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ILRI INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE Sheep meat value chain in Ethiopia: Background proposals for the CGIAR Research Program on Livestock and Fish RESEARCH PROGRAM ON Livestock and Fish March 2011

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Page 1: INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE · PDF fileThis publication is copyrighted by the International Livestock Research Institute ... with value chain development in small ruminants

ILRIINTERNATIONALLIVESTOCK RESEARCH I N S T I T U T E

Sheep meat value chain in Ethiopia: Background proposals for the CGIAR Research Program on Livestock and Fish

RESEARCH PROGRAM ON

Livestock and Fish

March 2011

Page 2: INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE · PDF fileThis publication is copyrighted by the International Livestock Research Institute ... with value chain development in small ruminants

ILRI works with partners worldwide to help poor people keep their farm animals alive and productive, increase and sustain their livestock and farm productivity, and find profitable markets for their animal products. ILRI’s headquarters are in Nairobi, Kenya; we have a principal campus in Addis Ababa, Ethiopia, and 14 offices in other regions of Africa and Asia. ILRI is part of the Consultative Group on International Agricultural Research (www.cgiar.org), which works to reduce hunger, poverty and environmental degradation in developing countries by generating and sharing relevant agricultural knowledge, technologies and policies.

© 2011 International Livestock Research Institute (ILRI)

This publication is copyrighted by the International Livestock Research Institute (ILRI). It is licensed for use under the Creative Commons Attribution-Noncommercial-Share Alike 3.0 Unported License. To view this license, visit http://creativecommons.org/licenses/by-nc-sa/3.0/. Unless otherwise noted, you are free to copy, duplicate, or reproduce, and distribute, display, or transmit

any part of this publication or portions thereof without permission, and to make translations, adaptations, or other derivative works under the following conditions:

ATTRIBUTION. The work must be attributed, but not in any way that suggests endorsement by ILRI or the author(s) NON-COMMERCIAL. This work may not be used for commercial purposes. SHARE ALIKE. If this work is altered, transformed, or built upon, the resulting work must be distributed only under the same or similar license

to this one.

NOTICE: For any reuse or distribution, the license terms of this work must be made clear to others. Any of the above conditions can be waived if permission is obtained from the copyright holder. Nothing in this license impairs or restricts the author’s moral rights. Fair dealing and other rights are in no way affected by the above. The parts used must not misrepresent the meaning of the publication. ILRI would appreciate being sent a copy of any materials in which text, photos etc. have been used.

Download the full Program proposal: http://cgspace.cgiar.org/handle/10568/3248

Important note: Full information on references is included in the Program proposal that can be downloaded from http://cgspace.cgiar.org/handle/10568/3248

International Livestock Research Institute

P O Box 30709, Nairobi 00100, Kenya Phone + 254 20 422 3000 Email [email protected]

P O Box 5689, Addis Ababa, Ethiopia Phone + 251 11 617 2000

Email [email protected]

www.ilri.org

Page 3: INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE · PDF fileThis publication is copyrighted by the International Livestock Research Institute ... with value chain development in small ruminants

1More meat, milk and fish—by and for the poor

Sheep meat value chain in Ethiopia: Background proposals for the CGIAR Research Program on Livestock and Fish

Ethiopia is home to 77 million people; 32 million are classified as poor living on less than USD 1 per day. With a population of 48 million small ruminants (FAOStat 2010) Ethiopia has one of the largest populations in sub-Saharan Africa (see Table below). Sheep (24 million) are the second most important species in Ethiopia (CSA 2008a).

Sheep and goat populations in selected sub-Saharan African countries in 2009

CountrySheep and goat population (000s)

Production of sheep and goat meat (1000 t)

Sudan 93,931 334

Ethiopia 47,827 124

Kenya 23,395 124

Mali 18,538 78

Uganda 9,972 35

Cameroon 8,200 32

Mozambique 5,219 26

Congo, Democratic Republic 4,935 21

Malawi 2,906 18

Burundi 1,900 2

Sheep are mostly kept by smallholders and the rural poor, including women headed households. They contribute substantially to the livelihoods of Ethiopian smallholder households as a source of income, food (meat and milk), and non-food products like manure, skins and wool. They also serve as a means of risk mitigation during crop failures, property security, monetary saving and investment in addition to many other socioeconomic and cultural functions (Tibbo 2006). At the farm level, sheep contribute up to 63% to the net cash income derived from livestock production in the crop–livestock production system. In the lowlands, sheep together with other livestock are a mainstay of pastoral livelihoods (Negassa and Jabbar 2008).

