Market Assessment

Diagnostic study of live cattle and beef production and marketing. Constraints and opportunities for enhancing the system, 2010

    Description
    Building on a synthesis of existing work on the livestock sector in Ethiopia, this report incorporates new primary data to fill key gaps andinsights from consultation of a wide set of stakeholders to outline the key challenges in the livestock value chain and provide recommendations that are expected to improve the livelihoods of small producers.

    Summary of results
    The report identifies challenges at various stages of cattle value chain including production, fattening and trading, as well as retail and consumption.
    - At the production stage, these include (i) input constraints of feed and water; (ii) reluctance of pastoralists to commercialize cattle (iii) access to appropriate animal health services
    - Challenges at the stage of fattening and (formal)trading include(i)ineffectiveness of livestock cooperatives in delivering value added to their members; (ii) a large proportion of sales are on credit and incur late payment; (iii) limited transparency on quality, health, and weight; (iv) the feedlot industry faces severe constraints for feed, water, land, financing, and markets; and (v) formal trade competes with substantial informal cross-border trade
    - At the retail and consumption stage, there is significant potential for demand growth in the medium term, on both domestic markets and potential export markets.

    Recommendations include:
    - Clarifying government and private sector roles in livestock industry and social development, and empowerong a single stakeholder-inclusive body
    - Developing the highland feedlot sector to stimulate value addition
    - Driving smallholder herd productivity through dairy-oriented aggregation in high-potential highland woredas
    - Experimenting with holistic productivity and commercialization interventions in high-potential pastoral woredas
    Clarify government and private sector roles in livestock industry and social development, and empower a single stakeholder-inclusive body with a unified vision: A coordinated approach to establishing and implementing a shared vision will require substantial and continuous communication with the private sector.
    - Addressing specific constraints that cut across sectors that hinder livestock development, eg. access to capital, to effective transport, to foreign exchange, and to the import of trucks and cold chain equipment
    - Implementing research and dissemination activities to communicate lessons learned and assist with scaling up