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]

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

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

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

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

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

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

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 a number of livestock marketing channels originated from the Woreda. These channels helped pastoralists to sell their livestock and buy basic items. Because of the inefficiency of the chains the benefit accrued to the pastoralists has been low. Pastoralists have the experience of losing whatever they accumulate for years just in one season. Hence, it is time to compromising cultural prides of having more livestock against real security. Commercial destocking identified in this study as a solution to ensure reliable asset building to the pastoralists’ household. Commercial destocking also brings benefits such as ability to sell livestock while they are in good condition. Selling prices of livestock during drought time are too low because of poor conditions of the livestock and excess supplies as everybody rushes to sell his/her cattle. Commercial destocking also enables to decrease the pressure on the rangeland, minimize long distance travel in search of grazing, minimizing encroachments to park and minimizing tribal conflicts.

Trustworthy culture of the Hamer Woreda people, awareness on backyard fattening, presence of active livestock traders in the Woreda, introduction of credit and saving cooperatives at Kebele levels and top of all, the engagements of a number of NGOs are favorable conditions for better market enhancement.

Amid these opportunities there are also a number of challenges which need intervention at all levels. Unavailability of primary markets has forced them to be engaged in bartering of livestock with grains with unfair and imbalance mode of exchange. In

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

Hamer Woreda, most of the cooperatives are poorly organized, non-functioning and can’t manage and stand by themselves. This could be caused by high illiteracy level and weak institutional competency of organizing/concerned government body in terms of staffing, budgeting and technical efficiency. Finally, the limited spending culture and lack of accessible saving and credit services also contributed to the lack of interest to destock cattle.

Traders, cooperatives and pastoralists have little access to finance. People targeted in PSNP program are benefiting with small loans to engage in their own small business activities. These support has helped in the past some pastoralists to engaged in trading activities. Some of them actually misused the money. Microfinance services need to be strengthened. There is an initiative by PCDP to strengthen the microcredit services in the pastoralist community in collaboration with Omo microfinance.

Sector offices at zonal and Woreda levels have constraints in terms of capacity of implementation and coordinating of the endeavor of various NGOs due to limited budget and scare qualified manpower. Other Chain contexts including the policy, the legal frameworks and the economic performance of the country are supportive for livestock development and marketing. GTP is supportive to the livestock value chain enhancement.

In this study, five market channel possibilities with the objective of enhancement of the marketing linkage of the pastoralists are proposed. The pros and cons and the intervention required to make each channel efficient are also proposed. Finally, a comprehensive intervention matrix (Table 13) is designed to enables different stakeholders including Government offices to understand the issues, associated challenges and course of actions required. In addition, the study document identifies the relevant participants in the intervention, the level of priority and propose time frame. Rangeland management, marketing, financing, tribal conflict, animal health are the issues elaborated in the intervention matrix.

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

2. INTRODUCTION

Pact is a US based international Non Governmental Organization undertaking various development activities across all regional states in the areas of education, health, and livelihood and enhancing culture of discussion and capacity building. As part of its development initiatives, Pact has been implementing a project called Capacity and Collaboration for Sustainable Development (CCSD-SO) in South Omo zone with its coordination office located at the zone capital town Jinka. The overall goal of the project is to advance capacity and collaboration among development actors for sustainable development of South Omo zone.

As part of the national development process and efforts to improve the socio-economic situation, pact is keen to be engaged in sustainable development thereby improving the overall situation of pastoralists in Hamer Woreda. In order to be in a position to make evidence based decision and take practical actions to mitigate the overburdening social, economical and cultural challenges, Pact has initiated a study on livestock market channel improvement in South Omo Zone-Hamer Woreda. The study will help Pact to internalize the following major issues • The overall livestock production orientation (subsistence, market oriented) potential and challenges of the sector in Hamer Woreda • The situation of the natural resources particularly the grazing areas and rangelands • The major market actors (direct and indirect ones), the nature of the market, market challenges and related issues • The social, economical and political factors affecting the development arena • Current development efforts and promising practices • Possible intervention areas

Therefore, Target Business Consultants PLC has been commissioned to undertake the study in the proposed area. The livestock market channel improvement study will provide detail descriptions of the market chain in the study area. Moreover, it will pinpoint the following value chain enhancement issues;

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

• Identify the main market chain actors in the study area • Explore enabling business environment and support systems • Examine challenges and potentials • Recommended course of actions/interventions.

2.1. Background of the study area

The study area is located in South Omo zone Southern part of Ethiopia close to Kenya and South Sudan. (Figure 1). South Omo zone is one of the 12 zones of the Southern Nation and Nationalities Peoples Regional State (SNNPR), which is relatively large zone covering an area of 22,000 square kilometers. South Omo zone is also the most socially diverse zones with about 12 different ethnic groups, and possibly as many as 21 dialects. The limited basic infrastructure, low literacy level and scarcity of professional and technical man-power are main challenges of the zone. Livestock production is the main stay of the people in most of the Woredas. This study focuses on Hamer Woreda, which is among the eight Woredas in the zone. Hamer Woreda covers 5,742 square kilometer and divided in 36 Kebeles.

Pastoralists in Hamer Woreda are endowed with livestock resources. However, livestock resources could not be dependable to secure livelihood of the community because of various environmental shocks including drought and diseases. The ever increasing human and livestock population results the deterioration of the rangeland, triggered tribal conflicts among different ethnic groups. Encroachment of livestock of pastoralists into reserved national parks which endangered wild animals. Youths travel long distances and spend substantial part of their time away from community for grazing. This study explores possibilities of commercial destocking to respond to most of the challenges stated above.

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

Figure 1: Map of South Omo Zone

Source: Google Map, South Omo zone Administration

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

2.2. Objective of the study

The objectives of the study are;

• To conduct Hamer Woreda livestock market assessment study for the establishment of market channel with respective stakeholders. • To support the facilitation of consultative workshop with relevant stakeholders / community, local government, Zonal and Regional Governments as well as cooperatives and private sectors (traders)/ based on the findings from Hamer Woreda Livestock Market Channel improvement Assessment study. • To improve sustainable management of rangeland which support Hamer livelihoods through voluntary based destocking • To support wildlife and biodiversity conservation in Mago National Park through reduction of encroachment by livestock • To reduce pressure and competition over scarce natural resources through voluntary base livestock destocking

2.3. Methodology of the study

2.3.1 Sources of data

• Secondary data: Secondary sources of data are different researches and papers produced in the past in relation to livestock marketing and rangeland management. Few documents were collected from Pact’s Jinka office, Land administration office of SNNPR (within Bureau of Agriculture), Pastoralist Development Commission, Pastoral Community Development Project office, Cooperative promotion agency offices (Woreda and zonal offices), and offices of agriculture of Hamer Woreda. A number of documents were also collected from International Livestock Research Institute (ILRI). Majority of the documents were collected from the internet including statistical and policy documentations. In addition, similar studies conducted by Target Business consultants were also explored.

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

• Primary data: Different actors (pastoralists, traders, butchers, processors and brokers) and stakeholders (NGOs, Government offices, the national park) were also interviewed. Focus group discussion (FGD) with pastoralists, local leaders and administrators was conducted. The team has also observed the live marketing transactions of livestock and the conditions of rangeland during the field visits.

2.3.2 The sampling technique and sample size

Relevant government offices which are related to agriculture, cooperative promotion and pastoralist commissions were fully accessed and interviewed except few of them which were busy with other commitments such as regional cooperative promotion agency and Omo microfinance Institution. Almost all of the NGOs (four NGOs1) which have offices in Hamer Woreda are all interviewed except few of them where their representatives were not around during the team‘s visit.

Out of the 35 Kebeles of Hamer Woreda, seven Kebeles were selected for focus group discussion. The bases of selection of the Kebeles were the marketing performances and unique cultural features. The sample selection was conducted in consultation with the agricultural office of Hamer Woreda and program officer of Pact Ethiopia. Accordingly, 4 Kebeles ( Aerya Ambule, Ache Keysa, Shanko Kelema and Simbele Besheda) were selected for their relatively better market performances, 1 kebele (Mino Gelti) selected from poorly performing Kebeles and two Kebeles with different ethnic group (Karo and Aerborie) were selected for their peculiar cultural setup than the rest of the Hamers. Out of the five nearby market centers, three of them including Dimeka, Key Afer, Erbore were visited. Because of time constraints Jinka and Alduba markets were not visited. Turmi market centers were visited though they are not yet operational. Additional market centers which are far away from Hamer Woreda but linked to the market chain were also visited. These are Konso and Gato

1 Farm Africa, Action for Development, Dimeka Catholic Secretariat, Veterinaries Sans Frontieres– Germany (VSF G)

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

markets. The market centers selected are based on their proximity and relationship to Hamer Woreda livestock marketing channel.

The number of participants in the focus group discussion ranges from 4 to 8 pastoralists, where Kebele chairmen were participated in the discussion in three of the sample Kebeles. Program/field officers of four NGOs, Three traders, four butchers (from Turmi, Dimeka, Arba Minch and Konso), minimum of six agents small traders at Dimeka, Key Afer, Konso and Gato market were interviewed. Most of them were between the age of 20 and 40. Heads of the various departments of the agricultural office and cooperative promotion office at Zonal and Woreda level were also interviewed (Annex 1 for people met). The warden of Mago National park was also interviewed in relation encroachment of pastoralists to the park area 2.3.3 Tools development and administration

The team has developed interview checklists. Different interview checklists developed for different types of respondent. The questionnaires include qualitative and quantitative data (Annex 2). No pre-testing was conducted to evaluate the checklists. The tool was administered using note taking and voice recording (with a prior approval of the interviewees) and collected by the study team member (a team of two consultants).

2.3.4 Ethical consideration

The data were collected with prior consent of respondents, at their convenient time and places with due respect of their culture and tradition.

2.3.5 Study framework The value chain framework adopted to deal with the enhancement of livestock market channel to Hamer Woreda pastoralists. Accordingly thorough analysis was conducted on the marketing dynamics of livestock, the inter-relationship of the various actors, the strength and weaknesses of these actors, the role and capability of service providers and the overall chain contexts. Existing livestock marketing channels were identified,

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

reviewed. Finally, suitable and feasible value chains together with the required course of actions to enhance these chains proposed.

2.3.6 Conducting Validation workshop

Validation workshop was conducted in the town of Turmi with the presence of different stakeholders and actors. The validation workshops helped a lot in strengthening findings of the study and to validate the different proposed market linkage approaches (Annex 3: list of validation workshop participants)

2.4. Scope and limitations of the study

The scope of the study has centered Hamer Woreda’s livestock marketing. The team has explored the marketing channels including market places in the surrounding Woredas and destination points. The rainy weather condition affected the free and timely movement where the team could have interviewed more community groups. The deep rooted illiteracy level and the cultural problem in relation to numbering of resources, the team couldn’t get accurate estimates of the livestock population at household level. Bush markets dominate in the Hamer Woreda livestock marketing, however, the timing and the very nature of the transaction (as there is no formal and regular market day) did not allow the team to witness and observe.

3. THE ETHIOPIAN LIVESTOCK PRODUCTION SYSTEM

3.1. General overview of the production system

Endowed with diversified agro ecological conditions, Ethiopia is found to be suitable to various kinds of livestock. The distribution of these resources is not uniform across the ecological zones. Some of the species are adaptive and productive to specific ecological zones. For instance, lowlands are suitable to goats and camel while highlands suit to sheep and cattle. Most of the livestock resources are produced by pastoralists, agro pastoralists and mixed crop farming farmers. The majority of the animals are sold to private entrepreneurs operating in a market chain involving in collection, fattening and

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

transportation up to terminal markets either in the form of live animal or meat. (Getachew Legesse et al 2008) 3.2. Ethiopia livestock production system

3.2.1. The highland crop-livestock mixed farming system

Two farming systems namely the crop production and livestock husbandry become highly interdependent and complement each other in the high land crop-livestock production system. The non existence of one of the system may severely affect the operation of the other. This system functions in an altitude range of above 1500 masl and covers about 40% of the total land mass of the nation. In this production system, livestock are mainly kept for traction purpose and farmers use their dung and drops as organic fertilizer. However, they are sold when they get old and become no more functional for the production system. (Wageningen 2008)

3.2.2. The lowland pastoral and agro-pastoral production system

This production system exists in lowlands which are below 1500 masl and constitutes about 60% of the total landmass of the country. Lowlands are situated in Eastern, Southern and Western part of the central highlands. Livestock are the main source of food and also exchanged for cash to cover household expense such as food grains and other consumable goods. This production system is threatened by recurrent drought and rangeland deterioration including encroachments by crop farmers. Lowlands are main sources of sheep and goats especially for export markets. Azage and colleagues in their study expressed the wrong perceptions to this areas saying that ‘major livestock producing areas in the arid and semi-arid regions of the country have been viewed in the same way as crops production areas and have most often been labeled as ‘food insecure’, ‘marginal’, moisture stress’ or ‘low potential’ areas, despite the huge, yet unexploited, livestock, crops and other natural resources they possess’. (Azage et al 2010).

3.2.3. The Urban and Semi urban / industry system/

This system of livestock production system emerged as a result of rapid urbanization and industrialization. In this system livestock are usually confined in certain spaces and

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

feeding and water are provided directly rather than acquisition through grazing and getting from natural water bodies such as rivers and lakes respectively. Usually, this production system employs modern management and inputs applications. Feedlots in Debrezeits, Mojo and Nazareth towns of Ethiopia are examples for this category of production system. Producers buy the cattle from primary and secondary markets and sell them back (after fattening) to butchers and traders (Wageningen 2008). Though it is not common in Ethiopia2, ranches are also categorized in this production system.

3.3. Overview of the marketing system

Farmers, pastoralists and agro pastoralists who follow different production systems of livestock and their products sell these items for different reasons based on of the level of dependency to their livelihood. Pastoralists do not produce with commercial objectives instead for the socio-economic importance of livestock and their products especially milk. These producers usually sell livestock and their products to cover household expenses. Some pastoralists sell livestock such as bulls in exchange for heifers. Pastoralists are selling more shots than cattle because of the importance they place and Fatteners including backyard fatteners are engaged in fattening activity with pure marketing objective.

Efficient livestock marketing should not be just selling and buying. The marketing infrastructures or services should support the efficiency of the whole value chain from production to the point of end consumers. The required services are provision of marketing information services, transportation, financing, market centers, quality standards, holding grounds etc. Most of the challenges in livestock marketing are related to lack of or limited availability of these value chain components. (Target 2008)(Azage et al 2010).

3.4. Livestock market channels in Ethiopia Livestock channels are routs through which livestock reach hands of consumers at the through the involvement of the different actors. Livestock passes through different

2 ELFORA, a private company has a ranch in Wonji areas (Ethiopia).

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

market tiers (primary, secondary and tertiary markets) before they reach the consumers. Official live animal and chilled meat exports are increasing in the past few years. In addition to these markets, cross boarder trading are the other ways through which livestock are marketed. Known cross-border trading is taking place through Djibouti, Somalia and Kenya. Unofficial cross-border destinations include Somalia, Djibouti and Sudan. These cross-border markets are served by adjacent pastoralist areas of Ethiopia (LDMPS 2007).

The nature of the actors in these market channels in terms of financial capacity, knowledge, means of trading, objective, market strategy and contribution to the development of the marketing system vary accordingly and the level of their competition too. (Getachew Legesse et al 2008).

3.5. Consumption pattern

In any of the livestock production systems, it is understandable that livestock are used directly for household consumption or sold to finance or cover household expenses and purchase of grains and other consumable goods such as coffee, sugar and cooking oil, etc. these products are sometimes used as payment and gifts to others. According to data from central statistics agency (CSA), considerable volume of livestock and livestock products are consumed at household level. Mutton and goat milk holds the biggest number in household consumption of meat which accounts about 86.91 %. On the other hand the amount of beef spent for household consumption (46.65 %) is slightly bigger than the amount disposed through market (40.49 %). CSA report indicates that except for beef, household consumption of livestock products is remarkably high exceeding 50% of the total household production. The least consumed livestock product next to beef is butter (60.77 %) with the highest product being milk (85.23 %) after Shoats meat. The following table (Table 1) depicts the overall volume of livestock and livestock products consumption and sales.

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

Table 1: Volume of livestock and livestock products consumption and sales.

Type of Livestock Household Wages in consumption kind Product Total % sales Others

Beef 100 46.65 40.49 1.42 11.44 Mutton/Goat Meat 99.99 86.91 6.97 0.34 5.77 Milk 100 85.23 6.86 0.29 7.62 Butter 100 60.77 36.36 0.23 2.64 Sheep Hair 100.01 68.18 30.97 0.24 0.62 Skin 99.99 9 53.94 41.99 0.67 3.3 Camel Meat 100.01 59.29 14.11 - 26.61

Source CSA 2002 EC (2009/10)

3.6. Domestic market

Livestock markets in pastoralists’ areas follow four tiers. These are bush, primary, secondary and terminal markets. The classifications of these markets are based on the number of livestock marketed per week, the mode of transaction and nature of participants of the market. Bush markets are markets undertaken in bush areas by Pastoralists and small scale traders /purchasers/ for breeding, for resale in primary markets and other purposes. Primary markets are markets where the weekly sells volume does not exceed 500 animals. In these markets, the main sellers are pastoralists and small scale trader while assemblers (agents) and medium scale traders are the major buyers. Secondary markets are major town markets where medium scale traders are suppliers of livestock and big traders are buyers. In these markets the total estimated livestock volume ranges between 501 and 1000 animals per week. Tertiary/terminal markets are those which are usually found in big cities where there are many actors (sellers and buyers) and animals. These markets accommodate more than 1000 animals per week. In these markets, butchers, consumers and other social groups are the major buyers of animals. (Daniel 2008)

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

3.7. Export market

Ethiopia exports live animal and meat including other livestock products to various African and Middle East countries. The benefits poor pastoral groups can accrue from direct sales of livestock to the export trade are minimal. In vibrant export markets as in Sudan or the Somali Region of Ethiopia, it is the indirect benefits of the export trade that are more important to poor groups compared with what they earn from own livestock. (IGAD market policy, 2010)

3.7.1. Live animal export

According to data obtained from the international trade center (ITC), the volume of meat exported to different countries during the years 2006-2010 was 155,398 tones with undulation of volume in export in each year. The export volume of cattle attained its maximum in the year 2011 and was bottomed in 2008 by 19,256 tones. Volume of export of shoats is fluctuating between 2006 and 2010. Export of cattle has shown increase from the year 2008-2010 while the shoats was filled with ups and downs of 2451 tones, 4890 tones and 3304 tones for years 2008,2009 and 2010 respectively. Table 2 and 3 depicts the type the volume/quantity of live animals exported between 2006 and 2010.

Table 2: Livestock export of Ethiopia

Exported quantity, Tons

S.No Product Name 2006 2007 2008 2009 2010 1 Live bovine animals 37874 23998 19256 23031 51239

2 Live sheep and goats 1074 5827 2451 4890 3304 3 Live horses, asses, mules and hinnies 97 701 129 1566 276

Source; International Trade Center (ITC) Data base

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

Table 3. Trend in growth of export of live animals (in %), 2006-2010

in % %

growth growth growth growth

% % Name

between between value

2008, 2010,

Dollar ‐ ‐ between between

S.No

2007, 2009, ‐ ‐ value value 2007 2009

Product value value

in in Exportations Exportations Exportations in 2006 Exportations in 2008 Exported 2010,US thousand 1 Live bovine animals ‐22.76 9.02 38.11 111.32 77633 2 Other Live animals 1862.74 90.54 10.05 180.15 48886 3 Live sheep and goats 502.63 ‐47.11 65.22 ‐11.59 5662 Live horses, asses, 4 mules and hinnies 582.72 ‐83 1432.98 ‐83.14 243 5 Live poultry 0

Source; International Trade Center (ITC) Data base

3.7.2. Meat export

According to data obtained from ITC, major countries which import meat and other edible offal from Ethiopia include Middle East countries such as Saudi Arabia, United Arab Emirates, Oman, Kuwait, Bahrain, Yemen and Qatar. In terms of the total value of meat exported, Ethiopia obtained about 49,548 million USD from meat exports; chilled sheep and goat carcasses exports accounted for more about 80 percent of the total value of meat exports during the year 2010. The bulk of meat exports in the form of whole sheep and goat carcass indicate the lack of product diversification in meat exports. During the period 2006 to 2010, Ethiopia exported chilled meat to more than seventeen different countries: Saudi Arabia, United Arab Emirates, Oman, Kuwait, Bahrain, Yemen and Qatar being the major importers.

