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 with the objective of improving Modjo. local breeds. All households in the study district own indigenous goat genotypes which are identified by their locality or tribe names as Hamer, Bena, Tsemai, Ari or Sampling Technique Malle goats. The majority of pastoral households reported

that the origin of goats was from Borana, Dasanech and A three-stage sampling technique was employed to draw north Kenya whereas some of the households in the upper samples from a given population of goat producer and part of Bena-Tsemay district reported Malle and Gofa area traders. In the first stage, from two districts, potential goat as the source for their goat types. The households also producing and marketing kebeles was identified based on indicated that there is high variability in performance traits goat production potential and in the second stage 7 sample within their goat genotypes. According to Berhanu et al. kebeles were identified by random sampling technique. In (2012), the households have varying perceptions on third stage 5% of the households from selected kebeles performances of goat types within their locality. were taken. Accordingly, 160 sample respondents were selected from sample kebeles goat producers. Main value Feed Availability and Sources chain actors from two district were randomly selected and

Modjo modern exporter abattoirs was selected because of Goat production depends mainly on feed availability such goat traders from two district mostly supply to it. as browsing leaves of trees, bushes and shrubs. In study

areas pastoralists travel long distances along with their Data Analysis goats in search of browse, pasture and water. As a result

they are deprived of services like education and still most Descriptive statistics was used for the analysis. of them are not educated. According to focus group Observations along the value chain were summarized discussion made with producers, range land condition of using strength, weakness, opportunity and threat (SWOT) Benatsemay and Hamer district is deteriorating from time analysis. Software called Statistical Package for Social to time. The increase in human population also seriously Science (SPSS) was used for the analysis. affected the rangeland condition through clearing range

Value Chain Analysis of Goat in South Omo Zone, SNNPR, Ethiopia Asmera et al. 910

land for different purposes such as housing, firewood for important problem identified in study areas was shortage of home, selling and others. Primary sources of feed are veterinary clinical equipment at district clinics and health common grazing land, private grazing land and to some posts. The primary sources of drugs and vaccination extent crop residue. There is no improved feed or fodder in treatment was purchasing from government, private vet the study area. services and in some cases some NGOs gave free of charge. The major livestock diseases reported in the study Veterinary and Drug Supply areas were Contageouscaprine Pleuro Pneumonia, peste des petits ruminant, Trypanosomiasis, Anthrax, Blackleg, Vet drug supply and vaccination services are the major Internal and External parasites and Foot rot. important aspect of veterinary service. Animal health technicians in the district reported that there was shortage Goat Production System of transport facilities to reach pastoralists and pastoralists Goats are the second largest and most important also raised shortage of drugs and less vaccination support. components of livestock production after cattle in the study Even though there is a large population of goats in the study area. This is mainly because of their resistance to drought areas there were few Vet drug suppliers. There were four than other livestock’s. Of the total goat population of the drug suppliers in each district which were not easily South omo zone about 1,172,037 and 571,049 heads of accessible to pastoralist because suppliers are in the goats were found in Hamer and Benatsemay woreda. And district town but pastoralists are located in distant for also the largest share of the zone, about 35.5% and 17.49 grazing and watering of their goat. As a result, pastoralist % is found in the study woreda and as well has high goat must travel very long distances to get treatment for their production potential and they ranked as the first and second goats; in some cases the goats die on the way. Another respectively in the South omo zone.

Table 1: Estimated livestock population of Benatsemay and Hamer woreda Type of Zone Hamer % share of livestock by Benatsemay % share of livestock by livestock Population Hamer Benatsemay Cattle 3,766,027 717,362 19.05 564,042 14.98 Goats 3,265,321 1172037 35.9 571049 17.49 Sheep 1,760,087 525833 29.88 202971 11.57 Source: SOFEDD (2016/17)

Survey result showed that average goat holding per Woreda was 50 and 2 goat’s respectively. Whereas the household in Hamer and Benatsemay woreda were 15 and maximum and minimum goat holding per household of 12 goats respectively. The maximum and minimum goat sample respondents in Benatsemay woreda were 30 and 2 holding per household of sample respondents in Hamer goat’s respectively.

