Sheep value chains in Menz Gera district, North Shewa Zone, Ethiopia: Results of a

rapid value chain assessment

Beneberu TeferraMulti-stakeholder Workshop for Targeting Action Research on Small

Ruminant Value Chains in EthiopiaAddis Ababa, 14th-15th March 2013

Methodology• Study area: Menz Gera Midr district• 283 km away from Addis.

• Districts Area Km2 = 1,644.32• Population = 121,676.00• Altitude range = 2800 – 3100 masl

• Farming system - mixed crop-livestock production system

• Crop production (District level,2012)

• Major crops grown are barley (52%),

wheat (23%), beans (15%) and

others (10%)

• Livestock population (District level,2012)

• Sheep= 200676• Goats = 63542

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Study area -Menz Gera Midr

Methodology cont…For PRA study 2 Kebeles and within each kebele 15 (12M+3 F) representative producers were selected

Age, sex, wealth and educational level were considered

Sheep traders of the district were interviewed

Hotels, butchers and supermarkets, and export abattoir (at Addis) were also interviewed

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Core functions in sheep value chain, activities and actors

5- Core functions in sheep value chain.

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Input supply Input supply for sheep production includes supply of breeding rams, veterinary

drugs and services, feed and credit.

Breeding rams The major breed available in the study area is the local breed - Menz breed and

few awassi cross. Generally the source of rams is the producer’s own flock and breeding is through

natural mating.

Animal health service the most important diseases affecting sheep are foot rot, fasciola, pasteurellosis

and sheep pox. One veterinary clinic for three kebeles and only one veterinarian expertise

working with shortage of drugs and inadequate transportation.

Animal feed Sources of animal feed in the area are natural grazing, hay, crop residues and oats

and vetches. Some improved forage planting materials such as phalaris grass and tree lucerne

have been supplied by the District Agricultural Office.5

Production

Sheep - the main source of income to meet the household’s immediate cash needs and they protect other household assets.

Farmers produce sheep primarily for sale and occasional slaughter at home for household consumption.

The average flock size maintained by households in the study area is about 20 sheep

Sheep flock size trend- increasing - due to increasing demand for sheep meat.

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Production cont…

The proportions of sheep used for household consumption and for market are about 15% and 50% respectively.

The remaining (35%) is the breeding stock.

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15%

50%

35%

Proportions of sheep utilization

Household consumption

Marketing

Breeding stock

8

Seasonal distribution of feed resources relative to the rainfall pattern

Marketing

9

yearling ewe fattend/ castrated0

200

400

600

800

1000

1200

1400

1600

700

900

1450

825

1100

1600

Price of major type of sheep at different markets (birr)

farm gatedistrict market

Sheep type

Pric

e in

bir

r

Proportion of animals sold by farmers to different type of market actors

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Big traders10%

Small trade

rs30%

Collectors10%

Brokers10%

Ho-tels/Butch

ers10%

Indi-vid-ual

con-sume

r20%

Farmers10%

Marketing cont…

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Big traders Small traders Collectors Brokers Hotels/Butchers Individual consumer Farmers

Yearly 1025 1000 950 975 1075 1200 1100

Ewe 1050 1000 900 820 950 950 900

Fattened/ castrated 1600 1500 1200 1250 1525 1500 NaN

100

300

500

700

900

1100

1300

1500

Price variation for different sheep type by different type of actors

Price

in b

irr

Processing and consumptionButcheries slaughter sheep and supply for domestic consumption in the form of raw/ roasted meat.

Hotels and restaurants slaughter sheep mainly to prepare dishes in different forms.

sheep are mainly consumed by domestic consumers either in the form of processed meat from hotels/butchers and at home.

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Sheep market routes at North Shewa connected to Addis Ababa

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Producers Primary Mkt Secondary Mkt Tertiary Mkt

Sheep VC actors and major channels

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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)

Costs and margins of actors in a market channel selling sheep to export abattoirs, butchers and supermarkets

Export abattoirs Butchers Super markets

Producers selling price (Birr/head) to d/t actors 800 1450 1200

Selling price (Birr/head) 1360 2280 1795

Marketing cost (Birr/head) 87 61 96

Marketing margin (Birr/head) 335 580 245

Net margin (Birr/head) 248 520 149

Producer's share of final price (%) 59 64 6715

Opportunities for sheep Value chain

An increasingly high demand for sheep meat 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

Increase in number of export abattoirs

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Suggested interventions and implementation strategiesStages of value chain

Challenges Suggested interventions Implementers Time horizon

Input supply Shortage of improved rams, Community based genetic improvement, - Woreda office of agriculture

- D/B research center

- ICARDA/ILRI- Farmers

medium term

Shortage of forage seeds timely delivery of seed, improving seed production

- Woreda office of agriculture

- D/B research center

- Farmers

Short term

Shortage of drug supply Provision of sufficient revolving fund for drug purchases

- Woreda office of agriculture

- ICARDA/ILRI

Short term

Shortage of manpower, equipment and transportation at vet health posts

Strengthening health posts (manpower, vet equipment, transportation)

