Mekelle University College of Business and Economics Department of Cooperative Studies “DETERMINANTS OF PASTORALISTS’ LIVESTOCK INCOME IN THE MIDDLE AWASH, SOUTHERN AFAR, ETHIOPIA” By Derib Woldeyohanes Benti, (Id. No. FDA/PS0018/2000) A Thesis Submitted in partial fulfillment of the requirements for Master of Arts Degree In Cooperative Marketing Advisor: R. Dayanandan (PhD) September, 2010 Mekelle Ethiopia i This work is dedicated to the late Kalkidan Tamene ((19771977 ––– 1997 EC), whom I lost by a car accident. May GoGodd place your soul ininin the HeavenHeaven,, AmenAmen!!!! ii Declaration This is to certify that this thesis entitled "Determinants of Pastoralists’ Livestock Income in the Middle Awash, Southern Afar, Ethiopia" submitted in partial fulfillment of the requirements for the award of the Degree of Master of Arts, in Cooperative Marketing to the Collage of Business and Economics, Mekelle University, through the Department of Cooperative Studies, done by Mr. Derib Woldeyohanes Benti, Id. No. FDA/PS0018/2000 is an authentic work carried out by him under my guidance. The matter embodied in this project work has not been submitted earlier for award of any degree or diploma to the best of my knowledge and belief. Name of the student: Derib W/Yohanes Benti Signature and Date ………………................ Name of the Advisor: Dr. R. Dayanandan Signature and Date …………………………… iii Biography The author, Mr. Derib W/Yohanes was born on June 12, 1980 in Guraghae Zone of Southern Nations Nationalities and Peoples Regional State to his mother Mrs. Alemnesh Endale and his father Mr. W/Yohanes Benti. He attended his elementary and junior secondary education in Kotter Gedra Elementary and Junior Secondary School and secondary education in Emdibir Comprehensive Secondary School, both in Guraghae Zone. Then he joined Alemaya University in 1999/2000 academic year and graduated with Bachelor of Agriculture in Agricultural Extension. Since his graduation in July 2003, he was employed by Ministry of Agriculture and Rural Development as instructor of agricultural extension in Gewane Agricultural Technical and Vocational Training College, Afar region. After five years of services in the college, he has joined School of Graduate Studies at Mekelle University in July 2008 to pursue Master of Arts Degree in Cooperative Marketing in the Department of Cooperative Studies, College of Business and Economics. iv Table of Contents Declaration ..................................................................................................................................... iii Table of Contents ............................................................................................................................ v Acknowledgements ...................................................................................................................... viii Abbreviations ................................................................................................................................. ix List of Tables .................................................................................................................................. x List of Figures ................................................................................................................................ xi List of Appendices ........................................................................................................................ xii Abstract ........................................................................................................................................ xiii INTRODUCTION .......................................................................................................................... 1 1.1. Background ............................................................................................................................. 1 1.2. Statement of the Problem ........................................................................................................ 4 1.3. Objectives of the Study ........................................................................................................... 5 1.3.1. General Objective ............................................................................................................ 5 1.3.2. Specific Objectives .......................................................................................................... 6 1.4. Hypothesis............................................................................................................................... 6 1.5. Scope of the Study .................................................................................................................. 6 1.6. Significance of the Study ........................................................................................................ 6 1.7. Limitations of the study .......................................................................................................... 7 1.8. Organization of the thesis ....................................................................................................... 7 LITERATURE REVIEW ............................................................................................................... 8 2.1. Theoretical Background .......................................................................................................... 8 2.1.1. Concepts and Definitions ................................................................................................. 8 2.1.1.1. Livestock ................................................................................................................... 8 2.1.1.2. Livestock Production Systems .................................................................................. 8 2.1.1.3. Livestock Marketing Features and Structures........................................................... 9 v 2.1.1.4. Livestock and Pastoralists ....................................................................................... 11 2.1.1.5. Role of Livestock .................................................................................................... 13 2.1.1.6. Constraints for Sustainable Livestock Production .................................................. 14 2.1.1.7. Definition of income and its classification ............................................................. 16 2.1.1.8. Sources of Household Income and Share of Livestock Income ............................. 18 2.2. Empirical Studies on Determinants of Household Income ................................................... 21 2.3. Conceptual Framework ......................................................................................................... 24 MATERIALS AND METHODS .................................................................................................. 26 3.1. Description of the Study Area ............................................................................................... 26 3.1.1. Overview of Gebi-Resu Zone and the Sample Woredas ............................................... 28 3.1.1.1. Description of Gewane Woreda .............................................................................. 30 3.1.1.2. Description of Amibara Woreda ............................................................................. 31 3.2. Methodology ......................................................................................................................... 32 3.2.1. Sampling and Data Collection Procedures .................................................................... 32 3.2.1.1. Sampling Design and Sampling Size ...................................................................... 32 3.2.2. Method of Data Collection............................................................................................. 33 3.2.2.1. Focus Group Discussions ........................................................................................ 33 3.2.3. Data Analysis ................................................................................................................. 34 3.2.3.1. Descriptive Analysis ............................................................................................... 34 3.2.3.2. Econometric Model Selection and Specification .................................................... 34 3.3. Operational Definition of Variables...................................................................................... 38 3.3.1. The Dependent variable ................................................................................................. 38 3.3.2. The Independent Variables ............................................................................................ 39 RESULTS AND DISCUSSIONS ................................................................................................. 47 4.1. Descriptive Statistics Results ................................................................................................ 47 4.1.1. Income Derived from Livestock by the Respondents .................................................... 47 4.1.2. Sources of Income for Households ................................................................................ 49 4.1.3. Demographic and Socio-economic Profiles of Respondents ......................................... 50 4.1.3.1. Age: ......................................................................................................................... 50 4.1.3.2. Family size: ............................................................................................................