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By: - Chali Keneni 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 Page 1 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 2 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. 4 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 5 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 6 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
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