Table 1: Goat holding per household of sample respondents in study area District Goat holding per household Mean Maximum Minimum Hamer(n=89) 15.09 50.00 2.00 Benatsemay(n=71) 11.68 30.00 2.00 Source: own survey (2019)

Goat Marketing System

Selling and Buying Practices

There are different ways of exchange in the study areas. in the market. Modjo modern export abattoir buys These are bartering, eye ball estimate and weighing scale. slaughtered carcass weight of goat meat from the medium Pastoralists sell their goats to anyone who pays an scale traders that means they slaughter goat then measure acceptable price and the buyers are mainly other the exportable meat/carcass in kilogram. More clearly the pastoralists, local collectors, small and medium scale abattoir’s buying price of goat was ETB 135 per kilogram of traders. As revealed in FGD most of study areas use exportable meat/carcass weight. This means nearly live bartering system and it depends on exchangeable good weight of ETB 66 per kilogram. The abattoirs selling price quality and the bargaining power of seller and buyer of meat/carcass weight to Dubai is 5.2 USD per kilogram determine the transaction. In the study area male goats and 5.3 USD per kilogram to Saudi Arabia. From key were sold or bought by weighing scale. But female goats informant interviews and market observation the average sold and bought by bargaining skills of buyers and sellers live body weight of goats supplied to market in the study area was 22 kilogram. At the time of this study, the price of

Value Chain Analysis of Goat in South Omo Zone, SNNPR, Ethiopia J. Agric. Econs. Rural. Dev. 911

goats per kg of live weight was ETB 45. The price sharply sources of information. In order to get market information, increased from ETB 43-45 in the last two months. about 31.9% and 43.1% of pastoralists in study area search for last week marketed friends and a neighbor in local boarde drinking places respectively. And approximately Market Information System 14.7% of respondents relied on previous weeks’ market Better information can improve pastoralists bargaining information or if available, the information which they get power, reduce search costs, reduces transportation costs from the nearby goat traders. The marketing behavior of and exit tax when they take back to home due to lower price producers varies from place to place. Though it is not offered, inaccessibility to market, low quality supplied and reliable, pastoralists also try to get information from village less demand. As provided in study result 59.6 % of or local collectors who are members of their community. pastoralists face difficulty in finding buyers when they Also the result showed 9.5% of respondents sold their goat wanted to sell their goats and 40.4 did not faced. As they with no information whereas 0.9% was get information from are located in the rural areas where access to the primary experts in their kebeles about the price. market information is difficult, most of them use informal

Figure 2: Sources of market information in the study area 50 40 30 20 10 precentage 0 neighbours friends & last week no experts relatives market infromation assessment

Traders get market information from market in the market study area influence the selling decision and supply of day and no any other known source of information for them goats to the market. Decision about when to sell goat is in the study area. Pastoralists do not have specific based on drought and demand for food grains which is the information on price, time, and quality of goats required by main driving force to pastoralists to sell their goat (figure 3). the market as a result goat producers’ supply to the market Among the main factors where pastoralists sell their goat or fail to meet market requirement. livestock were mainly the purchase of grains and other

Seasonal Supply of Goats foodstuffs during drought seasons, to pay for medical expenses for family, and vaccination and drug purchase, to Pastoralists regularly sell their goats in need of cash for buy honey for social ceremonies such as wedding. household problems, however, recurrent drought in the

Figure 3: Reasons pastoralists sell their goats in the study area

4.4% Maturity

34.4% Fear of drought

57.4% Market price

3.8% Food shortage, health & others problems

Value Chain Analysis of Goat in South Omo Zone, SNNPR, Ethiopia Asmera et al. 912