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

Table 4; value of meat and other edible offal in USD exported to countries, 2006-2010

‘000 USD Exported Exported Exported Exported Exported Importers value in 2006 value in 2007 value in 2008 value in 2009 value in 2010 World 17400 13700 28197 26045 49548 United Arab Emirates 9486 4510 16397 15350 26110 Saudi Arabia 6385 9031 11236 9776 19059 Turkey 0 0 0 11 1127 Angola 10 0 0 0 966 Comoros 0 0 0 0 581 Bahrain 37 0 0 22 305 Kuwait 0 0 0 18 292 Viet Nam 10 8 124 282 282 Germany 0 0 65 0 271 Egypt 850 0 0 405 184 Sweden 103 0 0 0 112 Qatar 0 0 0 0 92 Yemen 126 89 139 127 81 Djibouti 1 0 6 3 28 Bosnia and Herzegovina 0 0 0 5 15 Oman 0 5 12 28 5 Congo 115 57 17 5 0 Sources: International Trade Center (ITC) Data base

Table 5; value in USD of meat and edible offal exported to different countries; 2006-2010 ‘000 USD S. Product type 2006 2007 2008 2009 2010 No Meat of sheep or goats ‐ fresh, 14911 13568 28054 22760 39556 1 chilled or frozen 2 Meat and edible meat offal nes 0 0 0 2234 5968 3 Meat of bovine animals, frozen 8 60 2 615 1823 4 Edible offal of red meat 1127 11 113 309 1557 Meat of bovine animals, fresh or 164 8 0 1 521 5 chilled 6 Meat & edible meat offal 1191 6 22 127 93 Sources: International Trade Center (ITC) Data base

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

4. Hamer Woreda Livestock and Rangeland Conditions 4.1. Overview of the Woreda Hamer Woreda’s livelihood is mainly categorized as pastoralist though there are certain places with features of semi-pastoral. Hamer Woreda is located in the southern part of Ethiopia, in Southern Nations and Nationalities and People regional states, under South Omo zone (Figure 1). Figure 1: Map of Hamer Woreda

Source: Google map, Soouth Omo zone administration.

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

The altitude of the Woreda ranges between 371 meters and 2084 meters above sea level. The total land area of Hamer Woreda is about 732,000 hectare out of which (65 % is grazing land of which 31% is grassland while the 34% is bush land. 14% of the land is believed to be suitable for farming using rainfall and irrigation. Currently only 1% of the total area is used for cropping3.

The total population of the Woreda is estimated to be 67,045 as of 2010/11 where women constitute 49.2% and men 50.8% of the total population. According to the estimate of CSA (2010), the total population of Hamer Woreda is 66,779. The population is composed of three ethnic groups. These are Hamer, Erborie and Kara with a population of 54,583 (81.4 %), 10,333 (15.4%) and 2,129 (3.2%) respectively. The total number of households is 13, 663, with an average of family size of 4.9. More than 32% (21,581 people) of the population of the Woreda is supported by Productive Safety net program. Annual rainfall is an average of 764 mm per annum. The climate of the Woreda is a mix of Dry Woinadega (8%), Dry Kola (54%), Semi Dry Kola (37.5%) and desert (.5%). The highest temperature in the Woreda ranges between 32 c0 to 38c0. The lowest temperature ranges between 29 c0 to 31c0.

4.2. Overview Livestock production

Livestock production is the main stay of the majority of the Woreda population. Based on the estimates of Agriculture office of Hamer Woreda (year 2010/11), there are about 324,000 cattle, 714,000 goats and 332,000 sheep. In addition, there are significant number of donkeys, hens and bee colonies. There is also small number of camels, which are estimated to be around 208. Assuming that the data collected from Hamer Woreda Agricultural office and CSA are representatives, Hamer Woreda has largest share of livestock population from the South Omo Zone (34% of Cattle, 74% of goats and 61% of sheep). (Table 6).

3 According to the Woreda Office of Agriculture

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

Table 6: livestock population in Hamer Woreda

Population Total population Percentage of

Description (Office of of South Omo livestock population Agriculture) zone (CSA data) of Hamer Woreda

1 Cattle 324,738 944,434 34% 2 Goat 714,760 968,531 74% 3 Sheep 332,656 546,620 61% Source: Hamer Woreda Agriculture office, CSA

Livestock is main food source to the pastoralist community in the form of meat, milk and fresh blood. The livestock is also serving as wealth accumulation and security. Pastoralists in the zone exchange their livestock mainly shoats for food or for cash to buy food crops, to cover expenses for traditional events such as marriage, ‘zelay’ 4 and funeral. Pastoralists need money also for the purchase of coffee husk, which is famous drink in the Woreda.

4.3. Overview of the rangeland condition of the Woreda

According to a study made by Admasu and colleagues, there are about 32 species of grasses, three species of legumes, two species of sedges, and seven species of other herbaceous plants in Hamer woreda. In the same study, it is indicated that out of the total herbaceous species recorded; on dry matter basis 38.2% were grasses of different species. Of the grass species, 24%, 51% and 25% were highly desirable, desirable and less desirable for livestock, respectively. The less desirable grass species increased in the vegetation due to severe overgrazing and they are generally indicators of declining range condition (Admasu et al 2010).

A total of 29 woody species were identified and 28%, 66% and 6% of them were highly palatable, intermediate and unpalatable for livestock, respectively. (Annex 3/a and b for

4 Zelay is a cultural event where young men are required to jump over raw of oxen in order to be a man (to get a wife).

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study the detail lists). The following types of grasses (Table 7) are identified by Admasu and colleagues in different types of grazing areas including communal, enclosures and riverside lands.

Table 7: Types of grasses and woody species in different types of lands (Hamer Woreda)

In communal Grazing Lands Riverside Grazing Enclosure areas Lands

Grasses Tetrapogon tenellus, Eragrostis teniufolia Cenchrus ciliaris

Digitaria abyssinica, Eragrostis cylinderifolia Cynodon dactylon

Cynodon dactylon Cynodon dactylon Tetrapogon tenellus

Eragrostis cilianensis Heteropogon contortus

Woody Acacia, Acacia, Grewia, species Solanum, Solanum, Acacia,

Grewia villosa, Grewia villosa, Rhus natelensis,

Cucumis prophetarum, Cucumis prophetarum, Olea africana,

Rhus natelensis, Rhus natelensis, Solanum

Cordia gharaf Cordia gharaf

Commiphora africana Commiphora Africana

Source: Admasu et al

Many of the woody species identified in the study districts are important for livestock production. According to same study, some of the leaf biomass was beyond the reach of goats. Accordingly, the inclusion of animals like camel into the system will help in efficient utilization of the feed resource and for ecological balance (Admasu et al 2010). The recent efforts by Government and some NGOs in the introduction of camel will certainly help for the biological control of bush encroachment.

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

According to a study made by Admasu and colleagues, communal and riverside grazing areas were bush encroached which require bush/shrub management interventions. The communal grazing areas were in poor rangeland condition for grazing animals like cattle and sheep, and this implies that there is a need to improve the condition of the rangeland. The condition of the rangelands in the enclosure areas was good (Admasu et al).

According to discussion made with pastoralists, range land condition of Hamer woreda and the surrounding area is deteriorating from time to time. The milk yield per cow has been reduced significantly that it used to be some years ago. Elders said that, long time ago, the number of animals was small. According to observations of different elders, the intervention in vet services, supply of drugs substantially decreased the mortality rate of livestock over the periods. Coupled with the population pressure, the livestock size is growing. The increase in livestock population has seriously affected the rangeland condition. Repeated droughts, overgrazing, the absence of intervention on rangeland (such as fire) favors bush encroachment.

The youngsters of the family often travel long distance along with their herds in search of grazing land. As a result they are deprived of services like education. Preserved areas including national parks are victim of encroachment of pastoralists in search of grazing land. The park is affected by transmittable diseases and illegal hunting.

The distance between villages and where the cattle are residing contribute for weak marketing transaction. Pastoralist need to travel long distance for days to bring cattle from the grazing area and to take it to the market centers.

A number of initiatives had been made in the past by NGOs including Pact Ethiopia and Enhancing Pastoralist Research and Development Alternatives (EPARDA) in rangeland development. Currently, Action for Development (AFD) is working in rangeland development. Some of the initiatives made in the past including ‘enclosures’ has been discontinued mainly because of failure of some members in the community to respect conditions set out in the usage of enclosures. There is learning by Woreda agricultural office that enclosure is successful when implemented at the level of individual (with

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

individual ownership) than in communal ownership. The study team observed a number of private enclosures with good conditions and rehabilitations in a number of Kebeles in Hamer Woreda.

Conflict with Mago National Park: Different organizations including Pact Ethiopia had supported Mago National Park to minimize conflicts which are resulted from encroachment of pastoralists’ cattle to the park territory. During this survey, the team learned from the focus group discussion that substantial number of livestock is in the park territory. To minimize the pressure of encroachment, the park administration together with NGOs cleared more than 25 hectares of land from encroached bushes in the buffer zones of the park. As a result the grazing condition in the buffer zone was improved. In addition to cattle encroachment, hunting of the wild animals was one of the sources of conflict between the park administration and ethnic groups residing around the park.

The park administration devises a mechanism where communities around the park could be benefited from the income generated by the park. Accordingly, the park remitted about Birr 800,000 in 2011 to Zonal/Woreda offices to be invested in accordance with priorities of communities. According to park management, there are significant changes. South Ari community completely kept their cattle away from the park and a lot of improvements with Mursi tribes. However, there is no significant change with Hamer tribes and their cattle are posing a threat to park.

5. HAMER WOREDA LIVESTOCK MARKET & MARKET CHANNELS

According to estimates of CSA, 40,162 cattle, 37,661 sheep and 61,061 goats were sold in the year 2010. The estimates of South Omo Cooperative Promotion and Marketing office for goat and sheep sales is significantly differ from CSA estimates. The proportion of livestock sales of Hamer Woreda is very low as compared with the livestock population shown in Table 6. The sales estimates are captured from official market centers and may not include livestock traded outside the market centers. Some of the

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

pastoralists in from Hamer Woreda are also selling their livestock at Key Afer (Bena Tsemai Woreda), which is not reported by Hamer Woreda office of agriculture. Hence, the actual sales must be higher than the figures indicated in table 8 and Figure 2.

Table 8: Livestock marketed in the Year 2010/11 in South Omo and Hamer Woreda

Total livestock marketed during Total the year 2010/11 Sales Slaughtered Death % of estimated Livestock (CSA (CSA In the In Hamer (CSA Estimate) Estimate) zone (8 Hamer Woreda’s Estimate) woredas) Woreda livestock sales

1 Cattle 40,162 4,022 78,459 41,528 1226 3%

2 Sheep 37,661 14,584 98,674 22,283 699 3%

3 Goat 61,061 23,437 100,950 26,376 9437 36%

Source: South Omo Cooperative Promotion and Marketing Office, CSA (2010)

According to the data collected from Hamer Woreda Agriculture office, there is not significant growth in the sales volume of livestock in the Woreda for the last three years. The volume of sheep marketed declined over the years. The figure is however inconsistent with the views of pastoralists and traders interviewed that there is changes in the attitudes of pastoralist for trading their livestock. However, as indicated above, some of the pastoralists are selling their livestock at Key Afer Market which is a different Woreda. Figure 2: Livestock marketed in Hamer Woreda Livestock Sales 12000

10000 sold

8000 Cattle 6000 Sheep livestock 4000 of

goat 2000 No 0 2008/09 2009/10 2010/11 Source: Hamer Woreda Agriculture office

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

The main livestock market place in Hamer Woreda is Dimeka town. Market places such as Alduba and Key Afer which are located in the Bena Tsemay Woreda are also important market places for Hamer people. Though there is a market center in Turmi town constructed by an NGO, it is not yet operational or not yet used. Another big size market center is under construction in the same town by the regional government5. Apart from neighboring woredas, traders from far Woredas including Konso, Jinka and Gofa plays important role in channeling livestock of Hamer Woreda pastoralists to a wider market.

According to a baseline survey conducted by PCDP in 2006, market access is generally poor in this livelihood zone, characterized by poor and thinly distributed roads, a lack of transportation and market information, and long distances to major markets. As a result, pastoralists were forced to sell their livestock at lower prices and purchase other commodities at a higher price (PCDP 2006). The team observed, road construction is under way in the Woreda. When completed, the road will contribute a lot in the efficiency of the livestock market in the area.

5.1. Market channels for livestock marketing in Hamer Woreda

There are a number of market channel for livestock in Hamer. The market channels for shoats and cattle differ because of the different features of end buyers.

5.1.1. CATTLE MARKET CHANNELS

Markets are not yet developed in Hamer Woreda. Bush market, selling from the barn, back yard is very common. Recently, some pastoralists in Hamer Woreda are experiencing selling of their livestock in market places. Six market channels are identified in the Hamer cattle market (Figure 3).

5Funded by PCPD

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

Figure 3: Market Channels for Hamer Woreda cattle marketing

Source: Based on study team survey Channel 1: Bush market: Traders who have their own butchery often travel to the villages and buy cattle. Most of these transactions are taken place through a pre-arranged schedule. Pastoralists send messages to traders whom they knew to buy them. In some cases, the butcheries travel village to village and offer the pastoralist for purchase of cattle. In the case of Dimeka area, Bush market constitutes 60% of the overall cattle sales. This is mainly because of the preference of pastoralists to exchange goats and bulls against heifers than cash transactions at market centers. In the case of Turmi, almost all livestock marketing takes place in the bush.

Channel 2: Bush market D Dimeka D Jinka: Traders who are based in Jinka are sourcing cattle from the Dimeka market (Saturday and Thursday) and ship them to Jinka for reselling. Jinka market is bigger market where a number of buyers and sellers are meeting. The chain ends partly when purchased by butcheries and farmers (for drafting). Some of the buyers at Jinka market at traders from Gofa area.

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

Channel 3: Bush market D Dimeka D Alduba D Jinka : Alduba is an intermediary market. The market day is Wednesday, which is between Dimika’ market day (Tuesday) and Key Afer Market day (Thursday). Traders may sell their cattle if the market on Wednesdays at Alduba is pleasing. Otherwise, they move to Key Afer in the following day (Thursdays). Some traders buy from Alduba and resale at Key Afer in the following day. Channel 4: Bush market D Dimeka D Alduba D Key Afer D Jinka: Traders buy at Key Afer and resell at Jinka

Dimeka Market

Key Afer Market

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

Channel 5: Bush market D Dimeka D Alduba D Key Afer D Konso: Traders from Konso area purchase cattle at Key Afer and resell at Konso and surrounding markets. Most of the customers in Konso area are individual fatteners and butcheries. Meat market in Konso is larger than Hamer and Dimeka area. Gato is a big market place for livestock which is located between Konso and Arbaminch. Most of the customers are butcheries in from the nearby towns and farmers for drafting. Channel 6: Bush market D Dimeka D Alduba D Key Afer D Moyale (Cross Border): This channel is suspended for the time being with the intervention of government offices suspecting of illegal cross border trading. Markets at Gofa area: This market is important for Hamer live stocking marketing because of its important link to Jinka market.

Turmi market is not well developed. The market is taking place once in a month and the quantity of the livestock supply is too small compared to Dimeka and Key Afer. Turmi has better marketing infrastructure than Dimeka. But the market center is not currently in use. Additional Market center, which is bigger than the existing one is under construction. A lot of effort yet to be done to promote commercial destocking and trading in formal market centers than in bushes.

In the stated towns, food and essential non-food items which are essential for the pastoralists are also marketed. Though it is outside Hamer and has little significance, Kakko market among the notable markets. Kakko is located on the main road between Key Afer and Jinka.

According to a survey conducted by PCDP, Kebele-level serve more of a social function than an economic one, acting as a place for people to gather (usually with drinks they have brought themselves), socialize and share information and marketing is limited

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

(PCDP 2006). The study visited one Kebele level shops run by women’s group which is trading grains and coffee husks to the community.

5.1.2. SHOATS MARKET CHANNEL

There are five shoats market channel relevant to Hamer livestock Value chain (See figure 4)

Figure 4: Market Channels for Hamer Woreda shoats marketing

Hamer Woreda Other related Markets Turmi Market

Bush marketsBush Dimeka Market marketsBush markets Processors / Exporters Modjo town

Gato Aldiba Market Eluha Key Afer Market Yabelo

Source: Sketched Based on study team Channel 1: Bush market D Turmi: Turmi market is not well developed. Most of the marketing is taking place at bush and village level (almost 100%). Small numbers of shoats are marketed outside the market center. The market center is not yet operational. Most of the suppliers are pastoralists and customers are mainly hotels and individual households. Traders in Turmi area purchase from pastoralists at village/bush market and ship directly to processors at Modjo town. Channel 2: Bush market D Dimeka: Pastoralists exchange shoats for cash, for food or rarely for armaments in the bush. The armament trading is illegal. Some pastoralists believe that the people engaged in exchange of gun with livestock are those who have a cross border relation and pastoralist themselves. Pastoralists are the main suppliers at the Dimeka market. Traders are the main customers. Traders from the town of Dimeka and Key Afer are major buyers of shoats. Bush market

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

constitutes 40% of goat sales and while Dimeka market represents 60% of goat marketing of the area. Channel 3: Bush market D Modjo: Traders purchase at bush market often keep the shoats for two to three weeks until the number reached for direct shipment to processors at Modjo town. Channel 4: Bush market D Dimeka D Alduba: Alduba is not really a secondary market for shoats. However, in some instances, shoats that had been purchased in Dimika could be also resold in Alduba. Most of the suppliers in Alduba shoats market are pastoralists and most of the customers are traders. Channel 5: Bush market D Dimeka D Alduba D Key Afer D Modjo: Key Afer is the major market place for shoats. Most of the buyers are traders who are supplying to processors at Modjo area, or to the suppliers of these processors residing in different places. The team came across traders who are purchasing goats from Key Afer and Gato market to their customers in Yabelo. Their customers in Yabelo are suppliers of meat processors in Modjo area. Processors are slaughter houses who are exporting meat products to different countries mainly to Middle East countries.

6. Description of the Hamer Woreda livestock value chain

This section of the report describes the livestock value chain of Hamer Woreda. It explains the direct actors, the service providers and the overall livestock chain contexts. There is a slight difference between the value chain for cattle and shoats in the Woreda. As indicated in Figure 5, the value chain for cattle encompasses the pastoralists, traders, fatteners, butchers, hotels and consumers as direct actors. Whereas in the shoats value chain (Figure 6), processors/exporters are additional actors in the value chain. The value chain for shoats includes pastoralists, petty traders, agents, traders, Hotels, Processors (exporters), importers and end consumers. Both chains shares similar service providers including offices of agriculture, different NGOs, the cooperative promotion officers, microfinance institutions, trade and industry offices,

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study revenue offices etc. Both value chains share the same cultural frameworks, laws, infrastructures and other contextual issues. Figure 5: Livestock Value Chain in Hamer Woreda

Source: based on team survey. Figure 6: Shoats Value Chain in Hamer Woreda

Source: Sketched Based on study team survey

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

7. Direct Actors in the Hamer Livestock Value Chain 7.1. Pastoralists

Production system: In most rural pastoralists, extensive animal husbandry is practiced involving little or no inputs and application of modern management system. For this reason, productivity per head is always minimal leading to subsistent yield from their livelihood base. Cattle are always kept on poor grazing lands and poor quality water. In most cases pastoralists get little veterinary service due to their mobility and weak infrastructural development despite vet supplies made available by a number of organizations including United Nations Food and Agriculture Organization (FAO) Pastoral Community Development Project (PCDP) and Woreda office of agriculture.

Diversification of livestock. The most important livestock products are cattle and shoats. Traditional beekeeping is also important livestock component in the zone. The focus of this study is however on cattle and shoat production and marketing. By keeping more than one species of livestock, pastoralists can generate a wider Varity of livestock products and make better use of the available forage in different seasons, even at times of crisis. In Hamer woreda, pastoralists raise livestock such as sheep, goat and cattle. Recently, camel has been introduced with the support of development actors with the objective of increasing livestock varieties and exploiting of the browsing resources. Pastoralists can benefit from camel production by utilizing abundant tall palatable trees which are not reachable by goats (Adamsu et al 2010).

Mobility. Hamer pastoralists, move in search of seasonal feed and water for their livestock. According to a study conducted by Pastoralist Forum Ethiopia (PFE) and other organization, Hamer and Besheda tribes move their cattle to Hamer rangelands, Meno Gelti, Kizo, Surge and Zersia Kebeles during wet seasons. During dry seasons, these tribes move their cattle to certain parts of Kizo, Dunka, Mino Gelti, Demeka, Kaea, Surge, Zersia and Chelbi areas. During Drought period, they move to Chelbi swamp. (PFE, IIRR and DF 2010). Based on the discussion made with pastoralists, most of their cattle has been around and in the territory of Mago national park. Due to extended dray

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

seasons and deteriorated rangeland, the duration of encroachment into national park is increasing. The situation endangered the condition of the wildlife.

Maximization of stock numbers. Among Hamer pastoralists, livestock number play significant role in getting social rank and position in the society. This sentiment encourages a number of them to have more livestock. Livestock is the only available means of wealth accumulation. Putting wealth in the form of cash saving is not well known among the pastoralists.

Redistribution of assets. Mutually supportive relationship among pastoralists communities assure that in times of need, food cash and labor are redistributed on a reciprocal basis. In Hamer, this is the prominent feature where redistribution of assets is widely practices among social members. In this process, cattle are given to needy families and individuals so that their products will be consumed, sold and exchanged. However, this does not include sale of offspring of the cattle. Ownership of these animals may last up to three human generations. In this arrangement, custodians can use the products of these animals (milk and blood), but do not have the right to sell them. In principle, the livestock and their off-spring are expected to be returned to the owners upon request. However, due to different reasons the tradition of returning these animals on request is getting difficulties. Some of the custodians are reluctant and some refuse to return back the cattle. Even though, it is hard to produce statistically supported evidences, in most of the discussion made with pastoralists indicate that the separation of ownership and custodianship (which is intertwined) is a serious challenge which impedes marketing of cattle. Asset custodianship is not one to one or one to many, rather many to many. A pastoralists may have others belongings (cattle) in his barn and also may have his own cattle under the custodianship of other fellow pastoralists.

