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Evaluation of small ruminant value chain in enhancing household food security: The case of Dale
and Loka Abaya Woreda, Sidama Zone of SNNPR
By Teshale Endalamaw
AdvisorsMajor Advisor: Legesse Dadi (PhD)Co- Advisor: Girma Abebe (PhD)
Hawassa UniversitySchool of Governance and Development Studies
June 2012Hawassa
Presentation Outline• Introduction (Background)
• Statement of the Problem
• Research Questions and
• Objectives of the study
• Research Methodology
• Results and Discussion
• Conclusion and
• Recommendations
• The study focus on food security and value chain & the definition and term the researcher used were as follows:
1. “Food Security (FS) is a situation that exists when all people, at all times, have physical, social and economic access to sufficient, safe and nutritious food to meet their dietary needs and food preferences for an active and healthy life,”
Food and Agriculture Organization (FAO), 2002
2. “A value chain (VC) is the full range of activities that are required to bring a product or a service from conception, through different phases of (the intermediary of) production, involving a combination of physical transformation and the input of various producer services, delivery to final consumers, and final disposal after use”
(Kaplinsky et.al 2000)
3. Small Ruminant (SR) for this study mean Sheep &
Goat
Background Background
•Value chain is a pro-poor when … •Impact beyond increasing income•Strengthens the economic, social and organization capacity
•VC focus on linking HH to growing market
•VC integrate with the 3 dimension of FS – •Availability – at a larger scale •Access – at HH level•Utilization – at individual level
•Food insecurity shapes the behavior of HHs and the success of VC initiatives
Background Background
•Ethiopia has the largest livestock population in Africa
•Small Ruminant (SR) – 47.8 million (CSA, 2010)
•SR contribution b/n 1995/96 to 2005/06 – in average 11 % of NGDP & 24 % of AGDP
•Dale and Loka Abaya Woredas (the study areas) found in Sidama Zone
•SRs are one of the main source of income and help the HH to diversify its livelihood and asset creation then to HH FS
•PSNP PLUS project help more than 47 thou. CFI HH over 12 Woredas of 4 regions
Background Background
•Food insecurity in Ethiopia is a long term phenomena caused by a combination of natural & manmade factor
•300 PSNP Woreda in Ethiopia and 78 in SNNPR
•SR as an integral component of CFI HHs have numerous advantage
•they need smaller capital for investment, smaller place, smaller feed requirement, easy to sale, source of food for HH as meat and milk
•CFI HH keeps SR for a variety of economic reasons
•saving and investment, •security and insurance, •stability and social functions as a status
indication
Statement of the ProblemStatement of the Problem
•CFI HH often less likely to take risks to make investments in upgrading and engaging in VC initiatives
•However, SR need a small initial investment - to buy, maintain & add value - & also small risk of loss.
•SR are becoming more important in the export market.
•However, •the potential of the Woredas not recognized•key value chain actors and their functions
integration, sources of market information and strategies, and required infrastructure and support services were not known and documented
•there was no well documented evidence that can show the performance & level of SR VC contribution for HH FS
•the inhibiting bottlenecks were not also identified
Statement of the ProblemStatement of the Problem
•Research Question1.Does SR fattening VC contribute to HH I & FS?2.How key VC actors, supporters and influencers of
SR fattening VC interact with each other?3.What are the challenges and opportunities for SR
fattening VC to contribute for HH FS?