The annual meat production from small ruminants is relatively small compared to the number of heads. The average annual offtake rate and carcass weight per slaughtered animal for the years 2000–2007 were estimated at 32.5% and 10.1 kg, respectively (FAO 2009); the lowest among sub-Saharan African countries. Negassa and Jabbar (2008) reported an even lower sheep off take rate of only 7% in the Ethiopian highlands.

Page 4: INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE · PDF fileThis publication is copyrighted by the International Livestock Research Institute ... with value chain development in small ruminants

2More meat, milk and fish—by and for the poor

Reasons attributed for the apparent low productivity are: absence of well-planned/appropriate breeding programs, lack of technical capacity, inadequate and poor quality feeds, diseases leading to high lamb mortality, and underdeveloped markets in terms of infrastructure and market information. As the market systems are typically informal, individual producers have little bargaining power. Furthermore, sheep and goats generally receive little policy or investment attention.

Although technologies to address many of the most common constraints are in hand, a key constraint is the lack of models of suitable and acceptable organizational strategies for producer groups that could facilitate access to services and markets. Research is therefore required to develop and test input and market service delivery options and models, as well as the institutional and organizational arrangements that would provide sustainable delivery and uptake of the available health management, feeding and genetic improvement technologies through effective public–private partnerships in which governmental support services and private partners are integral part of value addition process.

Why this value chain?

Demand and prices for sheep and goat meat show an increasing trend due to urbanization and increased income in the cities and increased demand from the Gulf countries. From 2000 to 2008 the price of live sheep and sheep meat increased by 157%; the increase for live goats and goat meat was slightly lower at 107% (FAOStat 2010).1

A structural model of the Ethiopian livestock sector estimates the total consumption of sheep and goat meat at 91,200 and 91,600 t in 2010 which exceeds the estimated sheep and goat meat production (124,000 t) by 47%. The same model predicts a per capita annual growth rate in sheep and goat meat consumption from 2010 to 2020 by 3.4% and 1.3%, and an overall change of 41% and 14%, respectively (Fadiga and Amare 2010).

It is evident that the increasing demand for sheep meat cannot be met with the current inefficient production and marketing systems. Although Ethiopian sheep breeds are well adapted to the existing production environments, their full production potential is obviously not being realized due to a combination of constraints. Many of these constraints have already been studied and technologies to overcome some of them have been developed. However, their uptake and wider adoption remains low, thus further research and dissemination of the knowledge and technologies are still required.

In our view this situation provides good opportunities to increase sheep meat production and ensure that this will benefit poor rural producers, both men and women. The following Table summarizes the reasons for proposing the sheep meat value chain as a focus value chain for our proposal.

1. ILRI data.

Page 5: INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE · PDF fileThis publication is copyrighted by the International Livestock Research Institute ... with value chain development in small ruminants

3More meat, milk and fish—by and for the poor

Criteria and rationale for choosing Ethiopia

Criteria Rationale for choosing Ethiopia

Growth and market opportunity

Huge and increasing demand for sheep meat within and outside the country reflected in increasing prices

Ethiopia’s strategic location promoting exports to Middle East markets

Current annual livestock and meat export potential is estimated at USD 136 million; however, the realized export earning over the past 15 years to 2003 averaged only to USD 2.5 million.

Abattoirs in Ethiopia operate only at 40% of their capacity (information from Elfora)

High potential to raise the low flock productivity and offtake rate in smallholder flocks Pro-poor potential

The majority of rural poor in Ethiopia depend on sheep (and goat) production

Both men and women are involved in sheep production with different tasks and decision making power

Good income opportunity for women headed households

Many market agents along the value chain (input/livestock traders, meat processors and transporters etc.) provide potential as well as challenge for cooperation

Researchable supply constraints

Negative selection of breeding rams for lamb growth as fast growing lambs are sold first and inbreeding due to small flock sizes

Shortage and fluctuation in quantity and quality of feed supply

Poor animal hygiene and diseases (high lamb/kid mortality, PPR, CCPP)

Lack of business enterprise production strategy

Lack of sustainable organizational structures for breeder and producer groups in order to facilitate their access to affordable breeding animals, animal health care and efficient market services

