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Market Chain Analysis of Poultry: the Case of Arbegona and Bensa Districts, Sidama Zone, Southern Ethiopia

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Market Chain Analysis of Poultry: the Case of Arbegona and Bensa Districts, Sidama Zone, Southern Ethiopia MARKET CHAIN ANALYSIS OF POULTRY: THE CASE OF ARBEGONA AND BENSA DISTRICTS, SIDAMA ZONE, SOUTHERN ETHIOPIA MSc. THESIS TEKLU GEBRETSADIK DECEMBER, 2016 WONDO GENET, ETHIOPIA I MARKET CHAIN ANALYSIS OF POULTRY: THE CASE OF ARBEGONA AND BENSA DISTRICTS, SIDAMA ZONE, SOUTHERN ETHIOPIA Teklu Gebretsadik A THESIS SUBMITTED TO SCHOOL OF NATURAL RESOURCE AND ENVIRONMENTAL STUDIES, WONDO GENET COLLEGE OF FORESTRY AND NATURAL RESOURCES, SCHOOL OF GRADUATE STUDIES, HAWASSA UNIVERSITY WONDO GENET, ETHIOPIA IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF SCIENCE IN NATURAL RESOURCES ECONOMICS AND POLICY December, 2016 II APPROVAL SHEET I This is to certify that the thesis entitled “Market Chain Analysis of Poultry: The case of Arbegona and Bensa districts, Sidama zone, Southern Ethiopia” submitted in partial fulfillment of the requirements for the degree of Master of Science with specialization in Natural Resources Economics and Policy), School of Natural Resource and Environmental Studies, Wondo Genet College of Forestry and Natural Resources, and it is a record of original research carried out by Teklu Gebretsadik ID. No MSc s0021/13, under my supervision, and no part of the thesis has been submitted for any other degree or diploma. The assistance and help received during the course of this investigation have been duly acknowledged. Therefore, I recommend that it be accepted as fulfilling the thesis requirements. Teshale Woldeamanuel (PhD) __________________ ____________ Name of Major advisor Signature Date OR Berhanu Gebremedhin (PhD) ____________ ____________ Name of co-advisor Signature Date ______________________ ____________ ____________ Coordinator, graduate program Signature Date III APPROVAL SHEET II We, the undersigned, members of the board of examiners of the final open defense by Teklu Gebretsadik Wana, have read and evaluated his thesis entitled “Market Chain Analysis of Poultry: The case of Arbegona and Bensa districts, Sidama zone, Southern Ethiopia” and examined the candidate. This is therefore to certify that the thesis has been accepted in partial fulfillment of the requirements of the degree of Master of Science in natural resource economics and policy. Yemiru Tesfaye (PhD) ___________________ _________________ Name of the Chairperson Signature Date Teshale Woldeamanuel (PhD) __________________________ ______________ Name of Major Advisor Signature Date Yoseph Melka (PhD) ____________________ ______________ Name of Internal Examiner Signature Date Dugassa Mulugeta (PhD) _______________________ ___ Name of External Examiner Signature Date ____________________________ ____________________ ______________ SGS Approval Signature Date IV ACKNOWLEDGMENT First of all and above all, Thanks to God for loving, kindness and bestowing health, strength and protection for the completion of the study. Amen! My deepest appreciation goes to my major advisor Dr. Teshale Woldeamanuel, who gave me his vitally important comments and his deep insight into the whole thesis and constructive ideas that shaped this study from research topic to thesis completion. My thanks also go to my co-advisor Dr. Berhanu Gebremedhin for his valuable comments, directions and for the reliable budget support for this research. My genuine appreciation also goes to LIVES, South regional coordination staff especially Dr. Yoseph Mekasha, Mr. Tesfaye Shewage and Mrs. Tinsae Woldemichael for their kind encouragement and guidance, and Mr. Yared Fanta for initiating me to this study. I extend my appreciation to Mr. Asrat Tera, Livestock and fishery Resources Bureau, for his cooperation, Mr. Efrem Asefa for the study area map and Mr. Worku Bedeke who helped me in giving professional and moral guidance. A deep gratitude is extended to International Livestock Research Institution (ILRI), LIVES project for sponsoring the study without which the completion of this study would not have been possible in such a successful way. My appreciation also goes to all ILRI staff and especially Dr. Mamusha Lemma, Mrs. Parmillia Yeshitila and Mrs. Yodit Girma for the financial facilitation they made during the research period. Special thanks and appreciation also goes to all my colleagues and my families for their help and encouragement throughout my research progress. Finally, but most significantly, I would like to express my deepest thanks to my Love, Hana Gion for her shouldering the whole responsibilities, and she deserves special appreciation for the interest she has in my academic progress. Thank you all!!! V DEDICATION I dedicate this thesis manuscript to my family’s Gebretsadik Wana and Abebech Gasto, Wolde