Live cattle and beef value chain rapid assessment in Ethiopia
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Transcript of Live cattle and beef value chain rapid assessment in Ethiopia
April 2010
The good news is …
Livestock produc5on u5lizes available resources and provides livelihoods and services
And the not so good news is …
Feed and veterinary care constrain produc5vity
Feed constrains specialist feeding systems
Domes5c prices are higher than interna5onal ones
Background Much interest centers on ca.le and beef as drivers of Ethiopian development. In rural areas (highland and lowland), ca.le have mul>ple uses and are vital to livelihoods and risk management. Trading, processing and retailing also provide jobs from the ca.le trade. The promise of exports has long been viewed as a new source of value addi>on and employment.
Although a number of previous studies had looked at actors in the Ethiopian livestock value chains, li.le quan>ta>ve analysis had been carried out. This study supplements a larger volume of diagnos>c work requested by the Ethiopian government. The work is conducted in partnership with The Bill and Melinda Gates Founda>on, IFPRI, Mirtama consul>ng and others.
Method and study areas We approach the value chain as a demand-‐shed: having iden>fied end uses and final loca>ons for live ca.le supply systems, we worked backwards towards the supply. We inves>gate two ca.le supply chain routes:
(i) the Southern route extending from Addis Ababa (demand center) to Moyale on the Kenyan border (results presented here) (ii) the Northern supply route extending from Addis Ababa to Metema.
Various ca.le markets along the two routes were studied, and actors that include producers, coopera>ves, traders, feedlots, brokers, local and export aba.oirs, butchers, exporters. Experts were also interviewed.
In addi>on to revenue and cost data, informa>on was gathered on the value chains’ transmission of quality incen>ves, payment systems, problems as defined by different actors, and a range of other variables.
Live CaAle and Beef Value Chain Rapid Assessment in Ethiopia Objec<ves To characterize the Ethiopian Live Ca.le Value Chains to allow examina>on of costs and revenues at each stage, and iden>fy opportuni>es and problems suitable for development interven>ons.
Findings (Southern route only) Livestock offer income genera>on and risk mi>ga>on mechanisms where few others exist.
Access to grazing and water constrain produc>on.
Rapid appraisal methods were able to be used to es>mate revenue and cost items at each point in the chain. Profit margins were found not to be excessive amongst traders and feedlots.
Profits and margins throughout the chain were found to be highly sensi>ve to feed costs – feedlot economics requires a more thorough inves>ga>on.
Prevailing payment systems involve late payments in lieu of working capital – throughout the chain.
The value chain transmits quality incen>ves poorly – rankings of buyers preferences for each a.ribute vary substan>ally between chain actors.
Value chain profile
Amare, S., D. Baker, R. Davies, S. Gebremariam & A. Solomon