Poor market infrastructure and institutional arrangements (underdeveloped marketing system) resulting in high price difference between rural and urban markets, high number of middlemen and thus small producer margins

Poor input supply system and limited support services (extension and credit systems)

Insufficient supply of abattoirs with sheep meat (number, weight, age and body condition)

Ineffective knowledge management systems, in particular knowledge sharing between producers and scientists, to enhance uptake of proven technologies

Enabling environment

Increasing international interest and support from donors for developing the livestock sector in Ethiopia (a number of livestock development projects funded by USAID)

Various projects/initiatives on-going or planned and competent organizations/institutions

Commitment by Government of Ethiopia to improve policy environment

On-going improvement of paved road network which will enhance market accessExisting momentum

ILRI and ICARDA, together with their key partners, bring in a rich combination of technical and practical experiences on developing country and low-input mixed crop–livestock systems, and a history of having successfully worked together in related research, on which to build on

Very few other global organizations combine development with innovative and adaptive research

Both centres have experience with value chain development in small ruminants and other livestock production systems

A number of ILRI and ICARDA partner organizations are already active in Ethiopia or are partners in new project proposals, such as the Ethiopian NARS, BOKU-Vienna, University of Goettingen, and EMBRAPA

ILRI provides an excellent infrastructure and is partner in complementary project like IPMS;2 two projects, SPS-LMM and ESGPIP3 funded by USAID provide opportunities for linkages and knowledge sharing

2. IPMS = Improving Productivity and Market Success of Ethiopian farmers. 3. SPS-LMM = Ethiopian Sanitary and Phytosanitary Standards and Livestock and Meat Marketing Program; ESGPIP = Ethiopian Sheep and Goat Productivity Improvement Project.

Page 6: INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE · PDF fileThis publication is copyrighted by the International Livestock Research Institute ... with value chain development in small ruminants

4More meat, milk and fish—by and for the poor

Research and supporting actionsFurther discussion with stakeholders along the value chain are required to refine and prioritize the major barriers and opportunities for increasing sheep flock productivity and meat production and supporting research and development actions. The constraints listed in the above Table are based on the experiences of an on-going ICARDA/ILRI/BOKU Community-based Sheep Breeding project and the ILRI IPMS (Improving Production and Market Success of Ethiopian Farmers) project.

In common with many other livestock production systems in the developing world and constraints identified in other key value chains, major constraints at input and production level include lack of access to breeding rams with proven genetic attributes (breeding value), inadequate feeding at critical production stages and poor healthcare, inefficient healthcare services (disease control and prevention measures), lack of access to inputs and supportive institutional/organizational and knowledge systems. This preliminary analysis underlines the need for the platform research approach described in an earlier section of this proposal that will allow the program to search for technology solutions across the proposed value chains.

Not surprisingly, the share of the retail value captured by sheep producers is small and could be increased by developing and organizing the sheep markets in all important aspects—market access, structure, and transparency in transactions and price information. One root of the problem is the failure of producers to coordinate and collaborate with each other to increase their bargaining power by supplying more attractive quantities to the buyers at the time of peak demand. But it is difficult for such collective action to spontaneously occur in these traditional rural communities. Innovations in rural organizations and cooperation among different market players (producers, traders, fatteners, abattoirs, and retailers) are needed. The following Table summarizes the key development challenges, knowledge gaps and areas of intervention envisaged for the value chains in pilot areas of Ethiopia.

Variable product quality of both live animals and meat are additional drawbacks to satisfying qualities that are demanded by the domestic and export markets; although both offer better prices they are also increasingly demanding higher product safety and quality consistency. For example, the export markets which mainly trade in sheep carcasses demand more rigorous meat inspection systems, thus cold chains are prerequisites to accessing such markets. Combined, these constraints limit the sheep producers’ capacity to maximally benefit from their sheep and to further invest in this industry.

Studies by IPMS and the community-based sheep breeding project across different regions in Ethiopia showed that women share responsibilities with men in the production of sheep and are mainly responsible for feeding, maintaining hygiene and day to day management. Children are often responsible for supervising the grazing during rainy season. However, men dominate the marketing of sheep and control the income from sales. It was found that the workload of women and children may increase due to market-oriented development of the commodity, but men tend to benefit more in terms of income obtained.