Gebretsadik, Genet Gebretsadik, Meseret Gebretsadik and Hana Gion for their continuous contribution throughout my life. VI DECLARATION I, the undersigned, hereby declare that the work which is being presented in this thesis is my original work carried out under the supervision of Dr. Teshale Woldeamanuel and Dr. Berhanu Gebremedhin. And it has not been presented as a thesis in any other university and all sources of material used for this thesis have been duly acknowledged. This thesis is submitted in partial fulfillment of the requirements for MSc. Degree at Hawassa University, Wondo Genet College of Forestry and Natural Resource and to be made available at ILRI (International Livestock Research Institute) and Hawassa University Libraries under the rules of the Library. I confidently declare that this thesis has not been submitted to any other institutions anywhere for the award of any academic degree, diploma, or certificate. Concise quotations from this thesis are allowable in absence of special permission, provided that accurate acknowledgement of source is made. Requests for permission for extended quotation from or reproduction of this manuscript in whole or in part may be granted by the head of the Department of Natural Resources Economics and Policy and or Dean of the School of Graduate Studies when in his or her judgment the proposed use of the material is in the interests of scholarship. In all other instances, however, permission must be obtained from the author. Teklu Gebretsadik ______________________ ____________________ Name of student Signature Date Place: Hawassa University, Wondo Genet Date of Submission: ------------------ TABLE OF CONTENTS PAGES VII Acknowledgement…………………………………………………………………………….….III Dedication..............................................................................................................................….....IV Declaration ……………………………………………………………………………………..….V List of Tables……………………………………………………………...…..…………………..IX List of figures……………………………………………………………………………………..XI Appendices ……..……………………………………………………………………………......XII List of Acronyms…………………………………………………………………………….....XIII Abstract……………………………………………………………………………………........XIV 1. Introduction……………………………………………………………………………...............1 1.1 Background……………………………………………………………………..….………..1 1.2 Statement of the problem………………………………………………………..…………..3 1.3 Objective of the study……..…………………………………………….……………....…..4 1.4 Research questions ……………………………………………………………………….…4 1.5 Significance of the study……………………………………..…………………..………….5 1.6 Scope and limitation of the study……………………………….………………………..…6 1.7 Organization of the thesis………………………………………………………………...…6 2. LITERATURE REVIEW……………………………………….…………………..………….7 2.1 Basic concepts…………………………………………………………………………………..7 2.1.1 Market and marketing………………………………………………………………………...8 2.1.2 Value chain and market chain………………………………………………………………...8 2.1.3 Marketing system……………………………………………………………………………..9 2.1.4 Market channel……………….…….…………………………………………………...…... 9 2.2 Village poultry production systems in Ethiopia……………………………………………….12 2.3. Empirical studies ………………………………………………………………………...........13 3. METHODOLOGY………….……………………..……………………………......................16 3.1 Description of study area…………………………………………………………….………...16 3.2 Sources of data………………………………………………………………………………....17 3.3 Sample size and methods of sampling……..…………………………………………….…….17 VIII 3.4 Methods of data collection……..…………………………….………………………...………18 3.5 Methods of data analysis…………………..………………………………………………..…19 3.5.1. Descriptive analysis……………………………………………………………………..….19 3.5.2. Econometric Analysis …………………………..…………………………………..……..21 4 RESULTS AND DISCUSSIONS...................................................................................….........32 4.1 Socioeconomic characteristic of poultry producers and traders ……………………………....32 4.1.1 Socioeconomic characteristics of poultry producers ……………………...........................32 4.1.2 Socioeconomic characteristics of poultry traders……………….…………..……….…….36 4.1.3 Source and income level of respondents……………………………………………..…….36 4.1.4 Flock size and breed composition of live birds………………………………….…….…..38 4.1.5 Ownership and decision making role of respondents…………………….…………...…...39 4.1.6 Purpose of village poultry production………………………………….……………….....39 4.2. Farmers access to business support services….…………………………………………..…...41 4.2.1 Farmers access to credit services……………………………….…………………..……...41 4.2.2 Farmers access to extension services………………………………………………….…...43 4.2.3 Farmers access to input supply services……………………………………………….…..44 4.2.4 Farmers access to market and marketing information………………………………..…....46 4.3 Market Structure, conduct and performance of poultry ……………………………………….47 4.3.1 Market Structure of poultry....................................................................................………..47 4.3.1.1 Actors and their roles in poultry
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