the supply, marketing and trade of live animals in the amhara region

113 Pages·2012·7.07 MB·English

by  Vicente Partida

ETHIOPIA SANITARY & PHYTOSANITARY STANDARDS AND LIVESTOCK & MEAT
MARKETING PROGRAM (SPS-LMM)

Texas Agricultural Experiment Station (TAES)/Texas A&M University System
THE SUPPLY, MARKETING AND
TRADE OF LIVE ANIMALS IN THE
AMHARA REGION

Ak l i l u Woldu
Amahara Bureau of Agr i cu l ture and Rura l Deve lopment
Eshete Dejen (PhD)
Amahara Agr i cu l tura l Research Inst i tute

October, 2009
Bahir Dar

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Authors’ affiliations

Aklilu Woldu, Amahara Bureau of Agriculture and Rural Development, Eshete Dejen
(PhD), Amahara Agricultural Research Institute, Bahir Dar, Ethiopia

Editor: Hank Fitzhugh (PhD), SPS-LMM Program, Chief of Party

©2008 (SPS-LMM) Ethiopian Sanitary & Phytosanitary Standards and Livestock &
Meat Marketing Program of Texas Agricultural Experiment Station/Texas A&M
University System.

All rights reserved. Parts of this publication may be reproduced for non-commercial
use provided that such reproduction shall be subjected to acknowledgement of SPS-
LMM program as holder of copyright.

This study is made possible by the support of the American people through the United States Agency for
International Development (USAID) under Cooperative Agreement No.663-A-00-05-00437-00. The contents are
the sole responsibility of the Ethiopia SPS-LMM Program and do not necessarily reflect the views of USAID or the
United States Government.

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TABLE OF CONTENTS

AUTHORS’ AFFILIATIONS ............................................................................................................................ 1!
TABLE OF CONTENTS ..................................................................................................................................... 1!
LIST OF TABLES ............................................................................................................................................. 3!
LIST OF FIGURES ............................................................................................................................................ 5!
LIST OF ABBREVIATIONS ............................................................................................................................... 6!
ACKNOWLEDGEMENTS ......................................................................................................................... 7!
EXECUTIVE SUMMARY ......................................................................................................................... 8!
1.! INTRODUCTION ................................................................................................................................. 1!
1.1.! BACKGROUND ................................................................................................................................ 1!
1.2.! OBJECTIVES OF THE STUDY ............................................................................................................. 2!
1.3.! SIGNIFICANCE OF THE STUDY ......................................................................................................... 3!
1.4.! METHOD OF DATA COLLECTION AND ANALYSIS ............................................................................ 4!
1.4.1.! Data collection .......................................................................................................................... 4!
1.4.2.! Data Analysis METHODOLOGY .............................................................................................. 5!
1.5.! ORGANIZATION OF THE PAPER ....................................................................................................... 6!
2.! REGIONAL LIVESTOCK RESOURCES ......................................................................................... 8!
2.1.! OVERVIEW OF THE AMHARA REGION ................................................................................... 8!
2.1.1.! GENERAL FEATURES ............................................................................................................. 8!
2.1.2.! role of agriculture ..................................................................................................................... 9!
2.2.! LIVESTOCK POPULATIONS ......................................................................................................... 10!
2.2.1.! National and Regional livestock populations .......................................................................... 10!
2.2.2.! Livestock Production Systems ................................................................................................. 12!
2.2.3.! Livestock Productivity ............................................................................................................. 14!
2.2.4.! Contribution of Livestock to Regional GDP ........................................................................... 14!
2.2.5.! Contribution of livestock to HH income .................................................................................. 15!
2.3.! REGIONAL RESOURCE BASE FOR MEAT EXPORT ................................................................. 16!
2.3.1.! CATTLE POPULATIONS and ofFTAKES .............................................................................. 16!
2.3.2.! SMALL RUMINANT POPULATIONS and ofFTAKES ........................................................... 19!
2.4.! TYPES AND BREEDS OF ANIMALS .................................................................................................. 24!
2.4.1.! cattle ........................................................................................................................................ 24!
2.4.2.! shoats ....................................................................................................................................... 25!
3.! SUPPLY ANALYSIS FOR THE B/DAR ABATTOIR ................................................................... 28!
3.1.! BRIEF OVERVIEW OF THE ABATTOIR ................................................................................. 28!
3.2.! SUPPLY PROJECTIONS FOR THE ABATTOIR .................................................................................... 28!
3.2.1.! Current marketed volume from the Amhara region ................................................................ 29!
3.2.2.! Major supply areas FOR B/DAR ABATTOIR ......................................................................... 30!
3.2.3.! supply VOLUME ESTIMATES from the selected areas .......................................................... 31!
3.3.! SUMMARY ..................................................................................................................................... 37!
4.! LIVESTOCK MARKETS AND MARKETING SYSTEM ............................................................ 37!
4.1.! GENERAL FUNCTIONS OF LIVE ANIMAL MARKETS ........................................................... 37!
4.2.! TYPES OF LIVE ANIMAL MARKETS ............................................................................................ 39!
4.2.1.! Market Classification .............................................................................................................. 39!
4.2.2.! Market Sheds ........................................................................................................................... 40!
4.2.3.! Live Animal Trek Routes ......................................................................................................... 41!
4.3.! TYPE OF ANIMALS BROUGHT TO MARKET ....................................................................... 42!
4.4.! MARKETING CHANNELS ................................................................................................................ 43!
4.5.! TYPES AND ROLES OF MARKET PARTICIPANTS ........................................................................... 44!
4.5.1.! Producers ................................................................................................................................ 44!
4.5.2.! Traders .................................................................................................................................... 45!
4.5.3.! Butchers ................................................................................................................................... 45!
4.5.4.! Processors ............................................................................................................................... 46!
4.6.! MARKET INFRASTRUCTURE ................................................................................................ 46!
4.6.1.! Livestock Transport ................................................................................................................. 47!
4.6.2.! Market Centers and Marketing Facilities ............................................................................... 49!
4.7.! GENERAL CHARACTERISTICS OF CATTLE TRADE .................................................................. 50!