Page 7: INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE · PDF fileThis publication is copyrighted by the International Livestock Research Institute ... with value chain development in small ruminants

5More meat, milk and fish—by and for the poor

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Page 8: INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE · PDF fileThis publication is copyrighted by the International Livestock Research Institute ... with value chain development in small ruminants

6More meat, milk and fish—by and for the poor

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Page 9: INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE · PDF fileThis publication is copyrighted by the International Livestock Research Institute ... with value chain development in small ruminants

7More meat, milk and fish—by and for the poor

Val

ue c

hain

co

mpo

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s D

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l cha

lleng

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n th

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s ac

cess

to

a

dequ

ate

feed

, cle

an w

ater

, cle

an h

ousi

ng, s

pray

ing/

dipp

ing

Opt

imiz

e fe

edin

g sy

stem

s an

d in

crea

se fe

ed r

esou

rces

, in

part

icul

ar

Test

ing

fora

ges

vari

etie

s (fo

od-f

eed

vari

etie

s) a

nd in

tegr

ate

them

into

cr

oppi

ng s

yste

ms

Opt

imiz

ing

use

of c

urre

ntly

ava

ilabl

e fe

ed r

esou

rces

, (st

rate

gic

supp

lem

enta

tion,

feed

pre

serv

atio

n, p

urch

ase

of m

ost l

imiti

ng

nutr

ient

s).

Prom

otin

g fe

ed p

roce

ssin

g op

tions

(sim

ple

hand

cho

ppin

g; v

illag

e ba

sed

mot

or-d

riven

cho

pper

s; c

omm

erci

al b

ut d

ecen

tral

ized

feed

pr

oces

sing

uni

ts)

Plan

ting

fodd

er tr

ees

in p

rivat

e an

d co

mm

unity

man

aged

plo

ts

Page 10: INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE · PDF fileThis publication is copyrighted by the International Livestock Research Institute ... with value chain development in small ruminants

8More meat, milk and fish—by and for the poor

Val

ue c

hain

co

mpo

nent

s D

evel

opm

enta

l cha

lleng

eR

esea

rcha

ble

issu

es a

nd s

uppo

rtin

g ac

tions

Indi

cativ

e pa

rtne

rsO

utco

mes

How

to d

eliv

er r

elia

ble

quan

titie

s of

mor

e ho

mog

enou

s, s

afe

and

qual

ity p

rodu

cts

(mea

t or

live

anim

als)

from

sm

allh

olde

r sy

stem

s?

How

to in

crea

se th

e su

pply

of

qual

ity s

kins

(sla

ught

er a

t bot

h pr

ivat

e pl

aces

and

aba

ttoir

s)

Res

earc

habl

e is

sues

Is a

car

cass

gra

ding

sys

tem

req

uire

d an

d w

hat w

ould

be

an

appr

opri

ate

grad

ing

and

pric

ing

syst

em?

Doe

s th

e m

arke

t pre

fer/

segr

egat

e ca

rcas

s pa

rts

or c

uts

and

if so

, ho

w c

an th

is b

e m

ains

trea

med

in th

e br

eedi

ng s

trat

egy

and

pric

ing

syst

em?

How

to r

educ

e m

eat q

ualit

y lo

sses

cau

sed

by tr

ansp

ort a

nd

inad

equa

te h

andl

ing

of a

nim

als?

How

to a

void

dar

keni

ng o

f mea

t fro

m h

ighl

and

shee

p im

pedi

ng

thei

r ex

port

?

Wha

t are

the

caus

es o

f mos

t com

mon

pre

and

pos

t mor

tem

ski

n de

fect

s?

Is th

ere

any

diffe

renc

e in

qua

lity

of p

rodu

cts

supp

lied

by m

en a

nd

wom

en?

Are

ther

e di

ffere

nces

in a

cces

s to

tran

spor

t and

pro

cess

ing

serv

ices

?