Livestock holding: the average per capita holding of livestock in Hamer Woreda is estimated to be 5 cattle, 12 goats and about 5 sheep6. Livestock holding varies from

6 Based on the livestock population data collected from Hamer Woreda agriculture office and CSA population data.

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

pastoralist to pastoralist and from Kebeles to Kebeles. Cattle holding of a well to do household is ranges from 1 to 3 barns. The number of ‘well to do’ households is between 5 to 10 in one village (Kebele). It is difficult to determine the number of cattle in a barn as the size of a barn is not standardized. The number of cattle in a barn ranges between 50 and 120 cattle. A ‘middle’ class pastoralist may have a ½ size barn to 1 barn, which is about 30 to 50 cattle. Small holding pastoralists may have about 3 to 10 cattle. Majority of the pastoralists are classified under small holder category.

Regarding shoat holding, a well to do household may have about 1 to 2 barns (between 200-300 goats) and “middle class” households shoat holding is between ½ barn and 1 barn (50 to 100 goats). Small holder households may have between 5 to 30 shoats. Table 9 indicates the estimated cattle and shoats holdings of pastoralists in sample Kebeles of Hamer Woreda.

Table 9: Summary of livestock holding in sample Kebeles of Hamer Woreda

Livestock type Area or kebele Cattle Goats /sheep (in barn) S. No Well to Middle Poor Well to do Middle Poor do class class 1 Area Ambule * 2 Barn 1 Barn 10 2 barn 1 barn In numbers

2 Ache Kebele 1 barn 100-150 Above 20 200-300 50-60 20-30

3 Shanko Kelema 1 barn 1/2 barn 5 cattle 1 barn 1/2 barn 10-20 goats

4 Besheda Kebele** 3 barn 2 barn 1 barn 2 barn 1 barn 5 goats

5 Erbore kebele 50-60 30 10 60-70 40-50 Below 20

6 Mino Gelti 15-20 5 3 2 barn 1 barn -

7 Karo Kebele*** 2 Barn 1 Barn 2-3 200 and 100-150 100* above Sources; the study team *the estimates are very subjective-different people suggest different figures. Emphasized that holding does not mean possession. **Besheda one barn is approximately equivalent to 200 goats ***Goat holding is high in Kara area (though the number of the community is small) Generally, the number of cattle/goats in a barn is not well known as quantifying is difficult for pastoralists.

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

Marketing: Drought and demand for grains is the main driving force to pastoralists to sell their livestock. The following are among the main factors where pastoralists may sell their livestock. o For the purchase of grains and other foodstuffs o During drought o To pay for medical expenses for family o To buy honey for social ceremonies such as wedding o Goats are sold to buy drugs for cattle o Goats are slaughtered during cultural ceremonies such as cattle jumping, mourn etc o For dowry On the other hand, elder impose social sanctions on those who sell cattle for not good reasons.

Recent changes: According to some traders, changes are emerging among pastoralist groups. Very few individuals bought mobile phone. Some started using modern cloths, buying household utensils and sending their children to schools. Some of the pastoralists are showing interest of saving money in banks and interested to be engaged in business activities. Some few years ago goats were the dominating animal stocks in the market. For example, according to observation of traders, the volume of cattle from Aerea and Shanko are increasing from time to time in Key Afer market.

Challenges: Main challenges of pastoralists in relation to livestock marketing are • Language barrier at local markets • Interference of brokers • Elders discourage livestock marketing especially when repeated sales and reasons for sales are unacceptable by them. Acceptable reasons are for purchase of grains, when family members get sick, for armament and other social occasions. • Unavailability of strong pastoralists associations/cooperatives • For some pastoralists away from Key Afer and Dimeka should travel long distance to sell their livestock at better prices. As a result, some prefer bartering

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

for ease of convenient and simplicity. Bartering is not always benefiting the pastoralist. Based on an example from one Kebele, an ox which may be sold at Birr 6,000 at Dimeka market may be exchanged for two heifers (valued at birr 1200 each) and one bull (valued at birr 1500). • Unavailability of waiting/ holding areas for pastoralists who may spend one or two nights on their way to market.

7.2. Traders

In the Hamer livestock value chain, majority of the traders are small and medium collectors/traders who have limited collection capacity of stocks. These traders are financially limited to influence market prices and to dictate transaction terms. The team witnessed that most of the traders have been in livestock business for more than a decade and started the business from teenage. Traders operating in Hamer Woreda are few in number. Box 1 and 2 describes the experience of two traders met by the study team.

Box: 1 Trader : Endashaw Minalu (Mamush)

Mamush started livestock marketing since his childhood. He has been in the business for the last 18 years. During startup, he used to buy female calves from market and barter them against goats and honey in the pastoralist village. He then sells the goats to customers away from the zone. He faced challenges in the past on accessing market information. This problem is resolved after the widely usage of mobile network.

According to him, the strong trustworthy culture of the Hamer people and the reliability of customers (abattoirs) are the basis of his success and the reasons why stayed long in the business.

Sometimes he use his own delivery truck (ISUZU) to ship the livestock from Key Afer to buyers destination. Sometimes buyers send delivery trucks. Otherwise he rents trucks if his own is not available.

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

Box: 2 Trader: Seid Yimam

Ato Yimam is one of the traders in Turmi town who has been in livestock trading business for more than 15 years. He has been for about 27-28 years in Turmi area. His first job was collection of incense from pastoralist and distributing to Jinka traders. Attracted by the opportunity, he switched to livestock marketing mainly on shoats.

He has good market relation and social attachment with abattoirs and pastoralist community respectively. He collects shoats from areas where there is abundant concentration of Shoats and in return he supplies grain. One of the basic challenges of the pastoralists is access to market for their products and for food items to purchase. He is operating actively in three Kebeles of Hamer Woreda including Minogelti, Assille and Wongabino. At Minogelti, the food shortage is longer than other Kebeles and the need for food is almost uniform over the years. He has his own grain store at Wongabino. During shortage of grains, pastoralists often visit his store for deal to exchange of grains by goats/sheep1. He makes sure that the store is stocked with sufficient quantity of grains. Pastoralists take grains on loan basis. The loan will be returned within 15 days to 30 days time. The loan period is just to give time to the pastoralist until their cattle to be sold collected from Mago National Park and from around Kenya boarder. The elderly people are the one who looks after the repayment, thus the efficiency of repayment is very high and default is almost non- existent.

He buys up to 300 shoats per week. During drought seasons he collects up to 500 shoats. Though there is restriction as to the size of shoats to be supplied by abattoirs, he buys from pastoralist whatever size they have to assist them. He sells the unfit shoats to other customers. ELFORA and Goje have been his clients for the last five years.

Though there is demand for cattle, he does not often buy because of short supply. Cattle are taken far away for grazing and water where they can stay for couple of months or even years. When he buys cattle, he resells them at Key Afer, Arba Minch and Chancho markets.

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

The introduction of mobile telephone and the renovation of the road to Jinka have improved the market linkage of the traders and their customers. The current market supply is small enough to meet a size of single shipment. The number of traders is increased over time. During the survey, it was estimated that average number of traders in Key Afer market for instance was about 30.

Pastoralist traders are also emerging in the area. Youngsters are collecting cattle and shoats from the village and selling to the nearby market. The productive safety net program has been contributing to the emergence of traders among pastoralist. The safety net project facilitates new business engagements through provision of loans.

Holding ground and delivery

The total number of shoats for one shipment is 180 and for cattle, it is 10. Accordingly, traders need to keep the livestock for sometimes (between one to three weeks). As traders do not have their own feedlot or feeding ground, they just keep the animals with other nearby pastoralists. There are no formal business agreements for custodianship. It is fully on trust basis. One shepherd could manage up to 100 shoats. If the number of the shoats is more than 100, then two shepherds will be assigned.

Key Afer area is preferred to keep shoats until shipment as it is suitable for browsing than Dimeka area. Trekking or truck may be used to transport shoats purchased from Dimeka to Key Afer. Cattle are often shipped from Dimeka to Key Afer by trekking. Some of the traders use their own ISUZU trucks for shipment to point of destination. Sometimes, the abattoirs themselves send trucks for collection. Otherwise the traders rent trucks. Transportation costs will be taken into account during payment.

For traders operating in Turmi, the livestock travels about 10 hours from places like Minogelti by trekking. Trader interviewed in Turmi has an enclosure which can accommodate up to 200 goats. He has one keeper.

Information exchange with customers Customers (abattoirs) often communicate changes in pricing. In some cases, changes in prices were surprises. Sometimes abattoirs fail to disclose when requested. Traders

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

suspect that their customers declined to disclose changes because of their fear that traders might switch to other buyers. During the discussion with abattoirs, however, that there was no such fear from their side as they believe in dependable partnership with their suppliers. Traders explained to the study team that they speculate about the price depending on processors order behavior. If a processor’ order has sense of urgency and continuous follow-up and demands a very short delivery deadline, traders expect better offer than the regular. One abattoir is known by traders for its transparency in communicating pricing information.

Traders appreciated the abattoirs that they are paid for incremental changes in price occurred between the date on which they have been communicated about the prevailing price and the date on which their payment is wired (transferred). Some of the traders informed the team that there are times where they shipped shoats without prior notification. Abattoirs continued to buy them regardless of their stock position to maintain relationship. When there is a pressing demand, abattoirs communicate traders to buy aggressively.

Selling Prices and Terms of payment

There is no formal trading agreement between traders and abattoirs. Prices are determined orally. Traders may receive cash on the very day of delivery or if late in four to five days time. If not paid on the day of delivery, abattoirs transfer payments through bank accounts of traders. In most cases, traders do not travel with the livestock. For shoats, abattoirs have greater bargaining power than traders. Prices are determined by abattoirs. At the time of this study7, the price of shoats per live weight was Birr 26. The price sharply increased from Birr 18 in the last two months. The selling price of livestock has changed significantly over the years as shown in the following Table 10.

7 November 2011

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

Table 10: price per kg of live weight from 2008-2011

Type of livestock Price/kg of live weight

2008 2009 2010 2011

Goats Birr 11/kg Birr 13/kg Birr 14-17/kg Birr 18/kg

Cattle - medium size Data not Data not Birr 1800 Birr 4000 bull available available

Based on discussion and experience of various traders.

According to traders, they are comfortable with simple delivery and payment procedures adopted by most of the exporter abattoirs. One of the exporter abattoirs employs lengthy procedures including signing official agreement, long lead time for cheque authorization and payment. Such lengthy procedures cause traders a lot of inconvenience including working capital shortage and hence are reluctant to supply to such buyers.

Traders pay sellers in cash when the purchase is from the market (at Dimeka and Key Afer). If purchases are made at village (bush) level, the payment will be made in kind in the form of cereals (grains) and coffee husk.

Traders’ costs (Expenditures) Traders incur various costs between the date of purchase and shipments. These are: Purchase cost for shoats: Birr 18 per live weight. Purchase cost for cattle: o Calves between Birr 1500 to Birr 2000 o Heifers/cows between Birr 1500 to Birr 20008 Shoats missed during trekking through bushes (from market or holding place to shipping (loading) places. Theft is very rare.

8 Usually pastoralists do not sell heifers/cows. Local traders buy cows for exchange (bartering) by goats or by ox

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

The current service fee paid for shepherds for keeping the livestock until they are demanded by the trader is Birr 20 to Birr 30 per keeper regardless of the duration. Note that the fee is not per cattle. Traders pay grains and small payments to keepers for holding cattle in their own holding ground. The total equivalent amount is not known. Transportation from Dimeka to Key Afer costs Birr 5 per shoat if vehicles (commonly ISUZU) are used Key .

Transportation cost from Key Afer to Modjo is Birr 7,000 (for ISUZU trucks). This price is for the shipment of 10 oxen or 180 shoats. In 2008, the transportation fee was Birr 3,000 per shipment. When ELFORA trucks are used, the company charges Birr 15,000 (the truck has a carrying capacity of 300 Shoats). The rental cost of same capacity truck (if rented from other transporters) is Birr 18,000. Labor cost for loading shoats on to a track is Birr 100 per shipment. Unloading costs are covered by the buyer Traders pay birr 100/ox for agents or brokers for service to buy one oxen at primary markets.

Specification Abattoirs receive goats of limited weight which usually is from 12-24 kg live weight. Sometimes, emaciated and underweight goats are rejected by abattoirs and this is a painful event to traders. There are traders in Modjo area who are waiting for rejected shoats. As there is no time for the drivers to look around and get a better offer outside the abattoirs, these small traders buy the rejects at a very low price. These traders rehabilitate the shoats and will sell them back to abattoirs again. Though the specifications are communicated to traders, some of the abattoirs receive supplies of shoats with a live weight of up to 35 kilograms just to maintain their customers.

Traders keep buying shoats weighing up to 40 kg to please their pastoralist customers, especially those trading at village level. Overweight shoats will be sold in the market.

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

Seasonality For traders, market is seasonal. Despite the rise in price of shoats, there is a sign of decline in price of cattle. The price of cattle in Addis Ababa and other nearby markets is also showing downing in price particularly from the Ethiopian Easter onwards. According to traders, cross boarder market of cattle is a common phenomenon. When market conditions are favorable in neighboring Kenya, shipments are flowing towards Moyale. When market are not favorable in this place, the livestock supply will be directed to Yabello, Dilla, Awassa, Addis Ababa, Arba Minch and other places. As a result the shrinking demand size will have impact on the price of cattle.

When demand fails, traders have problems of getting buyers for the cattle they already purchased. In some cases they go door to door of hotels and other potential buyers to dispose their stock to avoid the risk of further price loss, to use the money tied up with the stock and to reduce the possible loss from emaciation.

Marketing activities by traders Traders in Hamer area do not conduct a market research or a search for a buyer or offer. Buyers are the ones who find them. Drivers sometimes collect information about market price. There are instances where drivers were approached by potential buyers while they were in transit for delivery. On the other hand, some of the traders contacted by the study team had a wide range of experience on different markets. Their marketing rout depends on the where there is better demand and price.

Risk and insurance Traders do not insure their stock during shipment. Accidents are rare. Apart from losses related to car accidents, there are times where cattle may die because of suffocation. Shoats could be lost in the bush (including attack by wild animals or natural death). According to estimate of a trader in Turmi area, there is a loss of 30-40 shoats per annum during trekking, due to mortality as a result of pneumonia, altitude difference

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

and emaciation. To reduce risk of mortality, during transportation, traders selectively vaccinate weak and dull animals to conditions them further.

Other traders: Some traders are buyers and sellers in the same market. They bring female calves from Borena area and resale them at Key Afer and purchase oxen and shoats to ship them to other markets. Some of the traders are reselling the livestock mainly cattle in the Jinka and Chano market. There are a lot of traders who buy and sell livestock in the same market. The team had contacted such types of traders at Key Afer. Some traders deliver cattle buyers from different place including from Arbaminch and Dilla areas.

Challenges of traders

The opening hour at market places of Dimeka and Key Afer is 11 AM. The purpose intended by the government is to allow more buyers to come in. However, traders are complaining that the remaining time will not be enough for them to complete the purchase and move the stock as early as possible. Purchaser pays different taxes in markets like Gato. For example, municipality charges Birr 3 per shoat while Revenue office charges Birr 4 per shoat. In Key Afer and Dimeka buyers are required to pay a single tax which is Birr 7 for ox and Birr 5 for shoats. Seasonality of livestock supply affects in fulfilling their orders. Pastoralists often come to market if there is food shortage mainly during the dry season. The lesser the food shortage the lesser will be the volume of livestock supply to the market. Strong cultural barrier of the Hamer people to hold livestock particularly, cattle for social prestige9. Unavailability of reliable and skilled traders who can regularly buy livestock from pastoralists and supplying to big traders. Traders in Dimeka area do not exceed 3- 4 in number

9 Among the Hamer people, rearing of livestock is not for economic purpose rather it is for survival and acquisition of social position/prestige. During the bull jumping festival, pastoralists who have big oxen will be praised and appreciated.

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

Unfair competition with illegal traders who do not pay tax to government.10 Cultural resistance to sell animals before onset of drought or any hazardous conditions. The higher the number of traders or the lower the number of traders in a given market will have impact on the overall pricing of the place. Traders are unhappy when the number of buyers is big as price could hike beyond their expectations. Some traders complain on the prohibition of mobility to places like Yabelo and Moyale. The government administration in the Woreda prohibits the movement with the suspicion of illegal cross border trading.

7.3. Cooperatives / Union

Currently, multipurpose cooperatives in the pastoralist areas are operating in the procurement of basic supplies like grains and coffee husk to meet the demands of the pastoralists. According to the office of cooperative in Hamer Woreda, there are about 8 multipurpose cooperatives, three service cooperatives, 4 marketing cooperatives, and other 2 cooperatives. Because of the limited budget and capacity, the required level of support is not provided by the cooperatives offices at zonal and Woreda level to these multipurpose cooperatives.

The cooperative agency is engaged in inventory of cooperatives where a thorough status review is going on to identify which cooperatives are to continue and which ones to be dissolved. Depending on the result of the status review, cooperatives are allowed to continue or dissolved; NGOs including Action for Development (AFD), African Medical and Research Foundation Inc (AMREF) and Women Support are assisting cooperatives offices and the members of the cooperatives.

At the time of field visit, Omo Union was engaged in the procurement of female calves from Borena and is distributing to the beneficiaries targeted by European Union. This is a one-off contract for the supply of 3164 heifers, 36 bulls, 3760 goats conducted through the collaboration of seven cooperatives in seven Woredas of South Omo. The

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Union was financed by advance payment. Figure 7 depicts the short term marketing chain of the transaction. Union’s loan request for Birr 5 million from Omo Microfinance is awaiting approval.

Figure 7: Temporary chain for a joint heifer procurement of Omo Union and cooperatives

Source: Sketched Based on study team survey

The union has experience of supplying livestock to abattoirs in the past. However, due to the problems associated with management11, its operation was halted for sometimes. Its account for the last seven years was audited at the end of the previous fiscal year. Few years ago, the union benefited from a revolving fund obtained from the government loan scheme. However, this scheme has been discontinued since last year. The outstanding loan from the revolving funds was transferred to Omo Microfinance. Omo Microfinance is insisting the replenishment of the outstanding loan before it disburses any new loan. The union has uncollected receivables over Birr 1 million.

Challenges faced by the union

• Low level of support from cooperative promotion agency • Limited skill and knowledge of the coops executives • Limited market information/ access • Most of the coops have financial problems. • Low literacy level: It is difficult to get literate cooperative executives. Most of the coops are performing poorly, because of limited capacity

11 As per information from zonal coop agency and union executives

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

7.4. Fatteners

The study team didn’t come across commercial fatteners within the Hamer Value chain. However two sets of fatteners were identified. These are pastoralist fatteners and the farmer fatteners in the highlands of Konso. In some areas of Hamer Woreda, pastoralists have started fattening of cattle for market.

Ache Kebele: About 10 pastoralists have started fattening in their backyard. The good conformation of their cattle will create better market return for them. A well maintained ox is sold for about Birr 6500 (compared to last years’ offer which was Birr 2500). Besheda Kebele: According to informants at Besheda kebele, the livestock pressure on the grazing land leading to its deterioration is becoming a great concern. The strong cultural resistance to hold livestock on the scarce natural resources together with the incidence of loss of animals due to drought and other natural hazards is taxing the livelihood of many pastoralists. Nevertheless, pastoralists of Besheda kebele have now started fattening practice in their backyard and have plans to be organized in group. They have also differentiated the benefit of fattening cattle in return of better income.

The fattening process takes four to six months depending on the condition of the bull at and availability of feed during the fattening period. During the survey, the team met a pastoralist who had 5 cattle on the feedlot. The same person told to the team that he has a plan to set aside 5 more cattle for fattening. Some of the progressive pastoralists are well aware of the value addition through fattening than traditional sales. For instance, a cattle which could be sold for birr 3,000 without being fed can sold for Birr 5,000-6,000 in the local markets following fattening.

Fatteners in the highland of Konso: these are farmers buying the ox from traders sourcing from Key Afer and Borena area. After fattening, oxen are sold at Konso markets. Most of their target customers are butcheries. Residue of local alcohol areki also called borde is important feed source for fatteners. Konso area is known for areki production.

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

Challenges The main challenge to fatteners is availability of feed especially during the dry season.

7.5. Butchers

Turmi and Dimeka are important town for meat market within Hamer woreda. Within the value chain, Jinka is important town for meat marketing. Though it is quite far from the Woreda, Arbaminch is also known for high consumption of meat.