Despite the economic importance of goat rearing, its (roasted meat) and red meat mixed with spices and butter, marketing is a major challenge for most of the pastoralist and wotele (culturally processed). The butchers in Addis because they do not know when to sell, how much, for Ababa and Kemesse slaughter goats and sell either the whom to sell and etc. As discussion with pastoralists they roasted or raw meat for consumers. Goats from the study sometimes unable to sell or take back to home due to lower area are slaughtered at Modjo modern export abattoirs and price offered by buyers for their goats. On the opposite side, exported to foreign consumer pastoralists become reluctant to sell their goat during the . rainy seasons because they have no problem with fodder, Marketing Channels, Market Actors and their water and grazing land whereas there is very high demand from small and medium scale traders at Dimeka and Functions in the Chain Keyafer markets because of high demand at end markets. For instance, during the month April/May of the year there Market Channels of Goat in Benatsemay and Hamer is high export demands (Dubai and Saudi Arabia) because Woreda at the end of the months that there is a Ramadan or Muslims festivals ceremony. And also during the month of Marketing channels of goat in the study area starts from the May/September of the year there is high domestic demand farm gate and flow out through various paths to reach final because at the beginning of two months in Ethiopia there is consumers. To depict the distribution of marketing costs ceremony of Easter at May and New Year of Ethiopia at and margins, this study identified 12 possible marketing September. The price of goat varies as seasons like dry, channels for pastoralists as follows: rainy and festivals by averagely 2-3 ETB per kilogram. Marketing channels for domestic consumers Transportation and Road Access Channel I: producers > local hotels & restaurants > Pastoralists trek goats to market as household need arises. consumers The main means of transporting goats from farm gates to Channel II: producers > local collectors > local hotels & the bush/village or primary markets was trekking for restaurants > consumers pastoralists. In study area goats transport to a long distant Channel III: producers > consumers market places without resting, getting feed and water and Channel IV: producers > producers/pastoralists this cause, poor meat quality, high weight loss and even Channel V: producers > NGOs > producers/pastoralists sometimes mortality. Small and medium scale traders hire Channel VI: producers > local collectors > consumers Isuzu trucks to transport goats from Keyafer and Dimeka to Channel VII: producers > local collectors > small scale Addis Ababa and Modjo export abattoirs. traders > Addis Ababa & Kemesse (wollo) Channel VIII: producers > brokers > small scale traders > Goat Fattening Practices Addis Ababa & Kemesse (wollo) Channel IX: producers > small scale traders > Addis Ababa Pastoralists were aware of the external demand but they & Kemesse (wollo) don’t have concept of fluctuating external demand depending on seasons. The production system has not Marketing channels for exports abattoirs been yet transformed in to market oriented production system in both district. The pastoralists still supply goats as Channel X: producers > local collectors > medium scale need for purchase of food grain arises and household trader > Modjo export abattoirs health problem occurs. Producer groups and cooperatives Channel XI: producers > brokers > medium scale trader > are not well developed in the study areas that could supply Modjo export abattoirs goats in wholesale. Channel XII: producers > medium scale trader > Modjo export abattoirs Processing and Consumption Market actors and their functions in the chain In the study areas processing and consumption of goat meat is carried out by hotels and restaurants, and also by Marketing of goats in the study areas starts with the pastoralist households during cultural ceremonies such as collection of goats from production areas moving on to the cattle jumping and for dowry. Individual households and ‘end markets’. In the process, goats pass through different Hotels in Jinka, Keyafer and Dimeka process and consume market actors before they reach end-users. meat. Different dishes such as key wat (stews), tibs

Value Chain Analysis of Goat in South Omo Zone, SNNPR, Ethiopia J. Agric. Econs. Rural. Dev. 913