Supp

ortin

g ac

tions

Esta

blis

h gr

adin

g / q

ualit

y sy

stem

s fo

r ca

rcas

ses

if ap

prop

riat

e

Cap

acity

bui

ldin

g on

tran

spor

t, ha

ndlin

g an

d sl

augh

ter

of s

heep

w

ith a

ll in

volv

ed s

take

hold

ers

Stud

y fa

ctor

s ca

usin

g pr

e- a

nd p

ost m

orte

m s

kin

defe

cts

and

desi

gn h

andl

ing

and

proc

essi

ng s

trat

egie

s to

impr

ove

skin

qua

lity

acco

rdin

gly

Des

ign

of tr

acea

bilit

y sy

stem

for

shee

p m

eat (

long

er te

rm)

Res

earc

h

NA

RS-

Ethi

opia

IPM

S

SPS-

LMM

Supp

ortin

g ac

tions

MoA

RD

-Eth

iopi

a an

d SP

S-LM

M

for

sani

tary

reg

ulat

ions

, e.g

. mea

t in

spec

tion

Aba

ttoir

s (E

lfora

)

But

cher

s (m

eat s

hops

)

Mea

t qua

lity

crite

ria

defin

ed w

ith tr

ader

s an

d co

nsum

ers

Hig

her

qual

ity c

arca

sses

an

d sk

ins

prod

uced

Hig

her

pric

es a

nd

inco

mes

for

shee

p pr

oduc

ers

Tran

spor

tan

dpr

oces

sing

Page 11: INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE · PDF fileThis publication is copyrighted by the International Livestock Research Institute ... with value chain development in small ruminants

9More meat, milk and fish—by and for the poor

Val

ue c

hain

co

mpo

nent

s D

evel

opm

enta

l cha

lleng

eR

esea

rcha

ble

issu

es a

nd s

uppo

rtin

g ac

tions

Indi

cativ

e pa

rtne

rsO

utco

mes

How

to o

rgan

ize

mar

kets

(bot

h de

man

d an

d su

pply

) for

equ

itabl

e be

nefit

s al

ong

the

chai

n?

How

to e

nsur

e ac

cess

for

the

Ethi

opia

n pe

ople

to s

afe

mea

t at

an a

fford

able

pri

ce?

Res

earc

habl

e is

sues

Mar

ket/C

onsu

mer

dem

ands

: wha

t do

mar

kets

pay

for

(bre

ed,

regi

on, s

peci

fic li

vew

eigh

t or

size

, qua

lity)

?

Mar

ket s

truc

ture

s: r

elat

ions

/tran

sact

ions

bet

wee

n lo

cal,

regi

onal

an

d ex

port

mar

kets

incl

udin

g tr

ansb

ound

ary

trad

e is

sues

(e.g

. foo

d sa

fety

) to

be a

ddre

ssed

for

incr

easi

ng e

xpor

ts

Mar

ket a

cces

s: is

it p

refe

rabl

e to

org

aniz

e th

e fa

rmer

s fo

r ac

cess

ing

mar

kets

or

to im

prov

e m

arke

ting

syst

ems

and

infr

astr

uctu

re (e

.g.

infr

astr

uctu

re o

f mar

kets

)?

Mar

ket t

rans

pare

ncy:

wha

t mar

ket i

nfor

mat

ion

is a

vaila

ble

/ nee

ded,

an

d ho

w c

ould

it b

e be

tter

diss

emin

ated

(inf

orm

atio

n sy

stem

s)?

Diff

eren

ces

in m

en’s

and

wom

en’s

acce

ss to

mar

kets

and

mar

ket

info

rmat

ion

Intr

a-ho

useh

old

deci

sion

mak

ing

on s

ales

(whe

re, w

hen,

how

m

any)

and

con

trol

of b

enefi

ts

Are

ther

e an

y as

pect

s of

trad

ing

that

are

diffi

cult

or s

ocia

lly

disc

oura

ged

for

wom

en a

nd p

oor?

How

can

wom

en o

wni

ng s

heep

bet

ter

part

icip

ate

in, a

nd b

enefi

t fr

om s

mal

l rum

inan

t mar

kets

?

Res

earc

h

NA

RS-

Ethi

opia

IPM

S

Supp

ortin

g ac

tions

MoA

RD

-Eth

iopi

a an

d U

SAID

-SPS

-LM

M fo

r re

gula

tory

fram

ewor

k

ELFO

RA

-Eth

iopi

a (a

batto

irs)

and

tr

ade

orga

niza

tions

for

defin

ing

prod

uct s

tand

ards

and

arr

angi

ng

mar

ketin

g ch

anne

l

Incr

ease

d m

argi

ns fo

r sm

allh

olde

rs in

the

valu

e ch

ain

Sale

s of

she

ep w

ith

appr

opri

ate

wei

ght a

nd

size

acc

ordi

ng to

mar

ket

dem

ands

Org

aniz

ed m

arke

ting

of

shee

p at

goo

d pr

ices

Shee

p ow

ners

wel

l in

form

ed a

bout

m

arke

ting

oppo

rtun

ities

Aba

ttoir

s op

erat

e ne

ar

thei

r fu

ll ca

paci

ty

Mar

keti

ng

Page 12: INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE · PDF fileThis publication is copyrighted by the International Livestock Research Institute ... with value chain development in small ruminants