•Objectives of the study1.To assess the contribution of SR fattening VC in
improving CFI HH financial I & FS2.To identify the key VC actors, supporters and
influencers involved in SR fattening VC 3.To identify key challenges and opportunities for SR
fattening VC at different levels
Research Question and Research Question and ObjectivesObjectives
1. Dale• 124, 707 ha;
• 36 Kebles;
• 17 CFI Kebles (PSNP);
• 244, 932 Pp;
• 8677 PSNP
beneficiaries;
• 3 –livelihood zones;
• 17 PSNP PLUS Kebles;
• 579 SR fattening VC
participants
Research MethodologyResearch MethodologyStudy woredas
2. Loka Abaya
• 119, 000 ha;
• 26 Kebles;
• 26 CFI Kebles (PSNP);
• 114, 480 Pp;
• 18,179 PSNP
beneficiaries;
• 2 –livelihood zones;
• 9 PSNP PLUS Kebles;
• 579 SR fattening VC
participants
Research Methodology Research Methodology
Methods of data collection and tools • Qualitative and quantitative methods• Primary and secondary data• Primary data
• Structured Interview questionnaire (open and closed)
• Focus group discussion (two)• 8 SR VC participants of CFI HH
• Key informant interview from• Keble officials, DA, ADO & CMPO experts,
Local Traders (3 Yirgalem, 2 Hawela Tula & 2 Hawassa), Luna, brokers, butchers, & restaurants.
• Researcher personal observation was also employed.
• Secondary data• Desk review of different literatures• Websites• Different organizations (visit & document
review)
Research Methodology Research Methodology
Data analysis• Descriptive statistics (%age, frequency, and
mean) using SPSS version 20
• SGP and SGM calculation
• Pearson’s chi-square, correlation and one way
ANOVA
• Value Chain map
• Tables and figures
Research Methodology Research Methodology
SGP = Turnover (gross sales) – Direct cost
SGP – T (sales) X 100
T (sales)
SGM =
………………….. (1)
…………………… (2)
Conceptual Framework of the Conceptual Framework of the study study
Income FlowIncome Flow
Consumers (End user)•Local•Abroad
Consumers (End user)•Local•Abroad
Local and Urban
Traders
Local and Urban
Traders
Chronically Food Insecure
Household (CFI HH)
Chronically Food Insecure
Household (CFI HH)
Government Service providers/NGOMFI
Government Service providers/NGOMFI
HFS•Availability•Access•Utilization•Stability
HFS•Availability•Access•Utilization•Stability
Information flowInformation flow
Value additionValue addition
Contributing Factors to upgrade the small ruminant value by CFIH •Availability of small ruminant •Availability of input•Price fluctuation•Availability of veterinary Service•Availability of finance•Availability of feed and water•Infrastructure•Information•Appropriate extension service•Government Policy•Availability of space•Governance Structure
Contributing Factors to upgrade the small ruminant value by CFIH •Availability of small ruminant •Availability of input•Price fluctuation•Availability of veterinary Service•Availability of finance•Availability of feed and water•Infrastructure•Information•Appropriate extension service•Government Policy•Availability of space•Governance Structure
Restaurant and Butchers
Restaurant and Butchers
Input Supplier
Input Supplier
Exporter and Processor
Exporter and Processor
Government Service providers/NGO MFIGovernment Service providers/NGO MFI
Demographic characteristics of the respondents
Results and DiscussionResults and Discussion
Description Dale (n=92) Loka Abaya (n=95) TestMean Mean F-Value P-Value
Age 40.74+2.15 43.85+2.31 3.828 0.052
Family size 5.47+0.34 6.17+0.41 6.743 0.010
PSNP participation in years 6.36+0.16 7.00+0.29 14.597 0.000
Family members in PSNP 2.40+0.17 2.61+0.15 3.330 0.070
Land Holding hectare (ha) 0.49+0.04 0.59+0.06 7.940 0.005