Butcheries in Turmi and Dimeka: Most of their customers are hotels and raw meat eaters. There is only one specialized butcher often called Kurt bet. When there is a good market, (in the town of Turmi) this butcher slaughters 4 oxen, on average per week. During slack time, (that is when the flow of tourist is too low or non-existent), he slaughters two oxen on average per week. (See Box 3 for experience of a butcher in Turmi town)

Box3 :Ato Habtamu Abebe

Ato Habtamu Abebe has been working as a legal butchery in the town of Turmi since 2003. He has been in Turmi for the last 32 years. He started the business informally by slaughtering cattle and selling it to customers in the town.

He purchases cattle mainly from the pastoralists own village. The Pastoralists inform him when they have cattle to sell. Once purchased, there are pastoralists who provide services to keep the herd until it is slaughtered. Ato Habtamu pays about Birr 140 for five oxen. This is a lump sum fixed pay regardless of the duration of holdings. He also pays for those who drive the cattle from the village to the place where the cattle are to be kept. The price is Birr 10 to 20 if food and drink is provided. Because of limited exposure to the behavior of the cattle, purchaser found it difficult to drive cattle alone from villages to town. The pastoralists know better how to manage them.

Recently he lost four oxen while they were in the custody of the keeper. In the year 2011, he lost about 7 oxen and 1 goat. This is one of his serious challenges in the business.

Livestock market in Turmi is almost once in a month. Most of the cattle found in Turmi are too small for butchery. Key Afer and Dimeka are the other sources of livestock for the butcheries in Turmi.

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

In the town of Dimeka, there are about 4 butcheries and two of them are Kurt bet. Based on discussion with one of the butcheries owner, it is estimated that about 40 goats and 8 cattle are slaughtered every week.

Butcheries in Arbaminch: Arbaminch is the nearest zonal town with a potential of high meat consumption. The total population of the town is about 50,000 (CSA 2010). Arbaminch has about 14 butcheries and 9 Kurt bet. Based on the interview with one of the butcheries in Arbaminch, average size butcheries like his12 slaughter and sell about 7 to 8 cattle per a week. The three main cattle markets are Shelle, Chano–Mille and Guenta. Most of the cattle in the market are sourced from the nearby Woredas.

Jinka is a market place to a lot of ethnic groups coming from nearby Kebeles and is a center place for tourism with a population of about 14,000. Meat is almost a culture.

In Konso there are many butchers and the tradition of consuming beef (raw beef-Kurt) is also high.13. There is a livestock market place in Konso town.

Customers of butcheries Major customers of the butcher are local people, rural pastoralists, Hotels and lodges owners. When the number of tourists is at low level, hotels and lodges slaughter shoats for their own restaurants and stop or lower the volume of meat they purchase from the butcheries. For Dimeka butchers, road and other project employees and the rural people coming for marketing are also important customers.

Source of cattle Most of the butcheries in Dimeka and Turmi are sourcing cattle directly from pastoralists, their own backyard/ barn or from bush market. In some Kebeles of Hamer, pastoralists are now practicing backyard fattening. Kebeles such as Ache, Area and

12 Wondimamachoch Kurt Bet 13 In Konso area and Konso town, there are a lot of butchers who sell meat. The tradition of consuming raw meat- ‘Kurt’ is very high. According to Ato Senbetu (Key informant at Konso), during holy days more than 100 heads of cattle are slaughtered by the local people for what is called ‘Kircha’. In addition to this, legal meat traders (butchers) who may be 50 in number also slaughter cattle. The duration of selling time is very short (not more than three hours) as the absorption rate of the market is high. Bulls are further fed by fed lot operators to add value and to maximize their gross profit. In Konso, conventional feed such as residue of ‘Borde’ is used as main feed for fattening. People who make ‘Borede’ at home may tie 2-3 oxen for fattening.

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

Shanko are known for fattening practices. The weather condition of these areas is convenient for cattle fattening resulting in quality beef.

The purchase or sell could be initiated either from the pastoralists or from the buyers’ side. Some pastoralists send a messenger to butcheries that they knew to tell their intention to sell an ox. The butcheries visit villages to buy cattle also. Traders buy three to four cattle at a time.

In most cases, the types of cattle for butcheries are not available in Dimeka and Turmi monthly market. Key Afer, is a better supply site. Butcheries in Dimeka source cattle from Key Afer mainly in the dry seasons for a better body condition. Alduba is the next alternative market. The cost of cattle trekking service is Birr 20 and the possibility of losing cattle is minimal and does not exist. Butchers at Konso town are sourcing cattle mainly from backyard fatteners in Konso town and surrounding villages

Seasonality of business

During fasting seasons such as Wednesday and Friday, ‘Filseta’ and ‘Hudade’, butcheries will be closed.

Prices and Profit margin

Based on an interview with different butcheries in Dimeka and Tourmi, the average gross profit margin per ox is Birr 500 to Birr 1500 including running and other transaction costs14 for an ox purchased at a price of Birr 4,500. The average price of an ox in Turmi and Dimeka area ranges between 4500 and 6000. The price of cattle in the town of Arbaminch is very high compared to Dimeka and Turmi. It ranges from Birr 8000 to 9000. The price of meat per kg varies based on the purpose and cut of the meat. Skin and heavy fat (Mora) are sold to the abattoirs15.

14 Normal meat and Kurt –birr 50 and 60 respectively, one leg bone birr 40*4=160, liver and kidneys birr 90, intestine and spinal bone birr 200, head and skin birr 30 each. 15 One kilo of meat is sold at birr 50, 60 and 80 for wot, raw meat (kurt)/tibs and when they are served in the restaurant respectively. Heavy fat and skin are sold at prices of 73 and 10 birr per Kg. 10 % of the sales goes to the abattoir.

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Slaughtering Service There is no slaughtering service in Dimeka and Turmi. Animals are slaughtered in open air. Post mortem and ante–mortem examinations services are given to butchers. There is no blood analysis and other laboratory oriented examinations. The town of Arbaminch provides slaughtering service at a cost of Birr 175.

Challenges faced by butcheries:

• Loss of cattle from the custody of herdsmen. • Inconsistent and seasonal supply of livestock by pastoralists. • Seasonality of market for the sale of meat which significantly depends on flow of tourists and other activities such as workshops or trainings which involves the coming of large number of people. • Unavailability of abattoirs services • Unavailability of transportation service makes it difficult for butcheries to travel long distance. • During holidays, there are many illegal traders which overcrowd the demand.

7.6. Abattoirs / Exporters / Processors

In Ethiopia there are about 8 livestock and livestock product exporting abattoirs out of which only 5 of them are active. Most of them are situated in Debre–Zeit and Modjo. Hashim export slaughter house and ELFORA agro industry are located in Debre Zeit while Modjo modern export abattoir and Luna export slaughter house are located in Modjo. According to study made in 2004 (Getachew et al 2008), four of the slaughter houses had a capacity of slaughtering 2.45 million shoats. Modjo Modern Export Abattoir has a capacity of 15 tones chilled goat meat and mutton per day (which is about 3000 shoats per day minimum). Luna Export Abattoir Plc has a capacity of 3000 heads of shoats per day. At the time of this survey, Modjo was operating at full capacity, whereas Luna was operating below 50% capacity because of supply shortage. Box 4 and 5 summarizes stories of Luna and abattoirs exporters.

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

The following are common challenges faced by abattoirs. Inconsistent and seasonal supply of shoats. According to the managers of slaughter houses, the following factors contributed for the inconsistent supplies of shoats. o Rainy seasons: Primary and small markets will not fully function as roads will be blocked by flood and are not accessible even by truck. o Months following holidays: days and months following holidays are known for low level of supplies. The factors to these include speculations of pastoralists that price may fall following the holidays. o Harvesting season: During harvesting periods, farmers will get busy in collecting their crops. They will have little time to come to markets to sell their livestock. In the case of Hamer, harvesting seasons are known for weak livestock marketing compared to dry seasons. This is mainly due to the fact that food is available relatively in harvesting seasons and pastoralists do not need sell their products to exchange for food. Remoteness of the location of livestock producers and shortage of accessible road to send own vehicle. The abattoir sends its vehicles up to Arba Minch to reduce transportation problem of suppliers. The demand of customers which restricts live weight and dressed weight of shoats. For instances, shoats which have live weight of 14-20 kg are preferred by the UAE customers while 21-27 kg are preferred by the SA (Saudi Arabia). Traceability, this is a system which involves identification of livestock’s origin, the production system of the area, inputs supplied, disease situation and other husbandry practices. Most of the animals, though categorized under the region, it is difficult to exactly trace/know their original production areas.

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

Box 4: Modjo Modern Export Abattoir

Modjo Modern Export Abattoir is a private company established in 1999. The company has production capacity of 15 tones chilled goat meat and mutton per day. It exports meat of shoats to United Arab Emirates and Saudi Arabia. The abattoir makes the highest money during the Ramadan. Though demand is not a challenge, the company management has disappointment for not accessing the European market because of prevalence of certain animal diseases.(1) During the year 2010/11 the abattoir has achieved an export of 3287 tones of meat making Birr 245.6 million (With short of less than 2% to attain the targeted sales of Birr 250 million).

Inconsistent supply of shoats, poor infrastructure, restriction on the live weight size by some importers from UAE and the lack of traceability of the shoats procured are among the constraints faced by exporter abattoirs.

(1) Botswana and South Africa have advanced in livestock marketing industry breaking in to Europe and Asia (Botswana)1. In Ethiopia, it is only Render pest that have officially been declared to have been eradicated and thus other livestock disease exists putting the harness on the livestock market.

Box 5: Luna Export Abattoirs Plc

Luna export abattoir PLC is a private company which is located in Modjo and established in 2002 by an Ethiopian investor. The slaughter house exports meat of Shoats, cattle and camel to Middle East countries such as Saudi Arabia, United Arab Emirates, Oman, Turkey and Vietnam. Luna has a capacity of slaughtering 3000 heads of Shoats per day. However, the slaughter house is operating below 50 %, due to shortage of livestock supply,. The management of the company is aware of the expectation of the government in terms of meeting export target. In this connection, the government has extended a number of incentive schemes. The demand for the export market is enormous and unmet. Prices are growing. Six years ago, one kilo of live weight was Birr 3.5 whereas today, the price has grown to Birr 26.5 per kg of live weight. The main challenge for the company is shortage of supplies. Ramadan is a pick season for importers and the company is faces a lot of pressure to fulfill orders.

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8. Service Providers

8.1. Transporters /trekkers

In Hamer Woreda, trekking is widely used for the movement of purchased livestock between village market (bush market) to primary and secondary markets. It is common to use trekking from villages to towns of Turmi and Dimeka, and for movements between Dimeka and Key Afer. Trekking is also highly used for movement of livestock from Eluha of Teltele to Konso and Gato markets. Main factors for opting trekking are High cost of truck transportation and limited access roads to Pastoralists’ village.

Transportation service is available and was not a challenge to traders. Some of the abattoirs also avail their own transportation facilities. ISUZU truck is widely used in this value chain. Special compartment fitted to this truck enables transport to save unit cost of transporting shoats. In the absence of the compartment, the capacity of the truck will be reduced by 50%. Transportation costs are increasing sharply in the recent past. In four years time, the price has increased more than two fold. The increase in price of fuel and the devaluation of the Ethiopian Birr have contributed for the increase in the cost of transportation.

8.2. Brokers

Brokers play vital role in facilitating transaction of livestock in primary markets of pastoralist areas where there are communication barriers for negotiation and when traders are busy in other businesses. However, their number appeared to be large compared to the size of the markets. For instance, in Key Afer marker, about 30 brokers were engaged on a single market day (on average).

In this value chain, traders and brokers often have two modes of agreement. Some traders pay for brokers based on the number of oxen or goats bought by the broker which is Birr 100 per ox or Birr 30 per shoat. On the other hand traders may pay Birr 200 for whole day purchase of Shoats. There is a lot of disappointment from seller side.

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

Some pastoralists with whom the team discussed expressed that some brokers are often fail to keep their promise what they told them outside the market place, and are forced to sell their cattle at a reduced price when the market is just about to close. Brokers are also engaged in selling of traders’ cattle in markets such as Gato. There is also disappointment from buyers side that brokers inflate the price of cattle to maximize their profit margin (which would have been lower, had it been in the presence of the owner).

According to traders in Hamer area, brokers in some markets like Yabello deprive buyers to get in touched with owners. Interference of brokers in Dimeka markets is not intense as areas mentioned above.

Some of the brokers are not interested with the name broker. They prefer to be named as agents. Some of them are buying on behalf of other traders. Some brokers who have the financial capacity, purchase by their own cash and refunded by traders. The number and feature of cattle or shoats they are buying is in accordance with the request of the traders. The traders may not be physically available in the area. In some cases, traders will pay a visit and set a price for prospective cattle while they are in the custody of their owners and communicate to the broker as to the maximum price that the trader is willing to pay for each identified cattle. It is up to the negotiation skill of the broker to get a better offer. Some broker says that they stick to the price quoted by the trader while others blame them that they push the price down to retain a more margin in excess of what they agreed with the traders.

8.3. Veterinary service

According to South Omo zone agriculture office, one health professional is assigned to one kebele. In most kebeles, community animal health workers (CAHWs) are identified and trained to serve their community. In some kebeles some of the CAHW leave their work due to different reasons. The main task of these CAHWs is to raise awareness of pastoralists in disease prevention and control. According to the office of the zone BoA, there are no drug problems in the area especially for highly economically important

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study diseases. Skill up grading program is one of the schemes undertaken by the government and other partner organizations. Despite all these efforts, the level of the service still remain stagnant calling for further investment in the area.

8.4. Financial services Banking: Though commercial banks are operating in the zone, none of them are engaged in extension of financial services to traders engaged in livestock marketing. There is no banking service in Hamer Woreda. Traders at Key Afer need to go to Jinka to collect money transferred by their buyers. Actors at the downstream level, such as processors are benefiting from various bank financing including export guarantee schemes. The current financial capacity of the traders operating at Hamer Woreda is low. They could not handle large size orders, though the current supply level doesn’t warrant. If supply improved with the successful interventions, the next challenge will be financing at the level of these traders. Accordingly, it is essential to consider facilitating accesses to financial services to traders too.

Insurance: Some of the insurance companies have been providing insurance services for livestock. These insurance policies are mainly for exporters and are not extended to the rest of actors throughout the value chain. (Target Business Consultants, 2008).

8.5. Marketing and business support There is limited marketing information support provide to upstream actors (pastoralists). Some traders get advance information on the prices of shoats. Though there is a marketing unit within the cooperative promotion agency; dissemination of marketing information is yet to be developed and not yet practiced in the zone. There are market price collection activities going on, where the purpose of doing it is vague. The information is not assembled and is disseminated to potential users. One cooperative in Minogelti Kebele bankrupted from its first attempt to market the shoats that it purchased from its members, mainly because of lack of market information and poor business management skills. According to the discussion made with the zonal and Woreda cooperative promotion office, limited budgets and skill gap are among the main challenges of the offices to render technical supports to cooperatives. Unless auditing

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

services are provided on a timely manner, rushing for the creation of cooperatives may backfire when such coops collapse due to poor financial management system and poor governance.

8.6. Standardized unit of exchange (marketing) system In Hamer area, though there is still bartering of products, some initiatives have been observed by the team. Shoats were transacted based on scale of measurement. This was witnessed at Demeka and Key Afer markets. There are no standard measurements for the trading of cattle. Measuring scales are not periodically calibrated by the relevant standard controlling body.

8.7. Waiting centers/holding ground Waiting/holding grounds for livestock producers (pastoralists and agro-pastoralist) and traders is a very important facility which facilitates the livestock marketing system. According to the informants, the availability of holding ground along the road/nearby to markets will determine the decision by pastoralists to take their animals to market centers. For instance, pastoralists and traders’ trekker around Turmi and Dimeka travel to Alduba market and Key Afer market on Wednesday and Thursday respectively. Pastoralists who did not sell their animals on Alduba market should trek to Key Afer market the next day. In addition, traders in Key Afer and Turmi keep the livestock for certain period until shipment. As the time this survey, there is no problem of holding ground and cost of service provider is minimal. Lack of holding ground in many value chains is a challenge. Traders and Woreda administration need to plan ahead of time to designate places for holding ground before it becomes a problem as livestock market supplies grows.

8.8. Other government supports / services

8.8.1. SNNP Pastoralist Affair Bureau

Pastoralist affair Bureau is a Government unit established at Federal, regional and Woreda level. The bureau has two units namely Infrastructure construction and

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

technology delivery and Awareness creation and human resources development: Its key areas are:

• Health, education, road construction, water development, irrigation, livestock marketing and establishment of new market points, generator pump extension (under technology delivery) and delivery of vegetable seeds. • Awareness raising and HR development. • Conflict resolution through discussion and forums, eradication of harmful traditional practices (HTP) through community conversation and follow up.

So far the office had facilitated trainings for 130 health technicians in collaboration with Hawassa and Jigjiga Universities. It has also a plan to train additional 50 health technicians. Moreover, 100 persons have been trained on law at diploma level in collaboration with Zion College. Arba Minch teachers college trained non formal school teachers in collaboration with Pastoralist Affairs Bureau. In addition to training of new personnel, refresher trainings and capacity building for existing personnel have been organized by the bureau.

Recently, camels have been distributed among pastoralists as livelihood diversification, adaptability strategy and shock reduction and absorption mechanisms. Tsemay, Hamer and Erbore pastoralist have got camels. Erbore camel introduction was not successful due to various reasons which needs investigation.

The office is also involved in establishment pastoral cooperatives in collaboration with the regional marketing cooperative bureau and with the financing of PCDP. Other activities include Livestock development scheme, introduction of improved farming systems, settlement of pastoralists for sedentary agriculture.

8.8.2. Productive Safety Net Program

According to the head of the Hamer Woreda productive safety net program office, Hamer woreda is one the food insecure woredas. In the woreda, out 13,665 households, 5565 households (40%) are beneficiaries of production safety net program. Most of the households do not have assets of their own rather depend on borrowed

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

livestock from their clans or relatives. The objective of the program is to help poor households to build their assets through income (wage) they earn from public work engagement and ultimately to build capacity to sustain shocks including drought. The wage is paid from PSNP fund. In the PSNP program, some householder had been provided loan of Birr 4,000. Some of them engaged in petty trading including livestock trading and fattening and coffee husk trading. Some of them spent the money for unintended purpose. Additional components in the PSNP program will be commenced soon which is named Household Asset Building Program (HABP). This component will have better financing options to households to be engaged in petty trading against submission business ideas.

8.8.3. South Omo Zone Agricultural Office

According to the head of the office, the role of the office includes but not limited to:

• Irrigation development • Forage development and rangeland development • Improving livestock resources/breeds through introduction of improved breeds (application of AI service). In line with this, there are initiatives of trials of synchronization technique in the effort to improve cattle breeds. • Expansion of veterinary service • Facilitating resentment program

8.8.4. Zonal cooperative promotion and marketing office

South Omo Zone Cooperative office is government body which is mandated to organize and certify cooperatives based on their socio-economic needs. The cooperative office provides the following services:

• Promotion of the cooperative principles and awareness creation to the rural community • Issuing registration certificate for those cooperatives which meet the requirements. • Providing training on cooperative management, bookkeeping and marketing.

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

• Facilitating market linkages to cooperatives and unions among themselves and with other actors

The office so far has assisted for the establishment of cooperatives in the zone. With the support of PCDP, a number of credit and saving cooperatives have been established recently. PCDP provides seed money/ fund, office facilities and pays salary for the accountant. South Omo Union is established with the support of zonal cooperative promotion office. The zonal coop office facilitated a market linkage to coops with slaughter houses in Modjo and Debrezeit area. The marketing relation however discontinued shortly because of price fluctuations.

Recently (i.e. as of October 2011), the zonal office coordinated a workshop on livestock marketing channel with the support from Farm Africa. Various actors including the pastoralists and the traders attended the workshop and exchanged their views on the challenges and had proposed course of interventions.

Challenged faced by the cooperative promotion office:

• There is no auditor assigned at Woreda level. As a result, none of the cooperatives in the zone have been audited so far. There is no also auditor at zonal level. • The office did not collect and disseminate market information to support the cooperatives and the union. According to the office, the inability of collecting and disseminating marketing information is due to lack of budget. • Capacity building training was not provided to coops because of budget limitation.

8.8.5. Hamer Woreda Agriculture office

The Woreda agricultural office provided different services including extension services, animal health, rangeland development, provision of other services related to crop cultivation. There are about 96 staff at the level of Kebele including Development agents on crop (17), natural resources (28), Livestock production (26), assistance vet (5), vet technician (16), and supervisors (4). There are three private vet drug suppliers

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

in the Woreda. The office works in collaboration with development partners (NGOs) in different initiatives. In the past the office was involved in the pilot enclosure project funded by Pact Ethiopia. 8.8.6. Jinka Agricultural Research Center (JARC)

Jinka Agricultural Research Center is one of the centers established some years ago in the town of Jinka. Its establishment is meant to address the production and productivity problems of farmers and agro-pastoralists of South Omo Zone. Livestock production, crop production and natural resources management, which involve bringing adaptable technologies and knowledge to the area, replace tradition-based ancient modes of activities, and let the people be part of the growing economy of the country. In September 2011 the center acquired a new facility constructed at a cost of Birr 40 million. The center is an opportunity for the research and development activities in the zone (EIAR 2011).