- Woreda office of agriculture

- ICARDA/ILRI

Short term

Credit - high interest, group collateral

Strengthening credit and saving associations in terms of finance and management

- Woreda office of agriculture

- Woreda Cooperatives promotion office

- ICARDA/ILRI

Short term

Land shortage Renovation of grazing land, feed development, maintaining optimum and productive sheep flock

- Woreda office of agriculture

- D/Birhan ARC

Medium term

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Stages of value chain

Challenges Suggested interventions Implementers Time horizon

Production Low feed quality Over sowing with improved varieties, feed treatment, supplementation with high nutritious feed, developing improve feed varieties

- Woreda office of agriculture

- D/Birhan ARC- Farmers

Short term

Diseases (fasciola, pasteurellosis and sheep pox.)

Provision of Regular vaccination and treatment, Strengthen health post, Training more CAHWs for remote villages

- Woreda office of agriculture

- D/Birhan ARC- ICARDA/ILRI- Farmers

Short term

Traditional feeding practices

Training farmers and DAs in improved feeding methods such as Best Cost Ration Formulation and feeding

- Woreda office of agriculture

- D/Birhan ARC- ICARDA/ILRI

Short term

Low performance level of local breed

Promoting Community based Genetic improvement program

- Woreda office of agriculture

- D/Birhan ARC- ICARDA/ILRI

Medium term

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Stages of value chain

Challenges Suggested interventions Implementers Time horizon

Marketing Lack of reliable source of market information

Link with National Livestock Market Information System and

Devise mechanisms of delivery system

- Woreda offices of agriculture, marketing and cooperative promotion

- D/Birhan ARC- ICARDA/ILRI

Medium term

Poor livestock marketing infrastructure. (Poorly constructed marketing yards, lack of facilities such as vet clinics, watering and feeding troughs, loading and unloading ramps etc.)

Construction of well-designed livestock marketing yard with all the necessary facilities

- Amhara Bureau of Agriculture- Woreda administration, - Offices of marketing and

cooperative promotion

Long term

High cost of transportation due to rough road network

Road development Amhara Regional Government (road authority)

Long term

Unlicensed ( informal) traders and brokers negatively influencing the proper marketing environment

Enforcing the government rules and regulation on business registration and licensing.

Coaching the market operation and taking action on unlicensed actors

Woreda office of customs and revenue

Woreda Office of marketing and cooperative

Short term

Double taxation

There is double taxation –at d/t checkpoints as traders cross regional boundaries to reach terminal markets

Create multi stakeholder platforms involving Federal, regional and local level administrators, customs authorities, traders and other to discuss on such cross cutting issues and come up with solutions

Federal and regional customs and revenue authorities

Regional bureaus of agriculture and livestock agencies

ICARDA/ILRI (facilitation)

Short term

In adequate training (Skills and knowledge) on sheep production and marketing

Provision of training on sheep production and management for producers, DAs and Woreda SMSs

- Woreda office of agriculture

- D/Birhan ARC- ICARDA/ILRI

Short term

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Stages of value chain

Challenges Suggested interventions Implementers Time horizon

processing

Inadequate local market

Awareness creation on slaughtering, meat quality,

Searching for new market,

District Office of marketing and cooperative

Short term

Consumption

Low quality animals supplied to the market

Awareness creation, introducing and strengthening community based sheep improvement programs.

- Woreda office of agriculture

- D/Birhan ARC- ICARDA/ILRI

Medium term

Inconsistent supply of animals

 Improving the production of sheep through community based sheep improvement program

Improve linkage among the sheep value chain actors,

- Woreda office of agriculture

- D/Birhan ARC- ICARDA/ILRI

Medium term

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Conclusion

Farmers sell their best animals to meet household expenses, to settle social obligations and to

purchase food items during severe drought.

Coping strategies to alleviate the food shortage during severe drought season through credit

etc. need to be devised to ease pressure on the sheep enterprise.

This would provide scope for more retention of good quality animals for breeding purposes

and this could reap long-term dividends in terms of animal performance

Household level sheep fattening management is common and involves an extended period

using generous inputs.

The strong seasonality of demand for sheep represents an opportunity to focus short-term

fattening to produce animals in the appropriate condition to coincide with periods of peak

prices.

In the smallholder systems farmers have to be equipped with new knowledge that can enable

them improve the management and storage of crop residues and proper supplementation with

forage legumes, 21

Recommendations

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Interventions need to be matched to the household flock holdings and be aimed at improving breed quality within small household flocks.

Research needs to provide information on efficient and economic utilization of the available resources to improve the traditional fattening practice.

There is a need to provide timely and reliable market information to enhance informed decision making by farmers

Support the private sector actors willing to invest in sheep and feed production by availing appropriate information including the costs and benefits production.

Interventions in the improvement of pastures and fodders, over-sowing pastures with forage legumes, using multi-purpose trees and establishing fodder banks