By: - Chali Keneni

ID. No. ___ DE/Grd/BA/27/08/4__ University: - Lead star College of Management & Leadership Program: -Masters of Business Administration (MBA) Concentration area: - Supply chain management (SCM) Major Advisor: - ___Hundee_kebede______(MBA July, 2018 Addis Ababa, Ethiopia

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Abbreviations and Acronyms

GFP Goat farm Production DW Doba woreda BoARD Bureau of Agriculture and Rural Development GFPVC Goat farm production value chain LGLA Livestock grazing land area CSA Central Statistical Agency ELFD Ethiopian livestock & fisher development Minister GDP Gross Domestic Product LDCs Least Developed Countries CRGE Climate Resilience Green Economic Strategies SCP Structure-Conduct-Performance ISSO International safety system organization VC Value Chain SCM Supply chain management TGMM Total gross marketing margin ETB Ethiopian birr

Abstracts

In this research briefly I would try to describe the Goat farming business life starting from initial point up to the end duration time as bellows. As we know Ethiopia is the first level country by livestock resource potential as Africa continent as the recent data collected has shown to us. Among those livestock resource Goat farming is one. In this research I have been selected were the Goat farm potential availability area found around Eastern part Ethiopia of West Haraghe zone, Doba District. In this area most community group live in rural area is spend their time & resource on this production; but irreversibly when you compare the benefit they get from it is very low due to less proper management, lack of technological input in them, low amount of market availability, less input to improve production & productivity, low infrastructure availability, lack of integration commodity value chain system on it & etc. Therefore, depending on this fact to overcome this problem in this research I have been try to use value chain & supply chain approach to maximize Goat farm productivity & profitable maximization as we can use different mechanism. As the first point I would try to describe as we can use the modern Goat rearing method & add new technological innovation to improve physical structure of Goat output production based on as customer needs design and supply for national & international market demands. Secondly, in value chain approach by adding some costs on Goat farming practice & production to increase production & productivity in order to get better profit from it based on the comments we get from end consumers. As the third point to improve production speed delivery & to reach were our costumer found in short period of time by satisfactorily way. Fourthly, calculate cost & profit analysis in the whole life of Goat business time duration by preparing business plan of Goat rearing starting from kid stage up to fattening stage and also starting from kid stage up to end production output. In those four points I could try distinguish the way you can practice by effective and efficient way. The other point is the way we can increase Goat market penetration & create flat structure between producer (local farmers) & end consumer by market integration approach. To assure this things first of all give some training for local farmers (producers),make comfortable condition as whole seller closely worked with local famers (producers), as Goat meat processor company closely worked with local farmers(producers) make diplomatic work and also sustain the condition as much as possible as local farmers(producer) worked up to end consumer(retailers). In this point also we discuss the production outflow channel from raw material up to end production by supply chain approach (producer------local trade-----whole seller(company processor)------retailer------end consumer) and if any comments from end consumer regarding on production quality & quantity to back producer; use by value chain approach & improve as customer needs. Additionally, to improve speed delivery time out flow channel of production, financial resource & information & technology flow in both direction. Generally, In this research I could concluded results of value chain analysis indicate that Goat farming production (GFP) market participation decision is positively and significantly to improve rural community livelihood & food security by small scale house holding. As well as increase market absorption, market linkage & integration on this product and economically to empower local farmers spend on this investment & increase livestock market contribution in country GDP (Gross national product) by great percent. And also promoting & initiative the Goat farm

3 production investment role & able to recognize cost & profit we can get from this business opportunity.

Acknowledgement First of all my thanks go to my God for his help me in all direction as I could do this research award me by excellent mind & consolidate me by his sprit as I will be successful person. To the next I would try to gratitude my mother Buruse Dinagde she stand with me by moral, advising & create some aspiration in me as I attend my MBA (master of Business Administration) education and work on this research for she didn’t in life now. Secondly, I would like to appreciate Doba District livestock & fisher development office, Doba District Business & market development office, Doba woreda Administration office and Agricultural & natural resource to facilitate me as I have been done this research and also some experts to help me on distributing questioners & collecting primarily data from rural area of at house hold level by give great scarification with me. As well as on collecting secondary data & give some information for me I would like to thanks the facilitating & assisting Government office of like, West Hararghe Business & market development office, West Hararghe livestock & fisher development office, West Hararghe Administration office, West Hararghe Agriculture & natural resource office.

To the next I would like to Appreciate Modjo shoat meat Abattoir & food processor company for who help me by give some information & secondary data on the issue of Goat meat processing, international market accessibility for goat meat, how can you processing goat meat & other output products we can get from goat by adding some cost & technology and also on the Goat meat processing what challenges are there & food safety quality by ISSO criteria.

Finally, I would like to thanks my research adviser Mr. Hunde Kebede to help me by giving some guides lines on this work, by correcting me, rectify, adjusting and give some orientation & academic advise for me as I will be greatly successful on this research work.

Table of content Page I, Introduction………………………………….…………………………….………………….………….6 1.1 Back ground.……………………………....………………………………………….………………………………….…..6 1.2 Statement of problem…………………………………………………………..………………………………..….……6 1.3 Objective………………………………………………………………….………………..……………………………..……..11 1.3.1 General objective……………………………………………….……………….…………………………….….…..11 1.3.2 Specific objective………………………………………………………………….…………………………….………11 1.4 Significance of study……………………………………………..…….……………………………………………………12 1.5 Description of study area……………………………………………..……………………………………………………12 1.6 Scope of the study…………………………………………………………..………………………………………………..13 II, literature Review…………………………………………………….……………………………………14 2.1 Concept and definition…………………………………………………………..…………………………………….…14 2.2 Approach study agricultural livestock marketing…………………………..………………………………..…16 2.2.1 Functional approach……………………………………………………………………………………………………..…16 2.2.2 Institutional approach……………………………………………………………………………………………………..16 2.2.3 Commodity approach………………………………………………………………………………………………………17 2.3 Characteristics of Goat farming production and its supply chain marketing system……………..17 2.4. Small ruminant animals Marketing Constraints Facing Smallholder Farmers……………………….20 2.5 For basic Supply chain approach sustainable condition necessity…………………………….21

2.6 Conceptual and Methodological Framework…………………………………………………………………………23 III. Research Design and Methodologies………………………………………..24

3.1 Type and Sources of data …………………………………………………………………….24 3.2 Study Population and sampling ……………………………………………………………...25 3.3 Method of data collection ……………………………………………………………………26 3.4 Method of data analysis ……………………………………………………………………...28 IV, Result & Discussion…………………………………………………………………………………….30

4.1. Demographic Characteristics of the Sample Households …………………………………………………………30 4.2 Improved new method of technological innovation input are needed to increase production & productivity of Goat farm production (GFP) by efficient way (by less input & great output)…………………………………………………………………………………………………………………………………...35

4.3 Increase commodity value chain of Goat farm production (GFP) by improving/ processing the primary stage of this product can supply at national & international market level…………………………………………………………………………………………………………………………………………38 4.4. Increase & enhance sustainable overflow market linkage & reliable supplier & demand for goat production in sustainable continuous ways……………………………………………………………..………44 4.5. To analyze the inflows generated (revenue) & net profit cash flow (business plan) of the whole business life of Goat farm production up to end consumer………………………………………….52

V, Conclusion & Recommendation…………………..……………………………………………60

VI, Reference…………………………………………………………………………………………………..64

INTRODUCTION

1.1 Background of the Study

The value chain describes the full range of activities that firms and workers do to bring a product from its conception to its end use and beyond. This includes activities such as design, production, marketing, distribution and support to the final consumer. The activities that comprise a value chain can be contained within a single firm or divided among different firms. Value chain activities can produce goods or services, and can be contained within a single geographical location or spread over wider areas.

Supply chains and value chains have clear definitions in business literature and operational thinking. Where a supply chain typically refers to the chain of suppliers inputting to a final product, value chain also encompasses thinking about the value created by the chain, particularly for end-use customers. In reflecting on how sustainability is incorporated into conventional supply chains, we need to consider the wider context of the value of that activity — to the suppliers themselves, but also to the end-use customer and a range of other stakeholders, including communities and governments. This sits in the overlapping zone between supply chain and value chain — it draws from both concepts and hopefully also adds new dimension that draw them closer together.

Livestock value chain systems represent a potential pathway out of poverty for many smallholders in the developing world. The majority of the world’s rural poor, and a significant proportion of the urban poor, keep livestock and use them in a variety of ways that extend far beyond income generation (Randolph et al., 2007). In many cases, livestock are a central component of smallholder risk management strategies (Bailey et al., 1999). Moreover, livestock value chain systems are characterized by long marketing chains featuring great distances, numerous phases of weight gain and feeding regimes, many levels of traders and transactions, a multitude of steps and stages of processing, and a variety of employment-creating services and inputs. On the consumer side, the delivery of livestock products through informal markets tends to serve poor consumers, creating an even tighter focus on the poor. These linkages (micro- macro and backward and forward), primarily amongst the poor, create multiplier effects for pro- poor development interventions (Pica-Ciamarra, 2005). A further attractive feature of livestock vale chain systems & production in development is the presence of steps and-stairs of livelihood

7 generation among species (e.g. from poultry to goats to dairy cattle) that are available even to the landless, to women, and to other disadvantaged groups. Although livestock systems contribute significantly to the development process, an important policy challenge is methodologies that evaluate the performance of alternative interventions in a smallholder livestock system. Contemporary value chain analysis methods provide us with the tools to characterize qualitatively the interactions and linkages found in livestock systems. However, most analyses stop short of ranking and evaluating the impact of alternative policy options. We strongly argue that the multi-functionality, complexity, and development–relevance of the global agricultural and livestock system necessitates an extension of value chain analysis from the diagnostic to the prescriptive.

As we know Ethiopia have the first level country by livestock resource potential as Africa continent depending on the recent data collected has shown to us. Most community group live in rural area is spend their time & resource on this production; but irreversibly when you compare the benefit they get from it is very low due to less proper management, lack of technological input in them, low amount of market availability, less input to improve production & productivity, low infrastructure availability, lack of integration commodity value chain system on it & etc. And the other issue is around 80% of population live in rural area their livelihood is based on agriculture production (livestock production & crop production). When you say livestock production it includes all domestic animals (cattle, oxen, poultry, & small ruminant animals, and also transporting animals), pig, beef and Apiculture. Depending on the above fact, how can we use those all resource by sustainable way and in the way of increase utility value of production & productivity through efficient & effective way. In this my research topic I have been study on how to maximize goat farm production and profitability through commodity value chain of it.

In the history of human beings the goat was probably the first animal to be domesticated around 9000-7000 B.C. This long association between goat and human indicates the variety of functions the goat can provide. The ‘Small ruminant of goat farming value chains activity as platforms for reducing poverty and increasing food security in some part of developing countries areas than other animals in order to increase the community livelihood in simple way of animal raring and enhance to increase incomes of farmer and food security in a sustainable manner by enhancing pro-poor small ruminant value chains in our country of Ethiopia. The other reason behind is its reach for purposive goal (fatten & reproductive) in short period of time & easily can manage by low cost. Working with national and regional partners, the Livestock and on small ruminant animals Value chains for the Ethiopian Smallholders project has designed sustainable value chain interventions to promote agriculture as a business for both livestock market increment and increase production utility value of them. The goal of these activities is to promote market- oriented agriculture livestock through increasing access to input/service supply, new technological innovation and market opportunities for all value chain actors by accelerating efficiency and competitiveness in the business sector.

The most common challenges face in Goat farm production to create commodity value chain are lack information by smallholder’s farmers which can supply this product for a demand & a second supplier who can take from them is not smooth relationship between them regarding on reliability. In the way to available of improved input/service good quality product supply and processing/marketing businesses, limited financial access to promote goat farm production as a business, lack of new technological innovation awareness to improve the product we get from goat farm and little interest from the private sector in doing business in the agriculture livestock sector of goat farming production value chain. Additionally, in this agribusiness activity there is no continues improvement on and a lack of empirical cost/benefit data to enable business plan has affected the cash flow of community-owned businesses.

Small ruminant animals goat farm in rural of Eastern part of Ethiopia have great role in socioeconomic and livelihood of the local community. In fact in past many years ago they are used for different purposive goals like to buy it into local market to earn money from this farming activity, use goat manure as for fertilizer purpose, use goat skin to sell in local market and Goat meat on holiday for feeding purposes. Those all thing are the benefit we get from it. The other thing is, in some Ethiopian restaurant & hotels have use goat meat for food cooking purposes by different styles and this goat meat have are very delicious and very comfortable for human health than other animals meat due to have low content of cholesterol. Because of this reason Goat meat have high potential market accessibility at national & international market. Therefore, in this my research to study how we can increase small-ruminant animals of goat farm production & productivity resource found in our area by efficient & effective way of in order to get maximum profitable from it in simple method way, in put some new technological innovation on goat meat supply for demand, preparing business plan for goat farm production up to the end consumer by inter-linkage way. As crucial point, to get maximum value from this production in the first thing is work on how to increase demand/ customer and second supplier where the customer are there by reliable way to make continuous smooth relationship among them. As the second main point to get maximum profit from this production is increase some technological input on this production or by processing the primary product by adding some cost by make comfortable/improve physical structure of this production supply for our customers.