Figure 3: Value chain map of goat in Hamer and Benatsemay woreda

Pastoralists/agro pastoralist Brokers

Most of pastoralists sell goats either in the villages or on the Brokers are market agents that mediate buyers and sellers road to the market and in market places. Pastoralists in the in transaction. Brokering activities in livestock (goat) market study area usually buy goats for breeding purposes. They depends on the mode of transaction. In the study area buy goats in their farm gate by bartering. Moreover, their known markets are Keyafer and Dimeka and transaction of chosen sources of goats are pastoralists from known male yearling goats was weight based that price per live market locations such as Keyafer, Alduba and Kako for weight in kg of goat is known to everybody which is 45ETB Benatsemay district and Dimeka, Turmi and Alduba for per kg; their task is to channel more sellers to a buyer. In Hamer district since they want to make sure that whether such cases they do not influence the price of live weights of the goat they bought will adapt to their environment. goats for individual sellers. But it is up to the buyer to provide a certain amount of premium payment above the Local collectors weight-based price. As revealed in interview of buyers, most of time they pay ETB 1 per kg in addition to the These market agents in the study area are working calculated weight based payment to attract more sellers. independently or in commission for other traders. The commission for collectors working for other traders Small/medium scale collectors depends on getting a good price from producers in villages or remote goat markets. Thus, they collect goats from their Small scale traders supply hundreds of goats every week locality and bush or remote markets for supply usually to to Addis Ababa as well as to hotels in Keyafer, Dimeka and small/medium scale traders in Keyafer and Dimeka. They Jinka town. There are 3 small scale traders who purchase use their local knowledge and social relationships to collect goats from pastoralists, local collectors or brokers from goats from pastoralists in bush markets and resell them to Kako, Beneta, Alduba, Woito, Luka and Keyafer market and hotels and restaurants and household consumers in local supply to Addis Ababa. They have their own network of known markets places such as Keyafer or Dimeka market. collectors and operate using their own capital and They use their own money to collect and sell to any buyer, sometimes receive advance payments from buyers. getting a margin of up to ETB 100-200 per goat. Medium scale traders are those market actors that supply minimum of 150-200 goats per a week to Modjo modern

Value Chain Analysis of Goat in South Omo Zone, SNNPR, Ethiopia Asmera et al. 914

export abattoirs. About 3 medium scale traders who buy cotton fabric before transporting them to cargo planes. The goats from pastoralists or local collectors at Dimeka market abattoir exports chilled carcasses to the Saudi Arabia and on official market day Saturday and 3 medium scale traders Dubai. Studies by Denbela et al., (2018) in Bena-Tsemay in Keyafer collect goats from Kako, Beneta, Alduba, Woito, district at Goat Research Stations of JARC shown that the Luka and Keyafer on a weekly or biweekly basis and live /slaughter weight and hot carcass weight for yearling transport them directly to Modjo modern abattoirs using male Woyto-Guji goats was 17.4 and 7.93 kilogram. Saudi rented vehicles. Arabia and Dubai are the main demanders of goat meat from Modjo modern export abattoir. Modjo modern export Domestic/ Individual consumers abattoir export chilled goat carcass on their specific requirements in terms of the carcass weight. The Dubai These are individual goat market actors who buy market needs goat carcasses of 5.5–9 kg, which goats/meat for their own home consumption directly from necessitates slaughtering animals/goats of 14–22 kg in live producers or local collectors, small scale traders and weight. Saudi Arabia needs larger goat carcasses of 8–14 hotels. They buy live goats from markets such as Dimeka, kg, which means slaughtering goats of 18–30 kg in live Turmi, Kako, Alduba, Keyafer, and Jinka depending on weight. In general, although quality requirements vary, the where they live. They also buy raw meat from hotels on a goat export market generally requires animals/goats having kilogram basis in Jinka town. Individual consumers buy live the following characteristics: male, young (1–2 years) and goats to slaughter for religious festivals and special with a live weight of 14–30 kg. The export market prefers occasions. Although it varies with income of the household, non-castrated goat with lower proportions of fat; the they usually go for fattened female or male goats. Individual domestic market prefers castrated males or female animals consumers in pastoral areas usually buy from pastoralists. (Getachew et al., 2008). Export abattoir slaughters 2000 In the Dimeka, Keyafer and Jinka town, individual goats per day and exports chilled goat carcasses to the consumers buy from any seller for household consumption. Saudi Arabia and Dubai. The abattoir has also domestic outlets for their offal meat (Addis Ababa and surroundings Hotels/restaurants of Modjo town). And also they sold skin to the skin processing factory at Modjo town. As they revealed both Hotels and restaurants in the study area important actors in Dubai and Saudi Arabia markets demand of goat meat goat value chain that they process goat meat in to different throughout the year. But high demand of goat meat in Dubai dishes. Hotels and restaurants buy mainly infertile or is during Ramadan season (Muslim festivals) (Month of matured female goat with price range from ETB 600-800. April/May) whereas Saudi Arabia demands throughout the This is because of infertile or matured goats have a higher year. Low demand occurs in both (Dubai and Saudi Arabia) carcass yield and cheaper price than young male goat markets at month of September. which is expensive (ETB 2000-2500) and bought in price per kilogram. They commonly go for infertile/matured goats Distribution of cost and benefits among actors in because they are regarded as having a larger proportion of main market channels (along the goat value chain) meat (Legese et al., 2014) and are cheaper. While buying goats, they give serious consideration to body size and Marketing costs and margins were calculated for five out of condition. the selected twelve goat value chains. The calculation is based on the assumption that, in the first two channels Export abattoirs (channel I&II) producer’s supply infertile female goats to local hotels and restaurants because of the preference by Modjo modern export abattoir is the export abattoir located hotels and restaurants due to high carcass quality. in Modjo area and highly demand goat from south omo Moreover, production/purchase cost of the goats and price areas mainly Benatsemay and Hamer district because of are similar that buying or selling is by bargaining or eye ball high carcass quality. As discussion made with technical estimation. In the second three channels (channel X, XI & managers of Modjo modern export abattoir, South omo XII) the product goes to export abattoirs. An export abattoir goats have 50% exportable carcass of its live weight which needs the young male with good body condition. The means after slaughtering the quality exportable meat production cost of the goat and producers price are similar weight is half percentage of its live weight. Comparing throughout the three channels. However, the marketing south omo goats with goats from other areas, it has special costs and selling price for the three channels vary since the quality that others areas have 30% exportable carcass of product undergoes different processes in each of three its live weight which is 20% less than that of south omo channels. areas. Modjo modern export abattoir slaughters goats, removes the skins, chills the carcasses and wraps them in

