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Value Chain and Market Assessment STRENGTHEN PSNP4 INSTITUTIONS AND RESILIENCE VALUE CHAIN AND MARKET ASSESSMENT Strengthen PSNP 4 Institutions and Resilience Value Chain and Market Assessment Original Submission: June21, 2018; Revised: January 15, 2019; Revised on Sep 23/2019 Value Chain And Market Assessment Report for the Strengthen PSNP4 Institutions and Resilience Development Food Security Activity June 2018 Written by Nimona Birhanu and Henry Swira of CARE and Dan Norell of World Vision i Strengthen PSNP 4 Institutions and Resilience Value Chain and Market Assessment Original Submission: June21, 2018; Revised: January 15, 2019; Revised on Sep 23/2019 Acknowledgements The authors would like to thank all farmers, private sector actors, and government staff who took part in the data collection process for value chain commodity selection and anlysis. Finally, this Value Chain and Market Assessment was possible through the generous support of the United States Agency for International Development and the American people. ii Strengthen PSNP 4 Institutions and Resilience Value Chain and Market Assessment Original Submission: June21, 2018; Revised: January 15, 2019; Revised on Sep 23/2019 Table of Contents Acknowledgements .......................................................................................................................................... ii Acronyms .......................................................................................................................................................... vi Executive Summary ................................................................................................................................... 1 1. Introduction ................................................................................................................................................... 5 1.1. Background of the Project .................................................................................................................. 5 1.2. Brief Description of Each SPIR Woreda .......................................................................................... 6 1.3. Objective of the Study ...................................................................................................................... 10 1.4. Methodology and Scope of the Study ........................................................................................... 10 1.5. Value Chain and Nonfarm/Off-farm Commodity Selection Process ..................................... 13 1.6 Woreda-Level Value Chain Commodity and Off-Farm/Nonfarm IGA Selections ............... 14 2. Poultry Value Chain ................................................................................................................................. 17 2.1 Overview of Poultry Production in Ethiopia ................................................................................ 17 2.2 Importance of Poultry Production in SPIR Woredas ................................................................ 18 2.3. Poultry Value Chain in SPIR Implementation Woreda .............................................................. 19 2.3.1 Functions and Actors ................................................................................................................. 19 2.3.2 Relationships Between Actors ................................................................................................. 22 2.3.3 .......................................................................................................................................................... 22 Value Chain Map and Market Channels North Wollo and Waghmara Zone Woredas ....... 22 2.3.4 .......................................................................................................................................................... 32 Value Chain Map and Market Channels East and West Hararge Woredas ............................. 32 2.3.5 Value Chain Map and Market Channels SNNPR Pilot Woredas (Wondo-Genet and Malga) ....................................................................................................................................................... 37 2.4 Business Development Environments and Support Service ...................................................... 41 2.5. Critical Success Factors .................................................................................................................... 42 3. Analysis of Value Chain Commodities Selected ................................................................................. 44 3.1. Overview of Sheep and Goat Production .................................................................................... 44 3.1.1 Importance of Livestock Production, Dynamics & Trends ................................................ 44 3.1.2 Importance of Livestock Rearing & Fattening in SPIR Woredas ...................................... 46 3.2. Shoat Value Chain in North Wollo and Waghimra Woredas of Amhara ............................ 46 3.2.1 Functions and Actors ................................................................................................................ 46 3.2.2 Relationships Between Actors ............................................................................................... 49 3.2.3 Market channels and value chain map ..................................................................................... 49 3.2.4 Overlays: Number of Actors, Volumes and Transaction Cost ....................................... 51 3.2.5 Analysis of Opportunities, Constraints Market Based Solutions and Proposed SPIR Activities at Farmers Level .................................................................................................................. 56 3.2.6 Analysis of Opportunities, Constraints, Market Based Solutions and Proposed SPIR Activities for Input Suppliers, Collectors, Traders, and Wholesaler ......................................... 58 3.3.Shoat Value Chain in East and West Hararge Woredas of Oromia ....................................... 59 3.3.1 Functions and Actors ................................................................................................................ 59 3.3.2 Relationships Between Actors ................................................................................................. 61 3.3.3 Value Chain Map and Market Channels ................................................................................. 61 iii Strengthen PSNP 4 Institutions and Resilience Value Chain and Market Assessment Original Submission: June21, 2018; Revised: January 15, 2019; Revised on Sep 23/2019 3.3.4 Overlays: Number of Actors, Volumes and Transaction Cost ......................................... 63 3.3.5 Analysis of opportunities, constraints, market-based solutions, and proposed SPIR activities at farmers level ..................................................................................................................... 67 3.3.6 Analysis of Opportunities, Constraints, Market Based Solutions and Proposed SPIR Activities for Input Suppliers, Collectors, Traders, and Wholesaler ......................................... 69 3.4. Shoat Value Chain Analysis in SNNPR, Malga ............................................................................. 70 3.4.1 Functions and Actors ............................................................................................................... 70 3.4.2 Relationships Between Actors ................................................................................................ 72 3.4.3 Value Chain Map and Market Channels ................................................................................ 73 3.4.4 Overlays: Number of Actors, Volumes and Transaction Cost ......................................... 74 3.4.5 Analysis of Opportunities, Constraints Market Based Solutions and Proposed SPIR Activities at Farmers Level .................................................................................................................. 77 3.4.6 Analysis of Opportunities, Constraints, Market Based Solutions and Proposed SPIR Activities for Input Suppliers, Collectors, Traders, and Wholesalers ....................................... 78 3.5. Business Development Environment and Support Service ...................................................... 79 3.6. Critical success factors ..................................................................................................................... 81 4. Honey Value Chain .................................................................................................................................. 82 4.1. Overview of Honey Production in Ethiopia ................................................................................ 82 4.2. Honey Value Chain in North Wollo and Waghimra Woredas of Amhara .......................... 82 4.2.1 Functions and Actors ................................................................................................................. 82 4.2.2 Relationships Between Actors ................................................................................................. 85 4.2.3 Value Chain Map and Market Channels ................................................................................. 85 C) Opportunities, Constraints, Possible Solutions, and DFSA Proposed Intervention Activities for Honey Value Chain ............................................................................................................................. 93 5. Oxen Fattening Value Chain ..................................................................................................................
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