In East Ethiopia West Hararghe & East Hararghe Zone of Oromia regional state is mostly dominant by Goat farm production (GFP) and also related this part of agro-ecological area some part of Ethio-Somale& Afar regional states areas are also dominated by this resource. As West Hararghe Zone of Doba woreda have high potential Goat farm production than other woredas as the data I got from West Hararghe Livestock & fisher office show it. Therefore, in this research we can conclude & give some direction for the challenge face to maximize goat farm product & productivity in simple method way as Doba woreda, input some new technology innovation (NTI) on goat meat production in the way of to increase the value chain approach as to meet customer needs/interests, preparing business plan on goat farm production & meat to calculate the cost- benefit analysis of it to get maximum net profit from this business in a short period of time.

1.2 Statement of problem It is common to see imperfect markets & value chain improvement in countries mainly depending on the primary agricultural commodities. The problem is severe for countries like Ethiopia that obtain a big share of their Gross domestic product (GDP), employment opportunity, etc… from a single industry. Diversifying the agricultural products and its market base towards on livestock production in modern farming system & increase their market availability & integration could the potential of income we can and reduce fluctuations. Depending on this fact, in Eastern Ethiopia part, especially eastern Oromia has a comparative advantage of producing goat farm production due to its sustainable agro-ecological condition of like Acacia abyssina species serve as for grazing & we can use rearing it on small plot of land, high domestic market, and export markets. In East Ethiopia there is market access and potential resource of to supply for our customer production like Goat meat production, Goat skin to Djibouti, Hargesa, Wuchale, Bosaso and domestic markets in Harar, Dire Dawa, Jijiga, Adama, Modjo, Addis Ababa & etc. Despite this potential resource, the farmers in the area rarely utilize these resource to use this opportunity & supply as customers it needs to improve their livelihoods. The smallholder producers are price takers since they have little participation in the value chain and imperfection of the marketing integration system with demand/customer. As a result, smallholder farmers have repeatedly faced risk of unexpected fall in goat farm product prices & get less profit from it. It is well known that different household attributes put households under different production and marketing potentials. The market performance and the challenges of the market that households face might influence the households/ farmers’ participation decision and the extent of participation, how they can grow goat for meat & reproductive purpose and the time of GFP reach for purposive goal & reproductive. This could be due to the fact that production and marketing decisions of households are two sides of a coin. The two decisions go hand in hand as farmers produce how/what type Goat farm product (GFP) & fatten it for selling purpose to earn preferable profit from it in order to get good incentive and they could sell at an available market (local/national/international) by adding some technological improvement. Knowing the interaction patterns between the two decisions helps to understand what GFP is can sold at which market and whether the intention of selling at a particular outlet increases or decreases the cost of management needed for them.

Imperfections in markets and asymmetric market price information hinder to add value chain of the potential gain that could have been attained under the existence of markets with complete information. In this regard, marketing Goat farm production (GFP) at rural area is an interesting process that has not been investigated much. Both buyers and sellers usually do not have equal market information on the Goat prices at the central market. Under such circumstances, farm households selling Goat fatten (GF) at rural area deal with the trade-off between selling their Goat at higher possible prices and avoiding the risk of losing product quality if the transaction fails by holding on to higher prices. An interesting issue in this regard is what factors determine the farmers to participate in the Goat fatten market and how maximize the potential profit them.

As efficient, integrated, and responsive market mechanism is of critical importance for optimal area of resources in agriculture and in stimulating farmers to increase their output (Andargachew, 1990). A good marketing system is not limited to stimulation of consumption, but it also increases production by seeking additional output using technological innovation of by processing the raw material. However, there is a critical problem that stands in the course of formulating appropriate policies and procedures for the purpose of increasing marketing efficiency and value chain of livestock in our country is there some cultural aspect of local community cannot accepted by business ethics and also there is change improvement regarding on this point. This has to do with lack of technological input innovation, lack reliable & sustainable supply of this resource, flexibility & fixation capacity needs of demand pertinent marketing information and other marketing facilities, like storage, transportation, etc.

Goat farm production husbandry have the steps of at kidding stage, weaning & mature stage produced by the majority of farmers in West Hararge especially in Doba district. And also you can describe the goat husbandry by tooth age system when you growth it for meat & reproductive purposes. Depending on this when less than one(1) year milk tooth stage, at one year two tooth stage, at two year four tooth stage, 3-4year stage six tooth, 4-5 year full tooth stage, at adult stage front tooth worn out. As Doba woreda Goat fatten is mostly practiced in both urban & rural area and mostly accounted for great percent of this product is supply for local market of the area by low price. As our country about 70% of the Goat farm husbandry activity is mostly occur in West & East Hararghe Zones include rift valley area of Ethio-Somolle & Afar regional states work on this

GFP activity for their daily livelihood. The supply of this production from those all areas is seasonally increase and decrease; for example as Doba woreda in April, July, August & September there is high potential of production availability at local market area & supply of this resource for demand/customer inversely in November, February & March there is low potential of production availability at local market & supply for a demand. However to bridge the gap between demand & supply and ensure equal sustainable supply production throughout a year, we have to increase production potential by adding some cost & technological input; as well as increase market availability & integration with other areas. This study has the purpose of investigating the Goat farm production(GFP) marketing challenges and factors affecting Goat fatten supply to the market, the market integration between the secondary and reference market in Doba district, adding some values & cost to get good profit, some technological input on GFP(goat fatten production) as customer needs by value-chain approach, improve delivery time speed of this product and reducing the information gap on the subject and by contributing to work better understanding on improved strategies for reorienting marketing system for the benefit of small farmer development and traders.

1.3 Objective of study 1.3.1 General Objective

To maximize goat farm production & productivity by efficient way and get maximum profitability from it by adding some cost & technological input in order to improve the economy & livelihood of local community live in a rural area of Doba Woreda. 1.3.2 Specific Objective

1. Assess the new method of technological innovation input are needed to increase production & productivity of Goat farm production (GFP) by efficient way (by less input & great output). 2. How can we increase commodity value chain of Goat farm product (GFP) by improving/ processing the primary stage of this product can supply at national & international market level. 3. How can we increase sustainable overflow market linkage & reliable supplier & demand for this production in continuous ways? 4. To analyze the inflows generated (revenue) & net profit cash flow (business plan) of the whole business life of Goat farm production up to end consumer.

1.4 Significance of study The primary significance of the study is to all actors in improve of physical structure improvement of our product, preferable value adjusting and improve speed delivery time for our customer/ demand by creating marketing integration system. Analysis of the whole system and identifying clearly the challenges will benefit policy makers and implementers in indicating the area of advantage for what should be done to improve the marketing availability goat farm production & profit maximization. Make sure the feed source of all their life & cost amount analysis to calculate the right amount of net profit we can GFP. Due to shortage of budget, and logistics, the researcher couldn’t cover all Goat farm production (GFP) producing production areas (Pas) and goat markets found in the study areas. And also due to lack of secondary data on all sample markets the study was unable to evaluate the market integration among all markets.

1.5 Description of the Study Area

This study is going on in Eastern Ethiopia in major area were Goat farm Production are there in Woreda of (namely Doba Woreda, West Hararghe Zone of Oromia Regional State) which are known by the production of small ruminant livestock production Goat farming production. I would like to description the back ground of Woreda as given below. Doba woreda is one of the sixteen Woredas found in West Hararghe Zone of Oromia Regional State, Ethiopia. The Woreda is composed of 41 rural kebeles and 1 urban kebele. Doba Woreda is located about 382 kms East of far from Addis Ababa the capital city of the country and about 52kms north East of far from Ciro town which is the capital town of West Hararghe Zone of Oromia Region. Doba Woreda is strategically located along east direction boundary share with East Harerghe Zone, along north direction share boundary with Ethio-Somale(ES) regional state, along south direction share boundary with Tulo woreda and also along west direction share boundary with Ciro Woreda and Mieso woreda. In addition, to this Dobaworeda(DW) is_189kmkm far from Harari town along East direction and _193km far from Dire Dawa on along

East direction. The main town of Doba woreda is 10km far from the main road asphalt go to Harari to Addis Ababa due to this reason proximity access to potential markets in the area is low. The Woreda had total population of about 179,557 of which 91,574 were females & 87,983 are males in (CSA, 2018). About 45.1%, 53.0% and 1.9% of the total population were young, economically active and old age, respectively. Average family sizes for the Woreda was 4.8 persons per household. Number of house hold (HH) of the woreda are about 37,408. The crude population density of the Woreda is estimated as 517 persons per km2.

The agro-ecological zones classification of Doba woreda (DW) is 3.8% area coverage is Dega, 41.8% of the area coverage is Woyna Dega & 54.6%of the area coverage is Kola. The climatic condition of the Woreda’s receives mean annual rainfall of between 600-900 mm, which is bimodal and erratic in distribution. The main rainy season in the Woreda is from April to end May and from July to end of August. The economy of the Woreda is dominated by traditional cash crop farming mixed with livestock husbandry. The major crops produced in the Woreda include sorghum, maize, haricot bean, vegetables (potato, cabbage & beetroot), chat, groundnut, coffee and sweet potato.

1.6 Scope of study Attempting to analyze the entire Goat farm production value chain and markets are an impossible action given the limited resources and human skill. Thus, the research was narrowed down to concentrate on the production source area of West Haraghe Zone, Doba woreda and major receivers to Adama, Modjo town, Addis Ababa city along west direction and also along East direction Dire dawa, Wucale, Harar, Jigjiga & Djibuti. The types of Goat farm production output product for their increasing value chain & coverage and the marketing problem they used to face.

Moreover, on goat production farming system & strategies I deal on how we can get good quality meat goat in the short period of time by adding some technological input & cost for improving the production quality & quantity, the delivery time speed & get more profit on the by adding the demand capacity on this production.

At different market levels, determinants of marketed supply, price discovery and bargaining characteristics of producers, buying and selling strategies, and traders’ behavior in the marketing process were seen.

2, literature Review In this chapter, the basic concepts of supply chain, value chain, marketing, agricultural marketing, marketable & market surplus approaches to the study of agricultural livestock marketing, Goat farm production, Goat meat characteristics and its business plan, structure-conduct- performance, market integration, measures of market concentration and integration and analysis of factors affecting market supply are discussed.

2.1 Concept and Definition

Value chain: - is the way to adjust physical structure of product improvement to get the right benefit from them and also to the connection between product supplier (producer) and demand in simple & sustainable way to satisfy customer needs. And also by adding some technological input on raw material production by processing it in the way of customer needs and improve speed delivering time at demand needs and adding some cost. In this case the main point is to increase three major thing; as the first to improve Production size, shape, quality, quantity, process by input some technological advance. The second point is to improve the delivering time speed for the demand/customer the time of when customer needs and at where our customer are needs. The third point is value adjusting for our customer/demand by appropriate way of to get some preferable income from them & keep what customer they can get from them. Supply chain: - is basically a group of independent organizations connected together through the products and services that they separately and/or jointly add value on in order to deliver them to the end consumer. It is very much an extended concept of an organization, which adds value to its products or services and delivers them to its customers. But what is the benefit of understanding the value adding from the supply chain perspective? Why managing supply chain is becoming necessary and important to today’s business success? These are some of the fundamental questions that must be first addressed before discussing the “how to” questions. Over the last three decades, the concept and theory of business management have undergone profound changes and development. Many old ways of doing business have been challenged and many new ideas and approaches have been created, among them are business process re- engineering, strategic management, lean thinking, agile manufacturing, balanced scorecard, blue ocean strategy, ... just to name a few. Supply chain management is undoubtedly one of those

15 new and well grown management approaches emerged and rapidly developed across all industries around the world. Market: The word “market” has many connotations. Bain and Peter (1988), define “markets” as a single arrangement in which one thing is exchanged for another. A market is also thought of as a meeting point of buyers and sellers, a place where sellers and buyers meet and exchange takes place, an area for which there is a demand for goods an area for which price determining forces (demand and supply) operates. For McNair and Hansen (1956), “market is another name for demand”. Others define market as a system or an atmosphere or a mechanism that facilitate price fixation and thereby exchange of goods and services. Agricultural Marketing: It is defined as agriculturally oriented marketing. It embraces all operations and institutions involved in moving farm products from farm to consumers Pritchard (1969). It covers all the activities associated with the agricultural production and food, feed, and fiber assembly, processing, and distribution to final consumers, including analysis of consumers’ needs, motivations, and purchasing and consumption behavior (Branson and Norvell, 1983). It is both a physical improvement and distribution for customer on timely and also an economic bridge designed to facilitate the movement and exchange of commodities from farm to fork. Food marketing (of branded foods) tends to be inter-disciplinary, combining psychology and sociology with economics, whereas agricultural marketing (of unbranded products) is more mono disciplinary, using economics almost exhaustively (Kohls and Uhl, 1985). Marketable and marketed surplus: Marketable surplus is the quantity of produce left out after meeting farmers‟ consumption and utilization requirements for kind payments and other obligations (gifts, donation, charity, etc…). Marketed surplus shows quantity actually sold after accounting for losses and retention by farmers, if any and adding previous stock left out for sales. Thus, marketed surplus may be equal to marketable surplus, it may be less if the entire marketable surplus is not sold out and farmers retain some stock and if losses are incurred at the farm or during transit (Thakur et al., 1997). The importance of marketed and marketable surplus has greatly increased owing to recent changes in agricultural technology as well as social pattern. In order to maintain balance between demand for and supply of agricultural commodities with rapid increase in demand, accurate knowledge on marketed/marketable surplus is essential in the process of proper planning for procurement, distribution, export and import of agricultural products (Malik et al., 1993).

