Value chain analysis of sheep in Atsbi district of Tigray Region, Ethiopia

Value chain analysis of sheep in Atsbi district of Tigray Region,

Ethiopia

Embaye Kidanu, Mengistu Regassa and Getachew Legesse

Multi-stakeholder Workshop for Targeting Action Research on Atsbi sheep and Abergelle goat Value Chains in Tigray, Ethiopia

Mekelle, 19-20 March 2013

Description of the study area

Atsbi-wonberta

Location 65 Km NE from Mekelle

Human population 112,639

Rain fall 667.8mm

Altitude 1800masl-3000masl

Temperature 18 0c

Livestock population

209,024

Cattle population 52496

Cow population 30,588

Peasant association

16

sheep 82950

goat 15431

Methodology

• Participatory Rural Appraisal (PRA) tools • Focused Group Discussions (FGD)• key informants interview and • visual observations were used to collect primary data. • Different set of checklists were used for different

group of actors to guide group discussions and key informants interviews

Analysis • The data was analyzed using a thematic analysis

approach. Quantitative data were analyzed using descriptive statistical analysis techniques

Results And DiscussionMapping Core Functions Of Atsbi Sheep Value Chain

Results,…

Core functions of the value chain

1. Input supply• Sources of the inputs (like feed, breeding stock and

veterinary service) farmers themselves bureau of agriculture Tigray agricultural research institute and traders

• Some times dedebit credit and saving institution gives breeds of sheep (female) to female headed farmers on credit basis (in-kind).

• Woreda office of agriculture and Tigray agricultural research institute only provide veterinary service to the farmers.

Input supply,…Breeding stock supply

Farmers are the major source of breeding stock suppliers (own breeding stocks)

Credit serviceDSCI

Vet service10 health posts (not functional) 3 animal clinics three health technicians1 veterinarian

Feed supply- Grazing lands- crop residues - crop after math - natural browses- Hay

Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec0

1

2

3

4

5

0

1

2

3

4

5

Feed Availability Rainfall Score

months of the year

Feed

Ava

ilabi

lity

scor

e (1

-5)

Rain

fall

Scor

e (0

-5)

Results ,…

Production • the breeds of sheep have not specific name simply they

are known as Habesha breeds

• they have good quality characteristics by meet, color and other traits

• Short and wide tail, commonly red and to some extent gray color, fast growing and wide backbone are the traits describe atsbi-wonberta woreda sheep breeds.

• In addition, the breeds give birth twice a year and get pregnant at the end of the year.

Results ,…purpose of Sheep rearing

solving immediate cash demands: like to pay loan, social and cultural expenditures, schooling, clothing, tax payments

fulfilling household consumption expenditure: like solving food gaps, household items (goods)

crop production inputs: like seed, fertilizer and chemicals

meat for different holidaysmilk production

Type of sheep farmers commonly sold

ram (young male

old ewe young female castrated0

10

20

30

40

50

60

70

80

90

100

type of sheep

per

cen

tage

sol

d

Results ,…

• An average of 0.5 liter of milk from one sheep per day • they also used to produce butter from the milk they

get

• Especially, the milk from sheep is important for children and a person who have heart problem

• The producers used unimproved breeding practice in which most of them use random mating method

• Farmers put their sheep in housing (pen) constructed in the homestead or around the homestead.

Dembe (open)Gebela (roofed)

results,…3. Marketing Market places

farm ga

teAtsb

i

wukro

dera(vi

llage

mark

et)

on road

hykmesh

al(villa

ge m

arket)

0102030405060708090

100

percentage (golgol naele

percentage(Habes)

market places for atbi sheep

perc

enta

ge in

eac

h m

arke

t pla

ce

Results,….• Marketing levels (4 levels)

1st at farmers’ yard2nd small village markets open once a

week for one day3rd District towns (wukro and Atsbi)4th at larger towns (like Adigrat) and in

Mekelle city.

