16
Results …
6) Marketing routes
17
Dunna
Bakafa
Sarara
Hamacho Marie
Adilo
Keleto
Shashamane Angacha
Doyogena
Hadero
Durame
Shinshicho
Halaba
Fandida
Kosha
30%
10%
10%
40%
10%
80% 10%
15%
25%
10% 25%
15%
15%
15%
20%
20% 30%
20%
Addis Ababa Hosanna
Results …7) Marketing channel
18Fig: Sheep value chain mapping of the study area
80%
20% 10%
10%
20%
100%
80%
15%
5%
Export abattoirs
45%
Land tenure (access to land)
Security Rules and regulations Enabling
environments
Local Hotels & Butchers
Butchers & Hotels in Big cities
Individual consumers
Farmers (Breeding &fattening)
Foreign consumers
(export market)
Collectors
Small traders
Big traders (Adilo market)
Addis Ababa traders (retailers)
Small holder farmers
15 %
Marketing
Production
Input supply
Processing
Consumption
Veterinary
services
Extension services
Forage seeds & planting materials
Credit services
Feed Wheat bran Wheat midlings Oilseed cakes
Breeding stock Dorper rams Bonga rams
Individual consumers in Addis
and big towns
25%
%
15%
15% 100%
100%
5%
Weather condition
80%
10%
25%
Results …Channel 1: Sheep purchased by Hotels and individual
consumers
Channel 2: Sheep Purchased by sheep retailers/individual consumers
Channel 3: Sheep purchased by sheep fatteners and big traders (Adilo area)
Channel 4: Sheep purchased by farmers for breeding purpose
Channel 5: Sheep purchased by export abbattoirs19
Marketing cost and their proportions (%) of total cost for different market participants
20
Cost categoryProducers Collectors Small Traders Big Traders
Butcheries/Hotels
Individual consumer
Export abattoirs
Costs% TC
Costs
% TCCosts
% TCCosts
% TCCosts
% TCCosts
% TCCosts
% TC
Feed cost175.00
97.22 4.00 49% 10.00 38% 11.20 6% 2.00 11% 10 7.41
Vet cost 5.00 2.78 2.00 24% 5.00 19% 0%
Barn cost 2.00 1%
labor cost 0% 5 3.70
Search cost 0.20 2% 0.20 1% 0.40 1% 0.20 0%
Spices 82.00 45%
Processing cost 0% 0% 20.00 11% 10.00 53% 80 59.26
Transportation 2.00 24% 3.00 11%35.0
0 69% 2.00 1% 5.00 26% 40 29.63Total Tax Payment 5.00 19% 5.00 10% 5.00 3% 0% Loading and unloading 3.00 11%
10.00 20% 0% 0%
Other costs (Rope) 2.00 1% 2.00 11%
Totla cost/head180.
00100.
00 8.20 1.00 26.20 1.0050.4
0 1.00 124.40 0.68 19.00 1.00 135 100.00
Results …8) MarginsA) Marketing channel to local hotels/resturarants Items Producers Collector Small Trader Hotels/
ButcheriesSelling price 800 975 1063 1234Total marketing cost 8.2 26.2 62.4Marketing margin 175 88 171Net margin 166.8 61.8 108.6Total cost 180 808.2 1001.2 1125.4Value addition 620 166.8 61.8 108.6Share of value added (%)
65 17 6 11
Producers' share of final price
82.05 75.26 64.83
21
Results …
22
Margins….B) Marketing channel to Individual consumer at AddisItems Producers Collector Small
Trader Big traders Addis Abeba
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 price
75 67 60.78 56.14
Results …Margins….
C) Marketing channel to local Individual consumersItems Producers 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 price
73.91 58.62 53.13
23
Results …
24
Margins….D) Marketing cannel to export abattoirsItems Producers Collector Small
TraderBig
tradersExport abattoirs
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
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 Transportation problem25
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 improvement26
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
Constraints and opportunities Recommendations Introducing improved feed/forage technologiesProvision of training to farmers, DAs and
experts Strengthening community based sheep
improvement programsFormation 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 service
28