2.2. Approaches to the Study of Agricultural livestock marketing. Different circumstances involved in the demand and supply of agricultural products, and the unique product characteristics, require a different approach for analyzing agricultural marketing problems (Johan, 1988). The major and most commonly used approaches are functional, institutional and commodity approaches.

2.2.1. Functional approach Functional approach to study marketing is to break up the whole marketing process into specialized activities performed in accomplishing the marketing & supply chain process (Kohls and Uhl, 1985). The approach helps to evaluate marketing costs for similar marketing middlemen and/or different commodities and costs and benefits of marketing functions (Kohls and Uhl, 1985; and Andargachew, 1990). The widely accepted functions are: exchange (buying and selling), physical (processing, storage, packing, labeling and transportation), and facilitating (standardizing, financing, risk bearing, promoting and market information). The exchange function involves pricing, buying and selling which is a transfer of title between exchanging parties.

2.2.2 Institutional approach This approach focuses on the description and analysis of different organizations engaged in marketing (producers, wholesalers, agents, retailers, etc…) and pays special attention to the operations and problems of each type of marketing institution. The institutional analysis is based on the identification of the major marketing channels and it considers the analysis of marketing costs and margins (Mendoza, 1995). An institutional approach for the marketing supply of agricultural livestock product should be instrumental in solving the three basic marketing problems, namely consumers' demand for agricultural products, the price system that reflects these demands back to producers and the methods or practices used in exchanging title and getting the physical product improvement from producers to consumers in the form they require, at the time and place desired (Johan, 1988).

2.2.3. Commodity approach In a commodity approach, a specific commodity or groups of commodities are taken and the functions and institutions involved in the marketing process are analyzed (Kohls and Uhl, 1985).

This approach is said to be the most practical as it helps to locate specific marketing problems of each commodity and improvement measures. The approach follows the commodity along the path between producer and consumer and is concerned with describing what is done and how the commodity could be handled more efficiently. This approach will be used in this study as a guideline to identify different aspects of the problem.

2.3. Characteristics of Goat farming production and its supply chain marketing system.

2.3.1 Small ruminant farming business: - Some people of marginalized groups live in dry areas typically rely on small ruminants for their nutrition and livelihoods. Goat value chains are complex and comprise many different sets of people and organizations with diverse interests and incentives. The goal of this two-year project (2011-2012) is to improve performance of small ruminant value chains in India and Mozambique so they sustainably increase the household incomes and food security and, reduce the vulnerability of poor goat keepers & environmental degradation problem than oxen fatten & other animal rearing, especially for group people women in the community. The project will develop and test organizational and technical models for value chain development using multi-stakeholder mechanisms and processes like innovation platforms and producer hubs. Innovation platforms provide spaces for value chain actors to interact, communicate and act to improve performance of the value chain and the resulting benefits to the actors. The producer hubs are mechanisms through which collective marketing of goats and inputs of goods and services can be achieved in a cost-effective manner. These mechanisms will contribute to building capacity of value chain actors, with women playing key roles in these processes. Using an appropriate and focused Monitoring and Evaluation framework, the project will document the participatory approaches used and lessons learned and generate research evidence towards the development of goat value chain models that benefit the poor. Lessons learned and opportunities for scaling up and out will be communicated to policymakers and development practitioners.

2.3.2. Understanding goat marketing  Identifying needs: Buyers require goats of different ages, size, breeds, etc. Some buyers such as the local traders are much concerned about the size while some buyers from the urban, high value markets emphasize on quality.  Specific group of customers: Some of the specific goat markets are individual traders, abattoirs, NGOs, ethnic groups and export market.  Product: In the goat business the products that we can sell to the market are live goats, goat meat, skins, milk, mohair and manure.

 Right quantities: It is also important for farmers to be able to plan their production so that they consistently supply the required quantities at specified time intervals (e.g. 250 slaughter goats every month). This is key in business as this helps towards building longstanding and mutually beneficial (win-win) relationships with your buyers.  Right time and place: When we start our goats to organized high value markets, we need to plan our production and logistics to meet the market requirements.

2.3.3 Financing the Goat Business Most farmers lack knowledge of how much they need for their goat businesses. Farmers should have an estimate of how much they require for startup costs and operating expenses. They must produce a financial plan/budget. This will help the farmer to source for funding. The plan should state how much money is needed for the following items:

 Infrastructure  breeding stock  feeds & labor  Veterinary supplies &transport It should also estimate income from the business. Sources of finance are: - Own savings: which is normally cheap but not easy to raise. - Loans from commercial banks: These are very expensive and not readily available to most rural goat farmers. The requirements for these loans are normally stringent and rigorous. The requirements include among other things: - Track record. - Formal registration of entity or enterprise. - Financial information Collateral. 2.3.4 Goat farming as a Business MRS, SNV, DLPD institutions like the SEDCO and the Infrastructural Development Bank and a range of lower level financial institutions such as microfinance institutions and village banks or savings and credit cooperatives. Issues financed through short term facilities are of a working capital nature for Goat farm production facilities such as feeds, veterinary medicine, breeding stock etc. Goats are reared under extensive farming conditions, mainly for meat (chevon) and to a lesser extent for milk. To some extent productivity of these goats is low due various factors such as high kid mortality and lack of good animal husbandry practices. Goats also provide skins of commercial importance and manure for gardens (and crop fields). In other parts of the world goats are kept for their wool (mohair). Human populations are growing, and creating a significant and increasing demand for additional animal protein foods. The goat can play an important role in meeting these demands. This calls for farmers to put value in their goat enterprises by shifting from subsistence production to commercial production. It is easier to increase the population of

19 small ruminants (goats and sheep) than large stock. In economic terms the opportunity costs are low for goat production. 2.3.5 Some crucial points of the Goat farming production and business.

 Before Starting Goat Farming Business it is very important that you should have good knowledge & experience of this like issue.  Land Cost is not included.  Goat Farming Business takes 2 to 3 years to give you to the break-even point. (For Good Business what I consider is 4 to 5 Years.).  In business plan of GFP we can report I am calculating the growth rate in the ration of 1:1 (male: female) and the mortality rate of 10% per kidding.  Survey the land, location, road access, water facility and other useful things.  Condition of Soil for cultivating green fodder for goats. (Hint: Goat business is never profitable if buying green fodder from outside the farm)  Visit other Goat Farms before starting yours, to survey the housing system, fodder management, handling goats, cascading bucks etc.  Suggestion: Use animal manure (day manure) to make vermin compost for additional income from this business (this is also a part of goat farming business). Use manure (night manure) to improve the soil of your farm for cultivation of green fodders.  Suggested Green Fodders: CO3, CO4, Lucern, Barseem, Stylo, Dashrath, Hybrid Napier, African Tall, Sorghum, Molato, Gini Grass, Subabul. (As per your soil requirement)  Dry Fodder: Barley, Maize, Ground Nut etc.  Never use goat milk for personal use, as kids need this milk up to 3 months.  Always try to buy pregnant goats, which give kids in 40 to 60 Days.  It will be ensured that around 89% of the goats will always give kids.  The Farm will initially hold 150 Goats of Sirohi Breed and 6 Breeding Bucks’  Goat give kids twice a year, gestation period of 150 Days.  Under Stall Fed conditions the ratio of kids is 60% Twins, 38% Single and 2% Triple.  Expenses on Vaccinations are 10 round a Year per Goat.  Deworming the goats routinely. 2.3.6 Goat meat production & Benefits.

Goat meat is a healthy alternative to beef and chicken because of its lower calorie, fat and cholesterol totals. A staple in North African and Middle Eastern cuisine, goat meat comprises 63 percent of red meat consumed worldwide, according to the Alabama Cooperative Extension Service. If you're looking for a leaner alternative to traditional meats, goat meat could be the answer. A 3-ounces portion of goat meat has 122 calories, which is considerably less than beef's 179 and chicken's 162. In terms of fat, goat is much leaner than other, more readily available meats. Goat meat's 2.6 grams of total fat per 3-ounce serving is about one-third of beef's 7.9 grams and roughly half of chicken's 6.3 grams. A serving of goat meat represents just 4 percent of your daily value of total fat, based on a 2,000-calorie diet.

If you're watching your ever-important cholesterol levels, goat meat can again be a nutritious alternative to other meats. Goat's 63.8 milligrams of cholesterol per 3-ounce serving is

20 considerably less than beef and pork's 73.1 milligrams and chicken's 76 milligrams per serving. Eating goat won't cause you to sacrifice the important blood component, iron, either. Goat meat's 3.2 milligrams of iron per serving trumps beef's 2.9 milligrams and doubles chicken's 1.5 milligrams. Animal meat is a source of complete proteins, which are proteins containing the eight amino acids your body cannot create on its own. Many people struggle to balance meat's high protein and high fat content. Goat's 23 grams of protein per serving is comparable to the 25 grams in a serving of beef and chicken, meaning you won't have to sacrifice a key protein source. In fact, a 3-ounce serving of goat fulfills 46 percent of most people's daily value of protein. Though perhaps not as popular as beef, chicken or even lamb in the United States, goat meat sold in retail stores is still subject to United States Department of Agriculture inspection. Goat meat does not contain any growth hormones because the USDA has not approved their use. Also note, because of its lower fat content and the lack of marbling in its meat, goat must be prepared over low heat to preserve tenderness and juiciness.

2.4. Small ruminant animals Marketing Constraints Facing Smallholder Farmers The aim of this section is to identify key constraints facing smallholder farmers in the study area, such as lack of physical infrastructure, lack of market, and high transaction costs. Smallholder farmers find it difficult to compete in the new market environment. They face enormous constraints when it comes to physically accessing markets. They also lack market information, business and negotiating experience, and a collective organization to give them the power they need to interact on equal terms with other generally larger and stronger market intermediaries. The result is poor term of exchange and little influence over what they are offered (Heinemann, 2002). Below follows a discussion of some of the common marketing constraints facing smallholder farmers, as revealed through international experience. 2.4.1. Constraints on production

Producing for the market calls for production resources that include modern technological input, labor force and capital. Poor access to these assets affects the way in which smallholder farmers can benefit for opportunities in small ruminant animals production markets, and especially in terms of the volume of products traded and the quality of those products (Bienabe et al., 2004). Small- scale farmers lack regularity in terms of producing for the markets due to insufficient access to production resources.

2.4.2. High transaction costs High transaction costs are caused, inter alia, by poor infrastructure and communication services in remote rural areas (Hease and Kirsten, 2003). Transaction costs also result from information inefficiencies and institutional problems such as the absence of formal markets (Makhura, 2001). Transaction costs include the costs of information, negotiation, monitoring, co-ordination, and enforcement of contracts. Smallholder farmers are located in remote areas and are geographically dispersed and far away from profitable markets. Distance to the market, together with poor infrastructure and poor access to asset and information results high transaction costs. Since small holders are poor, they find it difficult to compete in profitable markets due to the high transaction costs. Traders with higher social capital are better able to enter more capital- intensive marketing activities such as wholesaling and long-distance transport, whereas traders with poor social networks face major barriers to entry into the more lucrative market segments (Kherallah and Kirsten, 2000). Minimizing transaction costs is the key to improving access to high-value markets in developing countries, because high transaction costs will make it difficult for poor smallholder enterprise to market their produce. 2.5 For basic Supply chain approach sustainable condition necessity & challenge face. 2.5.1. Lack of on-farm infrastructure Small house holder farmers do not have access to on-farm infrastructure such as store-rooms and cold-rooms to keep their products in good condition after harvest. Lack of access to facilities such as post-harvest and processing facilities constitutes a barrier to entry into agricultural markets, since the emphasis of buyers is more on quality. Access to storage facilities increase farmers’ flexibility in selling their products, as well as their bargaining power (Bienable et al., 2004).