Value Chain Analysis of Goat in South Omo Zone, SNNPR, Ethiopia J. Agric. Econs. Rural. Dev. 915

Table 2: Total cost of goat marketing for each actor identified in market channels. Actors Total cost/head (ETB) by each actor Producers 854 Local collectors 35 Medium scale traders 88.5 Hotels and restaurants 440 Modjo modern export abattoir 180 Source: own survey, 2019

In channel I goats are sold to local hotels and restaurants. producers’ share of the final product (goat) is 66%. I.e. goat This channel includes only producers and local producers obtain about 66% of the final price of the hotels/restaurants. As can be seen from Table 4, the processed goat meat sold by the hotels.

Table 3: Costs and margins of the actors involved in selling goat to local hotels & restaurants Margin analysis Pastoralists/producers Local hotels & restaurants Production or purchase cost 824 950 Marketing cost 30 440

Total cost 854 1390 Selling price 950 1450 Marketing margin - 500 Net margin - 60 Channel I Value added 96 60 Proportion of value added (%) 61.5% 38.5% Producer’s share of final price (%) 66%

In channel II goats are sold to hotels/restaurants by local actors like producers and local collectors. In this channel, collectors. This channel includes producers, local collectors the producers’ share of the final selling price is 57% (Table, and hotels/restaurants. The amount of value added by 5), which is lower than the share observed when producers hotels was higher when compared to value added by other directly sold goats/animals to local hotels/restaurants.