Description Dale (n=92) Loka Abaya (n=95) Overall (N=187)Count % Count % Count %
SexMale 66 71.7 70 73.7 136 72.7Female 26 28.3 25 26.3 51 27.3
Marital StatusSingle 3 3.3 0 0 3 1.6Married 79 85.9 75 78.9 154 82.4Widowed 10 10.9 19 20 29 15.5Divorced 0 0 1 1.1 1 0.5
Education level Illiterate 36 39.1 48 50.5 84 44.9Read and write 15 16.3 22 23.2 37 19.8Elementary 37 40.2 22 23.2 59 31.6High School 4 4.3 3 3.2 7 3.7
SR fattening practice in the study
areas
Results and DiscussionResults and Discussion
Description Woreda Name Overall (N=187)
TestDale (n=92) Loka Abaya (n=95)
X2 P-value
Count % Count % Count %Owning sheep
Yes 18 20 1 1 19 10 17.548 0.000
No 74 80 94 99 168 90Owning goat Yes 50 54 61 64 111 59 1.885 0.110
No 42 46 34 36 76 41• There is a positive & significant correlation
between total land holding & goat owning (r=0.402, P<0.01) & grazing land (r=0.469, P<0.01)
• 88.8% respondents considered body conformation, 75.4% age, 74.9% physical characteristics and 44.9% sex as criterion for selecting SRs’ for fattening
• market is the sole source (100%) of SR for fattening
• nearby traders (86.6%) and farmers (13.4%) are the major suppliers
Cont ...• 76.5% (75 % of Dale and 77.9 % of Loka Abaya)
practice supplementary feeding (SF)• Enset leaf “Ensete Ventricusum” (64.3%),
crop residue (60.1%) and wheat bran (55.2%)• 87.7% (76.7 % of Dale and 98.9 % of Loka
Abaya) accessed veterinary services when SRs• got sick (88%) and bought (24.4%)
• 97% of the respondents provide water for SRs
• none of the respondents constructed a house for SRs due to • expensiveness (52.9%), unavailability of
space (38.5%), unavailability of construction material (35.3%) and lack of knowledge (27.3%)
Results and DiscussionResults and Discussion
Financial services for SR fattening •respondents borrowed (100.0%) to buy SR,
(16.6%) to pay for SR veterinary service and (12.3%) to buy feed
•main loan source were 100.0% MFI & 19.3% VSLA
•70% loan amount is not enough but 57.8% not enough but it helped & 12.3% it is very low amount; so
• 73.3% decided to buy two small SRs and 26.7% of them decided to buy only one SR
•31% revealed that the loan was untimely - reason
• time taking to get the money (84.7%), short repayment period (76.3%) and difficult to be eligible (35.6 %)
•87% of the respondents repaid their loan
Results and DiscussionResults and Discussion
SR Marketing• 98% (Dale) and 79% (Loka Abaya) for targeted
market• Easter (88%), Christmas (76%) & New Year (67%) -
are markets to sell SR
Results and Discussion Results and Discussion
Description Dale (n=92) Loka Abaya (n=95) Overall (N=187)X2 P-ValueCount % Count % Count %
Fattened SR buyersButchers/restaurants 9 9.8 15 15.8 24 12.8 1.507 0.156
Traders 67 72.8 65 68.4 132 70.6 0.437 0.309
Village L. Collectors 14 15.2 3 3.2 17 9.1 8.225 0.004
Consumers 57 62.0 83 87.4 140 74.9 16.040 0.000
Better price offered byButchers/restaurants 25 27.2 56 58.9 81 43.3 19.217 0.000
Traders 44 47.8 87 91.6 131 70.1 42.649 0.000
Village LC 12 13.0 32 33.7 44 23.5 11.067 0.001
Consumers 69 75.0 91 95.8 160 85.6 16.351 0.000
Results and Discussion Results and Discussion Fattened SR Price decision
Results and Discussion Results and Discussion
• SRs supplied for targeted market per respondents for the last six months were
• 3.26 (Dale
• 1.92 (Loka Abaya)
Fattened SR supply interval for targeted market
SR Value chain related
Results and DiscussionResults and Discussion
Description Sheep (N=38) Goat (N=
Dale Loka Test Dale Loka Test
Average Fattening cost
(n=36) (n=2) F - value P-Value
(n=36) (n=36) F - value P –Value
551.50 472.00 0.706 0.406 501.59 529.16 1.755 0.187