2.5.2. Asymmetry or lack of information on markets Rural producers, and especially small farmers, have little information about the market demand and price, which is costly to obtain. They may gather information through contact with other actors in the commodity chain, but the accuracy of this information is not certified, since those actors

22 might to be exhibiting “opportunistic behavior” (Bienabe et al.2004). Smallholder farmers lack information about product price and times to sell their products, and about potential buyers. This in turn reduces their ability to trade their products efficiently and to derive the full benefit from the marketable part of their production. 2.5.3. Low quantity and poor quality Due to their low endowment in production factors, such as land, water and capital assets, the majority of smallholder farmers produce low quantities of products that are poor quality, which leads to their products being neglected by output markets. Increasing concentration in the food value chain is a global trend, caused by increasingly demanding consumers and concerns about food safety, which tend to make it very difficult for smallholder farmers to enter high- value markets in light of the low quantity and poor quality of their products. 2.5.4. Transportation problems

Most small-scale farmers have no means of transport to carry their produce to markets. Transportation problems result in loose of quality and late delivery, which in turn lead to lower prices, and this regarded as the greatest problem faced by emerging farmers (Louw et al., 2004).

2.5.5. Lack of markets in rural areas

Most smallholder farmers are located in rural areas where there are no formal agricultural markets or agro-processing industries. They are compelled to market their produce to local communities in their areas, sometimes at lower prices, or to transport their products to towns at a higher cost.

2.5.6. Lack of barraging power The barraging power of the small producers is especially low since they have poor access to market information and limited access to financial markets, which prevents them from selling their products at the most profitable time. Their lack of bargaining power may lead them to undervalue their production and obtain a smaller share of the added value created in the commodity chain. Small farmers have particularly low bargaining power when they operate in long supply chain, where the specificity of the product transformation assets leads to the creation of oligopsony (e.g. the oil-palm and cotton sectors in West Africa) (Bienabe et al.,2004).

2.6. Conceptual and Methodological Framework

2.6.1.3. Market supply

Livestock agricultural products differ from manufactured goods in terms of supply and demand. Livestock agricultural products supply is different because of it takes interval specific period to reach for product maximum point while their demand is comparatively constant throughout the year but the capacity it can rise in some season & fall in other season. In economic theory, it is stated that human being is always under course of action of choice from a number of options. The basis for the decisions could be issues ranging from household characteristic to the exogenous unmanageable factors. A case in point here is market supply where researchers put each owns point of determining variables.

The analysis can identify factors that determine market supply. A clear understanding of the determinants helps to know where to focus to enhance production and marketable supply. The study of market supply helps fill the gap for success of commercialization. There are different factors that can affect market supply. According to Wolday (1994) market supply refers to the amount actually taken to the markets irrespective of the need for home consumption and other requirements where as the market surplus is the residual with the producer after meeting the requirement of seed, payment in kind and consumption by peasant at source. Empirical studies of supply relationships for farm products indicate that changes in product prices typically (but not always) explain a relatively small proportion of the total variation in output that has occurred over a period of years. The weather and pest influence short run changes in output, while the long run changes in supply are attributable to factors like improvement in technology, which results in higher yields. The principal causes of shifts in the supply are changes in input prices, and changes in returns from commodities that compete for the same resources. Changes in technology that influence both yields and costs of production /efficiency/, changes in the prices of joint products, changes in the level of price/yield risk faced by producer, and institutional constraints such as acreage control programs also shift supply (Tomek and Robinson, 1990).

A study made by Moraket (2001) indicated households participating in the Goat farming production value chain commodities are considered to be more commercially in the area of lowland area & small land plot areas.

3. Research Design and Methodologies

This chapter summarizes description of the study areas, source and data requirement, sample size and methods of sampling and method of data collection.

3.1 Type and Sources of data. The study & information conducting in this my research I have been used both primary and secondary data to collected for study & analysis of it have the impact and relationship have on Goat farm production value chain (GFPVC) practices & in case of improve production utility value & commitment. For the purpose of a primary data, I have been prepared the questionnaire will be made to collect data by direct interviewing of local farmer who participate on Goat farm production, local traders, hotels & restaurant owners and other concerned bodies. And also I was organize by the methods of and used to collect primary data from national market trade level by interviewing them, field visit, observing fodder source area of goat, analyzing agro-ecology of Goat farming area, interviewing Goat meat Processor Company, new technological addition innovation need to improve production quality status, Goat price inflation & deflation seasons, observing local & national markets persistence status.

In this my research study I have been collected some useful information data on different variables such as data on Goat Farm production(GFP), Goat farm product marketed, prices of output production from Goat, who is supplier, distance between the production & accessibility area, distance of road all weather season, age of the household head, demand & supplier potential, extension service, educational status of the household head, family size, access to market information, infrastructure condition status of the area, credit facility, and type of sellers and

25 buyers, recognize survey to obtain these information.

As the secondary data source I have been collected some data from Central Statistical Authority (CSA), Bureau of Agriculture and Rural Development (BoARD), Bureau of livestock & fisher development (BoLFD), Buraue of rural land development & management (BoRLDM) Capacity Building for Scaling Up of Evidence Based Best Practices in Agricultural Production in Ethiopia (CASCAPE) project and other sources. As additional input primary data I has been collect using informal and formal surveys, and from key informants. The formal survey was undertaken through formal interviews with randomly selected farmer households, company’s owners, local and national level traders using a pre-tested semi-structured questionnaire for each group.

3.2 Study Population and sampling.

For this study, in order to select a representative, accurate & précises sample I have been used the method of multi-stage random sampling technique It can be help(GFP) me to select were Goat farm production(GFP) are mostly producer kebeles and sample farmer households have enough potential of goat farm. In the first stage, I have been designed consulting of Woreda agricultural experts and development agents were this resource is mostly found using by non-probability data collection measurement. In the second out of 41 kebeles of Doba woreda (DW) I was selected select 9(nine) rural kebeles were Goat farm production are mostly found in them & most producer kebeles were purposively based on the goat farm production(GFP) availability resource using by probability random sampling technique method.

Those kebeles were: - Lenco wadesa - Ifa haka

- Tokuma mata lenca - Gamachu

- Dire Naga - Bakalcha Biftu

- Ifa aman - Terkanfata - Baha adu

In the third stage, from the identified or selected rural kebeles using the household (HH) list of the sample I selected 140(One hundred forty) house hold (HH) farmer dwelling in that kebele; by random sampling methods based on proportional to the population size of the selected area.

3.3 Method of data collection For the purpose of a primary data, structure questionnaires will be made to collect data from rural community, local trade, Goat meat processor companies, local markets status, national market status & international. Therefore, population of this study is local farmer, local merchant/supplier, company owner’s, supplier’s, demands and local market/Demand who are participate in Goat farm production from the begging to the end consumer of it. To achieve the objective of this study; I can use both primary and secondary data. Primary data will be collect through close ended & open questionnaires. The close ended questionnaire is to attract the respondents and as a more appropriate approach. Secondary data will be I can gather from organization report, magazine, manual and etc.

Goat farming production potential status during these research are ongoing on the selected kebeles.

Sr./ Name of No. of goat No. Of HH How much How much Area Supp Dem Place of No kebele can rearing can they use for they use for covera- lier and demand & fatten. participate feeding/yea selling/year ge (ha) in them. r (No.) (No.) 1 Ifa Haka 543 321 58 485 0.92 Local Loca Doba & farme l Hirna r trade 2 Bakalcha Biftu 5968 427 128 5840 3.8 “ “ “ 3 Ifa aman 4501 452 1126 3375 3.1 “ “ “ 4 Tarkanfata 996 430 199 797 1.6 “ “ Hirna 5 Gamachu 3064 425 1200 1,864 2.3 “ “ Doba 6 Lenco wadesa 400 365 100 300 0.85 “ “ Ciro 7 Tokuma mata 904 428 105 799 3.2 “ “ Hirna lenca 8 Dire naga 15,420 801 650 10,400 4.2 “ “ Doba 9 Baha Adu 703 365 56 647 1.1 “ “ C/banti

Total 32,499 4014 3622 24,507 21.07

 Goat price, color variability, size & geographical location of demand.

Sr. Name of Price of depending Depending on color acceptance Goat in market. Time duration in No market location on Size. month it takes to . ETB(Ethiopian reach for purposive birr) fattening. Big Med Smal 1st 2nd 3rd 4th 5th For medi for ium l priority priority priority priority priority High um low 1 Doba 4500 3000 1400 Remix Red White Blue Black 6 4 3 2 Hirna 4800 3100 1400 Remix Remix White Blue Black 7 3 4 3 Debaso 4200 3000 1500 White remix remix Blue Red 6 4 3 4 Café bante 4600 3000 1600 White White remix Blue Red 6 4 3 5 Ciro 4500 3200 2000 Remix Red White Blue Black 6 3 3 6 Adama 4500 3200 1700 White White remix Blue Red 7 4 3 7 Modjo 4700 3300 1800 Remix Remix White Blue Black 7 4 3 8 Addis ababa 4600 3300 1800 Remix White White Blue Black 7 4 3 9 Harar 4500 3200 1900 White White remix Blue Red 6 3 3 10 Dire Dawa 4500 3500 2000 Remix Remix White Blue Red 5 3 3 11 Wucale 4800 3600 2100 White White remix Blue Red 5 3 3 12 Jigjiga 4500 3600 2000 Remix Blue White Blue Red 6 3 3 13 Djibuti 4800 3800 2700 White White remix Blue Red 5 3 3

 Need for Sampling

Sampling is required based on the aim of the study in order to get relevant data that will be more convenient, precise, accurate and appropriate for the study.

3.4 Method of data analysis

In this section I would like to fully dedicate for presenting and analyzing of general information of respondents collected through structured questionnaires.

The data analysis will be using by description & inferential statistics analysis technique to summarize the findings then the collected data will summarized and present in the form of table, mean, mode, median, ANOVA-test, chi-square, t-square, Bie-chart and graphs in order to facilitate the process of comparison. Finally sound conclusion and recommendation will be submit up on the procedures of the research findings. And thus listed method of analysis will be put in to practice.

 When you analysis the data of average price of Goat have high, medium, low size inferential statics of mean as belows. n Goat have high size ∑ i=1= ∑n/X

mean = 59500/13

mean = 4576.923 birr

n Goat have medium size ∑ i=1= ∑n/Xi mean = 42800/13

mean = 3292.308birr

n Goat have small size ∑ i=1= ∑n/X

mean = 23900/13

mean = 1838.462birr

 When you describe the color of Goat mostly needed by customer by inferential statistics by mode (frequency) is Remix_ color Goats are have high customer needs than others.

3.4.1. Market concentration Concentration ratio (CR) was used to estimate the concentration of firms as a characteristics of the organization of the market that seem to exercise strategic influence on the nature of the competition and pricing within the market. These are designed by formula:

n C=  Si i1 Where: C = concentration ratio, th Si = the percentage market share of i firm, and r = the number of largest firms for which the ratio is going to be calculated.

3.4.2 Marketing margins Margin determination surveys should be conducted parallel to channel survey. To determine the channel, one asks the questions “From whom did you buy?” and “To whom did you sell?” Scott (1995) pointed out to obtain information concerning the margins, how much you can value added, new technological input, how we can improve delivering time speed, agents have to answer the question “what price did you pay?” and “what was the selling price?” The cost and price information used to construct marketing cost and margin were gathered during field work conducted. Computing the total gross marketing margin (TGMM) is always related to the final price paid by the end buyer and is expressed as percentage (Mendoza, 1995).

Consumer price − Producer price TGMM = ∗ 100 Consumer price Where, TGMM = Total gross marketing margin Producers' gross margin is the proportion of the price paid by the end user or end buyer that goes to the producer. Consumer price_Marketing gross margin GMMp = ∗ 100 Consumer price

Where, GMMp = the producers share in consumer price The producer's share is the commonly employed ratio calculated mathematically as, the ratio of producer's price to consumer's price. Mathematically expressed as:

Px MM Ps = = 1 − Pr Pr

Where: Ps = Producers share,

Px = Producer's price of vegetable,

Pr = Retail price of vegetable, and MM = Marketing margin.

3.4.3. Market integration This paper followed co-integration and ECM that examine integration to address the question about market integration between the market prices differences in Goat farming production(GFP) starting from local markets up to national markets. (Doba,Café bante, Debaso, Hirna, Ciro, Adama, Modjo, Addis Ababa, Harar , Dire Dawa, Jigjiga, Wucale & Djibuti).

4. Result and Discussion

This chapter deals with the analysis of the survey data and interpretation of the analytical findings. A structured questionnaire was administered to 140(one hundred forty) sample households in Doba district with the main aim of investigating determinants of marketable supply. The questionnaire was designed in such a way that it enables to collect data on personal and socioeconomic characteristics of farm households as well as on opportunities and constraints of the Goat farm production & value chain market. Four DA’s were participating in the data collection. 4.1.1. Demographic Characteristics of the Sample Households The average family size of the sample farmers was about 7.5 persons. This average makes differences in family size, where the largest family size was 10 and the smallest was 5. The average number of family members was about 7.5 persons per household for participant farmers, while it was about 5.25 for non-participant farmers the two tailed test was statistically significant meaning the household size between the market participants and non-market participants were different. The survey result shows that 97.56% of the sample farmers were married while 1.63% and 0.81% were single and divorced, respectively. With regard to religious affiliation, 62% of the respondents were Muslims, 10% were Christian protestant and 28 were orthodox Christian.

