Value Chain Analysis of Goat in South Omo Zone, SNNPR, Ethiopia
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Journal of Agricultural Economics and Rural Development Vol. 7(1), pp. 907-919, January, 2021. © www.premierpublishers.org, ISSN: 2167-0477 Research Article Value Chain Analysis of Goat in South Omo Zone, SNNPR, Ethiopia *Asmera Adicha1, Mekete Girma2, Dawit Darcho3, Kutoya Kuse3 1&3Directorate of Socio Economics and Gender Research, Southern Agricultural Research Institute, Jinka Agricultural Research Center, Jinka, Ethiopia, P.O.Box 96 2Directorate of Livestock Research, Southern Agricultural Research Institute, Jinka Agricultural Research Center, Jinka, Ethiopia, P.O.Box 9 *Corresponding Author Email Address: [email protected] Value chain analysis of goat was conducted in Benatsemay and Hamer district of South omo zone with objective of analysing value chain; identifying opportunities, constraints and intervention areas. A three stage sampling technique was employed to select 160 households from seven sample kebeles. Focus group discussion and in depth interview were made with goat producers, different actors in the study area and export abattoirs at Modjo. Descriptive statistics and marketing margin share calculation was used for analysis. The main marketing routes identified were from origin to export abattoirs, Addis Ababa, and Kemesse. The analysis of costs and margins along the five goat market channels shows that the producer’s share of final goat price was higher when producers sell in Channel I (66%); channel II (57%), channel xii (55%), channel xi (53%) and channel x (52%). Study areas are the major sources of goats for the central markets but are constrained by different factors of production and marketing such as only rely on browse, frequent drought, high incidence of diseases and lack of formal market information about customers demand. Therefore, working on production and marketing constraints, and organizing producers in group and link to export abattoirs could increase margin of producers. Keywords: Goat production, Marketing, Margin, Value chain and Benatsemay and Hamer INTRODUCTION Ethiopia is endowed with diverse and large number of complaining of shortage of supply shoats. The problem livestock resources. Goats are among the most common could be because less linkage of producers to abattoirs or livestock species in Ethiopia with an estimated population market information system, poor market infrastructures, of 32.74 million, of which 70.49 % are females (CSA, 2018). seasonality in production or a combination of several Goat production in Ethiopia contributes significantly to factors. Therefore, analyzing goat value chains was national export earnings and the livelihoods of producers, important to determine constraints and opportunities for especially poor rural households (Adane & Girma, 2008). enhancing the efficiency of meat export from Ethiopia. In According to Gezahagn (2019) Ethiopian export abattoirs South omo zone approximately 297,486 pastoral and agro- production capacity per year was 56,556 tons sheep and pastorals people inhabit along the omo river valley keeping goat, and 40,411 tons beef meat; the foreign currency large number of cattle, sheep and goats (PHCC, 2008). The earnings from meat export was 92.65million USD. pastoral and agro-pastoral districts possess 98% of the Moreover, foreign demand for Ethiopian goat meat has estimated 912, 889 goat population of the zone (CSA, dramatically increased after market promotion by 2018). Goats in the study area are used for household development projects in close collaboration with the consumption; cultural values, cash income/ liquid asset, government of Ethiopia. The role of goats in improving the used as adaptation strategy and determines wealth status income and livelihood of rural people in the country is for pastoralists and high shares in food security. Thus, they gaining importance (Kocho et al., 2011). Despite the play a great role in improving the income and livelihood of reported high livestock population of the country and pastoralists in the study area. However, there is no market national export earnings, the major meat exporters are oriented production and poor market linkages to improve Value Chain Analysis of Goat in South Omo Zone, SNNPR, Ethiopia Asmera et al. 908 household income and to meet the demands of the growing RESEARCH METHODOLOGY human population and foreign markets. As a result, linking goat producers to the market and strengthening the whole Description of the Study Area livestock/goat market systems increases cash income and improves livelihood for pastoralists. Therefore, the South omo zone is found in Southern Nations, Nationalities objective of this study is to analyze goat value chain, and Peoples' Region (SNNPR) in Ethiopia. It is located 