Average price when the price was …High 842.08 800.00 0.095 0.760 854.85 864.61 0.063 0.802Medium 636.94 650.00 0.019 0.892 619.09 675.56 4.100 0.045Low 495.28 550.00 0.431 0.516 475.30 549.33 9.481 0.002Average SGP when the price was … High 290.58 328.00 0.099 0.755 353.24 335.42 0299 0.585Medium 85.44 178.00 0.979 0.329 117.48 146.38 1.251 0.265Low -56.22 78.00 2.540 0.120 -26.30 20.15 3.120 0.079Average SGM when the price was … High 33.26 41.27 0.568 0.456 40.15 36.28 2.734 0.100Medium 16.41 33.68 0.966 0.332 17.00 18.70 0.245 0.621Low -13.60 14.04 2.734 0.100 -12.98 -0.37 5.518 0.020• CFI HHs obtained the average SGM of 13% and
17% from sheep and goat selling respectively
1. Simplified Gross Profit (SGP) & Simplified Gross Margin (SGM)
2. Fattened SR marketing channels in the study areas
Farmers (CFI HHs)
Traders at Yirgalem, Hantatie, Naramo Della,
Anferara, Derara
Traders at Hawassa, Tula,
Shabadino, Shasahmane
Butchers at Yirgalem, Hantatie, Hawassa, Shabadino, Tula,
Shasahmane
Hotels/Restaurants at Yirgalem, Hantatie,
Hawassa, Shabadino, Tula, Shasahmane
Village Level Collectors at Yirgalem, Hantatie,
Naramo Della, Anferara, Derara
Exporter/Slaughtering House at Modjo
Consumers at Yirgalem, Hantatie, Hawassa, Shasahmane, Tula,
ShabadinoExport market (not
discussed by this study)
Supermarket at Addis, Adama,
Debre Zeit
Cont …
Pd C* R/W Pr E C**
Sm
all R
um
inan
t F
atte
ner
sS
mal
l Ru
min
ant
Fat
ten
ers
Village level collectors
Village level collectors
Traders Traders
Butchers & Hotels/ Restaurants Butchers & Hotels/ Restaurants Loc
al
Con
sum
ers
Loc
al
Con
sum
ers
Woreda ADO, CPMO, CARE, SNV, Sidama MFI, Input
Suppliers, PMC
Woreda ADO, CPMO, CARE, SNV, Sidama MFI, Input
Suppliers, PMC
Input Suppliers CARE, SNV and
transport
Input Suppliers CARE, SNV and
transport
Supermarkets Supermarkets
Export AbattoirsExport Abattoirs
Skin and Hide processors
Skin and Hide processors
EMPEA, Export Promotion, Bank, Ministry of Agriculture, Transport,
Input Supplier
EMPEA, Export Promotion, Bank, Ministry of Agriculture, Transport,
Input Supplier
Municipality, Bank, Transport, CARE & SNV
Municipality, Bank, Transport, CARE & SNV
3. SR fattening VC map in the study area
Remark: (i) Pd – Production, (ii) C* - Collection, (iii) R/W – retailing/wholesaling, (iv) Pr – Processing, (v) E- Exporting, (vi) C** - consumption
Cont …
SR contribution for HH income and
FS
Results and Discussion Results and Discussion
Description Dale (n=92) Loka Abaya (n=95) Overall (N=187)X2 P-ValueCount % Count % Count %
SR contribution for HH incomeIncreasing
89 96.7 54 56.8 143 76.5 41.347 0.000
Decreasing 3 3.3 4 4.2 7 3.7 0.117 0.518I do not know 0 0 37 38.9 37 19.8 44.670 0.000Income source Dale (n=92) Loka Abaya (n=95) Test
Mean (Birr) Percent Mean (Birr) Percent F-value P-value
Coffee 2223.91 32.50 1016.31 19.18 36.599 0.000
Cereal 1057.06 15.45 1740.00 32.83 15.762 0.000
SG Fattening 922.77 13.49 454.21 8.57 53.452 0.000
Other Livestock Prt. 402.17 5.88 210.00 3.96 5.999 0.015Petty Trading 496.73 7.26 296.00 5.58 3.596 0.059Daily Laborer 227.71 3.33 78.94 1.49 4.140 0.043
Cash for Work 1061.41 15.51 1155.78 21.81 2.960 0.087
Other 450.10 6.58 348.94 6.58 1.299 0.256Total 6,841.86 100.0 5,300.18 100.0
Results and Discussion Results and Discussion
• 97% from Dale and 78% from Loka Abaya (P<0.05)
confirmed that SR fattening has a contribution for HH
FSThe way SR contribute for HH FS
Dale (n=89)
Loka Abaya (n=74)
Overall (N=163) X2
P-Valu
eCount
% Count
% Count %
To buy food items for HH consumption
65 73.0 23 31.0 88 53.9 40.462
0.000
To cover other HH expenses
77 86.5 66 89.1 143 87.7 5.254 0.017
Help HH not to sale food items
1 1.1 15 20.2 16 9.8 12.913
0.000
Cont ...
