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Report
Sheep and feed value chain analysis in
the central highlands of Ethiopia
By: Beneberu T., Lemma H.Y., Shenkute G., Aschalew T., and Solomon G.
Debre Birhan Agricultural Research Center, Debre Birhan, Ethiopia
ILRI, Addis Ababa, 28-29 May 2012
1
Introduction
Sheep are owned by smallholder farmers as an integral part of the
livestock sub-sector and contribute to both subsistence and cash
income generation
It is common to see a stack of crop residues around villages as the
farmer is aware of the monetary and feed value of crop residues.
Generally, it seems that there is a limited information on sheep and
feed value chain and how the markets are functioning.
2
Objectives
To analyze sheep and feed value chain and assess the
determinants of sheep and feed market supply in the study area
To identify major constraints and opportunities for sheep and feed
value chain in the study area
To test tools prepared for analysis of sheep and feed value chain
and provide feedback for further improvement
3
Methodology
Study area: Angolela Tera districts 107 km away from Addis.
For PRA study 2 Kebeles and within each kebele 12 representative
producers were selected with the help of district agrl’ office experts
Age, sex, wealth and educational level were considered
Feed and sheep traders of the districts were interviewed representing
secondary/intermediate markets.
Export abattoir were also interviewed representing terminal market.
Data was analyzed using descriptive and cost margin analysis .
4
Results and summary of VCA
Core functions in sheep and feed value chain, activities and actors
5
Sheep market routes at North Shewa connected to Addis Ababa
Producers
Primary Mkt
Secondary Mkt
Tertiary Mkt
6
Sheep VC actors and major channels
Identified
channels for
sheep marketing
CH 1- Sheep purchased for
breeding/ fattening purpose by
farmers
CH 2- Sheep purchased by
hotels and individual
consumers in the study areas
CH 3- Sheep transported to
Addis Ababa butchers ,
supermarkets and consumer
markets
CH 4- Sheep slaughtered at
Modjo export abattoirs (Luna)
7
Feed VC actors and major channels
Identified channels for feed
marketing
CH 1. Crop residue purchased
for nearby town dairy
production
CH 2. Concentrate purchased
by traders and cooperatives for
distribution to farmers
(rearing/fattening/dairy)
8
Costs and margins of actors in a market channel selling
sheep to export abattoirs, butchers and supermarkets
Export abattoirs
Producers selling price (Birr/head)
to d/t actors
Butchers
Super markets
620.00
900.00
650.00
1077.00
1500.00
1350.00
87.00
60.50
95.60
Marketing margin (Birr/head)
227.00
150.00
480.00
Net margin (Birr/head)
140.00
89.50
384.40
57.57
60.00
48.15
Selling price (Birr/head)
Marketing cost (Birr/head)
Producer's share of final price (%)
9
Costs and margins of actors in a market channel
selling crop residue and concentrate to users
Selling price (Birr/sack)
Marketing cost
(Birr/sack)
Marketing M.(Birr/sack)
Crop residues
Small
Producers
traders
35
55
Net margin (Birr/sack)
Producer's share of final
price (%)
-
Concentrate
Traders
20
Selling price (Birr/Qt)
Purchase from Addis
(Birr/Qt)
Gross margin
12
Marketing cost (Birr/Qt)
18
Net margin(Birr/Qt)
27
8
34.29
325
280
45
Concentrate include wheat bran and/or nug cake
10
Constraints and opportunities for sheep and feed Value chain
Constraints
Problem in input supply
– Improved rams, feed seed, drug supply
shortage hamper
– Credit - high interest, group collateral
Production constraints
– Feed shortage and free grazing
– Inadequate livestock health services
– Lack of improved breed and forage seed
Transportation constraints
– High cost of transportation
Market constraints
– Lack of reliable source of mkt information
– Lack of market place and infrastructure
– Seasonality in SS and DD for sheep and feed
Institutional and organizational constraints
• Double taxation
– There is double taxation –at d/t checkpoints
• Lack of sheep and feed trader cooperatives
• In adequate training (Skills and knowledge)
Opportunity
An increasingly high demand for sheep
meat and animal feed in local markets
Government's commitment and support to
increase export of meat
The establishment of Livestock
Development and Health Agency
Individuals engaged in fattening practice
Farmers Awareness increasing
Transport access to the main market
High demand in Export meat
Increase in number of export abattoirs
11
Conclusion
The District is known to be drought prone and the sale rate is highest during crop
failures and before harvest of staple food crops. Hence in these household sheep
are considered as the major farm buffering assets.
Nearly all of the respondents rear sheep for subsistence and to generate income.
Smallholder farmers are the main suppliers of the animal and sale at any time
when immediate income is required.
Information on markets quantitative aspects (supply, demand, prices, producer
and consumer behavior) are not adequately known.
Major sheep feeds obtained from grazing on crop stubble, private pasture, road
side, communal pasture, weeds, tillers and fillers.
Feed availability largely depends on the season of the year when lands are
covered with either Meher or Belg season crops.
Optimum utilization of seasonal available feeds through preservation of crop
residues and grasses and strategic supplementation with low cost alternatives
like development of improved forage is vital to balance seasonal feed supply and
animal requirements.
12
Way for wards
Intervention works needs to correspond to the household flock holdings, best
bred but small flock size.
Household level sheep fattening managements is extensive through extended
period using generous inputs. Research needs to provide information on efficient
and economic utilization of the available resources.
Quantitative aspects of marketing (supply, demand, prices, producer and
consumer behavior) require prompt further investigation to provide complete
marketing information.
The private sector needs to be encouraged in areas of sheep development by
generating and availing appropriate information for investment on the potential
benefits to be gained from the growing domestic and export markets.
Farmers have to be equipped with the skills of innovative knowledge that can
make them improve the management and storages of crop residues and proper
supplementations.
13
Lessons learned
Sheep and feed production constraints in the study area are
identified.
Production intervention should focus in providing improved breeds
and forage seeds/seedling to the area.
Major sheep and feed market channels have been identified by this
study.
Seasonality in supply and demand for sheep and feed are
recognized.
Sheep and feed marketing will remain to local markets where there
are no formal market information and with very little infrastructure.
14
“Thank you”
DBARC team
15

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