The age structure of the sample households shows that the average age of the participant and non- participant farmers was almost the same (36 years). This implies that both participant and non- participant farmers have had almost equal farming experiences. The survey results show that 82.86 % of the participant farmers were 0-4 years of schooling, and the remaining (17.14 %) were 5-8 schooling. On the other hand, the non- participant farmers 69.81% were 0-4 schooling, and 30.19 % were 5-8 years of schooling. The mean difference of educational level for the two groups was significant at less than 5 percent significance level. The survey results show also that 97.56 % and 2.44% of the sample respondents were males and females, respectively.

Table 2: Age, sex, religion, educational level, family size and farming experience of sample

Farmers by participation on vegetables market

Variable Participation on Goat farming production & marketing χ2/t-test No Yes Age Mean 35.5 36.3 Standard deviation 7.53 6.70 0.2715 Family size Mean 5.52 6.18 Standard deviation 1.70 1.66 0.0168** Sex Female 0 3 Male 53 67 0.127 Educational level Mean 2.9 1.77 Standard deviation 2.54 2.37 0.0043** Religion Muslims 22 40 ------Protestant Christian 4 6 Orthodox Christian 12 16 Farming experience Mean 11.83 11.77 Standard deviation 6.44 6.07 0.4794 Source: Survey result, 2018

4.1.2. Socioeconomic Factors

4.1.2.1. Land holding

The average size of cultivated land owned by the sample respondents were about an average 0.45 ha, the minimum and the maximum being 0.25 ha and 1 ha, respectively. Participant farmers owned on the average 0.48 ha of cultivated land. The corresponding figure for the non-participant

32 farmers was 0.42 ha. The mean difference of own cultivated land for the two groups was significant at 5 percent significance level.

Average size of holdings (ha), by participation on Goat farming production & marketing.

Variable Participation on Goat farming production & marketing χ2/t-test No Yes Total land holding Mean 0.42 0.48 Standard deviation 0.161 0.160 0.0412** Source: survey result, 2018

4.1.2.2. Livestock ownership Livestock are important assets for rural households in Ethiopia. They are used as sources of food, draft power, income, and energy. Moreover, livestock are indices of wealth and prestige in rural areas. All of the sample households reared livestock, which constituted cattle, small ruminants, and pack animals. On average, the sample households kept about 1.96 animals. The minimum number of livestock kept was 0.26 whereas the maximum was 3.97.

Livestock ownership of the sample households, by participation on Goat farm production & marketing

Variable Participation on Goat farm production & marketing χ2/t-test No Yes Livestock ownership Mean 1.85 2.05 Standard deviation 1.01 0.98 0.1419 Source: survey result, 2018

4.1.2.3. Source off/non-farm income Sales of chat, cash crops, and livestock are the major off-farm activities and cash income sources for the households in the study area. About 12.86 % of participant and 79.25% of non-participant

33 sample households reported that they earned cash income from sales of khat whereas about 84% of participant and 13.21% of non- participant farmers had no other source of income. The average cash income from different sources was about Birr 1587.32 for the participant and Birr 1564.71 for non-participant sampled households.

Sources of off- farm income by Goat farming production & marketing participation

Variable Participation in Goat farming production & marketing χ2/t-test No Yes Off farm income Mean 1564.71 1587.32 Standard deviation 3238.96 4550.32 0.4872 Source of income No source 13.21 89.29 Chat 79.25 12.86 Cash crop 5.66 0 Chat & cash crop 1.89 0 Fattening 1.43 0 Mill 1.43 0 0.000** Source: survey result, 2018

4.2. Improved new method of technological innovation input are needed to increase production & productivity of Goat farm production (GFP) by efficient way (by less input & great output).

As Doba District depending on the recent data collected source we can conclude as there is sustainable agro-ecology for Goat farm production. From the year to year local farmers dwelling in this woreda are practiced Goat rearing & fatten to improve their individual livelihood. But, reversible they are not get good income from activities; so in this my research I would like to describe the way they can get maximum profit from it, the way they can easily practice this

business by efficiency (minimum input and maximum output) and also the way they can utilize by new technological innovation to improve physical structure of this production up to end consumer. As the surveyed primarily data I collected shown for us there is trend the potential availability goat farm increase from 2008 up to 2009 by_21% and reversibly decrease from 2009 between 2010 by_19%. See the table below of Goat farm potential found in Doba District since 2008, 2009 & 2010 respectively.  Goat farm production status in Doba woreda by generally listed among the table below.

Sr Name of kebele Number of Goat production status in Doba Average no. No. of Dema Market . woreda. they can sell per suppli nd place no a year supply. er 2008 E.C 2009 2010E.C Total E.C 1 B/Biftu 2493 2572 2651 1458 458 25 Café bant 7716 2 I/haka 2492 2571 2670 1324 326 23 Café Bant 7733 3 T/jalala 2493 2571 2660 1240 230 18 Doba 7724 4 O/jalala 2492 2571 2650 1230 210 17 Doba 7713 5 I/Ramata 2494 2573 2600 1101 187 15 Doba 7667 6 I/Balam 2493 2573 2652 1501 145 18 Goro 7718 7 jalala 2492 2573 2648 1460 180 20 Goro 7713 8 I/Batee 4050 4182 4310 2504 298 12 Dabaso 12542 9 Bilisuma 2493 2573 2651 1230 127 10 Dabaso 7717 10 M/Bilisuma 2494 2572 2657 1349 187 21 Dabaso 7723 11 M/cifira 4051 4180 4307 2890 230 31 Biyo 12538 12 I/Feenya 4050 4175 4312 2792 246 32 Café bante 12537 13 B/jenata 4050 4175 4307 3120 320 29 Doba 12532 14 O/Bultumi 4051 4180 4807 2890 210 30 Doba 13038 15 O/Janata 4150 4180 4307 3106 217 29 Doba 12637 16 Gamachu 4060 4179 4301 2700 120 18 Doba 12540 17 I/Dini 4051 4179 4317 2645 128 15 Doba 12547 18 I/Janata 4081 4179 4304 2780 136 19 Doba 12564 19 D/Nagaya 4313 4459 4531 3120 140 21 Doba 13303

20 Barine 4120 4226 4307 3028 150 27 Doba 12653 21 Terkanfat 2493 2571 2650 1238 145 23 Doba 7714 22 D/Balo 2483 2581 2673 1341 132 11 Doba 7737 23 Dalota 2493 2568 2645 1150 124 12 Doba 7706 24 Urji 2484 2574 2634 1450 121 10 Doba 7692 25 I/Aman 2498 2557 2640 1320 123 12 Doba 7695 26 Dakaba 2493 2567 2687 1450 134 17 Doba 7747 27 l/leenca 2493 2571 2653 1659 130 15 Goro 7717 28 k/kasa 2493 2576 2678 1432 143 18 Goro 7747 29 B/Adu 2483 2560 2674 1764 132 25 Hirna 7717 30 Badasa 4035 4179 4309 2863 150 19 Hirna 12523 31 Ibsa 2433 2572 2650 1432 134 14 Hrna 7655 32 Waji 2494 25770 2600 1650 124 16 Hirna 30864 33 Waltane 2493 2572 2654 1750 130 13 Debaso 7719 34 O/nagaya 2483 2574 2680 1870 139 20 Debaso 7737 35 L/Wadesa 2473 2574 2670 1580 180 18 Goro 7717 36 T/M/Lenca 2492 2575 2694 1830 160 17 Goro 7761 37 H/Baas 4130 4179 4308 2980 237 28 Goro 12617 38 B/oromia 4100 4179 4309 3280 240 34 Goro 12588 39 L/Dakaba 4120 4180 4309 3180 250 32 Café bante 12609 40 Café bante town 2493 2559 2680 1934 250 41 Café bante 7732 41 Dob town 2310 2551 2643 1890 246 43 Doba 7504 42 M/Talila 2494 2570 2650 1980 232 18 Goro 7714

128,426 155,602 137,039 421,067 84,491 7,901 886 Total

Goat farming is the most preferable & have less cost than other livestock production, also it needs less land parcels, and in climate green economic resilience (CRGE) it consolidate neutral carbon growth principle for the reason of digestive tract system is release less nitrous oxide (NO). The other one why Goat farming is preferable on trampling problem on soil degradation as other livestock. The most problem of why most of local farmers are not benefited from Goat farm production is; when they practice rearing & fattening purposive goal they use only local feeding like, grass, plant leaf, crop residues, local areke beverage liquors (atal) & etc... As the modern

36 feeding we can use formulated feed furishika (oil crop residues), fatten purpose medicine & other vaccination useful for ant-disease & fatten purpose.

4.2.1 Goat rearing by modern method way. As I would try to illustrate on the above topic goat farming is for most long time it have been practiced by old method way and not approved it as due to this reason local farmer are not benefited from it. Because as I collected some actual data most farmer are much input and get less output from goat farmer production and also they have less market linkage problem. Sometimes most goat female birth time is about five month interval period. In this my research study I can recommend the new modern method way we can easily practicing goat farm by less input and also improve the reproductive life cycling time interval. Goat rearing farming practice business it takes 1-2 years to reach break-even point to get profit. In goat rearing farming system first of all we have to accomplished reconnaissance survey on agro-ecology of the area& small shrubs grazing field area for fodder & recreation purposive of goat. In Goat rearing farming system recreation area is the most necessary material to maximize our resource potential. Depending agro-ecology dry land (kola) area of have some Acacia species shrubs & trees is the most sustainable one for goat rearing farming; to the next woyna Dega is some percent preferable for goat farming practice than Dega area. Temprate (Dega) is most the time it’s not recommended; may be if there is no other options. Therefore, as data collected from Doba District area shown to us we can concluded the three major classified zones of goat farming rearing practice potential sequence kebele as its agro-ecology. Kola area of intervention kebele are most sustainable for Goat rearing practice:- - M/Bilisuma - M/Cifira - I/Jagna - B/Janata - O/Bultum - O/Janata - I/Diina - I/Janata - D/Naga - Urjii - L/lenca - Ibsa wajjii - waltane - L/Wadesa - TML - B/Oromia Woyna Dega of intervention kebele are preferable sustainable for Goat rearing practice:- - O/Jalala - I/Batee - Bilisuma - Gamachu - Barine - Terkanfat - D/Balina - Dalota - I/Aman - Dakaba - Kof kasi - B/Adu - O/Nagaya - Haka Basa - L/Dakaba - Café Bante - Doba town(o1 kebele) - Dega of intervention kebele are not sustainable for Goat rearing practice:- - B/Biftu - I/haka - T/jalala - I/Ramata - I/Ballama - Jalala In modern genetic improvement of breeding Goat to improve birthing interval time & goat size we can use genetic improvement cellular vaccination & medicine and also keep safety of it is can improve birthing period about four(4) months.

Generally, under this subsection we can recognize in value chain concept approach to speed delivering to time for supplying good quality Goat production as cutomer needs.

Modern Goat Farming Rearing practice facility procedure. If you need to acquire land to start your operation, contact the county planning commissioner’s office to find out which land is zoned. Restraining the animal for routine management practices for agriculture. Land located near residential or industrial areas may have some restrictions placed on it related to animal and chemical use. If you are considering purchasing land, it is also important to determine the following: 1, How the borders of the land are defined; 2. If the land is suitable for farming; 3.) How much fencing is required for the property; 4. If the land is accessible to electricity and water and 5. Does the land have the tendency to flood? When goats are penned in areas that are prone to flooding chances are they will develop foot rot or other infectious diseases. If you need to obtain soil survey maps of your land, contact the county extension office, Natural Resources Conservation Service (NRCS) in your area for assistance. The Buck’s Facility On the goat farm, the buck’s facility should be at least 400 feet away from the rest of the herd. A 6 x 8 shed, facing south easterly and downwind from the does’ area are the basic requirements for the buck’s shelter. The size of the shed will also depend on how many bucks will use the shelter. The shed should be sturdy and enclosed with a fence to construct a small pen or loafing yard for grazing and to limit the buck’s range. You may also want to build a mound of dirt (5 to 6 ft. tall and 5 x 5 ft. wide at the top of the mound) in the center of the pen to provide exercise and to prevent the buck from being bored. This mound must be 8 feet away from the fence line, so the buck cannot jump out of his pen. The pen must also be strong to keep the buck in the facility and away from the does in heat. If he escapes, chances are the buck will get into the does’ area and breed the herd at the wrong time, breed his own off-springs and/or breed the younger goats (less than 80 pounds) in the herd which may stunt their future reproductive performance. Unplanned pregnancies can also make it very difficult to maintain accurate production records, to develop a good breeding program, to evaluate reproduction efficiency in the herd and to fulfill production and marketing goals. The Kids’ Facility After weaning, a separate area may be required for the animals that are kept for replacements or for animals that will be held and marketed at a later time. If males are kept beyond 4 months of age, keep them separate from the females. The shelter should be structural sound, and have adequate space. Make sure all of the goat areas are accessible to water and electricity, if electric fencing is desired.