Results and DiscussionResults and Discussion
• 90% from Dale and 95% from Loka Abaya respondents did not slaughter SG for HH consumption
Description
Dale (n=92)
Loka Abaya (n=95)
Overall (N=187) X2
P-Valu
eCount
% Count % Count %
SR contribution for HH incomeTo buy farm inputs
46 50.0
81 85.3 127 67.9 26.671 0.000
To pay school fee
17 18.5 36 37.9 53 28.3 8.676 0.003
For medical treatment
16 17.4 14 14.7 36 16.0 0.245 0.384
To purchase food items
34 37.0 18 18.9 52 27.8 7.551 0.005
To pay back credits
85 92.4
66 69.5 151 80.7 15.791 0.000
For next round fattening
44 47.8
28 29.5 71 38.5 6.648 0.007
Cont ...
• 77% across the study woredas have an interest to keep and continue SRs fattening because SRs • are easy to manage (60.7%),• minimize HH vulnerability (47.7%), • have high market demand (42.1%) • are easy to sale (24.8%) and• have immediate return (24.1%).
• 23% respondents do not want to continue SR fattening• SRs management is too difficult (92.9%) and• 71.4 % the business has low ROI
• 60% faced challenge while they fattened & 35% while selling
Results and DiscussionResults and DiscussionSR Fattening Challenges and
opportunities
Cont ...Results and DiscussionResults and Discussion
Description Dale (n=31) Loka Abaya (n=81) Overall
(N=112)Count % Count % Count % X2 P-Value
Fattening Challenges Unavailability of SR for fattening
6 19.4 34 42.0 40 35.7 23.810 0.000
Unavailability of feed 13 41.9 77 95.1 90 80.4 83.845 0.000
Unavailability of water 1 3.2 18 22.2 19 17.0 16.333 0.000
Unavailability of house (space) to keep SR's
1 3.2 52 64.2 53 47.3 66.283 0.000
Unavailability of Veterinary Service
7 22.6 15 68.2 22 19.6 3.013 0.065
Lack of finance 16 51.6 75 92.6 91 81.2 70.890 0.000
Selling Challenges Dale (n=23) Loka Abaya (n=43) Overall (N=66)
Lack of market information 1 4.3 3 7.0 4 6.1 0.958 0.323
Traders bad behavior 4 17.4 33 76.7 37 56.1 27.195 0.000
Fewer buyers/low demand 2 8.7 2 4.7 4 6.1 0.001 0.677
Lower price 15 65.2 38 88.4 53 80.3 12.921 0.000
Weak Bargaining Power 0 0.0 27 62.8 27 40.9 30.560 0.000
High brokers involvement 10 43.5 8 18.6 18 27.3 0.322 0.375
HH Food Security RelatedResults and DiscussionResults and Discussion
1. Access and availability
Dale (n=92) Loka Abaya (n=95) Overall
(N=187)X2 P-
ValueCount % Count % Count %
Producing own food production
Yes 92 100.0 95 100.0 187 100.0 0.974 0.508No 0 0 0 0 0 0
Enough amount of own production
Yes 7 7.6 15 15.8 22 11.8 3.013 0.065No 85 92.4 80 84.2 165 88.2
Availability of enough food amount in the market
Yes 49 53.3 70 73.7 119 63.6 8.425 0.003No 43 46.7 25 26.3 68 36.4
Availability of better quality food in the market
Yes 48 52.2 65 68.4 113 60.4 5.159 0.017No 44 47.8 30 31.6 74 39.6
On time availability of food
Yes 47 51.1 46 48.4 93 49.7 0.133 0.414No 45 48.9 49 51.6 94 50.3
Afford the market food price
Yes 19 20.7 19 20.0 38 20.3 0.012 0.528No 73 79.3 76 80.0 149 79.7
2. Utilization
Consume enough amount of food by HH Reason for lower amount of food consumption