8.9. NGOs’ Role / services and supports Effort has been made to locate and identify NGOs operating in the Woreda. This section highlights NGOs contacted by the study team during the survey. NGOs like EPARDA have accomplished a number of studies and had supported in the rangeland and livestock development in the Woreda.

8.9.1. Pact Ethiopia

A project named Stability for Ethiopia’s Lowland Marginalized Communities (SELAM- C) sought to lessen the negative impact of violent conflict among pastoralists in the South Omo zone of the Southern Nations, Nationalities and Peoples Regional State. The project employed a participatory, bottom-up approach and built on traditional pastoral conflict mediation and prevention mechanisms and practices to more effectively foster peace in the communities. This approach enabled community members to map peace potentials and engage in peace processes. The project emphasized the participation of women and youth, along with elders and tribal leaders. SELAM-C achieved its objectives by building the capacity of target communities and local civil society organizations to:

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

• lead peace-building and reconciliation processes

• create forums to strengthen the capacity of local governments to identify, address and manage conflicts and enhance good governance

• Facilitate processes that can assist in harmonizing government development plans with community livelihood strategies. SELAM-C organized peace dialogue workshops between different ethnic and tribal groups to resolve inter-ethnic conflict, established a Geographic Information System (GIS) to assist in identifying traditional boundaries, located important ecological changes of the project area, and finalized a community tourism scan. In connection to peace building process, Pact Ethiopia assisted a study on rangeland improvement through enclosure. The initiative was successful in terms of learning that enclosures are more successful when implemented in small private holdings than on communally owned lands. The study team observed that a number of pastoralists are exercising enclosure to improve grazing lands under their possession at least to feed calves and lactating cows. Pact Ethiopia had been also working with Mago National park in connection with addressing conflict between the communities and park management.

Since 1998 Pact has supported the creation and expansion of alternative basic education centers. Working through local NGOs operating poverty alleviation programs throughout the country, Pact financially and technically supports indigenous NGOs in managing 164 alternative education centers reaching over 20,000 children in very rural areas of Amhara, South Omo, SNNPRS, and Oromia regions of Ethiopia. In these remote regions most people either survive as subsistence farmers or as pastoralists, moving from place to place in search of water and grazing land for their cattle. Pact Ethiopia's Transforming Education for Adults and Children in the Hinterlands (TEACH) project, a program which gives children, youth and adults a second chance to become educated. The TEACH project models a unique approach to providing education to the hardest-to-reach populations in Ethiopia's pastoralist/nomadic, resettlement and food- insecure areas. South Omo zone is one of the beneficiaries among other zones Ethiopia. Another similar project called Girls Empowerment and Management (GEM) was

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implemented in the zone which contributed a lot in women’s education in pastoral areas. Pact Ethiopia’s South Omo office will cease its operation in the zone by end of December 2011.

8.9.2. Enhancing Pastoralist Research and Development Alternatives16 (EPaRDA)

EPaRDA is a local NGO operating in pastoralist areas since 1999. It has field offices in Woito, Turmi and Jinka. EPaRDA is engaged in action oriented researches based on identified gap, provision of non-formal education, capitalization of indigenous knowledge, and empowerment of women and facilitation of primary health cares. Regarding livestock development and marketing, it has accomplished the following activities: Livestock health: Provision of training to community livestock health workers, contribution for the improvement of livestock health services helped for better vaccination coverage which resulted a substantial decrease in prevalence of livestock disease prevalence. Introduction of camels: the project was successful and pastoralists are interested to have more camels. Water Development: EPaRDA has constructed one water pond in Erbore (Hamer Woreda) and other three ponds in other Woredas. It provided training on community water management and established water use committees. Capacity building: EPaRDA build capacity of the pastoral community through infrastructure development such as water ponds/wells, grains mills, non-formal schools, market places and emergency slaughterhouses. Dimeka and Key Afer market were constructed by EPaRDA. In addition, it provided training on camel and goat husbandry practices. Peace building: EPaRDA’s approach in peace building process were through traditional mechanisms that have been in practice for years and inbuilt within the culture of the ethnic group, working with local governments, incorporating

16 Formerly known as Ethiopian Pastoralists Research and Development Association

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development for peace and establishment of peace committees. EPaRDA facilitated cross-border conflict mitigation and peace building initiatives. Research: Some of the researches conducted by EPaRDA were researches on ethno veterinary, resource inventory and mapping, camel adaptability trial and dry meat research. Among the best learning of EPaRDA are integrating of development initiatives together with peace building processes, conducting practical researches specific to the area, adopting participatory approach, deployment of local resources to ensure sustainability and documentation of best practices.

8.9.3. Farm Africa

Farm Africa is one of the international development organizations working in Hammer Woreda working in the following areas/programs: Early warning and information dissemination project Natural resource management Community development fund and emergency response fund Capacity building activities

The community development fund (livelihood) is a project which aims to improve the livelihood of pastoralists by creating means of income generation and through arrangement of credit scheme. Birr 10 million have been allocated for this project (Birr 300-400 thousand at kebele level). Reducing workload of women, accessing water sources through different schemes, promoting petty trades, expanding irrigation practices are amongst the activities of the project.

Farm Africa also conducted rangeland improvement enclosure and soil and water conservation with the objective of feeding lactating cows. It also provided 53 camels and 60 Borena breeds to pastoralists with the objective of diversification to ensure food security. It facilitated for the training of 18 Community Health workers, formed women goat group to assist women led households.

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

Farm Africa was also working on establishment of livestock marketing cooperatives. It has also assisted for the establishment of market in other Woredas (e.g. Dasenech).

Recently, Farm Africa facilitated slaughtering destocking before cattle loss due to drought. Kebeles were coordinating in collecting weak cattle for purchasing and slaughtering.

8.9.4. Catholic Church development organization

Catholic Church Development organization has been operating in Hamer Woreda for the last forty years. The following are among the development activities of the church: Establishment of primary cooperatives. The cooperatives were involved in trading of consumable goods. One livestock cooperative had started selling of vet drugs, but quitted the business when the person in charge resigned. Training of Para vets. The organization had trained 20 Para vets. It has also a plan to train additional 20 Para vets from Male and Hamer pastoralists. According to the office, some of the para-vets have started working on private basis. Provision of formal education and alternative basic education. Infrastructural development such as rural road construction through active involvement of communities. Water pond construction which can benefit both human and livestock. Ponds which can benefit more than 11,000 cattle have been constructed by the organization and Ache and Hamer. The organization also works on provision of seed money/funds, training and construction of grain stores.

According to the office of the organization, there are changes in pastoralists area. School enrollment and achievements are getting improved.

8.9.5. Action for Development (AFD)

Action for Development has been working in pastoral areas of Ethiopia including Borena and South Omo zones. AFD has the following programs in Hamer Woreda.

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

Capacity building: This project focuses on drought preparedness, gender/HIV training, awareness creation and resource mobilization

Water development: Rehabilitation of water points, construction of new shallow well, Cistern development and so on

So far, AFD had constructed two roof catchments, 2 health centers, two cisterns which can hold 250,000 liters, shallow well construction (six successful and two failed) and had rehabilitated 4 wells. In addition, AFD has rangeland management and animal health programs. The rangeland management project involves utilization and management of rangeland, bush encroachment clearing, reseeding and other rehabilitation works. In each kebeles, clearing of 3 hectares of bush land and fencing of 5 hectares of land have been undertaken. Reseeding was completed in fenced lands which do not support the growth of grasses and other useful vegetations. The rangeland management project has been implemented in 5 areas (kebeles) this includes: - Angude, Kola Keja, Zelefeta, Mercha Kulema, Dega Kela kebeles.

In its animal health program, AFD is engaged in the training of new Community Animal Health Workers (CAHW) and building the capacities of the already trained CAHWs. The organization also provides vet drugs for government office to be used as sources of a revolving to purchase animal drugs. So far, about 20 CAHWs have been trained by AFD. AFD has a pilot project on Aloe Vera, to support the livelihood diversification interventions scheme. Scaling out the already started intervention scheme is also one of its future plans.

8.9.6. Improved community response to drought project (ICRDP) (San Frontiers and EU)

The project has office in Turmi town. The project is enagaged in animal health service enhancement and livelihood development. Among its accomplishment in related to livestock are training of Community Animal Health Workers (CAHWs), provision of kits and revolving funds for the purchase of drugs. In Dassenech, the project introduced pastoralists’ field school (schools without walls) where more animal health workers

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would get training. Three vet doctors have been assigned to undertake the work. On the other hand, Village community banking (VCoBa) scheme is under implementation. This project aims to provide loan to pastoralists without collateral. The project provides materials such as stationeries and cash box for saving groups. The project is also working on water point rehabilitations.

8.9.7. Challenges of NGOs

The study team discussed with various NGOs on challenges faced during project implementation. The existing culture and tradition of people living in Hamer Woreda is conducive for development initiatives. The traditional structure is working well to reach communities and get common consensus. There are plenty of indigenous knowledge in all sphere including livestock production, risk mitigation conflict management and range land management. The trustworthiness, friendliness and cohesiveness of the community are also assets. Nonetheless, there are also challenges shared by most of the NGOs during project implementation in Hamer woreda. These are: Short project life-span versus long lead time to reinforce interventions: unlike other places, some of the interventions need more time to implement and reinforce learning and changes. However, projects are phased out earlier. Some of the initiatives in establishing of cooperatives and women’s group and introduction of camels in some areas are discontinued mainly because of a shorter project life span. Low level of literacy and limited trained manpower is also a challenge in getting technical maintenance supports to pastoralists-owned facilities such as water pumps and grain mills. Unable to read and write affects the efficiency of cooperatives in managing their own business. Unlike crop areas, pastoralists are not kin with laborious activities. As a result projects which were designed to be accomplished through community participations (such as irrigation and water well development) are frustrating in some Kebeles. Infrastructure: The lack of road, telephone and electricity hampered the pace of project implementations

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

Mobility: the mobility in search of water and grazing land affects development activities commenced in a specific Kebeles. Duplication of efforts / uncoated initiatives: Different NGOs have similar activities which could have been accomplished better had there been better coordination. For instance, most of the NGOs including government offices such as pastoralist commission engaged in provision of training on CAWs, rangeland management, water development and animal health. Limited role of Government offices in o Limited coordinating role of the various projects o Difficulties in ensuring sustainability and ownership when projects phased out o Limited support to implementing pastoralist organizations after establishment (including women’s group, cooperatives etc) o Documenting and disseminating of learning.

9. Chain Context

9.1. Infrastructure

9.1.1. Road and transportation:

Road from Hawassa to Jinka is under construction. The team learned that the road will be further upgraded because of the giant ongoing government projects in South Omo zone17. The road which joins Turmi to Key Afer through Dimeka is also under construction. The completion of the road is expected to create better market access to cooperatives and traders. The team observed loss of heifers Purchased from Borena area for redistribution to flood affected communities in South Omo Zone. The heifers were died in transit (sold) due to starvation as vehicles were stranded for few days due to heavy floods that blocked the road.

17 The team leaned that the Kuraz Woreda Sugar project is kicked off. The total numbers of sugar projects in the zone are six where 150,000 ha of land is already allotted. About 150,000 fulltime and part-time employees will be deployed. This is huge market potential for Livestock products.

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

The picture shows heifers on the verge of death and another one that was already dead (Camera: by the study team) Roads within Kebeles are very poor or non-existence. Movements and accessibility to the scattered pastoralists is very difficult. Most of the seasonal roads do not have bridges. Road is very important infrastructures in the livestock marketing system. The type of roads connecting an area determines the type of buyers that can get access to its market. It also affects the profitability of most of the participants in the livestock market. (Getachew et al 2008)

9.1.2. Market centers and facilities

In Hamer Woredas, there are four primary market centers. The markets are located in Turmi town (two), Dimeka and Erbore areas (Table 11). One of the market centers, at Turmi which is bigger than all is under construction. The center is well designed (constructed by cement blocks) and seems to provide quality and holistic services when

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

completed. The other market center in Turmi town is fenced by barbed-wire with facilities such as loading and unloading stage and offices for revenue collectors. The market days at Dimeka are on Thursday and Saturday. The Thursday market is named as Yesetoch Gebeya (Women’s market) -to describe size of the market, which is relatively small. This market has separate compartment for shoats and cattle. Weighing scales were used marketing/transaction for Shoats. Usually traders who collect Shoats for abattoirs use such weighing scale. There are buyers still who purchased based on visual and hand check instead of scale to offer their price.

Table 11: Market centers in Hamer Woreda livestock value chain

Status of the Market day/ Name of the market market Standing date Facilities

Turmi market center 1 New Not known Not yet finished Turmi market center 2 Functional (once Not known Loading unloading in a month) stage, offices, Dimeka market center Functional Saturday and Thursday Fenced, separate (small Market) pens for shoats and cattle Erbore market center Functional Monday Fenced and functional Source: Based on survey of the study team There is a good lesson learned from market centers at Turmi. The center is not operational as pastoralists are not bringing their livestock for marketing. Though it is essential to have a market center, effort has to be made also to create other enabling situations such as awareness creation, banking facilities (credit and saving), strengthening the cooperatives, facilitating alternative money making investments to pastoralists. The saving schemes may not be attractive to pastoralists for two reasons: The interest income may not outweigh the blood and milk benefit foregone. The interest income from saving may not outweigh inflationary changes (pastoralist could be better-off if maintained the animal than selling earlier). 9.1.3. Information exchange

Exchange of updated information among market participants will be vital to make rational and evidence based decision making during marketing process. It also helps for

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fair distribution of profit margin among actors. The current technological advancement has helped people to get information faster than ever. Mobile usage is not yet practiced well by pastoralists in Hamer Woreda. Very few people, who are enthusiastic about the technology, are using it. The study team leaned from an informant (trader) that he purchased 5 mobile phones to pastoralists whom he knew. This gives hope that the technology might be used widely in the near future. Despite this limitation, among the Hamer people there is a tradition of exchanging information and new happenings. Usually people who come from relatively far place have responsibilities to share information about anything they are happen to know where they have been. Market information is collected from people who went to market. Most of the participants in focus group discussion told the team that community member who went to market often shares the community all about the market including price.

9.2. Culture

Trustworthiness and honesty of the Hamer Woreda people is one of the most important platforms for the successful trading relationship between small traders and pastoralists. Traders buy, pay and keep the cattle with pastoralists until they ship them. Pastoralists are also engaged in trekking services. Theft is very rare or literally doesn’t exist.

Communal ownership of land: Land is owned collectively since time immortal. Community elders and leaders have been managing natural resources through advising the community on the wise utilization of communal resources. However, this ownership structure is not well supported by the current land use policy as most of the policies appear to be designed to address peasant areas which mainly focus on individual ownership. Communally owned holdings have been administered through traditional systems.

Learning from rehabilitation of lands from enclosure, individual based enclosures are now becomes a common phenomenon. As a result, some pastoralists managed to get better grasses at least to calves and lactating cows in close proximity to their house. On

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study the other hand, some people worried that small area closure will gradually lead to private plots which will be a potential danger of privatization of the common property regime. Mitiku Kassa, in his paper stated that small area closures are pretexts for ultimate private ownership as observed in Borena rangeland (Mitiku 2010).

Social security system: Pastoralists are distributing their livestock possession to their clans so that livestock will be well managed and risk could be avoided. The custodians will be benefit from the animal products such as milk and blood. The custodians are expected to return the livestock including the offspring upon request. Grand children have a right (in principle of the tradition) to demand what their Grandfathers transferred to others in this type of scheme. According to different focus group discussion conducted by the team, claiming for return of cattle is a difficult process as custodians are often resist or become reluctant to return. The other challenge coming out of this scheme is that ownership and custodianship are mixed up. If someone would like to sell his cattle, he needs to request different people to get back his own stock. According to the cultural bylaw, whatever a custodian possesses doesn’t mean that he owns it and hence he cannot sell what belongs to others. Unlike the Hamer tribes, cattle holdings and ownership are the same in the case of Karo tribes in Hamer Woreda. There is no practice of herd split and keeping of livestock with others. As a result, marketing initiatives could be much simpler in Karo than in Hamer.

Elders’ council: elders are powerful in Hamer Woreda in terms of enforcement of social bylaws and follow-up compliance to norms. Elders penalize those who did not comply with the cultural bylaws. Decisions made by elders are generally followed although some informants say that the power of the elders is now slightly dissolving. Enforcing contractual agreements such as loan repayments and credit sales etc are the role of the elders where some traders place reliance on. Elders collaborate with public service agents, NGOs and private individuals to the best execution of programs. It is essential to utilize their experience and power of influence in the process of strengthening the value chain including the awareness creation on commercial destocking, range management and livestock improvement. According to some

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observers, it is difficult to convince elders on the introduction of basic changes. Youngsters accept new changes than elders.

Less spending: lifestyle including the shelter, the clothing and food of pastoralist people in the Woreda is very simple. Under normal circumstances, the level of expenditures at household level is very small. As school enrollment is minimal, school related expenses are insignificant. The low level of spending culture contributed the low level of interest to change livestock into liquid cash. There is no investment at household level. In Hamer, a great man is the one who manages to have many shoats and cattle. Unless it is for critical needs of money, pastoralists in Hamer area are hesitant to sell their livestock.

The study team discussed with one pastoralist named Ali Wajo (who was also attended one of our focus group discussion) in Dimeka vicinity who ‘invested’ in urban houses and earns income from house rent. Other two pastoralists (named Belew Aykie and Sego) followed the example of this man and already constructed houses for rent at Dimeka town. These are probably the only known people in the Woreda who invest outside livestock. Though saving should be promoted, improving the spending behavior to basic items including clothing and food will drive pastoralists for more marketing of their livestock. Based on observers, unlike the Hamers, the Bena people are showing progress in bringing their cattle to markets18. The changes in lifestyle and the growth for demand for basic items in the Bena people contributed for better marketing of cattle. Some pastoralists from Hamer tribes which are sharing borders with Bena people are also demonstrating similar pattern like the Bena people. Some of them are spending in town for food and drinks. Spending should be promoted genuinely with the objective of household asset building so that they can sustain shocks resulted from bad weathers. Worthless spending behaviors are catastrophic to the overall wellbeing of a household and the community at large. Selling of their livestock for schools fees, clothing, medical

18 The Bena people have started celebrating national holidays and other religious ceremonies by selling livestock and buying items for holidays. They have started sending their children to school, constructing houses with iron roofs, and dressing modern cloths; however, still there are resistances among the Hamer people.

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

care, housing, for saving and investment are fruitful and valuable investments. Pastoralists couldn’t afford to waste their money for beer and other non-essential drinks and food items.

Limited role of women in property right: Women do have access to the resources but do not have control over them. This means, women may use milk, butter and so on but cannot sell stocks and get money. Involvement and participation of women in value chain development is essential and this needs to be promoted. Some pastoralists explained to the study team that though women do not have property rights, it is common to consult them before marketing of the livestock. It is important to promote women’s empowerment and ensure property rights in the long run with a cautious awareness and training without negatively affecting the harmony of the community.

Cattle raiding: Though it is not a serious problem at the time of the team visit, the team contacted a pastoralist who lost his cattle because of cattle raid in Ethiopia-Kenya border. Cattle raid is one of the main sources of tribal conflict. Payments in the form of cattle (dowries) for marriage are among the reasons which drive pastoralist youth for cattle raid.

Clan conflict: There are slight conflicts which disrupts marketing and accesses to grazing fields. The Conflict Early Warning and Response Mechanism (CEWARN) of Inter Governmental Authority on Development (IGAD) reported a continuation of escalation of conflict between Turkana of Kenya and Dassenech and Nynagatom communities of Ethiopia as well as a couple of incidents between Gabra of Kenya and Dassenech communities in 2009. Tension between Hamer and Dassenech also remained high in the same year (CERARN 2010). According to a study conducted by EPaRDA, Hamer is traditionally in conflict with Nyangatom, Turkana, Dassanech and Borena tribes. Erbore tribes are in peace with all of the tribes. The study team confirmed this during its discussion in a focus group in Erbore village.

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

Ethnographic Map of South Omo

Source: South Omo Research Center19

Major causes of tribal conflicts are competition for pasture and water, ineffective administration, unfair demarcation of boundaries, imbalance of power in the border areas, dowries20 and cattle raid, proliferation of small arms, demographic growth, the honoring of warriors, elders contribution (blessing) for wrong doers, absence of compensation, collective revenge and animosity among clans. Peace initiatives has been undertaken by government and NGOs in the area through different means such as coordination of community events on peace, boarding schools where youths from different tribes attend, promotion of culture conflict resolution mechanisms. Government role is essential in infrastructure, policy development and socio economic development for sustainable peace. (EPaRDA 2010).

19 Accessed on December 2011: http://www.uni-mainz.de/Organisationen/SORC/ 20 Dowries are gifts in the form of cattle for marriage

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

9.3. Policy, Legal Framework and Economy

Generally, the policy, Legal framework and economy of Ethiopia is conducive for livestock value chain enhancement.