Table 4: Costs and margins of the actors involved in selling goat to local hotels & restaurants through local collectors Margin analysis Producer Local collectors Local hotels/restaurants Production or purchase cost 824 880 970 Marketing cost 30 35 440

Total cost 854 915 1410 Selling price 880 970 1550 Marketing margin - 90 580 Net margin - 55 140 Channel II Value added 26 55 140 Proportion of value added (%) 11.8% 24.9% 63.3% Producer’s share of final price (%) 57%

In channels (X, XI and XII) goats are sold to Modjo modern condition. Modjo modern Export abattoir’s buying price was export abattoirs. In the market channel X, goats ETB 135 per kilogram of exportable meat/carcass weight. slaughtered at export abattoirs, market actors are Modjo modern Export abattoir’s indicated that South omo producers, local collectors and medium scale traders goats have 50% exportable carcass of its live weight which (Table 6). In channel X, goat producers obtain about 52% means after slaughtering the quality exportable meat of the final price of the goat slaughtered at the export weight is half percentage of its live weight. The abattoirs abattoirs. Goat producers’ share of final price was even selling price of meat/carcass weight to Saudi Arabia is USD lowest when compared to goat slaughtered at local hotels. 5.3 per kilogram. From KII and market observation the This is mainly due to differences in the types of average live body weight of goats supplied to market in the goats/animals demanded by the two buyers. Local study area was 22 kilogram. Exchange Rate, 18, Apr 2019, hotels/restaurants buy matured and infertile female goat, 1 USD = ETB 28.73. while the export abattoir buys young male with good body

Value Chain Analysis of Goat in South Omo Zone, SNNPR, Ethiopia Asmera et al. 916

Table 5: Costs and margins of the actors involved in selling goat to export abattoirs Margin analysis producers Local Medium scale Modjo modern

collectors Traders export abattoirs Production or purchase cost 824 924 990 1485 Marketing cost 30 35 88.5 180 Total cost 854 959 1078.5 1665

Channel X Selling price 924 990 1485 1786 Marketing margin - 66 495 301 Net margin - 31 406.5 121 Value added 70 31 406.5 121 Proportion of value added (%) 11.13% 4.93% 64.67% 19.27% Producer’s share of final price (%) 52%

In channels XI goats are sold to Modjo modern export medium scale traders (Table 7). In this marketing channel, abattoirs. In this channel goats were slaughtered at export goat producers obtain about 53% of the final price of the abattoirs, major market actors are producers, brokers and goat slaughtered at the export abattoirs.

Table 6: Costs and margins of the actors involved in selling goat to export abattoirs Margin analysis Producers Brokers Medium scale Modjo modern Traders export abattoirs Production or purchase cost 824 946 990 1485 Marketing cost 30 - 88.5 180 Total cost 854 946 1078.5 1665 Selling price 946 990 1485 1786 Marketing margin - 44 495 301 Net margin - 44 406.5 121

Channel XI Value added 92 44 406.5 121 Proportion of value added (%) 13.86% 6.63% 61.27% 18.24% Producer’s share of final price (%) 53%

In channels XII goat are sold to Modjo modern export medium scale traders (Table 8). In this marketing channel, abattoirs. In this channel goats are slaughtered at export goat producers obtain about 55% of the final price of the abattoirs and major market actors are producers and goat slaughtered at the export abattoirs.

Table 7: Costs and margins of the actors involved in selling goat to export abattoirs

Margin analysis Producers Medium scale Modjo modern Traders export abattoirs Production or purchase cost 824 990 1485 Marketing cost 30 88.5 180

Channel XII Total cost 854 1078.5 1665 Selling price 990 1485 1786 Marketing margin - 495 301 Net margin - 406.5 121 Value added 136 406.5 121 Proportion of value added (%) 20.49% 62.27% 18.24% Producer’s share of final price (%) 55%

Opportunities and Constraints of Goat Production and cases, they are either excluded from selling and controlling Intervention Areas the income from their sales or, they jointly control the sales and income with their husbands. Moreover, during FGD Potential Challenges Pastoralist Women’s Face in they revealed that culturally women do not have control Goat Production and Marketing over the resources but do have access. This means, women may use milk, butter and get money but culturally In the study area pastoral women along with their husbands pastoral women’s cannot sell stocks (goat) for past engage in goat rearing, feeding and day to day decades due to cultural taboos. Inherited social practices, management and are also solely responsible for gender stereotypes and resistance to change hinder the maintaining hygiene and dung collection. But in most participation of pastoral women in goat marketing business.