10More meat, milk and fish—by and for the poor

Val

ue c

hain

co

mpo

nent

s D

evel

opm

enta

l cha

lleng

eR

esea

rcha

ble

issu

es a

nd s

uppo

rtin

g ac

tions

Indi

cativ

e pa

rtne

rsO

utco

mes

Supp

ortin

g ac

tions

Ana

lyze

the

mar

ket s

truc

ture

, con

stra

ints

and

opp

ortu

nitie

s fo

r sh

eep

and

mut

ton,

cov

erin

g al

l age

nts

and

acto

rs in

volv

ed in

sh

eep

mar

ketin

g in

clud

ing

trad

ers,

mid

dlem

en, t

rans

port

ers

and

expo

rter

s.

Eval

uate

and

test

opt

ions

for

coor

dina

ting

and

tran

spor

ting

bulk

gr

oup

sale

s of

ani

mal

s.

Test

mar

ketin

g ar

rang

emen

ts th

roug

h br

eede

rs c

oope

rativ

es

Ass

ess

the

perf

orm

ance

of d

iffer

ent m

arke

ting

serv

ices

incl

udin

g pr

ovis

ion

of m

arke

t inf

orm

atio

n, fa

cilit

atio

n of

mar

ket l

inka

ges,

pr

ovis

ion

of m

arke

ting

faci

litie

s, tr

ansp

ort o

f she

ep a

nd m

utto

n an

d id

entif

y w

ays

of im

prov

ing

them

Iden

tify

and

resp

ond

to d

eman

d-dr

iven

mar

ket o

ppor

tuni

ties

for

valu

e ad

ditio

n, th

roug

h im

prov

ed p

rodu

ct q

ualit

y

Faci

litat

e lin

kage

s to

mar

ket i

nfor

mat

ion

syst

ems

oper

ated

by

othe

r pa

rtne

rs.

Gen

der-

disa

ggre

gate

d an

alys

is o

f mar

ket a

nd s

ervi

ces

acce

ss

Page 13: INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE · PDF fileThis publication is copyrighted by the International Livestock Research Institute ... with value chain development in small ruminants

11More meat, milk and fish—by and for the poor

Val

ue c

hain

co

mpo

nent

s D

evel

opm

enta

l cha

lleng

eR

esea

rcha

ble

issu

es a

nd s

uppo

rtin

g ac

tions

Indi

cativ

e pa

rtne

rsO

utco

mes

Cro

sscu

tting

is

sues

How

to o

rgan

ize

a va

lue

chai

n to

co

nsid

erab

ly in

crea

se th

e ou

tput

wha

t are

ess

entia

l com

pone

nts

and

part

ners

hips

?

Res

earc

habl

e is

sues

Impa

ct o

f val

ue c

hain

dev

elop

men

t on

wor

kloa

ds a

nd o

n co

ntro

l ov

er th

e in

com

e w

ithin

the

hous

ehol

d

Who

ben

efits

from

new

tech

nolo

gies

in h

ouse

hold

s an

d co

mm

uniti

es (e

quity

)?

Wha

t are

ince

ntiv

es fo

r va

riou

s ke

y ac

tors

(far

mer

s, in

put p

rovi

ders

, tr

ader

s an

d an

imal

hea

lth p

rovi

ders

etc

.) to

inve

st in

sm

all

rum

inan

ts?

And

how

can

thes

e ac

tors

coo

pera

te?

Is it

feas

ible

to d

esig

n (a

) com

mon

mod

el(s

) for

val

ue c

hain

de

velo

pmen

t thr

ough

ana

lysi

s of

the

less

ons

lear

nt fr

om th

e di

vers

e va

lue

chai

ns, i

n pa

rtic

ular

com

pari

ng th

e SR

val

ue c

hain

s in

Mal

i an

d Et

hiop

ia?

