View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by IDS OpenDocs MEKELLE UNIVERSITY COLLEGE OF BUSINESS AND ECONOMICS DEPARTMENT OF MANAGEMENT A THESIS ON ASSESSMENT OF CHALLENGES AND OPPORTUNITIES OF LIVE ANIMAL EXPORT: CASE STUDY OF JIGJIGA ZONE, SOMALI REGIONAL STATE A Research Submitted to Mekelle University Department of Management in Partial Fulfillment of the Requirements for the Award of Master of Business Administration (MBA) in International Business Specialization BY FAHMI YAQUB AHMED ID. NO: CBE/PR/046/05 PRINCIPAL ADVISOR: KAHSU MEBRAHTU (ASSISTANT PROFESSOR) CO - ADVISOR: FYORY ADHANE (MA) JUNE 2014 MEKELLE, ETHIO DECLARATION I, Fahmi Yaqub Ahmed, hereby declare that the thesis entitled “assessment of challenges and opportunities of live animal export: case study of Jigjiga zone, Somali regional state” submitted for the award of the degree of Masters of Business Administration from Mekelle University, I assure that the thesis is my original work and it has not been summated before for the award of any other Degree, Diploma, Fellowship or other similar titles of any other University or institution. Name: Fahmi Yaqub Ahmed Signature: _______________ Date: ___________ Place: Mekelle Page | i CERTIFICATION This is to certify that this thesis titled “assessment of challenges and opportunities of live animal export: case study of Jigjiga zone, Somali regional state” is the genuine work of Mr. Fahmi Yaqub who carried out the research under our guidance. Certified further, that to the best of our knowledge, the work reported here doesn‟t form part of any other project report or dissertation on the bases of which a degree or award was conferred on an earlier occasion on this or any other candidate. Principal Adviser: Co - Adviser: Kahsu Mebrahtu (Asst. Professor) Fyory Adhane (MA) Date: __________________ Date: ________________ Signature: _______________ Signature: _____________ Mekelle University Mekelle University College of Business & Economics College of Business & Economics Department of Management Department of Management Page | ii ABSTRACT The main purpose of this paper was to assess challenges and opportunities of live animal export of Somali region a case study of Jigjiga zone. In order to assess the challenges and opportunity of live animal export of Somali region of Jigjiga zone, a total (census) of 20 individual live animal exporters were surveyed. In the process of answering the basic questions, a questionnaire that include demographic profiles, trading practices, factors that challenge live animal export was designed in open ended, closed ended and likert scales. Moreover, interviews were held with top officials of ARDB, RCA and animal health bureau. After the data has been collected, it was analyzed using simple statistical techniques (tables and percentages) and descriptive statistics (mean and standard deviations).The results of the study indicates the limited availability of financial institutions, unavailability of formal live animal exporters institutions, high marketing costs, multiple taxations, bureaucracy of government institutions, harassment by petty officials, and overall loose relationship with government bodies were challenging live animal export of the Jigjiga zone. It also shows that exporters were highly benefited from high trust and strong relationship with their business partners, familiarity with animal quality attributes demanded in importing countries and strong clan arrangements. The study also found that formal live animal export of the area is increasing but the illegal live animal export was highly challenging the formal live animal exporters and the revenue of the region. Along this, the study found different participants acting in live animal export system. Based on the major findings, recommendations were forwarded to existing and potential live animal exporters, and concerned government bodies. Key words: challenges, opportunities, export and participants. Page | iii ACKNOWLEDGEMENT This work comes in to end not only by the effort of the researcher but also the support of many individuals and organizations. To begin with, I would like to thank Kahsu Mebrahtu (Asst. Prof.) my principal advisor, and Mrs. Fyory Adhane (MA) for their constructive suggestions throughout my work. Had it been without their support, this work would not have been come in to reality. Secondly, my heartfelt thank goes to live animal exporters of Jigjiga zone and bureau officers for devoting their time in providing necessary information for this research work. Last but not least, I want to express my great thanks to my families for their support while conducting the research. Page | iv TABLE OF CONTENTS Title Page No DECLARATION...................................................................................................... i CERTIFICATION .................................................................................................. ii ABSTRACT ........................................................................................................... iii ACKNOWLEDGEMENT ....................................................................................... iv TABLE OF CONTENTS .......................................................................................... v LIST OF TABLES ................................................................................................. vii LIST OF FIGURES ................................................................................................ ix CHAPTER ONE ......................................................................................................1 1. INTRODUCTION ...............................................................................................1 1.1 BACKGROUND OF THE STUDY ............................................................................................... 1 1.2 STATEMENT OF THE PROBLEM .............................................................................................. 3 1.3 OBJECTIVES OF THE STUDY .................................................................................................... 5 1.3.1 General Objective of the Study ................................................................................................ 5 1.3.2 Specific Objectives of the Study .............................................................................................. 5 1.4 SIGNIFICANCE OF THE STUDY................................................................................................ 5 1.5 SCOPE AND LIMITATION OF THE STUDY.............................................................................. 6 CHAPTER TWO ....................................................................................................7 2. REVIEW OF RELATED LITERATURE ...........................................................7 2.1 LIVESTOCK POPULATION AND PRODUCTION SYSTEMS OF ETHIOPIA .......................... 7 2.2 LIVESTOCK MARKETING AND EXPORT TRADE .................................................................. 8 2.3 MARKETING CHANNELS AND PARTICIPANTS FOR LIVE ANIMAL EXPORT................. 10 2.4 OPPORTUNITIES OF LIVE ANIMAL EXPORT of Ethiopia ..................................................... 14 2.5 GENERAL CHARACTERISTICS OF SOMALI REGIONAL STATE ........................................ 16 2.6 SOMALI REGION LIVESTOCK POPULATION ESTIMATES ................................................. 17 2.7 LIVESTOCK EXPORT FROM SOMALI REGION. ................................................................... 18 2.8 LIVESTOCK MARKETING CONSTRAINTS OF THE REGION .............................................. 20 2.9 CONCEPTUAL FRAMEWORK ................................................................................................. 20 Page | v CHAPTER THREE ............................................................................................... 22 3. RESEARCH METHODS AND DATA COLLECTION TECHNIQUE ................ 22 3.1 DESCRIPTION OF THE STUDY AREA .................................................................................... 22 3.2 TARGET POPULATION AND SAMPLING DESIGN ............................................................... 24 3.3 RESEARCH DESIGN AND STRATEGY ................................................................................... 25 3.4 DATA TYPE AND SOURCE ...................................................................................................... 25 3.5 DATA COLLECTION INSTRUMENTS ..................................................................................... 26 3.6 DATA PROCESSING AND ANALYSIS .................................................................................... 26 CHAPTER FOUR ................................................................................................. 27 4. RESULTS AND DISCUSSION .......................................................................... 27 4.1 Personal and Business Profiles Of Livestock Exporters ................................................................ 27 4.2 Entry into Business ...................................................................................................................... 31 4.3 Livestock Trading Practices ......................................................................................................... 45 4.4 Major Constraints of Exporters .................................................................................................... 61 4.5 Discussion of the Interviews .......................................................................................................