Value Chain Analysis of Goat in South Omo Zone, SNNPR, Ethiopia J. Agric. Econs. Rural. Dev. 917

Furthermore, pastoralist women have low levels of CONCLUSION access to finance, low access to markets and market information, low skills and knowledge on market oriented The study district are endowed with huge goat resources goat production. in South omo zone with the highest share of about 35% Hamer and 17% Benatsemay of the total goat population in the zone. These areas are the major sources of goats Opportunities’ for Pastoralist’s Women in Goat for the central markets (Addis Ababa, Kemesse) and Production and Marketing export abattoirs (Modjo). However, the study areas were constrained by different factors of production and Better experience of production marketing. The major constraints were only rely on browse of bushes and trees, no additional feeds are Better experience of the pastoral women for the goat provided to goats in drought seasons, so goats taken to rearing in the study area enable them to easily adopt the market during dry seasons are not demand by buyer market oriented goat production and benefit from the and do not make attractive prices. Moreover, lack of product marketing business. As pointed out in FGD breed improvement practices like Boar goat introduction, pastoral women play a significant role in the production frequent drought and consequent feed shortage, high of goats by taking care of young kids by feeding and incidence of diseases and parasites and a very weak watering which help them simply engagement in goat input delivery system. Moreover, goat fattening is not production and marketing business. common in the study area that they follow traditional husbandry practices, with less support by extension Increasing high demand for south omo goats agent on fattening and they are unable to make use of the existing market opportunity. Lack of formal market Technical managers of Modjo modern export abattoirs information and seasonality of market demand and unit revealed that goats from South omo are highly of transactions are also common problems in the study demanded by them because of high exportable carcass area. Pastoralist women involvement in production and weight and quality than goats from other areas. As marketing is important as they play a great role in the discussion made with district experts, they identified that production process of goats in taking care of young kids there is high domestic demand. In the study area there is by feeding and watering. However, cultural taboos, also demand by individual consumers and beliefs, perceptions, and inherited social practices hotels/restaurants. This creates an opportunity for lowered the participation of pastoral women in goat pastoral women’s those involve within the goat marketing and culturally income sources like cattle/goat production and marketing business to sell more number are hold by their husbands. And also pastoralist women’s of goats at better prices at domestic markets and export are low access to markets, finance/credit services, abattoirs. market information, and no knowledge on market oriented goat production and marketing. Enabling Suitable agro-ecology and feed resources for goat producers to provide their goats in channel I, II and xii production could increase margin of producers and improve their livelihoods. The districts mainly depends on the natural grazing land which mainly includes a mixture of Acacia, Boswellia and RECOMMENDATIONS Commiphora woody species and short grasses type with varying density of woody vegetation. Study by Berhanu Based on the findings of this study, the following et al. (2017) the major feed sources for livestock/goat recommendations are made to improve the goat value was natural pastures from rangelands (pasture grasses, chain in the study area. legumes, fodder tree and shrubs) in Hamer and Bena- Tsemay district. Improve the goat breeding stock through:

Threats and weakness of goat production and Strengthening traditional breeding practices and marketing designing an appropriate goat breeding program by establishing close relationship with the community by As per group discussion made with pastoralist major supplying inputs needed. Introduce improved breed threats for goat production and marketing are predators (Boar) and train pastoralists on maintenance of breeding , drought and disease whereas weakness are little work bucks and the dangers of inbreeding. on breed improvement, no or weak feed collection and preservation for droughts seasons, low animal health input supply and poor livestock husbandry practice in the study.