Supp

ortin

g ac

tions

Cha

ract

eriz

atio

n of

com

plet

e va

lue

chai

ns a

nd p

rodu

ctio

n sy

stem

s in

the

targ

et lo

catio

ns (o

wn

surv

eys

and

othe

r st

udie

s) a

t the

sta

rt

Dev

elop

indi

cato

rs o

f suc

cess

Cap

acity

bui

ldin

g at

all

stag

es

Com

pare

the

appr

oach

es a

pplie

d fo

r th

e di

ffere

nt v

alue

cha

ins

Dev

elop

an

easy

mon

itori

ng s

yste

m fo

r ho

me

cons

umpt

ion

of m

eat

Res

earc

h

NA

RS-

Ethi

opia

,

IPM

S

Bok

u, V

ienn

a

Supp

ortin

g ac

tions

MoA

RD

-Eth

iopi

a

IPM

S

ESG

PIP

Con

trib

utio

n of

sh

eep

prod

uctio

n to

liv

elih

oods

incr

ease

d co

nsid

erin

g ta

ngib

le a

nd

inta

ngib

le b

enefi

ts

1. C

ompa

re T

able

bel

ow

2. T

he p

roje

ct w

as s

uppo

sed

to e

nd in

201

0 bu

t it m

ay b

e ex

tend

ed fo

r on

e or

two

mor

e ye

ars

Page 14: INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE · PDF fileThis publication is copyrighted by the International Livestock Research Institute ... with value chain development in small ruminants

12More meat, milk and fish—by and for the poor

Geographic focus

Diverse sheep breeds and ecotypes are kept in different regions and ecologies—from the mountainous highlands to the arid pastoral lowland areas. Nine indigenous sheep breeds have been identified by phenotypic and molecular characterization methods (Gizaw et al. 2007). The community based sheep breeding programs is being implemented in four areas in Ethiopia, namely Horro, Bonga, Menz and Afar. Based on the project related studies and the experience during the last four years we are proposing to initiate sheep production value chains for Horro, Menz and Afar sheep in their home areas of the same name.

Human population in Menz area is estimated at 324,720. However, the breed is being used out of its original home region by an estimated 2 million people and is widely distributed. Horro sheep are reared by about 6,874,480 people. Population of Afar sheep is estimated at 2,499,640 and is kept by 1.4 million Afar people and other neighbouring communities (CSA 2008b).

Map of Ethiopia depicting Horro, Menz and Afar region

The arguments to select Horro and Menz area as pilot sites for value chain development include:

Horro, Menz and Afar sheep are the most populous breeds in Ethiopia (population is estimated at more than •2 million for each breed) with a wide area coverage

Pilot community based breeding programs have been established in two communities of each region that •can be used as learning and demonstration sites

Regional research centres with well-educated and interested staff are found in Menz and Horro region•

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13More meat, milk and fish—by and for the poor

Reasonably good information is available on the breeds and the production systems as base for future •research and development work4

The three areas are comparatively easy accessible•

Afar and Menz sheep are major contributors to the households’ incomes: Menz is a highly degraded •highland area mostly not suitable for other crop and livestock production. Thus, there is trend towards specialization in sheep production and this will help us to achieve impact. Afar sheep are kept in the lowlands by pastoralists, livestock production being the mainstay of the population. Horro region is characterized by crop–livestock production systems with more diverse farming activities; nevertheless the communities also depend to a relatively large extent on sheep for livelihood and as security measure against crop failure.

Based on an ILRI classification of recommendation domains within Africa (Omolo et al. 2009) the three sites represent three different domains: Horro is located in an area mainly characterized as having high agricultural potential, good market access and low potential density, while Menz area shows low agricultural potential, good market access and high population density and Afar low agricultural potential and population density with partly good and partly poor market access. Thus, this diversity will enable across site learning and a more precise definition of recommendation domains for certain technologies.

Potential for impact

The general principles of the value chain approach that we intend to apply in this Program and the envisaged impact pathway were explained earlier in the proposal. A key principle is to enhance the competitiveness of all value chain components, combining research and development activities in strategic partnerships. This is considered as the most promising option to achieve the envisaged impact—higher sheep meat production levels and increased living standards of the involved households. The pathway to impact will be through increasing offtake rates from sheep flocks and easier access for smallholders to markets with higher producer margins, resulting in higher incomes for rural households and thus enabling the required investment in sheep production to further enhance production levels.