Source of food for HH consumption Reason for shortage and unavailability of food
3. HH food self
sufficiency
• Dale woreda respondents are
food self -sufficient in average
for 8.02 months whereas at
Loka Abaya (P<0.05) they are
only for 6.05 months
Result and Result and DiscussionDiscussion
Food self-sufficient HHsCoping Mechanisms
to fill food gap months
Dale (n=82) Loka Abaya (n=83)
Overall (N=165) X2 P-
ValueCount
% Count
% Count
%
PSNP transfer (CfW) 82 100.0
83 100.0 165 100.0 42.921
0.000
Labour sale in the village to buy food
9 11.0 14 16.9 23 13.9 1.063 0.210
Sale HH assets to buy food 40 48.8 9 10.8 49 29.7 27.948
0.000
Migrate to other place for work 0 0.0 1 1.1 1 0.5 0.974 0.508Minimize meal frequency and amount
32 39.0 59 71.1 91 55.2 13.956
0.000
Use petty trading income to buy food
18 22.0 19 22.9 37 22.4 0.006 0.544
ConclusionConclusion• Family size and members participated in PSNP are
not proportional• The emphasis given for sex to select SR is less• supplementary feeding (SF) of less nutritious feed• SRs to veterinarian when they got sick and there
are limited numbers of veterinarian • Interest to continue SR fattening (but financial
shortages)• In the SR value chain;
• there is no win-win relationship, • the price information transferred in an ear-to-
mouth mechanism, • SRs sold in eye-ball estimation,• there is no legalized trader, • there is no transportation facilities, • there is high brokers involvement, and• there is lack of finance
ConclusionConclusion• six of marketing channels for CFI HH
• To sale fattened SR focused on Ethiopian
holidays
• CFI HHs obtained on ave SGM of 13% (S) & 17%
(G)
• SR contributed for CFI HHs income is increasing
(low)
• SR contribution for CFI HHs food security
• The forward linkage - using the income to buy
farm inputs, food items, and to minimize HH
vulnerability.
• The backward linkage – when pay back loan,
school fee and medical expenses, cover other
HH expenses and help not to sale food items
Conclusion Conclusion • Lack of finance, unavailability of feed, house &
SR are the major fattening bottlenecks
• Lower price, traders delinquency, Weak
bargaining powers and high brokers
involvement are the critical challenges in
selling fattened SRs
• CFI HHs doesn’t consume enough amount of
food and they are food self-insufficient for 3.98
(D) and 5.95 (L) months
Recommendation Recommendation • the government should set and follow a “Push –
Pull” factor to address all
• ADO should work on SF production and
preparation & should encourage private sectors
(PSs) to supply SF
• concerned stakeholders should train CAHWs and
equip with necessary materials and create
linkage with PSs
• CPMO and ADO should
• enhance CFI HH to consider other mkt &
export mkt (CSFs) and create awareness on
pros & cons,
• strengthen PMCs and keep and continue the
MSP,
• legalize traders and brokers and help to
access land
Recommendation Recommendation
Thank you