Value Chain Analysis of Goat in South Omo Zone, SNNPR, Ethiopia Asmera et al. 918

Improve the supply of veterinary drugs and REFERENCES vaccination services through: Adane H; Girma A (2008). Economic Significance of Improve supply of drugs and vaccination support through Sheep and Goats. Ethiopian Sheep and Goat allocating sufficient dose of vaccines to district or Production Improvement Program .Chapter 2.1-5 kebeles. Providing regular vaccinations to prevent the p. outbreak of major diseases for which vaccines are Berhanu T., Jamroen T., Sayan T., Girma A., Asrat T., available identification of the different strains of disease Somkiert P. (2012). Purposes of keeping goats properly for effective vaccinations and treatments. breed preferences and selection criteria in Provide transportation facilities for animal health pastoral and agro-pastoral districts of South omo technicians at the health posts and clinics. Zone. Livestock Research for Rural Development, 24(12). Improve availability of feeds and the feeding Berhanu T., Girma A., Jameroen Th., Sayan T., practices through: Somkiert P. (2017). “Availability of Feed Resources for Goats in Pastoral and Agro Developing habit of collecting and preserving either the Pastoral Districts of South omo zone, Ethiopia. naturally grown feeds or forage to pastoralists which can “International Journal of Research- Granthaalayah, be used for drought season. Supporting forage during 5(3). drought months mainly from December to February CSA (2018). Federal democratic republic of Ethiopia because seasonality of feed is common problems that central statistical agency, agricultural sample leave of trees, shrubs and bushes fall on those months. survey 2017/18 Volume II, Report on livestock Introducing adaptable forages generated through and livestock characteristics, Addis Ababa. research, and by encouraging the establishment of new Denbela H., Adugna T., and Ajebu N. (2018). Effect of feed producers or suppliers through credit services. lablab and pigeon pea leaf meal supplementation Promote conservation of locally available feed resources on performance of goats fed a basal diet of haricot through the training of extension agents and pastoralists. bean haulms Getachew L., Haile Mariam T., Dawit A; Asfaw N. Improve goat production and marketing (2008). Live animal and meat export value chains for selected areas in Ethiopia: Constraints Change mind sets through training both men and and opportunities for enhancing meat exports, women on goat marketing business and gradually break discussion paper No 12, people livestock and the cultural taboos that traditionally goat marketing environment ILRI.s business are tasks of male and income from it is hold Gezahagn D (2019). Assessment on impact of live by their husbands. animal export on meat export performance in Design capacity building to enlarge women’s Ethiopia policy implication. Business and participation in marketing management studies Vol.5, no.3. Provide awareness creation and demonstrate improved Kocho T., Abebe G., Tegegne A., Gebremedhin B. goats housing through training and demonstration. (2011). Marketing value-chain of smallholder sheep Provide training for pastoralists and extension agents and goats in crop-livestock mixed farming on goat fattening and marketing in order to meet system of Alaba, Southern Ethiopia, Small demand requirements of buyers. Ruminant Research, and 96:101–105. Linking producers and buyers are essential because Legese G., Haile A., Duncan AJ., Dessie T., Gizaw S. producers do not know about the quality requirements (2014). Sheep and goat value chains in Ethiopia: A of the different buyers of goats in the market. synthesis of opportunities and constraints. Create awareness on effective management of market ILRI Project Report. Nairobi, Kenya: International information system and information flow in district level Livestock Research Institute. trade and industry department PHCC (2008). Summary and Statistical Report of the Organize pastoralist women’s/producers in group and 2007 Population and Housing Census, December enable them to trek their goats direct to Modjo modern 2008, Addis Ababa, Ethiopia. export abattoirs without any intervention of other market SOFEDB (2009). South omo zone statistical abstracts actors. 2009 (2001 E. C), Jinka, Ethiopia, pp10. Advice pastoralist women’s/producers to supply goats directly to the local hotels so as to benefit margin that actors in the market obtain.

Value Chain Analysis of Goat in South Omo Zone, SNNPR, Ethiopia J. Agric. Econs. Rural. Dev. 919

Accepted 1 November 2020

Citation: Asmera A., Mekete G., Dawit D., Kutoya K. (2020). Value Chain Analysis of Goat in South Omo Zone, SNNPR, Ethiopia. Journal of Agricultural Economics and Rural Development. 7(1): 907-919.

Copyright: © 2021: Asmera et al. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are cited.

Value Chain Analysis of Goat in South Omo Zone, SNNPR, Ethiopia