However, developing a comprehensive strategy and a model approach for organizing the sheep meat value chain will be a challenge—one that has not been achieved for smallholder systems in developing countries up to now. Research and development projects tend to focus on individual components of the value chain or specific technologies only. Our approach aims at integrating research and development efforts to provide solutions and strategies to overcome the existing system deficiencies along the whole value chain in a comprehensive and synergistic manner. The level and scale of impact will depend on our ability to build the essential partnerships along the value chain and attract investments from development partners.

Based on simulation models for the breeding program (Tadele et al. 2010) and current productivity levels it is expected that by 2017 the number of weaned lambs per ewe can be increased by 10% and yearling weight can be improved by about 20% (from about 24 kg to 27 kg per year on average across the three regions) which would result in an increased annual production per ewe by 20% (an increase of about 7 kg per ewe and year). Flock sizes per household are relatively small: 15.2 productive ewes in Menz, 5.6 in Horro and 10 in Afar.

4. The Community based Sheep Breeding Project focuses on genetic improvement and related aspects. Initially other constraints such as feed availability and quality and animal healthcare and access to efficient markets that are equally important were not addressed. Ac-knowledging the importance of these constraints for achieving impact, during its last year the project has started to introduce interventions addressing some of these constraints.

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14More meat, milk and fish—by and for the poor

The number of households that will benefit from the focus on this value chain, and thereby the per cent increase in sheep meat production, will ultimately depend on the investment that can be made by the Program and its partners. About 1.46 million households keep Horro, Menz or Afar sheep in Ethiopia. If we assume that 5% of these are impacted by this Program, through activities that strengthen the sheep value chain, this means that some 70,000 households will enjoy enhanced livelihoods, and this will in result in production of an additional 5,000 t of sheep meat annually.

In contrast to the dairy, pig and fish value chains we expect only a small increase in home sheep meat consumption of the rural households: sheep meat is not consumed on a regular basis in rural communities. Instead the increased sheep meat production will benefit urban consumers and export markets. The major impact of developing the value chain on livelihoods of rural smallholders and poor households is expected to be achieved through increased income from sales.

Inputsand

services

Production

Transportand

processing

Marketing

Intermediate outcome

Priority VC constraints lessened or resolved

Partnerships with major stakeholders established and additional investments aligned

Flock productivity increased by 20%

Ultimate outcome

100% sheep meat producing households in three pilot regions directly participating in the program

Increased meat production (plus 72t) in 1000 households which is efficiently marketed

Impacts

5000 tonnes additional sheep meat produced annually

70,000 households involved in the value chain program improve their standard of living

Summary of indicators along the impact pathway that we believe can achieve these impacts.

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15More meat, milk and fish—by and for the poor

Stakeholders in Ethiopia and their possible role

Stakeholder Type Role Remark

ELFORA Agro-industries PLC. Private Could create market outlet for the community sheep and export of mutton, live animal and skins

Consulted

Luna Private Abattoir in Modjo

Exports small ruminant meat to the Middle East; ILRI has been working with Luna in IPMS and have developed a strong linkage

To be consulted

Improving Productivity and Market Success of Ethiopian farmers (IPMS)

ILRI project Cooperate on the whole sheep value chain development

Consulted

Ethiopian Institute of Agricultural Research (EIAR)

Government Implement the field research activities in Afar

Consulted

Amhara Regional Agricultural Research Institute

Regional Agricultural Research Centre, Government

Implement the field research activities in Menz

Consulted

Oromia Agricultural Research Institute

Regional Agricultural Research Centre, Government

Implement the field research activities in Horro

Consulted

USAID–Ethiopian Sanitary and Phytosanitary Standards and Livestock and Meat Marketing Program (SPS-LMM)

NGO Cooperate on marketing of mutton, sheep, skin

To be consulted

USAID–Ethiopian Sheep and Goat Productivity Improvement Project (ESGPIP)

NGO Cooperate on breeding at field level To be consulted

Pastoral Community Development Program

Government-project Research and tailored training in Afar To be consulted

Ministry of Agriculture and Rural Development (MoARD)

Government Support the field activities in all the project sites

Consulted

Netherlands Development Organization (SNV Ethiopia)

NGO Experience sharing on value chain development

Synergies to be discussed and agreed upon

Important note: Full information on references is included in the Program proposal that can be downloaded from http://cgspace.cgiar.org/handle/10568/3248