4º identifying opportunities, constraints, intervention areas in 27’-6º 26’north and 34º 57’-37º 49’ east bordering on the the production and marketing of goat. south by Kenya, on the west by Bench Maji, on the northwest by Keffa, on the north by Konta, Gamo Gofa and Basketo, on the northeast by Dirashe and Konso, and on the east by the Oromia Region. The administrative center Objectives of the Study of South omo zone is Jinka. This zone is named for the The overall objective of the study is to analyze goat value Omo River, a river that flows south into Lake Turkana on chain in Benatsemay and Hamer district of south omo the western side. West of the Omo is the most sparsely zone Southern Ethiopia. The specific objectives were: populated part of Ethiopia, inhabited by nomadic and semi- nomadic ethnic groups. The study was conducted in Hammer and Benatsemay districts of South omo zone. The To identify actors and their functions in the goat districts are located 4º 27′ -5º 39′ north and 35º 23′- 37º 49′ marketing. east, bordering Kenya to the south. The study districts are To analyse and map value chain and marketing characterized by semi-arid and arid climatic conditions, with routes/channels of goat mean annual rainfall increasing from the extreme south To identify potential opportunities, constraints and lower part, with some 350 mm, to the upper part where it intervention areas in the production and marketing ranges to 1400 mm. The districts have high ambient of goat. temperature ranging from 26 to 35ºC. The dominant types of land use in Hammer district is pastoralism while that of Benatsemay is agro-pastoralism. The two districts possess 50% of the goat population from the pastoral and agro- pastoral districts of South Omo zone. The Hammer, Bena and Tsemay are the major ethnic groups in the study districts (SOFEDD, 2009). Figure 1: Map of the study area Source: own sketch, 2019 Value Chain Analysis of Goat in South Omo Zone, SNNPR, Ethiopia J. Agric. Econs. Rural. Dev. 909 Type and Sources of Data Marketing margin was analyzed using the price difference of the actors in the market chain. The producers’ share in Qualitative and quantitative data were collected from the marketing margin can be expressed algebraically as: px 푀푀 primary and secondary data sources. The primary data Ps= = 1 - where, Ps = producers’ share, Px = producers’ such as input costs and output data was collected. 푝r 푝r price, P = retailers’ price, MM = marketing margin Performance of marketing functions such as handling, r TGMM = consumer price − producers/pastoralists x100 transport and transaction activities related to marketing of consumer price goat, market price of goat, main actors and their role, Where TGMM=Total gross marketing margin margin share, marketing infrastructure and information, consumer price − marketing gross margin GMMP = x100 market participants, opportunities and threats of goat consumer price production data were also collected from key value chain Where GMMp= producer’s gross margin actors and stakeholders. These included producers NMM = Gross margin − Marketing costs x100 including women pastoralists, collectors, small and medium End buyer price (Consumers price) Where NMM = net marketing scale traders, domestic consumers and exporters involved in goat value chain. Secondary data was collected from literatures, reports, documents both published and unpublished data source. RESULTS AND DISCUSSION Methods of Data Collection Goat Value Chains in the Benatsemay and Hamer Woreda Primary data were collected using informal and formal Input Supply System survey methods such as focus group discussions, in-depth Breeding Stock interviews with key informants, direct observation with transact walk, and structured survey questionnaires. Key In the study area, sources of breeding stock are pastoralists informant discussion was done with district trade industry themselves or local breeds. The pastoralists buy breeding sector and livestock production experts at each district of stock from the surrounding markets, or maintain female the study area on goat production and marketing. Two goats as replacement stock. They buy goats from known focus group discussion in each districts with minimum of 8 local markets such as Alduba, Keyafer, Woito, Kako and known social strata groups (e.g. known goat producers, Dimeka market locations for breeding purposes. In most of women, youths, elders, others) was conducted. Face to kebeles breeding rams and bucks are obtained from other face interview was made with 4 local collectors/traders, 6 pastoralists. But recently Jinka agricultural research center hotels and restaurants, 4 small-scale traders, 6 medium- (JARC) has been introducing improved breed (Boar) in very scale traders from two district and exporter abattoirs at few kebeles of the district