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Hamer Woreda Market Enhancement Study Livestock Market Enhancement Study Hamer Woreda, South Omo Zone Commissioned by Target Business Consultants Plc www.targetethiopia.com [email protected] December 2011 Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study Livestock Market Enhancement Study Hamer Woreda, South Omo Zone Pact Ethiopia, Addis Ababa Ethiopia www.Pactworld.org Tel +251 116 614800, Addis Ababa Ethiopia Study by Getnet Haile and Dawit Mengistu Target Business Consultants Plc Africa Avenue (Bole Road), Friendship Business Center, 7th Flr Addis Ababa, Ethiopia Tel: +251 116 636645 Fax: +251 116 180540 Cell phone +251 911 211989 www.targetethiopia.com, email : [email protected] 1 Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study Abbreviation and Acronyms AFD Action for Development AMREF African Medical and Research Foundation Inc CAHW Community Animal Health Workers CCPP Contagious Caprin Pluero Pneumonia CCSD-SO Capacity and Collaboration for Sustainable Development South Omo CEWARN Conflict Early Warning and Response Mechanism CSA Central Statistics Agency EIAR Ethiopia Institute of Agricultural Research EPaRDA Enhancing Pastoralist Research and Development Alternatives FAO United Nations Food and Agriculture Organization FGD Focus group discussion GEM Girls Empowerment and Management GIS Geographic Information System GO Governmental Organizations GTP Growth and Transformation Plan HABP Household Asset Building Program HIV Human Immuno Virus HRD Human Resources Development HTP Harmful Traditional Practices ICRDP Improved community response to drought project IGAD Inter governmental Authority on Development ILRI International Livestock Research Institute ITC International Trade center JARC Jinka Agricultural Research Center MoA Ministry Of Agriculture NGOs Non Governmental Organizations PCDP Pastoral Community Development Program SARI South Agricultural Research Institute SNNPR Southern Nation and Nationalities Peoples Regional State PSNP Productive Safety Net Program SELAM-C Stability for Ethiopia’s Lowland Marginalized Communities TEACH Transforming Education for Adults and Children in the Hinterlands VCoBa Village community banking 2 Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study Table of Contents 1. EXECUTIVE SUMMARY ................................................................................................ 8 2. INTRODUCTION ....................................................................................................... 10 2.1. Background of the study area ....................................................................... 11 2.2. Objective of the study .................................................................................. 13 2.3. Methodology of the study ............................................................................. 13 2.4. Scope and limitations of the study ................................................................. 16 3. THE ETHIOPIAN LIVESTOCK PRODUCTION SYSTEM ................................................... 16 3.1. General overview of the production system .................................................... 16 3.2. Ethiopia livestock production system ............................................................. 17 3.3. Overview of the marketing system ................................................................ 18 3.4. Livestock market channels in Ethiopia ............................................................ 18 3.5. Consumption pattern .................................................................................... 19 3.6. Domestic market .......................................................................................... 20 3.7. Export market .............................................................................................. 21 4. Hamer Woreda Livestock and Rangeland Conditions ................................................... 24 4.1. Overview of the Woreda ............................................................................... 24 4.2. Overview Livestock production ...................................................................... 25 4.3. Overview of the rangeland condition of the Woreda ....................................... 26 5. HAMER WOREDA LIVESTOCK MARKET & MARKET CHANNELS ..................................... 29 6. Description of the Hamer Woreda livestock value chain ............................................... 36 7. Direct Actors in the Hamer Livestock Value Chain ....................................................... 38 7.1. Pastoralists .................................................................................................. 38 7.2. Traders ........................................................................................................ 42 7.3. Cooperatives / Union .................................................................................... 50 7.4. Fatteners ..................................................................................................... 52 3 Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study 7.5. Butchers ...................................................................................................... 53 7.6. Abattoirs / Exporters / Processors .................................................................. 56 8. Service Providers ...................................................................................................... 59 8.1. Transporters /trekkers .................................................................................. 59 8.2. Brokers ........................................................................................................ 59 8.3. Veterinary service ......................................................................................... 60 8.4. Financial services ......................................................................................... 61 8.5. Marketing and business support .................................................................... 61 8.6. Standardized unit of exchange (marketing) system ......................................... 62 8.7. Waiting centers/holding ground ..................................................................... 62 8.8. Other government supports / services ........................................................... 62 8.9. NGOs’ Role / services and supports ............................................................... 66 9. Chain Context ........................................................................................................... 73 9.1. Infrastructure ............................................................................................... 73 9.2. Culture ........................................................................................................ 76 9.3. Policy, Legal Framework and Economy ......................................................... 81 10. Conclusion and recommendation ............................................................................... 84 10.1. CONCLUSIONS ............................................................................................. 84 10.2. Recommendations ........................................................................................ 87 Reference 109 4 Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study Annexes Annex 1: People met Annex 2: Interview Checklists Annex 3/a: Herbaceous species identified in different altitude categories and grazing types of Hamer district Annex 3/B: Woody species density in percentage per hectare in Hamer district 5 Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study List of Figures Figure 1: Map of Hamer Woreda Figure 2: Livestock marketed in Hamer Woreda Figure 3: Market Channels for Hamer Woreda cattle marketing Figure 4: Market Channels for Hamer Woreda shoats marketing Figure 5: Livestock Value Chain in Hamer Woreda Figure 6: Shoats Value Chain in Hamer Woreda Figure 7: Temporary chain for a joint heifer procurement of Omo Union and cooperatives 6 Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study List of Tables Table 1: Volume of livestock and livestock products consumption and sales Table 2: Livestock export of Ethiopia Table 3: Trend in growth of export of live animals (in %), 2006-2010 Table 4: value of meat and other edible offal in USD exported to countries, 2006- 2010 Table 5: value in USD of meat and edible offal exported to different countries; 2006- 2010 Table 6: Livestock population in Hamer Woreda Table 7: Types of grasses and woody species in different types of lands (Hamer Woreda) Table 8: Livestock marketed in the Year 2010/11 in South Omo and Hamer Woreda Table 9: Summary of livestock holding in sample Kebeles of Hamer Woreda Table 10: price per kg of live weight from 2008-2011 Table 11: Market centers in Hamer Woreda livestock value chain Table 12: Market Channel Selection Option Table 13: Intervention Matrix 7 Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study 1. EXECUTIVE SUMMARY There is high potential for livestock resources which could be exploited to enhance the livelihood of pastoralists in Hamer Woreda. In the contrary, the rangeland is deteriorated not only because of the increasing number of livestock but also the repeated drought, bush encroachment and poor rangeland management. Though the Woreda is endowed with livestock resources, more than 40% of the people are supported by PSNP program because of their serious food gap. On the other hand, the demand for livestock both domestically and internationally is high. There are
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