Legal framework: Policies and law enforcement institutions are not strong at the level of Woredas. Otherwise, at Regional and Federal level, trade laws are fairly implementable within the context of overall capacity limitation within the justice system. The Pastoralist commission had provided trainings on policies and laws to some people drawn from the pastoralist community. The development of trade and business relationship needs backup of a strong legal system. This is yet to be developed in the case of Hamer. At the moment trade disputes are rare as a result of the strong culture the communities have. Cooperative proclamations are functional all over the country and promoted the establishment of cooperatives and set out the regulation which governs their administration. The only challenges to the pastoralist areas are the low level of literacy and limited marketing exposure of members to manage their cooperatives.

Economy and Economic policy: The Ethiopian economy has been growing at an average rate of about 11% for the last seven years. Livestock export has been growing significantly also in the last five years. Livestock sectors (excluding fishing) contribute about 11% to the national GDP, with annual average growth of about 6% for the last six years (CSA 2010). Government granted a number export incentive schemes to encourage exporters. The investment policy also granted variety of incentives for investors including in livestock development. The overall economic policy promotes market economy and supports the development of private sectors.

Land Policy: According to the Land administration unit of the Bureau of Agriculture (SNNPR), the regional government is working on the revision of the regional land policy to make it suitable to the pastoralist area taking into account challenges encountered during implementation. The current proclamation (No 456/2005) has no clear distinction between peasant farmers, semi-pastoralists and pastoralists.

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

Pastoral Development policies: The 2008 draft policy statement for sustainable development of pastoral and agro-pastoral areas of Ethiopia outlines the following policy, vision and issues:

• Phased voluntary sedenterization and complementing it by micro and small enterprises development • Undertaking integrated development with irrigation as the basis and livestock production as the focus, complemented by static and mobile education and health services as well as rural roads, rural energy and water supply, rural telephone service etc. • Allow, enable and coordinate private sector and NGO to play positive role in line with the policy direction within the framework of the broad program and strategy, after mobilizing their own resources. • Tap indigenous knowledge and skills on animal husbandry and rangeland management.

Establishment of a fair market system, expansion of infrastructure to improve livestock marketing is among the relevant policies in livestock and livestock marketing (Ministry of Federal Affair 2008). Livestock policies: Livestock related policies and strategies are more or less comprehensive in addressing basic principles of development with the exception of few items. Intuitional capacity, ownership, follow-up, coordination and continuity are among the main challenges which deter the effectiveness of these policies. Livestock breeding policy was drafted by MoA and recently tabled for the decision of parliament (Target 2009).

Growth and Transformation Plan (GTP): Regarding with pastoral areas, GTP focuses on livestock, water and pasture. The program gives emphasis for water resource development in the coming five years for livestock and human consumption, to be accomplished together with the improvement of pasture land and irrigation scheme development. Food Security program will be complemented with community complementary investment. Water resource development could be undertaken through

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study river diversion or drilling depending on the area and developing of irrigation scheme. In the coming five years settlement programs will be executed in order to enable pastoralists’ lead settled livelihood. This will be carried out on voluntary basis. In relation to livestock development, the following will be emphasis of GTP: Selection and distribution of local breeds for breed improvement Expansion of animal health services, including mobile service Increasing specialists in terms of number and their capacity Natural resource management Establishment of livestock marketing system o Establishment of new and strengthening market system, transporting system and information system. o Support on integrating pastoralists with domestic investors undertaking fattening practices, abattoirs, and traders, as well as to make them organized in cooperatives in order to solve their marketing problems o support will be rendered for private investors to invest on slaughter houses in pastoral areas, o Government to build quarantine stations that meet the required standards.

The GTP also stated that government support system will be strengthened in pastoral areas. This includes:

The pastoral extension system will be strengthened, Research institutes will be directed to generate technologies that solve pastoralists’ problems, necessary arrangements to make research linked with the extension and the pastoralists/agro-pastoralists. Resettlement program: As indicated in eh GTP, the Government of Ethiopia is perusing a resettlement program. The resettlement program will be in the pastoralist areas of South Omo along the Omo River. Based on the information from zonal agricultural office, 334 households have been resettled around Kuma area by accessing 2.5 ha of land for each household for tillage and other agricultural practice. In this connection a number of irrigation projects will be established. Six sugar plantations are

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

envisaged by the Government of Ethiopia. The resettlement program believed to bring additional benefits that had been forgone because of the mobility of pastoralists including education and social services to the community at large and better opportunities for children (deprived of milk) and elderly people.

10. Conclusion and recommendation

10.1. CONCLUSIONS

There is high potential for livestock resources which could be exploited to enhance the livelihood of pastoralists in Hamer Woreda. The volume of livestock reached to a level where the available rangeland could not accommodate it. 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 a number of livestock marketing channels originated from the Woreda. These channels helped pastoralists to sell their livestock and buy basic items. Because of the inefficiency of the chains the benefit accrued to the pastoralists has been low. The livestock production system is not market oriented. Having of as many as possible livestock brings prestige from the community. Community leaders are vigilant on those who destock their livestock. With recent repeated droughts, it is now become evident that building assets in the form of livestock is not secured. Pastoralists have the experience of losing whatever they accumulate for years just in one season. Hence, it is time to compromising cultural prides of having more livestock against real security. Commercial destocking identified in this study as a solution to ensure reliable asset building to the pastoralists household. Commercial destocking also brings benefits such as ability to sell livestock while they are in good condition. Selling prices of livestock during drought time are too low because of poor conditions of the livestock and excess supplies as everybody rushes to sell his/her cattle. Commercial destocking also enables

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

to decrease the pressure on the rangeland, minimize long distance travel in search of grazing, minimizing encroachments to park and minimizing tribal conflicts.

Road construction under way in Hamer Woreda and those which links the Woreda to the national market are progressing and is a good opportunity for livestock marketing as it attracts more buyers and minimize risks and costs associated with transportation. Government irrigation development schemes to be introduced in the area will bring a lot of opportunity in terms of infrastructure development and creation of a new market. 150,000 employees plus their families is a huge market potential for livestock products.

Though the pace is slow, the introduction of mobile technology will ease communication gaps. The current initiatives by government and NGOs on the introduction of camels and other breeds is also promising in increasing the diversification and taping the potential of rangeland resources.

NGOs operating in the area stated their success of incorporating indigenous knowledge in their resource management, conflict resolution and livestock development interventions.

Amid these opportunities there are also a number of challenges which need intervention at all levels. The marketing system of livestock and livestock products are generally underdeveloped. There are no enough primary markets, holding grounds, watering points and other related facilities which may facilitate ease movement of pastoralists from market to market without losing condition of their animals in the area. Unavailability of primary markets has forced them to be engaged in bartering of livestock with grains with unfair and imbalance mode of exchange. Cooperatives are essential means of access to market to their members. In the case of Hamer Woreda, most of the cooperatives are poorly organized, non-functioning and can’t manage and

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

stand by themselves. This could be casued by high illiteracy level of pastoralist and weak institutional competency of organizing/concerned government body in terms of staffing, budgeting and technical efficiency. Finally, the limited spending culture and lack of accessible saving and credit services also contributed to the lack of interest to destock cattle.

Financing is essential to support value chain actors at all level. In the Hamer livestock value chain, financing services are available only to processors. Traders, cooperatives and pastoralists have little access to finance. People targeted in PSNP program are benefiting with small loans to engage in their own small business activities. These support has helped in the past some pastoralists to engaged in trading activities. Some of them actually misused the money. Microfinance services need to be strengthened. There is an initiative by PCDP to strengthen the microcredit services in the pastoralist community in collaboration with Omo microfinance.

The deep-rooted illiteracy level affected the developments initiatives the area. Education is the Key to bring changes in communities like Hamer. Despite this fact, accessibility to education is still limited and hampered by the high mobility of the youngsters with herds of cattle in search of feed and water.

The traditional social security system which redistributes livestock resources among tribal members has locked the flow of livestock to markets due to intertwined separation of ownership and custodianship.

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

10.2. Recommendations

As indicated in different sections above, the enhanced market at the level of pastoralists will reduce the level of livestock holdings which in turn contribute to the reduction of livestock pressure on the rangeland. Regarding to market linkage and enhancement, the team identified five market channel possibilities. Four of the options were discussed with various stakeholders during validation workshop. Pros, cons and solutions were also recommended by workshop participants through a group work. • Option 1: Pastoralists -> Processors /Exporter • Option 2: Pastoralists -> Traders -> Processors /Exporter • Option 3: Pastoralists -> Cooperatives -> Processors /Exporter • Option 4: Pastoralists -> Cooperatives -> Traders -> Processors /Exporter • Option 5: Pastoralists -> Cooperatives -> Union -> Processors /Exporter These possibilities are not all suitable to all actors at all times. The following section will explore the pros and cons of these options and solutions to make the respective options to be workable.

10.2.1. Option 1: Pastoralists -> Processors /Exporter

This is the weakest option because of the capacity limitation of both actors.

• Pros: o The market channel will be shorter and as a result pastoralist may get better offer for their products o Better communication between the processors and pastoralists leads to better market oriented livestock development and ultimately may lead to a contract farming arrangement. o Processors do not have holding grounds in pastoralist area to assemble the livestock collected

• Cons: o Existing processors do not have the capacity to go to the extent of pastoralist in terms of logistic and personnel

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

o It will be unmanageable to processors to deal with a number of pastoralist for livestock collection as the number of marketable livestock at individual level is small o Unconventional purchasing system (bartering) may not be convenient at to conventional businesses like processors/exporter • Solutions o Pastoralist to form a group to facilitate delivery to processors and ease communication o Pastoralist need to focus on marketable products o Processors to establish holding grounds near market centers through the support of Woreda administration

10.2.2. Option 2: Pastoralists -> Traders -> Processors /Exporter

This is the popular channel in Hamer livestock value chain especially for shoats. Hands may change between traders; however major destinations are processors/exporters. Traders are also channels cattle to fatteners, butchers and end consumers. Pros and cons of this channel and solutions to limitations are summarized as follows:

• Pros o Helps to undertake local and village marketing for those pastoralists where the market centers are far away o Quicker to the daily needs of pastoralists. Pastoralists often sell their product when they are badly in need of money to buy something including food. Traders are more accessible than processors. o Trades have better capability in organizing transportation from local market than cooperative and processors o Traders have Trading and financial capability than cooperatives o Some traders supply food items which in turn will help them in addressing pastoralist needs • Cons o May not guarantee good price to pastoralists.

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

o Limits the bargaining position of pastoralists. o Do not enable pastoralists to get reliable market information o Most of traders may not have the financial capability if volume of supply increases than it used to be because of the various market interventions to be taken place. o Traders abuse the innocence of pastoralists through their brokers by pushing prices down. o Wrong impression of coops and unions on the role of traders which label traders as exploitive. • Solutions o Allowing market information access to pastoralists through various means including voice message on market centers, regional FM radios, village/Kebele level message boards o Support on the negotiating capacity of the pastoralist. o Strengthening the already used weight base sales to allow an objective pricing of livestock. o Supporting more traders to join the livestock market to enhance coverage o Awareness creation on the important role of traders o To have more accessible primary and secondary markets o Awareness creation to traders as to the manner of relationship they should have with their agents/brokers

10.2.3. Option 3: Pastoralists -> Cooperatives -> Processors /Exporter

This is a widely used channel in most of the agricultural based value chain in Ethiopia where cooperatives are strong.

• Pros o Cooperatives are more closer and accessible to pastoralist o Enables fast collection of animals and timely delivery of livestock at terminal marketing

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

o Builds self confidence to farmers when organized and manage their own business o Creates local employment o Helps to reduce illegal brokers o Helps information exchange o Create additional income to coop members in the form of dividend o Shorten market channel that it would have been through Union o Enables better access to market information and better access to knowledge and capacity development through coops o Pastoralist will have better bargaining power when coops deal than individuals deal with processors or traders o Coops are ideal for pastoralists to sell their livestock to the coops and to purchase the product they need (grain, coffee husk, etc). o Coops help/assist local development • Cons o Constraints within the coops o Lack of skilled manpower to manage coops o Coops executives are not literate and with limited exposure to management and marketing o Inability to organize transport and delay to reach market on time o limited capital of cooperatives o Long decision making process at coops may disadvantage them as compared with traders and as a result may not able to win completion for purchase with traders. o Cooperatives may end up with monopolistic position of a processors and eventually may not maximize benefits to pastoralists o Delay of payments and unsuitable payments methods. The only bank available is Jinka, which is too far for many coops to collect their money. o Weak support from Cooperative promotion office may lead to poor governance in cooperative management

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

o Side sales could be a threat to the unit of coops members especially when coops are not responsive to market price changes. o Cooperative may not have the financial capability, experience and organization to tap the marketing options where pastoralists preference of exchange of heifers for goat and ox. o Unavailability of financial services (loan) o Lack of holding grounds for purchase livestock until date of shipment. • Solutions o Build the capability of Cooperative Promotion office as a priority. At least auditing and accounting service should be provided. It will be a disaster to rush for establishing cooperatives without ensuring these services. It will take long time before people make up their mind for wrong impression about coops. o Build capabilities of coops through training, exposure visits o Employing of a mobile staff with a skill of accounting and marketing which can give ongoing support to a number of coops, stationed at Woreda level. Coops may not afford in to pay the service in the short run. Developing partners (NGOs) or coops promotion office could be responsible for the employment. o Organizing various financing options to buy as more stock as possible to meet the demands of buyers o Members credit sales (especially when members are selling with commercial objective than in need of urgent cash) o Loan from microfinance o Seeking possible financing from HABP / PSNP o Seeking advance payment from buyers o Expanding networks and establishing communication with transporters, buyers and different service providers (at start-up through the support of Coops promotion office or NGOs ) o Union to provide transportation facilities (with payment) to coops

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

o To maintain a holding ground with enclosure which will enable the livestock until date of shipment before they emaciated. This needs endorsement of the community at large and community leaders to ensure that these enclosures will not be damaged by terrace passer. o In the meantime, members could help in keeping coops livestock until date of shipment (until the coops manage to develop their own holding grounds). o To building negotiation powers and being well informed about the market and search for more suppliers to avoid the risk of losing bargaining power due to dependency on a single processor o Pastoral commission could do a lot in supporting the above mentioned proposed items to happen. o To avoid sales, effort has to be made to aware members about cooperative principles and the benefits of commitment before pastoralists join the membership. o Stereo type cooperative byelaws which promote bureaucratic decision process need to be revised to suit the realities in pastoral area and also to enables coops executive to take prompt decision marketing. This should be designed without disregarding minimum level of internal controls. Cooperatives promotion agency could help in this regard. o Cooperatives need to organize themselves to avail heifers to those who need to exchange for goats and cattle. A lot of pastoralists wish to exchange at bush market in kind than trading at market places. Bartering is actually a simple and time saving transaction.

10.2.4. Option 4: Pastoralists -> Cooperatives -> Traders -> Processors /Exporter

This option is more suitable in a situation where it is possible to have a functioning cooperatives but not strong enough to manage marketing transactions with high level actors in the chain. Hence, traders could play the intermediary role by managing

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

processors orders, placing orders to coops, collection and assembly of livestock, transporting and bearing of transit risks, and finally, managing of financial transactions.

• Pros o Cooperatives are more closer and accessible to pastoralist o Enables fast collection of animals and timely delivery of livestock at terminal marketing o Builds self confidence to farmers when organized and manage their own business o Helps to reduce illegal brokers o Create additional income to coop members in the form of dividend o Enables better access to market information and better access to knowledge and capacity development through coops o Pastoralist will have better bargaining power when coops deal than individuals deal with traders o Coops are ideal for pastoralists to sell their livestock to the coops and to purchase the product they need (grain, coffee husk, etc) than traders. o Minimize hassle to cooperatives if they deal with traders than dealing with processors. o Fast communication, fast payment that it would have been from processors

o Traders better manage relationship with processors than pastoralists in light of current capacity of coops.

o Requires limited financial capability as small size delivery is possible to traders than processors. o Requires minimum holding ground as the stock level need not be big • Cons o Low level of membership o Constraints within the coops

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

o Limited cooperative management experience o limited capital of cooperatives o Long decision making process at coops may disadvantage them as compared with traders and as a result may not able to win completion for purchase with traders. o Cooperatives may end up with monopolistic position of traders o Cooperative may not have the financial capability, experience and organization to tap the marketing options where pastoralists preference of exchange of heifers for goat and ox. o Weak support from Cooperative promotion office may lead to poor governance in cooperative management o Side sales could be a threat to the unit of coops members especially when coops are not responsive to market price changes. o Unavailability of financial services (loan) o Lack of holding grounds for purchase livestock until date of shipment. o Traders may not be fair / genuine and in this connection, coops and the Union may not trust them o Possible pressure from the Union to snatch the role of traders o Traders may face financial shortage to manage bulk shipments • Solutions o Increasing membership base (coops should increase their services to pastoralists, to attract more members) o Build the capability of Cooperative Promotion office as a priority. o Build capabilities of coops through training, exposure visits o Employing of a mobile staff with a skill of accounting and marketing which can give ongoing support to a number of coops, stationed at Woreda level. o Organizing various financing options to buy as more stock as possible to meet the demands of buyers o Members credit sales (especially when members are selling with commercial objective than in need of urgent cash)

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

o Loan from microfinance o Seeking possible financing from HABP / PSNP o Seeking advance payment from traders o Coops members to help in keeping coops livestock until date of shipment (until the coops manage to develop their own holding grounds). o To building negotiation powers and being well informed about the market and search for more suppliers to avoid the risk of losing bargaining power due to dependency on a single buyer o To avoid sales, effort has to be made to aware members about cooperative principles and the benefits of commitment before pastoralists join the membership. o Cooperatives need to organize themselves to avail heifers to those who need to exchange for goats and cattle. o Create trust among actors through dialog and transparent market information exchange for long term partnership. o Awareness creation to coops promotion agency and union staffs on the role of traders to the development of nation’s economy and avoiding traditional thinking that traders are ‘abusive or exploiters’. Had traders not been in the area as market actors, it is not difficult to imagine how many pastoralists would have been in problem. o Supporting traders to get access to loan

10.2.5. Option 5: Pastoralists -> Cooperatives -> Union -> Processors /Exporter

• Pros

o Cooperatives are more closer and accessible to pastoralist o Builds self confidence to farmers when organized and manage their own business o Helps to reduce illegal brokers

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

o Create additional income to coop members in the form of dividend, and additional income to coops from the income of the Union (than the arrangement where coops are delivering to traders). o Enables better access to market information and better access to knowledge and capacity development through coops o Pastoralist will have better bargaining power when coops deal than individuals deal with traders, and likewise, Union will have better bargaining power than coops when dealing with processors. o Coops are ideal for pastoralists to sell their livestock to the coops and to purchase the product they need (grain, coffee husk, etc) than traders. o Minimize hassle to cooperatives if they deal with Union than dealing with processors. Fast communication, fast payment that it would have been from processors o Requires limited financial capability as small size delivery is possible when delivering to Union than delivering to processors. o Requires minimum holding ground as the stock level need not be big o Better credit potential of the Union will help coops to be benefited from the credit scheme. o Better coordination to the benefit of the processors o Union has better transportation capability than the relation would have been between cooperatives and processors

• Cons

o Constraints within the coops

Limited cooperative management experience limited capital of cooperatives Long decision making process at coops may disadvantage them as compared with traders and as a result may not able to win completion for purchase with traders.

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

o Omo union is also has capacity limitation (marketing, leadership governance, finance) o Union management may not have the required level of managerial independence for making prompt decision as traders. o Cooperative may not have the financial capability, experience and organization to tap the marketing options where pastoralists preference of exchange of heifers for goat and ox. o Weak support from Cooperative promotion office may lead to poor governance in cooperative management o Side sales could be a threat to the unit of coops members especially when coops are not responsive to market price changes. o Unavailability of financial services (loan) o Lack of holding grounds for purchase livestock until date of shipment.

• Solutions

o Increasing membership base (coops should increase their services to pastoralists, to attract more members) o Build the capability of Cooperative Promotion office as a priority. o Build capabilities of coops through training, exposure visits o Build the capability of Union through employment of qualified personnel o Employing of a mobile staff with a skill of accounting and marketing which can give ongoing support to a number of coops, stationed at Woreda level. o Organizing various financing options to buy as more stock as possible to meet the demands of buyers

Members credit sales (especially when members are selling with commercial objective than in need of urgent cash) Loan from microfinance / commercial banks Seeking possible financing from HABP / PSNP Seeking advance payment from processors (by the union)

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

o Coops members to help in keeping coops livestock until date of shipment (until the coops manage to develop their own holding grounds). o To building negotiation powers and being well informed about the market and search for more suppliers to avoid the risk of losing bargaining power due to dependency on a single buyer (at the level of union) o To avoid sales, effort has to be made to aware members about cooperative principles and the benefits of commitment before pastoralists join the membership. o Cooperatives need to organize themselves to avail heifers to those who need to exchange for goats and cattle. o Revisiting the byelaw of the Union to ensure that it give flexible managerial autonomy to the executives and that the role of the Board is more or policy and strategic issues than on daily routine operation.

10.2.6. Proposed Implementation Strategy

In addition to the cons mentioned with respective options, weak commercial destocking, and limited investment options to the pastoralists, weak spending behavior and lack of primary markets at Kebele level and limitation shared whichever options opted.