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4.7.1.! TRADERS ................................................................................................................................ 50!
4.7.2.! State Intervention And Regulations ......................................................................................... 51!
4.7.3.! Market Entry And CoMPETItion ............................................................................................ 53!
4.8.! MAJOR CONSTRAINTS ............................................................................................................ 55!
4.9.! SUMMARY AND CONCLUSION ...................................................................................................... 57!
5.! ETHIO-SUDAN CROSS BORDER TRADE ................................................................................... 59!
5.1.! MAJOR FEATURES OF THE SYSTEM .................................................................................... 59!
5.1.1.! GENERAL FEATURES OF THE AREA ................................................................................. 59!
5.1.2.! LIVESTOCK SUPPLY AREAS FOR THE CBT ...................................................................... 61!
5.1.3.! PARTICIPANTS OF THE CBT ............................................................................................... 61!
5.1.4.! MARKETING CHANNELS ..................................................................................................... 64!
5.1.5.! SUPPLY ROUTES ................................................................................................................... 65!
5.1.6.! MARKETED VOLUMES ......................................................................................................... 67!
5.2.! PRICES AND EARNINGS ......................................................................................................... 69!
5.2.1.! PRICES .................................................................................................................................... 69!
5.2.2.! FOREIGN EXCHANGE EARNINGS ...................................................................................... 69!
5.2.3.! FORGONE BENEFITS ........................................................................................................... 70!
5.3.! EFFECTS OF CBT ON DOMESTIC SUPPLY LEVELS ........................................................... 70!
5.4.! REGULATION AND INSTITUTIONAL SUPPORT ................................................................. 71!
5.4.1.! LAWS GOVERNING TRADE .................................................................................................. 71!
5.4.2.! REGULATION ........................................................................................................................ 72!
5.5.! OBSERVED SYSTEM CONSTRAINTS ................................................................................... 73!
5.5.1.! REGULATORY/INSTITUTIONAL ASSOCIATED CONSTRAINTS ....................................... 73!
5.5.2.! MARKET ASSOCIATED CONSTRAINTS .............................................................................. 74!
5.6.! SUMMARY ................................................................................................................................. 75!
6.! SUPPLY OF CROSSBRED CALVES .............................................................................................. 77!
6.1.! REGIONAL DAIRY PRODUCTION SYSTEMS ...................................................................... 77!
6.2.! LITERATURE REVIEW .................................................................................................................... 78!
6.3.! CROSSBRED ANIMAL INVENTORY ................................................................................................ 79!
6.4.! GROWTH PERFORMANCE .............................................................................................................. 80!
6.5.! CROSSBRED CALVES SUPPLY ........................................................................................................ 82!
6.6.! OPPORTUNITIES TO USE AS DAIRY BEEF ........................................................................................ 82!
7.! CONCLUSIONS AND RECOMMENDATIONS ............................................................................ 84!
7.1.! CONCLUSIONS ......................................................................................................................... 84!
7.2.! RECOMMENDATIONS ............................................................................................................. 85!
7.2.1.! INCREASE SUPPLY VOLUMES ............................................................................................ 85!
7.2.2.! IMPROVE AND ENHANCE LIVE ANIMAL MARKETING ................................................... 89!
7.2.3.! REVIEW AND IMPROVE THE CBT WITH SUDAN .............................................................. 90!
8.! REFERENCES .................................................................................................................................... 92!