The Does’ Facility The does’ facility should be sturdy and large enough to accommodate the entire herd because goats tend to fight more when they are confined in over crowed shelters or pens. Head butting is a common display of aggression among goats. Normally, neither parties are injured; however,

38 in some cases the fighting may resort to blows in the abdominal area or rear of the opponent animal. This type of trauma can lead to abortions in pregnant does or other injuries such as severe bruising or puncturing of the skin. Therefore if the does or buck will be confined, provide 20 to 30 square feet of space per animal for sleeping and eating. Provide an additional 30 square feet for exercise. Does that are not confined require less space (10 to 15 square feet of space per animal). For an example, if the animals are confined, a 8 x 16 (ft.) three-sided shed is sufficient space for 4 to 6 mature goats. If they are not confined and have access to pasture, 8 to 12 adult goats can share this shelter, but maintain a stocking rate of 7 to 10 goats per two acres of land for year round grazing. This rule of thumb should also be applied when proving shelter for the buck. Fighting may also occur when the goats are establishing the pecking order in the herd, when new animals are introduced into the herd or when there is not enough space around the feeding trough. In many cases, the smaller and/ or weaker animals may be pushed away from the feeding trough. As a result of this type of treatment, the goats are usually much thinner and less productive than the rest of the animals in the ches, polydome, quonset, existing farm structures, portable sheds or the three-sided goat house.

Shelters for Goats Goats can adapt and reproduce under various environmental conditions. In many cases, a simple house will suffice in areas where the weather is mild. If the weather is extremely windy, cold or wet then a house with three sides and a good roof may be necessary to prevent respiratory problems or hypothermia in the herd. During the warmer months of the year, adequate shelters may be required to protect the herd from the summer heat. The shelters should be draft-free, dry, facing away from prevailing winds and have access to natural lighting and adequate ventilation. Good ventilation is necessary to prevent the buildup of toxic gases, fumes and dust which can be detrimental to the animal’s health and performance

4.2.2. Goat fattening by new technological modern way. In Goat fattening procedure way of in this my research study and searching customer by making market integration with producer up to end consumer by supply chain network flow & reversibly feedback given from consumer to fulfill use value chain concept as Doba District areas. Goat fattening by new modern technological way is one the new scientific new ideology to improve goat profitability by adding costs & facility. In this my research I would try to discus with livestock veterinary expert on issue of to improve & keep their health in good way and also discuss with animal science in the way of to manage in preferable way. When you start from the keeping health of Goat fattening one we should be vaccinated in a month which useful for its health & fattening purpose. The second point of issue good management when you fatten Goats is we have to construct their house by rising some height from the ground in order to clean the waste product by easily. The agro-ecologic condition favorable for Goat fattening is kola area because of naturally Goats needs hot to easily fatten & reproductive. So, in this point when you practice the Goat fattening in order to be profitable we have to select kola area. After we select

the favorable agro-ecology we have to do reconnaissance survey as goat fodder availability (plant leafs, herbs grass & etc) to the next we have to cross check the recreation area of them after feeding. When you feeding them we give 0.2kg per Goat per day formulated feed and the rest give local feed like cereal crop residues, plant leafage & etc. in case what we should recognize is we give formulated feed up to 20% and the rest use local feed material; unless we cannot be profitable if you give for them 100% of formulated feeding. As the third point of good management option give heat for them at night time whether by electric light or local by fire; but fire is the most optional one. The other one is select the Goat age; as collected data shown for us the Goat age between 0.8-1.5 years is very preferable & productive than others. Generally, in this way if you use the procedure in the correct way we can get good profit from goat fatten practice in the short period of time.

4.3 Increase commodity value chain of Goat farm production (GFP) by improving/ processing the primary stage of this product can supply at national & international market level. 4.3.1. Goat meat processing procedure & method way. As collected data shown for us through primary & secondary method way goat meat processing system is the very sophisticated way and need great attention & careful to satisfy. Because it can easily contaminated by bacteria and can affect human health; so its needs skill person for processing good quality of Goat meat & skin. In Ethiopia in generally there is 11(Eleven) abattoir company are there at this present time. Most of them worked on Goat meat processing & skin. In this my research study we would try to observe some abattoir processor company and interviewing their workers. As they give some response for me most of the time we cannot get enough potential of goat from the producer by sustainable way due to this reason there is not reliable supply integration between the supplier & us and also between our end consumer & us; for this reason our customer is not satisfy on supply system of us. When you processing meat at abattoir processing company averagely they get one Goat skin, 15kg Goat meat, kidney, live, hearts supply for local markets. Look the table below show the goat meat production capacity & market place & price of it.

Sr. Type of Price & Market place No Goat size per kg

Amount meat Doba Adama Modjo Addis Jigjiga Harara Suid UAE we can get Ababa Arabia from it. 1 Small size 12 kg 150 200 200 210 200 200 345.87 354.17 fatten Goat 2 Medium size 18kg 150 200 200 210 200 200 345.87 354.17 fatten Goat 3 Large size 25kg 150 200 200 210 200 200 345.87 354.17 fatten Goat As some data shown for us the total cost to process the meat of one Goat up to international market included (transport cost, abattoir cost, cotton pack cost & other costs) it takes 125.00birr (one hundred twenty five birr). For one Goat meat fatten purpose if we use the goat age between eight months -1.5 years its very preferable than other to reach fattening purpose in short period of time and also meat quality well sustained than others. As Doba woreda the current data collected shown for us to fatten one Goat have 0.8-1.5years it take four (4) months to reach the purposive goals. When you done market value chain of Goat fatten meat starting from producer stage up to 1.3 years as arrow below at Doba District.  Goat bought by(1300birr)per goat------fattening for four month cost (birr)per goat------transport to national markets(birr)per goat------processing & transport to international markets(125birr)per goat------producing 18 kg processor meat from per goat------selling 18kg Goat meat at UAE(United Arab Emirate)& Saudi Arabia (international markets)by 198$(5,464.8birr)per Goat.

4.3.2 Goat farm production (GFP) value chain & commodity exchange.

Value chain is approaches have been utilized by development practitioners and researchers alike to capture the interactions of increasingly dynamic (and complex) markets in developing countries and to examine the inter-relationships between diverse actors involved in all stages of the marketing channel. Depending on this in this research I would try to describe the Goat value chain in Doba District to increase profitable capacity. In value chain analysis there is three pillars to analysis it to fulfill customer needs (agility) & Get maximum profit.

1, Improve production physical structure in order to get better profit from it.

In Doba District and other place found around Doba District (Ethio-somale regional state, afar regional state & etc) Goat farm production rearing system is the oldest one & local farmers are not try to investigate new innovation technology to improve their production quantity & quality; due to this reason

41 they are not benefited from it. In this point we try to see how can increase Goat productivity capacity live time and after processing it what type of product we can get from it and also how do you can increase their values.

Firstly at live stage we work on growth speed through genetic variety improvement & supply formulated feed for them. Additionally, select sustainable agro-ecological condition for them; as this research I approved as kola agro-ecological condition is the most preferable than others birth time interval fast and get much product. In scientific improved new methodology way is help us to shortly birth time interval and increase Goat kid quantity & quality numbers through this method. Secondly, Goat meat processing value chain is after fatten Goat it’s the way to process it and supply for end consumer. As the initial point take goat fatten/goat to abattoir center and processing it and we can get meat production & skin from them. Additionally, we can get other meat production like kidney meat, liver meat, heart, lungs& other things. In this my research, as local community (producer) to get maximum profit from it they must be grouped by cooperative and transported at national licensed abattoir center & can process it after that they can supply for local, national & international markets. In this case as the current data shown for us at abattoir center we can process one Goat by 125 birr. In this case averagely, from fatten Goat we can get 18kg pure meat/per fatten Goat, one goat skin can sell to synthetic factory and other products of like, liver meat, kidney meat, heart meats & other lungs meat (for dog feeding). As my research recently collected data shown for us is in this production Goat meat supply for international markets like Saudi Arabia, UAE (united Arab Emirate), Djibouti & somale lands we have market opportunity and work with them. In this case starting from production place up to end consumer for foreign consumer the total cost for one kg Goat meat is _143ETB.

In this production outflow channel when you describe by arrow as shown below.

 Production site(Doba District)------Goat fatten(Doba District)------transporting Goat fatten to national abattoir center(Modjo & Addis Ababa)------Packing Goat meat & put it in refrigerator safety in ware house for 12-24hrs (Modjo & Addis Ababa)------Export to foreign markets------reach end consumer(Saudi Arabia, UAE (united Arab Emirate), Djibouti & somale lands) by airport.

Goat skin production is supply for national markets to synthetic production factory found in Bishoftu, Addis Ababa & other places. Other product found like hearts meat, liver meat, kidney meat & other products supply for local markets (for local community). 2, Cost or value addition on product to get better profit from it.

In value chain analysis cost/value addition is one pillars of the way we analysis value chain regarding on adding cost/expenditure to get better profit from it. On the above topic the way we improved physical structure of production starting up to end consumers is achievable by adding some expenditure on it. Therefore on this point I would try to describe how much price it spend for it at each & every stage. As well under topic we can estimate our cost & profit at all stage and can estimate how much initial capital required for us to start this business.

Therefore, I would try to distinguish the cost added at each stage for one Goat shown under the arrow below.

 Production site(Doba District)(1400ETB)/for Goat b/n 1-1.4years old)------Goat fatten(Doba District)(1000ETB)------transporting Goat fatten to national abattoir center(Modjo & Addis Ababa)(50ETB)------Packing Goat meat & put it in refrigerator safety in ware house for 12- 24hrs (Modjo & Addis Ababa)(125ETB)------Export to foreign markets------reach end consumer(Saudi Arabia, UAE (united Arab Emirate), Djibouti & somale lands) by airport.  Also we can describe as this arrangement. . Production site(Doba District) for Goat b/n 1-1.4years old)…………...... 1400.00ETB . To fatten one Goat at Doba district can spend up to…………………………………..1000.00ETB . For transporting one Goat to abattoir center(modjo& Addis ababa)……………50.00ETB . Processing & export one Goat meat up to foreign country customer…………...125.00ETB  Total cost for one Goat up to end consumer (international markets)...... 2575.00ETB

Profit we can get from one Goat at international markets…………….……ave. (18kg)*(303.6ETB(11$))

Marginal Profit we can get from it……………………………………5464.8 ETB9(198$)

Net profit……………………………………………………………………… (Marginal profit)- (Total cost)

‘’……………………………………………………………………….. (5464.8)- (2575ETB)

‘’ ………………………………………………………………………..… 2,889.8ETB

 Other products from we can get from one goats is listed as below :-  Kidney meats of one goat averagely sold at local markets by……………………..….50ETB  Liver meats ‘’ ‘’ ‘’ ‘’ …………………….…..65ETB  Hear meats ‘’ ‘’ ‘’ ‘’ …………………………40ETB  Goat skin ‘’ ‘’ ‘’ ‘’ …………………………85ETB  Total net profit(other products of Goat)…………………………………………………...240ETB Note: - on this production the cost required for processing is include in meat process production. Therefore when you calculate the Net profit of one Goat production It will be calculated as below. Total Net profit of output production we get from one Goats= (Net profit of Goat meat)+(net profit of other products included (skin, liver, hearts & kidney) Total Net profit of output production we can get from one Goats= (2,889.8ETB)+(240ETB) Total ‘’ ‘’ ‘’ ‘’ = 3129.8ETB 3, Improve product delivery time speed to reach were our customer there on timely.

On the regards, of product delivery time improvement is one approach to analysis value chain integration to reach on were customer are found. In this point to overcome bullwhip effect in supply chain system and also expanded the approach of Extended vertical integration, outsourcing & offshoring supply chain system. In Goat farm production (GFP) in Doba district to improve speed delivery time to reach were our customer are there based the style & design our customer by Agility principle. In this point we try to see how can you the production outflow from Goat producer part to end consumer and also financial & information flow from end consumer to Goat farm producer & processor (rural community& abattoir) by value chain approach.

As interviewed most exporter company on production delivery they told me as there is synchronization affect to fulfill customer the quantity of Goat meat needs daily from us. In this my research I would try to recommend to improve production delivery speed in order to fulfill our end consumer (customer) needs I could take three options:-

Option1, Extended vertical integration: - in this approach in order to the customer needs & approve reliable supply chain; when company owners or end product supplier participate in work of Goat farming. Which means when owners are participating starting from producing or Goat farming production activity up to supply end product customer worked by one owners. In this case, that company or owners can increase/decrease their/his production depending demand availability and they can easily maximize production speed delivery because of all things are leads by one owner/company.

