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

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

2. Gen Intro …..
Description of the study area…
4

3. Gen Intro …..
1.2. Study subjects
Figure: FGD
6

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

7. Results …..
Figure 5. Average rainfall and feed availability for both
target kebeles
100 5
Feed availability (%)
Rainfall score (0-5)
80 4
60 3
40 2
20 1
0 0
Enset root Grass Straw
Browsing Bran & Cake Grazing
Cultivated forage HH feed residue Vegetables
Rainfall (score 0-5)
10

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

9. ‹#›

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)

12. Results …
15

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

14. Results …
6) Marketing routes
Hosanna
Addis Ababa
Shashamane
30% Angacha
Dunna
Halaba
10%
20% Hamacho Marie
Kosha 10%
15% Bakafa Adilo
15%
20% 30%
40%
25%
Doyogena 20% Shinshicho
25% 10%
Fandida 15%
80%
15% 10%
Durame
Keleto 10% Sarara
Hadero
17

15. Results …
7) Marketing channel
Land tenure Rules and Security Weather
Enabling (access to land) regulations condition
environments
Individual Farmers Individual Foreign
Consumption
consumers (Breeding &fattening) consumers in Addis consumers
and big towns (export market)
80% 100%
100% 15% 5%
%
100%
Export abattoirs
Processing Local Hotels &
Butchers Butchers & Hotels
in Big cities
10%
15% Addis Ababa
20% 10%
10% 20% traders (retailers)
25% 15% 80%
Marketing
Collectors Small traders Big traders (Adilo
80% 45%
market)
5% 25% 15 %
Production Small holder farmers
Feed
Input supply Veterinary Breeding stock Credit Forage seeds Extension
Wheat bran
Dorper rams & planting
Wheat midlings services services
services Bonga rams materials
Oilseed cakes
18
Fig: Sheep value chain mapping of the study area

16. 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
19
Channel 5: Sheep purchased by export abbattoirs

17. Marketing cost and their proportions (%) of total cost for
different market participants
Butcheries/Hote Individual
Producers Collectors Small Traders Big Traders Export abattoirs
ls consumer
Cost category
% Cost Cos
% TC % TC % TC % TC % TC % TC
Costs TC s Costs ts Costs Costs Costs
175.0
Feed cost 0 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
35.0
Transportation 2.00 24% 3.00 11% 0 69% 2.00 1% 5.00 26% 40 29.63
Total Tax
Payment 5.00 19% 5.00 10% 5.00 3% 0%
Loading and 10.0
unloading 3.00 11% 0 20% 0% 0%
Other costs
(Rope) 2.00 1% 2.00 11%
180.0 100.0 50.4
Totla cost/head 0 0 8.20 1.00 26.20 1.00 0 1.00 124.40 0.68 19.00 1.00 135 100.00
20

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
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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
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service