10.2.6.1. Option Selection Matrix

As shown above, all options are conceptually workable provided that the suggested solutions are implemented. However, all are not equally efficient and may not equally ensure entitlement of fair profit margin distribution among the actors. Hence, adoption of the above different options should be depending on the situations. These determining factors to choose the options are the capability and strength of the cooperatives, the capability of the union, the capability of the traders and processors, the availability of financial services, the ability of coops promotion agency and the capability of processors. We could have all options at a time in different Kebeles. Table 12 shows the option selection matrix.

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

Table 12: Market Channel Selection Option Conditions Option Option Option Option Option 1 2 3 4 5 1 Coops doesn’t exist or weak Yes Yes No No No 2 Coop exists with moderate capacity No No Yes No No 3 Coop exists with strong capability But limited No Yes No Yes No Union Capacity 4 Coop exists with strong capability and strong No Yes No Yes Yes Union Capability Note: Capacity or capabilities are in terms of membership base, purchasing potential, managerial capability, marketing capability, financial capability, resources availability such as holding ground and so on.

10.2.6.2. Intervention Matrix

The intervention to enhance the livestock marketing of Hamer Woreda and of the rangeland, implementation matrix is proposed showing the urgency, the challenges, constraints, intervention, priorities and proposed implementing bodies.

Pact Ethiopia- Hamer Woreda Livestock Market Enhancement study

Table 13: Intervention Matrix Issues Challenges Constraints Recommended course of actions Action by whom Priority Time frame • Rangeland • Deterioration of • Increasing livestock • Promoting area enclosure both • Woreda and Moderate On going rangeland population which is communal and individual basis. Kebele • Bush production oriented o To make the effort all Administration encroachment • Poor rangeland inclusive with active • Office of • Park management participation of Agriculture encroachment • Some of palatable communities • NGOs by pastoralists trees are beyond o Selection of appropriate • Community • Repeated the reach of goats. season (wet season) to leaders drought In this connection avoid temptation for • JARI Introduction of terrace passing Camel was not successful in • Identification, multiplication and • JARI Moderate Long Erborie area distribution and sawing of • Office of term, • Low level of suitable grass seeds agriculture community • Community acceptance in some leader initiatives like • Kebele and enclosures as a Woreda rangeland Administration rehabilitation • Promoting market oriented Explained in the • Poor understanding production following section and awareness on • Bush clearance • PSNP Moderate Short the role of the • Integrating with PSNP’s public • PDO Term national park works plan • Woreda • Limited water • Mass mobilization Administration points • Policy support on private Bureau of Low Long ownership and communal Agriculture Term ownership of enclosed areas to PDO complement traditional JARI rangeland management system • Expanding the current initiatives PDO Moderate Long of introduction of camels to PCDP Term benefit from palatable trees NGOs which are beyond the reach of goats o Proper training and experience sharing on raring

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Table 13: Intervention Matrix Issues Challenges Constraints Recommended course of actions Action by whom Priority Time frame of camel o Sharing of learning among government offices and NGOs • Strengthening the existing Mago National Moderate Mid term effort of the Park in sharing Park benefits / integrating of collaboration of park with Kebele Office of (goof for sense of ownership of Agriculture communities to the park) NGOs • Resettlement of pastoralist Regional Low Long groups will reduce efforts and Government Term allocated resources for development – market and Zonal and Kebele access to social services Administration • More water points to minimize mobility of pastoralists Community Leaders / elders • Research and Development • JARI / SARI High Short – activities (practical one) • Office of Long o Research on better grass Agriculture species • NGOs Term o Research on combating bush encroachments with the capacity of the community o Forage development which are suitable for the backyard fattening initiatives of pastoralists. o Why camel introduction failed in Erbore and recommended courses of action to be identified

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Table 13: Intervention Matrix Issues Challenges Constraints Recommended course of actions Action by whom Priority Time frame Marketing • Lack of interest • Prestige and high • Establishing alternative • PSNP/HAB Moderate Short / to market / sell social status for investment options • PCDP (production Long livestock large size stock o House in town • PDD oriented • Weak bargaining • Low level of o Grain mills • Kebele and Term power of spending o Water pump for rental Woreda Admin livestock pastoralists • Complex mix-up of o Modern beehives • NGOs production) • Weak or Non- ownership and o Etc extent of Coops custodianship o Saving as the last option • Weak market • Lack of alternate chain investment options • Making continuous dialogue • High mobility in • Low level of literacy among leaders and elderly people search of feed • Lack of primary to combat social barrier and and water market discuss on benefits of • Unable to use the commercial destocking already established • Arranging different incentives markets (Turmi for commercial destocking such market center) as attractive micro finance • Lack of market schemes and so on information • Promoting market oriented • Weak coops livestock production system in promotion Agency the pastoralists community (Zonal and Woreda level) • Promoting cash saving/ • Elders Moderate Long • Weak financial alternative investment than the • Microfinance Term capacity of Coops traditional cattle splitting type • Kebele and and Union to fellow pastoralists (as this Woreda • Limited capacity of culture deters marketing and in Administration traders some cases custodians are • Suspicion among reluctant to return back)

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Table 13: Intervention Matrix Issues Challenges Constraints Recommended course of actions Action by whom Priority Time frame actors to • Promoting useful spending • Elders Moderate Long collaborate o Food / school fee / clothing / • Cooperatives – Term (including house availing supplies generalization that • NGOs traders are • Introducing cereal banks at the exploiters) level of Kebele or household as • Weak extension alternative method of converting services on their livestock into cash at good production and times. marketing • Building the capability of Coops • Regional High Short • Excessive supply promotion agency at Zonal and Government term during drought time Woreda level • Regional Coop • Livestock are not • Sufficient budget to coops promotion accessible for promotion officers at least for Agency immediate accounting and auditing support • Woreda marketing – distant • Building the marketing skills of Administration from village Coop promotion office staff • PDO • Strong cultural • To stop establishing coops • NGOs control over sell of without ensuring ongoing livestock support! Not affordable to have

a failure story. • Scattered Geo- • Building the capability of Coops • PDO High Short political settlement o Training and exposure visit • NGOs of pastoralist term o Seed fund • Coops • Poor personal cash o Employing mobile Promotion management ability professional to be stationed offices and as a result at Woreda level (versatile in wrong impression accounting and marketing) about cash o Access to credit • • Awareness creation to pastoralists on the benefit of cooperative • Adult education programs to • Education office Low Long coops members who are the • NGOs term future business leaders • PDO • Marketing information to be Coops Promotion Low Long disseminated

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Table 13: Intervention Matrix Issues Challenges Constraints Recommended course of actions Action by whom Priority Time frame o on a weekly basis on (Regional and Term market center (at least Zonal) previous days market prices in different market Regional centers in Turmi, Key Afer Government and Dimeka o Regional FM radios PDO (including distribution free radios) at least weekly at least in Hamer language o Text messaging (at the level of Coops chairman / executives) • Promote establishment of village Coops promotion Low Long (Kebele) level multipurpose PDO Term market (through involvement of micro groups and individuals) Kebele • Allowing access to short term PCDP, PDO, Omo Moderate Midterm finance to coops Microfinance and long o Microfinance o Revolving funds term o Value chain financing (Omo microfinance/Traders/Unions) • Control on those who are selling outside the market center • Towns where market centers are established need to have also other commodities demanded by pastoralist so that the place will be preferable to them • Creating joint session among Cooperative Low Long actors for collaboration and promotion offices Term enhancement of the livestock NGOs value chain Trade Associations • Facilitating exposure visits to traders and coops executives to

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Table 13: Intervention Matrix Issues Challenges Constraints Recommended course of actions Action by whom Priority Time frame tertiary markets and processors • Establishing and supporting small group (Women’s group, youth group) with idea of rural entrepreneurship where it is not possible / or not convenient to form a cooperative. • Animal • Prevalence of • Communication/ • Protecting buffer zone to Omo National Park moderate Mid Term Heath and economical and contact of domestic separate domestic stocks from NGOs related communicable animals with wild life that of the wild life Office of issues disease particularly at Mago agriculture • Accessibility of national park Zonal animals for • High movement of Administration veterinary care animals from place • Rangeland development and Explained above • Unavailability of to place which development of more water (under rangeland well trained increase animals points section) health susceptibility to professionals different diseases • Training more number of vet NGOs High Short / health professionals and CAWs PDO • Occurrence of • Budget shortage for Long seasonal disease infrastructure Office of such as development such Agriculture Term Contagious as animal health Caprin Pluero laboratory and PDO Moderate Long • Encourage private vet service Office of pneumonia related facilities Term (CCPP) following • Scattered providers to operate in the area Agriculture rains after settlement pattern Office of trade and extended dry to easily address industries period. infrastructural needs • Shortage of skilled man power in the area • Poorly developed infrastructure • Poor husbandry and management practices • Poor access to

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Table 13: Intervention Matrix Issues Challenges Constraints Recommended course of actions Action by whom Priority Time frame quality feed and water sources

• Poor banking • Undeveloped demand • Lobbying for the opening of Banks Moderate Short Banking and service in for banking services commercial bank at least in Microfinance Term financial pastoralist area • Social and cultural Demeka or Key Afer • Livestock as values imbedded in • Strong extension works to Institutions services means of capital livestock banks reduce cultural pressures on PDO storage overweigh that of holding of livestock/against mechanisms money commercial destocking Cooperative than banking • High livestock • Promoting cash transaction promotion office system resources than than bartering • Weak /limited financial stocks in • Providing ongoing supports to Kebele and Woreda eligibility to fulfill the society credit and saving group and Administrations requirements • Low information promoting successes. and to take about banking • Ensuring efficient services on loans services and its credit and saving services (Omo • Limited and benefits (Extension microfinance) and granting weak pastoralist services) attractive interest rates to credit and saving • Absence of physical encourage deposits. group. collaterals at the • Promoting aggressively on the • Pastoralist level of Coops and importance of credit and saving depends on traders • Supporting Microfinance livestock on • Bureaucratic Institutions so that their cost of hands to be procedures to take doing business will not be more efficient loans discouraging for on demand • Highly practices conversion or bartering system access to cash • No commercial than money kept banks operating in in the bank. the Woreda • Enabling • Confusion on • Pastoralist specific • Planning of Kebele level roads PCDP Moderate Short / communal policies on land through Public work in PSNP Environments PDO mid term ownership utilization program versus private • Limited capacity of

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Table 13: Intervention Matrix Issues Challenges Constraints Recommended course of actions Action by whom Priority Time frame ownership Kebele • Zonal/Regional government Regional Low Long • Some of the administration to support in funding construction Administration Term Kebeles are not construct roads of road which cannot be accessible by • Lack of guidance / accomplished through public PDO vehicle policies on works (including bridges)

• No holding ownership of holding grounds to keep grounds PCDP Moderate Mid Term livestock until • No sufficient • Waiting centers should have Office of shipment (for capital/fund to facilities such as fencing, water traders and invest on holding and troughs, feed to the investment coops) grounds minimum and other related Office of • Low level of • poor school facilities: Traders and coops literacy enrollment / mobility need to be granted for such Agriculture • Limited role of of youth spaces with minimal payment, women in • Poor infrastructure and coops need to be supported livestock and limited number as the cost of development marketing of potential could be unaffordable in the customers to cover short run. running costs in the Office of Education Low Long short run • Expansion of informal education NGOs Term • Women are target community leaders, culturally deprived of women, coop members and property right and executives: at least on topics of engaged in non- o marketing, livestock activities o security through deposit, unless they are alternative investment single parent options other than livestock o nature of banking services, o about principles of cooperative, o value addition o etc • Ensuring women’s role in NGOs, Woreda and Low Long livestock production and Kebele Term marketing and top of all property right through awareness administration creation NGOs

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Table 13: Intervention Matrix Issues Challenges Constraints Recommended course of actions Action by whom Priority Time frame • Reduced • Resource • Promoting commercial • Woreda Low Long Tribal conflicts efficiency in competition for destocking and improving administration Term resource utilization rangeland management • NGOs utilization and • Cattle raid • Avoiding cattle raiding traditions • Civil societies, management • Lack of discussion through awareness creation – including • Loss of and dialogue forums resolving through traditional pastoralists resources and • channels associations human life • Holding discussions among • Compensation • Availability of leaders and elderly people on for cattle raid Weapons resource management, and immediate formation of ideal boundaries legal actions • Control of unauthorized weapons • Police on illegal and access by youngsters who arms control are assumed to be the main actors • Duplication of • Programs are • Formation of NGO forum / and • Regional and Moderate Mid Term NGOs Role efforts developed and developing a strategic plan and Zonal • Short project life designed at head designing programs in a Administration span quarter level, and complimentary approach in and Sector some of them could consultation with zonal offices also be donor driven administration and sector • NGOs Forums offices • NGOs operating • Taking into account the in the zone constraints in terms of infrastructure, limited manpower, high level of literacy in designing projects to make sure that reseaonable project life span is designed which ensures sustainability

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References

Arend Jan N., (2006, May), Quick scan of the livestock and meat sector in Ethiopia, Wageningen International, the Netherlands.

Asfaw N., Shahidur, R., and Berhanu, G. (2011, August) Livestock Production and Marketing, Working papers No 26, International Food Policy Research Institute – Ethiopia Strategy Support Program II, Ethiopia.

Azage tegegn, Berhanu Gebremedhin and Hoekstra D. 2010. Livestock Input Supply and Service Provision in Ethiopia: challenges and opportunities for market- oriented development. IP``MS (Improving Productivity and Market Success) of Ethiopian Farmers Project Working Paper 20. ILRI (International Livestock Research Institute), Nairobi, Kenya, 48pp

CEWARN 2010. CEWARN Country Updates: September – December 2009 For the Ethiopian Side of the Karamoja Cluster. The Conflict Early Warning and Response mechanism (CEWARN)

CSA (2010) Central Statistical Agency, Federal Government of Ethiopia

Daniel Theodraos. (2008, February), Beef Cattle Production System and opportunities for market orientations in Borana Zone, Southern Ethiopia, MSc thesis, Haramaya University.

Getachew, L., Hailemariam, T., Dawit, A. and Asfaw, N. (2008), Live animal and meat export value chains for selected areas in Ethiopia: Constraints and opportunities for enhancing meat exports, discussion paper No 12, people livestock and environment ILRI.s

LDMPS 2007. Livestock Development Master Plan Study. Phase I Report – Data Collection and Analysis. Volume O – Livestock and Products Marketing. Ministry of Agriculture and Rural Development. November 2007

Ministry of federal affairs 2008. Federal Democratic Republic of Ethiopia, draft policy statement for the sustainable development of pastoral and agro pastoral areas of Ethiopia, February 2008. Addis Ababa

Mitiku Kassa (2010). Key Lessons and Experience in Natural Resource Management and Livelihood Diversification in South Omo Zone. Challenges of livelihood diversification and rangeland degradation in South Omo. Capacity and Collaboration for Sustainable Development in South Omo Project (CCSD-SO)

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PCDP (2006): Southern Nation, Nationalities and People’s Region, Ethiopia Livelihood Profiles January 2006, Pastoral Community Development Project.

PFE, IIRR and DF. 2010. Pastoralism and Land: Land tenure, administration and use in pastoral areas of Ethiopia Target 2008. Livestock Value Chain Study; Especial Emphasis to Dhas Woreda of Borena Zone, Oromia Regional State, Action for Development, Addis Ababa, Ethiopia. Studies by Target Business Consultants Plc.

Getachew Feleke, Medhin Woldearegay, Getnet Haile. (2009) Ethiopian Dairy Policy Inventory, by Target Business Consultant plc, Study commissioned by SNV Ethiopia. Terefe A, Ebro A and Zewedu T 2010: Rangeland dynamics in South Omo Zone of Southern Ethiopia: Assessment of rangeland condition in relation to altitude and Grazing types. Livestock Research for Rural Development. Volume 22, Article #187.Retrieved December 25, 2011, from http://www.lrrd.org/lrrd22/10/tref22187.htm

Wageningen 2006. Quick scan of the livestock and meat sector in Ethiopia Issues and opportunities: Wageningen International, Wageningen, the Netherlands, May 2006

Yacob, A. and Andy C. (2010, January), Livestock Exports from Pastoralist Areas: An Analysis of Benefits by Wealth Group and Policy Implications, IGAD LPI Working Paper No. 01 – 10, IGAD livestock policy initiative. • Discussion Paper No. 12 Web resources

Ethiopian Institution of Agricultural Researches (EIAR), Site: http://www.eiar.gov.et/on- the-news/151-towards-settled-agricultural-life-in-south-omo Accessed on December 2011.

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Annexes

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Annex 1: People and organizations contacted

S.No Name Organization Address Remark

1 Ato Mathios SNNPE Bureau of pastoralists +251 911-80 12 affairs 58/04622209855

2 Dr. Addis Eyob Bureau of pastoralist- planning +251 912 98 61 and monitoring 94/046 22105 18

3 W/ro Gete Regional land administration +251 911 88 76 69

4 Ato Afed Worku South Omo zone Agriculture office

5 Ato Alebachew Hailu South Omo zone cooperative +251 916 54 57 79 promotion and marketing office

6 Ato Henok Geta South Omo zone agricultural +251 912 47 18 products marketing 17/0467751350 departments

7 Ato WondYifraw Baykeda Farm Africa +251 913 90 68 65

8 Ato Gelo Mula Hamer Woreda pastoralist office +251 911 06 65 12 Head of the office

9 Ato Tarekegn Badege Hamer Woreda pastoralist office +251 912 28 41 00

10 Yeshimebet Tamene Hamer Woreda Cooperative +251 921 15 85 56 office 11 Hewan Tadess +251 916 73 53 41

12 Ayalew Belete +251 913 72 56 61

13 Shewan Gizaw Shibiru +251 913 72 56 61

14 Workalemahu Eseye

15 Almaz Zeleke

16 Kililua Asfaw

17 Ato Abraham Birhanu Dimeka Catholic Church +251 911 94 36 46 Development Organization

18 Ato Hatiso Pastoral Community Demeka Development Program (PCDP)

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19 Ato Getachew Action for Development (AFD) +251 911 87 33 88 Head of the office

19 Ato Gebeyehu Yimer Arba Minch butchery +251 916 83 22 25

20 Ato Bezabihi Belayneh Dimeka trader and butchery +251 920 98 52 39

21 Endashaw Minalu (Mamush) Dimeka livestock trader +251 91338 89 51

22 Ato Habtamu Abebe Turmi Butchery/trader +251 916 56 79 77

23 Ato Seid Yimam Turmi Livestock Trader +251 920 01 08 32

24 Ato Wajo Ali Area Ambule kebele Area Ambule kebele Administration

25 Ato Belew Aike Pastoralist Ache Kbele

26 *Ato Gelle Moda Pastoralist Shanko Kelema

** Ato Wongella Damo

27 Ato Mena Gelcha Aer bore kebele chair man +251 926 07 02 30

Aerbore

28 W/ro Gullo Bolla Mino Gelti Kebele Women Affair Mino Gelti Kebele

29 W/ro Ayto Wongi Laya saving and trading cooperative 30 W/ro Asi Geli

31 Ato Menga Nekuwa Kara Koricha Kebele Kara Koricha Administration

32 Ato Demo Suye Kara Koricha

34 Ato Delti Lito Kara Koricha cooperative Kara Koricha

35 Ato Atula Dilla Kara Koricha

36 Ato Oita Lumlemo Kara Koricha

37 Ato Gade Dello Kara Koricha

38 Ato Fantahun Sitotaw Pact Ethiopia, Jinka office Jinka

39 Ato Aregawi Slasie Veterinaries Sans Frontiers - Turmi Germany

40 Ato Alemayehu Matios Mago National Park Warden Turmi

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Annex 2 Interview Checklist 1. Cooperative promotion agency 1.1. General information 1.1.1. Name of the office ______1.2. Service provided by the office 1.2.1. Organizing and certificate issuance ______

No of cooperatives established so far in Hamer and neighboring Woredas

Types of cooperative No of cooperatives Remark Hamer Neighboring Woredas Livestock marketing

Credit and saving

Dairy

1.2.2. Capacity building (Mgmt, marketing, financial management, experience sharing, awareness creation…)

______

1.2.3. Support services (Marketing linkage, contract design, auditing and accounting…)

______1.2.4. If you provide market information, What are your sources ( How do you gather and disseminate the information)

______

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______

1.3. Major accomplishments in the past by the office

______

1.4. Ongoing projects 1.4.1. Fully funded by the agency

______

1.4.2. Collaboration with others (PCDP, other NGOs..)

______

1.4.3. Future Plan in the area of livestock marketing

______

1.5. Major challenges in livestock marketing as observed by the office 1.6. Information 1.6.1. Regional cooperative laws and regulations 1.6.2. New circulars if any 1.6.3. Livestock marketing information for the past three years ( by types of livestock)

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2. Zonal / Woreda Agricultural office (Livestock production, VET, FEED, rangeland management…) 2.1. General Information 2.1.1. Name of the office ______2.1.2. Departments ______2.2. Livestock related extension services 2.2.1. Livestock production

______

2.2.2. Health (VET services

______

2.2.3. Feed / Rangeland management

______

2.2.4. Feed development and improvement initiatives

______

2.2.5. Capacity building

______

2.2.6. Others

______

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______

2.3. Initiatives made so far on enclosures, and the success and failure stories and factors contribute for the success or failure

______

2.4. GTP 2.4.1. Relevant issues in livestock development in Hamer Woreda

______

2.5. AGP 2.5.1. Relevant issues in livestock development in Hamer Woreda

______

2.6. Opinion 2.6.1. Do you think that the rangeland in Hamer Woreda is degraded?

______

2.6.2. If yes, please indicated in the order of importance for the following possible factors for rangeland degradation • Drought • Overgrazing • Bush encroachment • Population pressure • Increased settlement • Decrease in livestock mobility • Limited knowledge of rangeland management • Soil erosion • Others o ______o ______o ______o ______

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2.6.3. Is communal ownership a challenge or opportunity for better rangeland management?