Option2, Outsourcing: - In this approach when Goat production processor company/owner are closely worked with producer or Goat farm producer to add some value & technology and supply for end consumers. In this case to improve production speed delivery the second part or processor body help producer (farmer/investor) by skill & other things in order to get good quality & much quantity to get from them. In this my research I have recommend as abattoir company owners closely work with local farmers and give some support as business cooperate social responsibility in order to get enough & good quality raw product from local farmers. 3, Offshoring: - In this approach when supply chain is starting from producer up to end consumer of retailer arrive by individual owners/company; which means when producers are sell for end consumer at were our customer are there. When you shortly describe offshoring outflow channel of supply chain system as bellows.  Producers (local farmers or investors)( at Doba District)------Goat fattening(at Doba District)------Goat production processing(at modjo & Addis Ababa)------export to foreign markets (Saudi Arabia, UAE, Qatar & Djibuti)------open new channel (retailers) at foreign countries like (Saudi Arabia, Qatar, UAE, Djibuti & Somale lands). On this above description when all this activities are run out by individual owners/company in this way we can improve production speed delivery to our customer on timely and create great market integration between producer & end consumers. 4.3.3. Goat product commodity exchange system & create sustainable supply chain product. As we know In Africa content there is great potential of investment opportunity agricultural (livestock & crop) production and low market opportunity to supply that product for national & international, low productivity & production capacity due to less new technological innovation to improve it. In this my research as I will try to describe on other topic & subtopic Goat farm production there is no great attention to improve this production by adding some new technological innovation from whether from rural community or Government bodies. And also there is not done on to expanded market opportunity for this production.

Therefore, in this research I would like describe the market opportunity at local level, national level, international level and I recommend the way local farmers come together by cooperative and instead on this business by creating great diplomatic work with near & far customer to access national & international markets. As Doba District local community can come together by cooperative investing on Goat farming & fatten value chain in the future direction I recommend for community live rural area in order to have enough budget can run out this business end processing the products. So, firstly corporately practicing goat rearing & fatten and also process the product which they can get from it. Secondly create smooth & reliable relationship with demand of this product found at international markets (foreign countries) and national markets. Thirdly, access reliable information on this products price at national & international level by exchanging information through mobile phone, email, website & etc. Fourthly, try to innovate new technology to maximize products & profits based on actual traditional knowledge on past years they have. Fifthly from government sector, just help & make comfortable condition for this producers of this production by infrastructure like; road, network availability, health center & etc.

4.4. Increase & enhance sustainable overflow market linkage & reliable supplier & demand for goat production in sustainable continuous ways.

4.4.1. Marketing constraints

4.4.1.1 Marketing constraints facing framers in the Doba Districts

4.4.1.1.1 Access to resource and support services

This section reports on the resource and support services accessed by the framers interviewed in the survey. The resources discussed in this section are access to land, access to technology, road and other infrastructure.

Access to land Among the resources playing a crucial role in Goat farming productivity grazing land (included fodder like plant leafs & local grass) is regarded as one of the most important livestock resource. It is widely acknowledged that access to land is the most fundamental determinant of income-

45 earning potential in rural areas. Although almost all of the farmers in the sample who were interviewed had access to land for goat farm production, the size of the plot was identified as a major constraint. The situation is exacerbated by the high number of households on a single small plot.

Total land in Ha Number of respondents Percent 0.15-0.25 105 85.37 0.25-0.35 13 10.57 0.5 5 4.06 Source: survey data, 2018 As indicated in table 4.1, most of the surveyed households that were producing Goat farm production were doing so on plots smaller than 0.15-0.25 hectares. Very view of the farmers interviewed owned land more than 0.75 hectare in size. The majority 85.37 (%) of respondents were not fully utilizing their land due to lack of on-farm infrastructure. The farmers identified network and road infrastructure as being the major constraints causing under- utilization of this resource to supply for local market.

Extension support services

Extension is an important means of bringing new technologies to farmers and identifying the problems experienced by farmers in view of appropriate research. In the district the services are close to the farmers. This serves to minimize transportation costs for farmers when they need to enquire about services offered by the department. From the survey, 82.93 % respondents indicated that they were less contact with extension officers. Only 11.38 % of the farmers indicated that the extension officers’ visits were routine. The farmers indicated that they were dissatisfied with the services being provided by the extension officers. There is no specific record of the extension officers’ discussions with farmers, or of the conditions of the planted crops or any information on the diseases or new farming techniques. Although an extension service is delivered to the farmers, the quality of such service is questionable, since some farmers also revealed that there is no follow- up from government officials.

4.4.2. Marketing constraints facing farmers The marketing constraints discussed in this section are lack of transport, distance to market and market information.

4.4.2.1. Lack of transport

Access to transport by farmers plays a significant role in their ability to access markets. In order to supply for local & national market transport availability is one of the heart beat in business operation. Sometimes we can transport goat onto market availability area by our foot at local level & but at national level area we must be transported it engine vehicles logistics.

The majority 71.5 (%) of the farmers interviewed did not have access to modern transportation system, like vehicle to ship their products to the markets particularly in summer and they were forced to hire transport from other people in their communities in order to market and purchase their production inputs. Farmers indicating lack of access to transport as the major constraint when it comes to accessing markets in towns and consequently they are forced to sell their produce to local customers at lower prices for end consumer far from them & lack of diplomatic work. The other one is after processing by some goat meat processor company they are not get transport availability easily like truck, rail & airport.

4.4.2.2. Distance to market It is well known that nearness to towns & city reduces transaction costs in agriculture, since farmers need to access input and output markets. The major Goat production costumer is not near to Doba District; due to this reason most the time producer& whole seller/distributor/end consumer are not easily interconnected. Majority of farmers lack logistical infrastructure such as all-weather road, logistic vehicles availability, network connection availability, pack houses and refrigerated transport for goat meat production to keep their products in good quality particularly for long distance markets. These long distance markets offer low profit margins since farmers have to pay the transportation costs for the trucks that come to collect their products at the collection point, and they also have to pay a certain percentage to the market agent for marketing their produce.

The study found that farmers supplying to this product of Goat meat product markets seem to be located closer to towns than those who do not. The proximity to the market gives farmers more

47 opportunity to access market information and agricultural services than farmers who are located far away from town. Farmers located far from towns market their products to local markets, sometimes at lower price. As some data have shown for us the Goat production flow starting from Doba District briefly look the below. . Doba------(12km)Hirna------(52km)Ciro------(220km)Adama------(240km)Modjo------(372km)Addis Ababa. . Doba------(63km)Kobo------DireDawa(187km)------(185km)Harar------(270km)Jigjiga------(310km)Wuchale------(540km)Djibuti.

4.4.2.3. Market information The more market information a household has, the lower its transaction cost will be, increasing market participation. 17.89 % of the farmers interviewed in district indicated that they did not have access to market information, especially in respect of market price. These farmers lack information about products prices, as well as quality requirements, the best place and time to sell their products, and potential buyers. The most problem of local farmers are not benefited from this production is lack of connecting with end consumer. Due to this problem most of the time they are not profitable from this production.

4.4.2.4. Access to market information

About 82.11% of the sample respondents reported that they had access to information related to Goat farm production market and 17.89 of the sample respondents had no access to information. As data collected shown that 53.47% of sample household heads who were participate in Goat farm production market had access to information. The corresponding figure for non-participant farmers was 46.53 % 0f the participant farmers and 27.27 % of the non-participant household heads had no access to information related to Goat farm production market. The chi-square result shows that there is statistically significant difference at 10 % level on Goat farm production market information access.

Table. Access to market information by Goat farm production (GFP) market participation Variables Participation in Goat farm production (GFP) marketχ2/t-test No Yes Access to information No 27.27 46.53

Yes 72.73 53.47 0.098* Source: survey result, 2018

4.4.3.5. Market Distance

The mean distance to the local market place in hours of walking time for the sample respondents were about 1.88 hr, the minimum and the maximum being 0.75 hr and 3 hr, respectively. The average for participant households were 1.90hr while for the non-participant households 1.85 hr (as table shown below). National markets almost more than 350km & international markets is more than 3000km.

Table. Market distance by Goat farm production market participation

Variable Participation in vegetables market X2/ t-test No Yes Local markets Market distance Mean 1.85 1.90 Standard deviation 0.11 0.09 0.3325

4.4.3. Marketing participants, their roles and linkages This survey identified major market participants between farmers and consumers. Market participants in the study area include: producer/farmers, collector, wholesalers and retailers.

Producers: producers or farmers produce Goat by rearing & fatten. They transport Goat farm production to the nearest markets (village market) or sold to collectors at local trade & local markets; secondary market and destination markets themselves, themselves over a distance of 1.88 hours on an average. Alternatively, local farmers are sell to village traders known as “farmer traders” who assemble/ collect Goat farm production (kid, goat fatten & etc…) from large number of farmers. Farmers also sell their products directly to wholesalers in destination market.

Table. Amount Goat farm production (GFP) sold from producer to different agents

Quantity in numbers Per cent No. of Goat Goat fatten Goat Producer sold to Village collector Wholesaler 210 161 Retailer Total Source: Survey result, 2018

Village markets are markets which are the closest to the nearest of farmers, but has less marketing alternative options of other customer and farmers sell large quantity of Goat farm production to these agents. Regional markets are surplus markets, which are found in the woreda town where, most of surplus agricultural products are transacted. Terminal or destination markets are deficit markets which are found in town, and most of surplus products flow to these markets.

Brokers: Theses are agents specializing in negotiating buyers and sellers. They were operating between bulk buyer and seller agents. Their major duty is on goat fatten collection market due to its wideness. They negotiate the farmer during production and force them to sell for the collector or wholesaler they were dialed with. They disseminate information to the market participants and influence trade. As the reward they got 40-50 birr/Goat. Retailers: retailers are agents that resell commodity to end users. The majority of Goat farm production retailers are characterized by having road side marketing place and used to sell Goat farm production (GFP) purchased from farmer traders or farmers to ultimate consumers in pieces after receiving large volumes and selling to wholes seller & Goat meat production processor private limited company. Wholesalers: wholesalers are someone who buys large numbers of goods and resell from retail, local farmers & other merchants rather than to the ultimate customers. Wholesalers are the major actors in the marketing channels. These were those participants of the marketing system who used to buy Goat farm production (Goat & Goat fatten) on a large volume than other actors did. They resell Goat farm production(GFP) in Modjo, Adama, Addis Ababa, Harar and Jigjiga towns and some Goat meat have good quality were sent abroad (Somali land, Djibuti, UAE(united araba Emirate), Saudi Arabia) using tracks & Airport.

4.4.4 Marketing channels Marketing channel refers to the sequence of intermediaries and markets through which goods pass in route from producer to consumer. It is an alternative route of product flows from producers to consumers. The analysis of marketing channels is intended to provide a systematic knowledge of the flow of the goods and services from their origin (producer) to the final destination (consumer). Consequently effectiveness is defined in terms of the ability of the marketing channels to offer proper service outputs or the right service in relation to consumer preference i.e. quality product and minimum price. This section presents result for the identified marketing channels, activities carried along the channels and the consumer preference that the channels are designed to meet. Goat fattening for meat purpose market channels depicted below were constructed based on the data collected. The result reveled that there are five major marketing channels obtained from trader’s survey.

Goat farm production (GFP) marketing channel Five main alternative channels were identified for Goat farm production (GFP) marketing. It was estimated that 7901 Goats were marketed in per annually in Doba woreda. From the total quantity marketed 85% were marketed at rural area bought by local traders are supplied by sample respondents (local farmers). From the quantity supplied by sample farmers around 52.3% traded outside the Woreda market and the remaining quantities flow through the identified channel to consumers and exporters. The main marketing channels identified from the point of production until the product reaches the final consumer through different intermediaries were depicted in Figure. As can be understood from figure -- the main receivers from producers were retailers and from retailer were wholesalers with an estimated percentage share of 32.95% and 52.2%, respectively. According to volume of potato passed to different channels, the channel of producer------retailer (local trader) ------wholesaler-----exporter carry the largest volume followed by producer ----wholesaler; and producer – retailer (local traders) ------consumer that carry in that order.

I. Producers ------Consumers (0%) II. Producers------Retailers (local traders) ------Consumers (52%)

III. Producers------Wholesalers------Exporters (0%) IV. Producers---retailer (local traders) -----Wholesalers----exporter--Retailers------Consumers (41%) V. Producers------Wholesalers------Exporters (7%)

4.5. To analyze the inflows generated (revenue) & net profit cash flow (business plan) of the whole business life of Goat farm production up to end consumer.  I, Goat fattening production & marketing Business plan in Doba district.  Amount of Capital needed for runout these business

Source of this capital Amount From the organization 50,000______Support ______Loan 50,000______Total 100,000______1. Production selling plan in a year.