LIST OF TABLES
TABLE 1: POPULATION SIZES OF LIVESTOCK SPECIES IN AMHARA REGION (2007) .................................................... 11
TABLE 2 : ZONAL DISTRIBUTION OF THE LIVESTOCK POPULATION (2007) ................................................................. 11
TABLE 3 : DISTRIBUTION OF LAND AND LIVESTOCK HOLDINGS IN AMHARA, 2003. ................................................... 12

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TABLE 4 : CATTLE OWNERSHIP PATTERN IN AMHARA REGION BY ZONE. ................................................................... 16
TABLE 5 : AGE AND SEX STRUCTURE OF CATTLE IN AMHARA REGION ....................................................................... 17
TABLE 6 : CATTLE HERD DYNAMICS FOR AMHARA REGION ....................................................................................... 17
TABLE 7 : ZONAL LEVEL OFFTAKE RATES FOR CATTLE IN AMHARA REGION ............................................................. 19
TABLE 8: ZONAL DISTRIBUTION OF SMALL RUMINANTS IN AMHARA REGION (2007) ................................................ 20
TABLE 9: AGE AND SEX STRUCTURE OF SHEEP AND GOATS IN AMHARA REGION (2007) .......................................... 20
TABLE 10 : SMALL RUMINANT OWNERSHIP PATTERN IN AMHARA REGION BY ZONE. ................................................. 21
TABLE 11 : SHEEP AND GOATS HERD DYNAMICS FOR AMHARA REGION ..................................................................... 22
TABLE 12 : ZONAL LEVEL OFFTAKE RATES FOR SHOATS IN AMHARA REGION ............................................................ 23
TABLE 13 : ESTIMATED NUMBER OF CATTLE AND SHOATS MARKETED ANNUALLY IN AMHARA REGION .................... 29
TABLE 14: AVERAGE MONTHLY SUPPLY AND DEMAND FOR SHOATS IN 6 SAMPLE MARKETS OF ANRS ...................... 30
TABLE 15: ESTIMATES OF GROSS AND NET OFFTAKE RATES FOR THE SELECTED ZONES ............................................. 32
TABLE 16 : ESTIMATED NUMBER OF CATTLE AND SHOATS MARKETED ANNUALLY IN THE 6 SELECTED ZONES ........... 32
TABLE 17 : ABATTOIR REQUIREMENT VERSUS ANNUALLY MARKETED ANIMALS IN THE 6 SELECTED
ZONES ........................................................................................................................................................ 33
TABLE 18: ESTIMATES OF LIVE ANIMAL OFF TAKE RATES FOR DOMESTIC CONSUMPTION IN 2001/2002
AND 2006/2007 ......................................................................................................................................... 36
TABLE 19 TRADITIONAL STOCK ROUTES IN AMHARA REGION .................................................................................... 41
TABLE 20: REASONS FOR LIVESTOCK SALE (%) CITED BY FARMERS IN NORTH SHOA ZONE ....................................... 45
TABLE 21: SHARE OF LIVESTOCK POPULATION SIZES OF NORTH GONDAR ZONE ....................................................... 60
TABLE 22: MONTHLY DATA ON LEGALLY EXPORTED CATTLE THROUGH METEMA (2005-2007) ................................ 67
TABLE 23: FOREIGN EXCHANGE EARNINGS FROM LEGALLY EXPORTED CATTLE THROUGH METEMA ......................... 70