Proportions of Sheep buyers from farmers

trader farmers consumer hotels0

102030405060708090

100

sheep buyers from farmers

prop

ertio

n of

buy

ers

of s

heep

from

fa

rmer

s

results,…factors determine price and demand of sheep

– Festivals/fasting and non fasting– availability of feed – occurrence of disease and natural calamities– household requirements for expenditure – consumer’s income and Preference

• Though less significant– factors such as animal color, – origin, – age have effect on animal prices. Red, Light colored

sheep, young and active sheep will have relatively higher price

Seasonality of sheep supply

0

10

20

30

40

50

60

70

80

90

100

percentage of sheep supply of Habespercentage of sheep supply golgol naele

per

cen

tage

of

sup

ply

of

shee

p

months of the year

Results ,..

4. Processing • Actors

Export abattoir found at the capital of the region (Mekelle),

Butcheries at different towns, Sheba tannery of Wukro town (leaser industry) Hotels and restaurants

• The Abergelle export abattoir buy male sheep weighing between 20 to 25 kg purchased on live weight basis

• They have three sheep measuring grades when they buy sheep, grade A, B and C.

• The prices for different grades 40 ETB per kg for grade A 36.5ETB per kg for grade B 35.7ETB per kg for grades C

Results,..5. Consumption • Majority of the sheep from Atsbi is for domestic

consumption

• Domestic consumers prefer Atsbi sheep for its quality of meat and taste

• Small proportion of them which address the quality parameters are slaughtered at the export abattoir and supplied to foreign consumers

Marketing routs

100% 100%

5%

95%

15%

45% 15%

40% 25%

10% 60% 30% 60%

FIG 12: MARKETING ROUTS OF ATSBI SHEEP

Atsbi town

Dera primary market

H/meshal primary market

Wukro market

Mekele market

Adigratmarket

Export market

Supply source (Atsbi district)

Results ,….Marketing channels

Channel 1: Producer – consumerChannel 2: Producer – small traders – consumerChannel 3: Producer – small traders – hotel/butcheries –consumerChannel 4: Producer – small traders – large traders –

hotels/butcheries – consumersChannel 5: Producer –small traders – export abattoirs - consumers Channel 6: Producer – small traders – large traders – export abattoir

– consumerChannel 7: Producer – hotel/butcheries- consumerChannel 8: Producers – large traders – hotels/butcheries –

consumersChannel 9: Producers – large traders – export abattoirs - consumers

Atsbi sheep value chain map

35%

5%

5% 100% 100%

60% 15% 5%

5% 5% 40%

100%

20% 20%

20% 10% 5%

45%

Sheep Producers

Big traders Small traders

Export abattoirs

Butcheries Hotels

Export market Individual consumers (domestic)

Farmers (for breeding)

Marketing

Processing

Consumption

10%

Enabling environment

Production

Input Supply

Veterinary Services

Extension Services

Credit Services

Security Land tenure Rules and

Regulations

Feed Supply

Marketing margin analysis

Actors Buying price/production cost

Selling price

Gross margin

Marketing cost

Net marketing margin

Producers share

Rank of channels by producers share

Producers 217 550 333 1.5 331 100 1

Small traders

550 670 120 32 88 82 2

Large traders

700 860 160 45 115 63 3

Hotels 750 1460 710 536 174 37 6

Butcheries 810 1420 610 314 295 38 5

Abattoirs 900 1230 330 193 137 44 4

Average 653 1031 377 181 196 53

Constraint of the sheep value chain

input supply

• Limited number of veterinary clinics and non-functional animal health posts

• Shortage of veterinary drugs and equipment• Shortage of animal health workers and skill gap

among the existing workers• Lack of private veterinary animal health service

providers and vet drug shops• Shortage of transportation facilities to reach

farmers in areas far from clinics and health posts

Constraints,..Input,..• Lack of flexibility in the credit system and the

inconvenience of having group collateral• Lack of livestock market information• Feed shortage

Production constraints• Traditional Breeding practice• Poor/traditional housing• High incidence of disease and parasites• Lack of awareness on improved sheep production

system

Constraints ,…

Marketing constraints• Transportation problem• Shortage of quality sheep supply to the market• Lack of vertical and horizontal linkage• Seasonality of demand

Processing constraints• Insufficient supply• Low quality of sheep supplied to the market• Informal Cross border trade

Conclusion

• Sheep production has great importance in Atsbi

• Sheep production unimproved

• Support services and inputs are not well developed

• Less attention given by development institutions

• Sheep marketing system is fragmented

• Weak horizontal & vertical integration among the actors

• Atsbi sheep value chain process is inefficient

• Need to design strategic intervention plans