S. No Type of production sell Units amount Unit price Total price Remark

1 Fatten Goat No. 30 4500 00 135,000 00

Total 135,000 00

In what month more customer available for our’s pruduction ______

2, fixed asset of this group

S. No. Type of material Units Amount Unit price Total price Remark

1 House rent for four month “ 1 2000 00 10,000 00

2 Safety Shoes No. 1 220 00 220 00

3 Safety cloth No. 1 255 00 195 00

4 Hand battery “ 1 60 00 60 00

5 Waterier material “ 4 10 00 40 00

6 Feeder material No. 8 100 00 800 00

7 Partition M2 40 20 00 800 00

8 Waterier material. “ 4 50 00 200 00

Total 13,715

3. Raw material needs for this enterprise in four month (Direct material costs)

S. No Type of material Units Amount Unit price Total price Remark 1 Goat for fatten purposive goal. No. 30 1800 00 54,000 00 2 Formulated feed feeds Kg 720 12 00 8640 00 3 Grazing land rent for four He. 2 700 00 1400 00 month.

Total 64,040 00 4. Indirect cost of this group (like; transport, worker salary, water, medicine for chickens, Depreciation & etc.) S. No Type of activities spend their Units Amount Unit price Total price Remark money 1 Antibiotics medicine No. 30 10 00 300 00 2 Transporting formulated feed No. 72 20 00 750 00 3 Vaccinated Round 4 100 00 400 00 4 Water “ 4 50 00 200 00 5 For transporting fatten goat. No. 1 8000 00 8000 00 6 For fattening medicine No. 120 10 00 1200 00 Total 10,850 00

5. Production cost plan in one year

S. No Type of production/service Units Amount Unit cost Total cost Remark 1 Fatten goat No. 30 4500 00 135,000 00 Total 135,000 00

6. Employee’s needed for this Small micro business P.L.C. group.

S. No Name Educational back Job position Salary in one Salary in ground & month. one year. experience

1 Guard Literacy Day care 1,500 00 6000 00 1 Day care & cleaner Round 4 2000 00 8,000 00 3 Total 14000 00

8. Monthly Cash flow plan of small micro business of this group

Month 1.ffaa 2.ffaa 3.ffaa 4.ffaa

1. Amount of money on their hand at the beginning of this 100,000 17,245 13,295 9,345 business.

2. Amount of income they get from sell production. _ _ _ 135,000

3. Other income they get _ _ _ _

4. Total income _ _ _ 144,345

Amount Amount of income we

5. Direct material costs 64,040 _ _

6. Direct Labor Costs 3,500 3500 3500 3500

7. Indirect material costs 1500 450 450 8450

8. Fixed asset material cost _ _ _ & & amount 13,715

9. Other cost _ _ _ _

11. Total cost 82,755 3950 3950 11,950

12. At the end of month amount of money left on 17,245 13,295 9,345 132,395 their hand.

Type Type of expenditure

get

14. Cost & profit Analysis

 Sell 135,000 Deduction  Direct Material Cost 64,040  Direct Labor Cost 14000  Marginal profit 56,960

Deduction

Indirect cost 13,715

 Net profit 43,245.00

 II, Goat Meat production & marketing Business plan in Doba district.  Amount of Capital needed for runout these business

Source of this capital Amount From the organization 53,750______Support ______Loan 50,000______Total 103,750______1. Production selling plan in a year.

S. No Type of production sell Units amount Unit price Total price Remark

1 Goat meat Kg. 540 303.6 00 163,944 00

2 Goat skin No. 30 85 00 2,550 00

3 Kidney meats No. 30 50 00 1500 00

4 Liver meats No. 30 65 00 1950 00

5 Hear meats NO. 30 40 00 1200 00

Total 171,144 00

In what month more customer available for our’s pruduction _may, april, december, january& etc._

2, fixed asset of this group

S. No. Type of material Units Amount Unit price Total price Remark

1 House rent for four month No 1 2500 00 10,000 00

2 Safety Shoes ‘’ 1 220 00 220 00

3 Safety cloth ‘’ 1 255 00 255 00

4 Hand battery “ 1 60 00 60 00

5 Feeder material No. 8 100 00 800 00

6 Partition M2 40 20 00 800 00

7 Waterier material. “ 4 50 00 200 00

8 Meat processing house ware Round 2 1800 00 1800 00 house rent

9 Drying skin chemical(salt) kg 10 12 00 120 00

Total 14,255 00

3. Raw material needs for this enterprise in four month (Direct material costs)

Total 64,040 00 4. Indirect cost of this group (like; transport, worker salary, water, medicine for chickens, Depreciation & etc.) S. No Type of activities spend their Units Amount Unit price Total price Remark money 1 Antibiotics medicine No. 30 10 00 300 00 2 Transporting formulated feed No. 72 20 00 1,440 00 3 Vaccinated Round 4 100 00 400 00 4 Water “ 4 50 00 200 00 5 For transporting fatten goat. No. 1 8000 00 8000 00

6 For fattening medicine No. 120 10 00 1200 00 Total 11,540 00

5. Production cost plan in one year

S. No Type of production/service Units Amount Unit cost Total cost Remark 1 Goat meat processing & transporting Kg. 30 125 00 3,750 00 until foreign markets. 2 Skin No. 30 5 00 150 00 Total 3,900 00

6. Employee’s needed for this Small micro business P.L.C. group.

S. No Name Educational back Job position Salary in one Salary in ground & month. one year. experience

1 Guard Literacy Day care 1,500 00 6000 00 1 Day care & cleaner Round 4 2000 00 8,000 00 Total 14000 00

8. Monthly Cash flow plan of small micro business of this group

Month 1.ffaa 2.ffaa 3.ffaa 4.ffaa 1. Amount of money on their hand at the beginning of this 103,750 20,275 16,145 12,015 business.

2. Amount of income they get from sell production. _ _ _ 171,144

3. Other income they get _ _ _ _ 4. Total income _ _ _ 183,159

Amount of income we

5. Direct material costs 64,040 _ _

6. Direct Labor Costs 3,500 3500 3500 3500

7. Indirect material costs 1680 630 630 8600

8. Fixed asset material cost _ _ _ & & amount 14,255

9. Other cost _ _ _ 3900

11. Total cost 83,475 4130 4130 16,000

12. At the end of month amount of money left on 20,275 16,145 12,015 167,159 their hand.

Type Type of expenditure

get

14. Cost & profit Analysis

 Sell 171,144 Deduction  Direct Material Cost 64,040  Direct Labor Cost 14000  Marginal profit 93,104.00 ETB

Deduction

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Indirect cost (11,540)+(3900)=15,440

 Net profit 77,664.00 ETB

5. Conclusion and Recommendations

5.1. Conclusion

In this research we can concluded as most of Goat farm production is highly practiced in Doba District and there is less market availability for were marketed it. The results show that, overall, the Goat market availability contradict with production availability due to this reason local farmers (producers) are not get good profit from them. In terms of production potential increment with profit we can get from Goat farm practice is the most easily we can start by less capital and we can get income in short period of time. And also by climate resilient green economic strategies (CRGE) it’s very appreciate one than other livestock rearing system. Due to less digestive track nitrous oxide gas release in the atmosphere. The other reason is we can income in a short period of time from this business. When you compare the Goat fattening practice with Oxen fattening Goat fattening is more profitable & easily we can practice it. So in this research we would try to see the business plan of it & calculate the net profit of it in specific period of time. In other direction what type input we can add to it with the cost of it in order to improve the end production physical structures and fulfill customer needed. As the other criteria of value chain approach is to increase Goat production speed delivery time. In this point we can consider the production reaching short time and the way to reach were our customer are there. Analysis of Goat farm production value chain commodity exchange is one the new method tool to reduce poverty & improve rural community house epically in some African parts countries. Therefore in this my research I have try to see how we can increase market absorption, penetration, linkage by create flat structure to linkage with producer & end consumer. Depending on the recent data shown for us 0% market linkage is between Producers ------Consumers, 52% is market linkage between Producers ------Retailers (local traders) ------Consumers, 0%is

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market linkage is between Producers------Wholesalers------Exporters; 41% is market linkage between Producers---retailer (local traders) -----Wholesalers----exporter--Retailers------Consumers and also 7% is market linkage between Producers------Wholesalers------Exporters. So, in this research to break the bridge between end consumer & producer and connect them together. In order to increase costumer being create connection with near boundary town were at national & local market availability are there. Like with along East direction market exchange with Baroda------Harari-----Dire Dawa------JigJiga----Wucale-----Djibuti. Along west direction we have market opportunity with Ciro-----Adama-----Modjo----Addis Ababa. So, local farmers they can supply contract form for end consumer by negotiating with them.

The second value chain analysis in this research is to improve production quality like preparing meat by abattoir goat fatten and after that gently pack with clean cotton and put in refrigerator in the temperature between 0-4 0C. As the recent data I collected shown it, at international level the customer of this production is Suid Arabia, UAE (United Arab Emirate), Qatar. So most of the time Goat meat processor & exporter organization delivery their customer into abroad countries. In foreign countries 1(one) kg of Goat meat is around 7.5$(207birr).

Market performance was analyzed based on the marketing costs and margins. The results indicated that Transport represented by far the largest component of marketing costs, accounting for more than 50% of the total market cost. The cost and difficulties of transporting Goats farm production within volatile markets, using poor roads, present the traders with many risks. In order to cover these risks, traders include for themselves high profit margins. This often means that farm-gate prices bear little relation to retail prices.

All age class in family is can practice this business starting from producer up to whole seller, retailer, processor & end consumer. In order to practice this business we have to access to get credit, grazing land area, get road access to transport Goat production and also frequency of extension contact with customer is the most important and significant variable influencing the decision to Participate in Goat production market positively. Moreover, local farmer’s production capacity, agro-ecology and grazing land availability and fodder are the significant determinant factors of the quantity of goat fattening supplied positively. However, frequency of extension contact is the significant determinant of the quantity of Goat

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fatten supplied negatively. The coefficient associated with the inverse Mill’s ratio was significant, indicating that the influence of unobservable factors in the farmers’ decisions to participate was significant. The study used time series monthly secondary data that contains from January 2018 up to July 2018 months to analyze the relationship between local market, national & international markets price to identify the long run and short run market integration of the three markets levels. Generally, in this research we try to see how can maximize production & profitable by great percent in order to improve local farmer living remote rural area through small ruminant livestock rearing by the approach commodity value chain. As value chain analysis in this research we try to see as first point on to improve physical structure of the product by adding some new technology, value adding in order to get better profit from them, as the third point we try to see to improve production delivery speed at were customer found and create flat structure & market linkage between producer & end consumer.

5.2. Recommendations

In view of the above conclusion, this study makes the following recommendations about Goat farm production value chain in the study areas: Results of value chain analysis indicate that Goat farming production (GFP) market participation decision is positively and significantly to improve rural community livelihood by small scale house holding. Therefore, these factors must be promoted in order to increase the amount of Goat farm production and also marked supply. Increasing the production and productivity of Goat at per unit house hold level is better alternative to increase marketable supply of Goat production. Introduction of modern technologies for the efficient use of the Goat meat production & skin for synthetics purpose, Goat rearing and management practices should be promoted to increase production. Strengthening the supportive activities such as information centers and input supply systems would also Goat production supply. In addition to that, building the capacity of the farmers and developing the skills what farmers have through experience increases Goat farming production & supply to the market.

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Marketed surplus is significantly and negatively affected by to extension service. Therefore, strengthening efficient and area specific extension systems supporting DAs by giving continuous capacity building trainings and separating DAs extension work from other administrative activities to increases Goat farm productivity & supply to the market Proper method of transporting, storing Goat meat in safe place after processing, create flat structure between producer & end consumer. Hence, it is recommended to assign efficient extension system, updating the producer’s knowledge and skill with improved production, handling, storing and marketing system that enables to increase benefits of producers.

The finding of this study reveals that Doba, Baroda , Dire Dawa, Harar, Jigjiga, wucale & Djibuti Goat fatten markets have been co-integrated that indicates the positive long run relationship between them markets. As well as between Doba, Adama, Modjo, Addis Ababa, UAE (United Arabia Emirates), Saudi Arabia in those market place area make market co-integration for long period of time. In addition, on the quality of Goat meat production this result implies that as Goat meat found in kola area is very preferable at international market level & their price is expensive at export market. On the other hand, the speed time delivery improvement of production adjustment for national & international market is one role to increase customer satisfaction & create co-integrated for long period of time. This situation might be necessary to overcome warehouse cost by some percent & help us to get current price information particularly for rural community to increase penetration capacity markets. Finally, further research is needed on determinant factors of the maximize Goat rearing potential at kola agro-ecological area, adding some new technology improvement on goat farm production & Goat meat, value adding to get maximum profit, improve speed delivery time of Goat production were our customer are there by price adjustment between different producer supply for local market & end consumer get at international level.

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6. Reference

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*World Bank, 2013.World Development Report. World Bank, Washington, D.C, USA. *WFP/PDPE, 2007. Market analysis tool: Market Integration. Working Paper (7), 2007. World Bank, 2009. *Todaro,M., 1998. Economics Development.6th edition New York. McGraw-Hill,Inc. New York. * Devendra, C and McLeroy, G.B.1982. Goat and sheep production in the Tropics. Intermediate Tropical Agriculture series * Kees Swaans, September 2014, using innovation platforms to stimulate innovation and multi- stakeholder interaction in small ruminant value chains, Maputo, Mozambique.

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