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LIST OF FIGURES
FIGURE 1: MAP OF ETHIOPIA AND AMHARA REGION ...................................................................................................... 8
FIGURE 2: TYPICAL STRUCTURE OF LIVESTOCK MARKETS IN AMHARA REGION. .......................................................... 39
FIGURE 3: SCHEMATIC MAP OF NORTH GONDAR ZONE. .............................................................................................. 60
FIGURE 4: MARKET CHANNELS OF THE CROSS-BORDER LIVESTOCK TRADE .................................................................. 64
FIGURE 5: MONTHLY VARIATION IN CATTLE EXPORTED LEGALLY THROUGH METEMA (2005-2007). .......................... 68

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LIST OF ABBREVIATIONS
AEZ Agro-Ecological Zone
AI Artificial Insemination
AIBP Agro-Industrial By-Products
ANRS Amhara National Regional State
ARARI Amhara Region Agricultural Research Institute
BoA Bureau of Agriculture
BoARD Bureau of Agriculture and Rural Development
BoCP Bureau of Cooperative Promotion
BoFED Bureau of Finance and Economic Development
BoTI Bureau of Trade and Industry
CBT Cross-Border Trade
CSA Central Statistics Authority
DM Dry Matter
DPPC Disaster Prevention And Preparedness Commission
EARO Ethiopian Agricultural Research Organization
FAO Food And Agricultural Organization
FDRE Federal Democratic Republic Of Ethiopia
GDP Gross Domestic Product
HH Household
ILRI International Livestock Research Institute
NARS National Agricultural Research System
MOA Ministry Of Agriculture
NGO Non-Governmental Organization
RA Rapid Appraisal
RARS Regional Agricultural Research System
TLU Tropical Livestock Unit

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ACKNOWLEDGEMENTS
The authors are grateful to Hank Fitzhugh, Chief of Party and Belachew Hurissa,
Marketing Specialist and Deputy Chief of Party, Ethiopia Sanitary & Phyto-Sanitary and
Livestock & Meat Marketing Program (SPS-LMM), for giving us the chance to
undertake this study and for the preparation of this report and the workshop on it. The
authors are also grateful to various staff of BoARD and ARARI for their valuable
assistance in availing data and other information in much of this report.

Aklilu Woldu
Head, Agricultural Markets Development Department
Bureau of Agriculture and Rural Development
Tel. [phone]
E-mail:
EXECUTIVE SUMMARY
In the Amhara region there are great demands for cattle and small ruminants. These
animals have great importance in the smallholder farming system, where they fulfill
several functions and are a major source of income. It has been established that there are
close links between particular breed populations and agro-ecological environments. As a
result, there is considerable potential for an increased production of these animals in the
region.
In light of the economic importance of the livestock sector for the region as well as the
country; the foreign exchange earning potential of livestock and meat exports, and the
strategic importance of food supplies, a high degree of market-led specialization of
livestock production is generally a significant policy goal. Consequently, substantial
investment in domestic livestock production and marketing systems of the region are
strongly encouraged in order to penetrate the export markets. Cognizant of this, the
Federal and Regional Governments have recently given recognition to export abattoirs in
the current rural development policy and strategy document (FDRE, 2002).
Having this in consideration, Private investors such as the Sudanese based ASHRAF
Investment Group have finalized construction of a modern meat-processing abattoir in
B/Dar town of the Amhara region. The establishment of another slaughterhouse in the
vicinity of Kombolcha town is also underway. Yet still, several studies including
Belachew (2005) and SPS-LMM (2006) clearly indicate as to the presence of numerous
challenges upsetting the various facets of both the live animal and meat export sectors in
the country. Such issues especially become more important for the Amhara region for
the simple reason that at least the above mentioned two export meat abattoirs are coming
online in the coming few months. Therefore it is very imperative at this juncture to assess
the challenges faced by the production and marketing system of livestock and meat
sectors in the Amhara region in order to recommend solutions which can lead towards a
sustainable livestock supply chain.
This report submits results of a rapid sectoral appraisal study on the existing situation
with regard to the production and marketing aspects of large and small ruminants in the
Amhara region. Specifically, the study analyzes and explains trends in production and
marketing of live animals by A) examining whether the demand for live animals by the
B/Dar export meat processing abattoir is sustainably supplied; B) Determining the
availability and role of dairy bull calves in such supplies; C) Assessing the cross-border
livestock trade along the Ethio-Sudan border and its impact on the domestic market in
general; D) Identifying production and marketing constraints which make the system
inefficient; and, finally E) Suggesting areas of enhancement whereby policy reforms can
be instituted to improve production and sustainable livestock supplies, which in turn will
improve market efficiency and the welfare of those who depend on the livestock sector
for their livelihoods.

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