______

2.7. Challenges and opportunities known to the office in the area of livestock production and marketing

______2.8. Information 2.8.1. Sector strategy plan 2.8.2. Livestock population

Livestock population Types of stocks 2001 2002 2003 Average family Annual holding (2003) average livestock pop growth rate

Cattle

Goats

Sheep

Camel

2.8.3. VET service coverage • No of clinic ______• No of VET post ______• No of VET technicians ______• Par vet (CAWS): Community Animal Health Workers) • Coverage % ______• Vet drug supply coverage / budget • No of Private drug stores ______

2.8.4. Major Disease prevalence 2.8.4.1. ______2.8.4.2. ______2.8.4.3. ______2.8.5. Feed sources in Percentage • Natural pastor ______

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• Crop residue ______• Standing hay ______• Browse ______

2.8.6. Land use in hectare or square km • Grazing land o Communal ______o Private ______• Cropping land ______

2.8.7. Agro-ecological data 2.8.8. Socio-economic data 2.8.9. Other livelihood opportunities (honey, tourism…)

3. Woreda Administration 3.1. General Information 3.1.1. Name of the Woreda ______

3.2. Government Development Priorities of the Woreda

______

3.3. Woreda Admin support in 3.3.1. Livestock development ______3.3.2. Market infrastructure ______3.3.3. Information gathering and dissemination 3.3.4. Conflict management ______3.3.5. Woredas short term and long term strategy in managing conflicts in relation to grazing and other resource utilization

______

3.4. Information 3.4.1. Woreda strategy plan 3.4.2. Population 3.4.3. Household 3.4.4. Road coverage 3.4.5. Telephone access 3.4.6. Consolidated NGOs plan (Donor Book)

3.5. Constraints in policy implementation 3.6. Challenges noted by the Administration office on pastoral livelihood development

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4. PCDP office 4.1. General Information ______4.2. Projects related to livestock development , infrastructure, water, marketing, cooperative )

S/N Project Description Project duration (in Project budget Remark months)

4.3. Information 4.3.1. Baseline survey 4.3.2. Future projects related to livestock development and marketing

4.4. Lesson learned in livestock development and marketing

4.5. Challenges encountered in designing and implementation of marketing initiatives

5. NGOs (Farm Africa, AFD, EMPAD, AMREF, Agriservice..)

5.1. General Information 5.1.1. Name of NGO 5.1.2. Operation in the Woreda since ______5.1.3. Address ______5.1.4. Contact person ______

5.2. Major area of intervention

5.3. Specific projects on livestock production, health and marketing

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5.4. Challenges observed during livestock related projects

5.5. Success stories / Failure stories if any

5.6. Information 5.6.1. Studies conducted through your organization on livestock marketing in Hamer Woreda

6. Pastoralist – individuals 6.1. General Information 6.1.1. Name ______6.1.2. Kebele ______6.1.3. Age ______6.1.4. No of household members ______6.1.5. Livestock holding 6.1.5.1. Cattle ______6.1.5.2. Sheep ______6.1.5.3. Goat ______6.1.5.4. Camel ______6.2. Production 6.2.1. Labor 6.2.2. Support services (feed, vet, breeding, training…) 6.2.3. Challenges you faced in livestock production (feed, health,….) 6.2.4. The role of the different family members in livestock production and marketing

6.3. Marketing 6.3.1. Have you ever sold livestock?, If yes 6.3.1.1. What are your motives to sell (food, clothing, equipment etc…) 6.3.1.2. Market Access 6.3.1.2.1. Who are your buyers? 6.3.1.2.2. Which market? 6.3.1.2.3. How were you informed about the market (place, price, approach) 6.3.1.3. System efficiency 6.3.1.3.1. How do you interact with the buyer? (Direct, through broker? 6.3.1.3.2. What kinds of information you get from your buyers? Is it enough? 6.3.1.3.3. Who dictate the price? (you or the buyer)

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6.3.1.3.4. Can you easily find another buyer? 6.3.1.3.5. Do you return back home if you are not satisfied by the offer? 6.3.1.3.6. Do you have alternative market places? 6.3.1.4. Challenges with market places 6.3.1.4.1. Traveling long distance? 6.3.1.4.2. Lack of feed and water for the cattle 6.3.1.4.3. Lack of market information 6.3.1.4.4. Language / communication 6.3.1.4.5. Others ______

6.4. Opinion on commercial destocking 6.4.1. Have you ever keep your money in credit and saving? 6.4.2. What do you think of converting your cattle into money and avoiding risk of drought

7. Pastoralist – Focus group discussion 7.1. General Information 7.1.1. No of people attended the focus group discussion ______Male ______Female _____ 7.1.2. Kebele ______7.1.3. Age ______7.1.4. Average number of household members ( as suggested by the group) ______7.1.5. Livestock holding estimation 7.1.5.1. Large holding ( percentage of this group ______) 7.1.5.1.1. Cattle ______7.1.5.1.2. Sheep ______7.1.5.1.3. Goat ______7.1.5.1.4. Camel ______

7.1.5.2. Medium holding ( percentage of this group ______) 7.1.5.2.1. Cattle ______7.1.5.2.2. Sheep ______7.1.5.2.3. Goat ______7.1.5.2.4. Camel ______

7.1.5.3. Small holding ( percentage of this group ______) 7.1.5.3.1. Cattle ______7.1.5.3.2. Sheep ______7.1.5.3.3. Goat ______7.1.5.3.4. Camel ______

7.2. Production 7.2.1. Labor ( who are engaged in herding and what is the role of women?)

7.2.2. Support services (feed, vet, breeding, training…)

7.2.3. Other costs of raising livestock

7.3. Changes over the past years 7.3.1. Land size 7.3.2. Livestock population 7.3.3. Human population 7.3.4. Average livestock holding

7.4. Is there a shift to agro pastoral in your Kebele? If there is, why is that? 7.4.1. Income diversification 7.4.2. Pressure from human population 7.4.3. Pressure from livestock population 7.4.4. Settlement 7.4.5. Other factors

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7.5. Marketing 7.5.1. Have you ever sold livestock?, If yes 7.5.1.1. What are your motives to sell (food, clothing, equipment etc…)

7.5.1.2. Market Access 7.5.1.2.1. Who are your buyers?

7.5.1.2.2. Which market?

7.5.1.2.3. How were you informed about the market (place, price, approach)

7.5.1.3. System efficiency 7.5.1.3.1. How do you interact with the buyer? (Direct, through broker?

7.5.1.3.2. What kinds of information you get from your buyers? Is it enough?

7.5.1.3.3. Who dictate the price? (you or the buyer)

7.5.1.3.4. Can you easily find another buyer?

7.5.1.3.5. Do you return back home if you are not satisfied by the offer?

7.5.1.3.6. Do you have alternative market places?

7.5.1.4. Challenges with market places 7.5.1.4.1. Traveling long distance? 7.5.1.4.2. Lack of feed and water for the cattle 7.5.1.4.3. Lack of market information 7.5.1.4.4. Language / communication 7.5.1.4.5. Others ______

7.6. Price

Product 2003 2002 2001 Remark

Cattle – bull

Cattle – calf female

Cattle – heifer

Sheep

Goat

7.7. The role of Elders in communal decision making 7.8. Opinion on commercial destocking

7.8.1. Have you ever keep your money in credit and saving?

7.8.2. What do you think of converting your cattle into money and avoiding risk of drought?

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8. Key informants 8.1. General Information 8.1.1. Name of the informant ______8.1.2. Address ______8.1.3. Years of experience in the area______8.1.4. Area of experience ______8.1.5. Current position / status ______

8.2. Production – challenges and opportunities 8.2.1. Rangeland management

8.2.2. VET services 8.3. Marketing 8.3.1. Cultural issues 8.3.2. Livestock market drivers 8.3.3. Who are the buyers all the way to end consumers?

8.4. Interventions (production, cultural, marketing etc) undertaken in the past 8.4.1. Successful projects – why they were successful?

8.4.2. Unsuccessful projects – Why there were unsuccessful? 8.5. Policy issues

8.6. Recommendation on marketing development of Hamer Woreda

9. Traders 9.1. General Information 9.1.1. Name of trader ______9.1.2. Address ______9.1.3. Years of experience in the area______9.1.4. Year of experience in the business ______9.1.5. Current position / status ______9.1.6. Type of business 9.1.6.1. Family business 9.1.6.2. Sole trader 9.1.6.3. Plc 9.1.6.4. Partnership 9.2. Market access 9.2.1. Who are your suppliers? 9.2.2. How do you reach them? Direct or through brokers? 9.2.3. What are your sources of market information? 9.2.3.1. About the quality, specific marketable product (shots? Camel? Bull?) 9.2.3.2. Price 9.2.4. Who are you buyers? From which city / town 9.2.5. How did you find your buyers 9.2.5.1. Personal selling 9.2.5.2. Friend or relative 9.2.5.3. Exhibition or bazaar or advertisement 9.2.5.4. Though brokers 9.2.5.5. Others ______

9.2.6. Bargaining power Who set the price, and your negotiation power? Who determine the volume of supply? Who determine the quality?

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Who determine the timing of delivery?

9.2.7. What are the current market channels for livestock of Hamer?

9.2.8. Is livestock trading your sole business? If not in which products you are also doing business? What is the significant of livestock to your overall business?

9.3. Costs and Price for the past three years 9.3.1. Purchase cost

Product 2003 2002 2001 Remark

Cattle – bull

Cattle – calf female

Cattle – heifer

Sheep

Goat

9.3.2. Additional costs (Current) 9.3.2.1. Loading 9.3.2.2. Transportation 9.3.2.3. Unloading 9.3.2.4. Taxes 9.3.2.5. Holding ground fee (until market day) 9.3.2.6. Feed in transit 9.3.2.7. Broker fee – purchase 9.3.2.8. Broker fee – sales 9.3.2.9. Insurance

9.3.3. Selling price of traders at ______market

Product 2003 2002 2001 Remark

Cattle – bull

Cattle – calf female

Cattle – heifer

Sheep

Goat

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9.4. Do you exchange information with your buyers?

9.5. Challenges you face from your buyers side? 9.5.1. Sustainability 9.5.2. Reliability 9.5.3. Repayment 9.5.4. others

9.6. Challenges you face from your supplier side 9.7. Your opinion on the role of brokers in your business 9.8. Your knowledge about end users

10. Butchery / Hotels 1. General information 1.1. Name of the butchery______1.2. How long was it been since you started this business? 1.3. Average daily sells volume/oxen______1.4. Are there specific breeds/types preferred by you and other butcheries? ______1.5. If yes, which breeds and what qualities make them preferred? • ______• ______• ______2. Marketing 2.1. Average price of an ox? ______birr/ox 2.2. Where do you and other butcheries buy oxen for slaughtering (markets)? ______2.3. How many killos of meat an ox may yield? ______2.4. Can you get beef cattle any time? ______2.5. If yes, which markets are where you can get good beef cattle?

Special feature (quality stock, less

brokers, near) S.N Market name Place/kebele Date of market Remark

2.6. What are the challenges you face during purchases of oxen? ______2.7. What is the role of brokers in facilitating the market efficiency? ______

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2.8. Are the following by-products marketable in line with sale of meat?

• Hide______/kg • Offal______/kg • heavy fats______/kg 2.9. Which season are good market seasons? ______3. Services and related issues 3.1. Are there slaughter houses that can provide comprehensive services (health inspection [post mortem, ante mortem], slaughtering services, delivery…? ______3.2. If yes, what is the cost of slaughtering services for one ox?______birr/ox 4. Pricing 4.1. Who determines price of meat? 4.2. What are the major factors that determine prices of meat? ( • The local market, • Seasons • Demand • Environmental situation (during drought, shortage of grazing…) 5. Financing 5.1. Are there MFI/financial service providers for such business? ______5.2. If yes what are the requirements to get loans? ______11. Cooperatives

1. General information 1.1.1. Name of the cooperative______1.1.2. Year established ______1.1.3. Total capital ______1.1.4. Total members______Female ______male _____

2. Marketing information 2.1. What are the major products marketed by the cooperative ______2.2. What is the source of your market information? 2.3. Who are your suppliers (where do you source products)? 2.4. Who are your customers 2.5. Where is your market place for purchase? 2.6. Where is your market place for sale?

2.7. Costs and Price for the past three years 2.7.1. Purchase cost

Product 2003 2002 2001 Remark

Cattle – bull

Cattle – calf female

Cattle – heifer

Sheep

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Goat

2.7.2. Additional costs (Current) 2.7.2.1. Loading 2.7.2.2. Transportation 2.7.2.3. Unloading 2.7.2.4. Taxes 2.7.2.5. Holding ground fee (until market day) 2.7.2.6. Feed in transit 2.7.2.7. Broker fee – purchase 2.7.2.8. Broker fee – sales

2.7.3. Selling price of the coop at ______market

Product 2003 2002 2001 Remark

Cattle – bull

Cattle – calf female

Cattle – heifer

Sheep

Goat

2.7.4. Do you exchange information with your buyers?

2.7.5. Challenges you face from your buyers side? 2.7.5.1. Sustainability 2.7.5.2. Reliability 2.7.5.3. Repayment 2.7.5.4. others

3. Services provided by the cooperative to the coop members and other members of the community ______4. Financial capacity______5. Facilities owned by the Coop

6. Governance

6.1. Accounting and auditing - last audited

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6.2. Timely AGM 6.3. Role of General Assembly 6.4. Respecting of term of offices of executives 6.5. Functioning of the different committees

7. Challenges and opportunities 7.1. Opportunities ______7.2. Challenges ______

12. Fattener 7.3. General information 7.3.1. Name of the fattener______7.3.2. How long been since you started the business (fattening) ______7.3.3. What is your fattening capacity, if market is a problem? ______7.4. How long would it take to finish cattle (stay on the feed lot)? • Three months ______• Six months ______7.5. Where do you sell fattened cattle? (By %) • The butcheries ______• Traders ______• Local market (for social and religious events ______7.6. What is the price a fattened cattle? ______birr 7.7. Labor cost ______7.8. What is the major source of feed for your cattle ? 7.8.1. Industrial by products • Wheat bran • Oil cake 7.8.2. Hay 7.8.3. Forage 7.9. Price of feed • Wheat bran ______/kg • Oil cakes______/kg • Others 7.10. Who are your market competitors in livestock marketing? 7.10.1. While buying cattle for fattening 7.10.2. While selling fattened cattle 7.11. Market days, distance and availability 7.11.1. Are there markets which are far from here? 7.11.2. If yes, what is your means of transportation? (Vehicle, trekking…) • Trekking for single cattle______• Vehicle for single cattle ______7.11.3. Is there any robbery threat during trekking? 7.12. Financial services 7.12.1. Are there MFIs which can provide loan for such business? ______7.13. Health service 7.13.1. Where do you get vet service for your cattle 7.13.2. Cost for vaccine 7.14. Market information

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7.14.1. Where do you get market information? • ______• ______• ______7.15. Which market is your reference to fix price of cattle? • The national market • Local market (Jinka, Adama…) 7.16. Government support 7.16.1. Land access ______

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Annex 3/a: Herbaceous species identified in different altitude categories and grazing types of Hamer district

550-900 m 900-1250m >1250-1550 m >1550m Grasses Category CM R E CM E CM E R E Aristida adscensionsis LD C P - P - P - - - Aristida somalensis LD P - - P - - - - - Bothriochola insculpta HD C C - P - P - - - Brachiara dictyonuera DS P C - P - - - - - Brachiaria mutica HD P ------Cenchrus ciliaris HD P - D P C P C - C Chloris pycnohtrix LD - - C ------Chloris preurii DS ------Chloris roxbarghiana DS - - C ------Cynodon dactylon DS P P P C C - D D Cynodon plectostchyum DS P - C - P - P P Dactyloctenium aegypticum DS P ------Digitaria abyssinica HD P - C ------Digitaria scalarum LD P - P P - P - - - Digitaria ternata HD P - P - - P - - Enneapogon cenchriodes HD P - P - - - - - Entropogon macrostachyus DS - - - P - P - - Eragraostis teniufolia DS P P P - P P C C Eragrostis braunii DS P - - - P - - - Eragrostis cilianensis DS P P P P P P P P P Eragrostis cylindrifolia LD P C ------Eragrostis habrantha DD P - P C - P P P P Eragrostis superba DD P P - P - - C - - Harpanchene schimprii LD P - - P - - C - - Hetropogon conturtus LD P ------Hyperrhenia filipindula HD P ------Leptothrium senegalense DS P - - P - - - - - Microchloa kunttii LD P ------Panicum maximum HD C - - - - - P - - Perotis patns HD P ------Sporobolus pyramidalis DS P - - P - P P - - Tetrapogon teneullus HD C P C C D C C P P

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Legumes Crotolaria rosenii HD C C D C D C C P P Crotolaria spinosa DS C C C D C C C - Indigofera spicata spira DS C C C D C P C C P Sedges Cyperus bulbosus LD P P P C - C C P P Cyperus obtusifloris LD - - P P - P - Other plants Occimum species P P C P P P P Achyranthes aspara D D C D C D P P P Tephrosia species P P P C P P P P P Tribulus terrestris C C P C P C P

Commelina benghalensis P P P P P P P P P Sida ovata P P P C P P P P Bidens pilosa C C C D C C P P Cate = Categories, HD = Highly desirable; DS = Desirable; LD = Less desirable; P = Present (<5% of DM); C = Common (>5% and <20% of DM), D = Dominant (>20% of DM), (Amsalu and Baars, 2002) CM = Communal grazing areas, R= Riverside grazing areas and E = Enclosure

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Annex 3/B: Woody species density in percentage per hectare in Hamer district

Pala 550-900m 900-1250m 1250-1550m >1550m Woody species gr. CM R E CM E CM R E R E Acacia brevispica Int 3.93 - 4.3 3.55 4.83 2.72 2.5 28.3 3.65 4.25 Acacia Senegal Int 3.12 2.92 38.58 3.86 4.62 5.96 3.96 35.65 - - Acacia mellifera Int 0.25 0.65 4.3 1.25 - 5.58 3.65 - - - Acacia nubica Hpl 2.5 2.75 4.52 2.67 4.87 3.62 5.91 - 4.96 4.98 Acacia tortilis Hpl 28.65 21.85 48.3 3.89 39.23 2.63 2.53 2.78 - - Acacia nilotica Hpl 2.63 2.6 - 10.6 28.65 2.75 3.4 - 9.67 45.6 Azanga garcheana Int 1.92 - - - 1.52 1.69 - 25.1 - Acacia terminalia Int 2.23 2.65 - 2.35 9.2 2.58 2.3 - 3.5 2.57 Asparegus spps Int 0.25 ------Boswellia boranensis Upl 4.25 2.7 - 2.45 8.6 - - - - - Calpurnia subdecandra Int ------4.33 - Celtis kraussiana Int - - - - - 0.3 0.65 - - - Commiphora africana Int 4.75 3.87 - 3.97 - 10.23 3.96 - 27.1 - Commiphora Int - - - - - 0.61 5.78 - - - erlangerana Cordia gharaf Int ------Cucumis prophetarum Int 2.21 - - 0.75 - 22.6 6.89 - - - Galiniera coffeoides Hpl 0.74 0.85 ------Grewia bicolor Hpl 0.74 2.85 - 3.85 - 1.33 2.35 9.67 - - Grewia villosa Hpl 0.25 1.5 - 10.65 - 1.25 2.45 - - - Grewia tenax Hpl 3.93 3.83 - - - 0.93 1.65 - - - Olea Africana Hpl ------4.94 43.6 Rhus natalensis Int 1.25 1.12 - 1.2 - 0.93 0.65 - 8.62 - Salvadora persica Int 0.25 0.75 - 11.4 ------Securinega virosa Int 0.25 0.35 - - - 1.93 0.43 23.6 - - Solanum species Unt 37.82 46.84 - 37.56 - 30.67 46.3 - 9.67 - Ximenia Americana Int - - - - 0.47 1.3 - - - Zizyphus mucronata Int - - - - - 0.65 0.8 - - - Zizphus spina- spina Int - - - - - 0.74 0.85 - - - christi Pala. Gr = Palatability groups; Hpl = Highly palatable; Int = Intermediate palatability; Upl = Unpalatable; P =Present (<10% of density), C = Common (>10% and <20% of density), D = Dominant (>20% of density), CM =Communal grazing areas; R = Riverside grazing areas and E = Enclosure.

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