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Goat Value Chain Analysis in Pastoral Communities of Ethiopia

Abstract: 

This research investigates the value chain of goat supply in the pastoral communities of Ethiopia. The objectives were to identify the main stages in the value chain and the constraints limiting its full functioning. To achieve the objective stated; primary and secondary data were used. Marketing system was evaluated using structure, conduct and performance approach; furthermore; co-integration and error correction model for market integration. Multiple linear regression models were fitted to identify factors contributing to the variation of price per kg of live weight. Price information for three years (2013, 2014 and 2015) average monthly base was used. The total sample take was 1200 household pastorals. A result of the study average family size was found 7.1, 4.3 and 5.7 for Afar, Oromia and Somalia respectively. For Dummy variable marital status was found a chi-square level (11.45) which indicates a significant difference among the sample regions at level 5% while education difference was significant at level 1% (19.49).The mean average age of household head was found 40.4 for Afar, 32.6 Oromia and 28.1Somalia yet total average age of the sample was found 34.7 and the difference was found significant with t-value of (3.81). Average years of experience of was found 20.3, 28.6 and 14.9; on the other side average annual income in Ethiopian Birr (at the time the survey the exchange rate was 20.4 Ethiopian birr = ± 1 US dollar) from sales of live goat was found 5,521, 9,271 and 13,465 for Afar, Oromia and Somalia consecutively. Market information is important for trading activities so the pastoral from Afar 41.4% had primary market information while 2.5 secondary market information yet this in Oromia was 74% and 28.1% while it was 88% and 14.8% in Somalia none of the sample region had information on tertiary market. The average flock sizes was found 11.8 (std dev. = 33.8) per house-hold while average annual supply was found to be 2.7 (std.dev=1.9). Actors in chain were found as pastorals, input suppliers, district butcher, restaurants, district fatteners, district traders, retailers, sub-national traders, national traders, exporters, Enablers and facilitators. In Amibara (Afar) the highest concentration of the four trader that bought heads of goat share controlled over 91% from total bought in the market fiscal year, while in Babilie (Somalia) and Fentale (Oromia) 84% and 71%. The average marketing cost incurred per head of goat for regional whole sealers was found 71.16 Eth. Birr/head while 31.11, 27.5 and 57.65 Eth. Birr/head of goat was for retailers, pastorals and pre-urban assemblers’ consecutively  in the sample regions. The marketing margin for the second rout-to Addis Ababa is expensive than compare to the first rout Amhara and TigrayThis research investigates the value chain of goat supply in the pastoral communities of Ethiopia. The objectives were to identify the main stages in the value chain and the constraints limiting its full functioning. To achieve the objective stated; primary and secondary data were used. Marketing system was evaluated using structure, conduct and performance approach; furthermore; co-integration and error correction model for market integration. Multiple linear regression models were fitted to identify factors contributing to the variation of price per kg of live weight. Price information for three years (2013, 2014 and 2015) average monthly base was used. The total sample take was 1200 household pastorals. A result of the study average family size was found 7.1, 4.3 and 5.7 for Afar, Oromia and Somalia respectively. For Dummy variable marital status was found a chi-square level (11.45) which indicates a significant difference among the sample regions at level 5% while education difference was significant at level 1% (19.49).The mean average age of household head was found 40.4 for Afar, 32.6 Oromia and 28.1Somalia yet total average age of the sample was found 34.7 and the difference was found significant with t-value of (3.81). Average years of experience of was found 20.3, 28.6 and 14.9; on the other side average annual income in Ethiopian Birr (at the time the survey the exchange rate was 20.4 Ethiopian birr = ± 1 US dollar) from sales of live goat was found 5,521, 9,271 and 13,465 for Afar, Oromia and Somalia consecutively. Market information is important for trading activities so the pastoral from Afar 41.4% had primary market information while 2.5 secondary market information yet this in Oromia was 74% and 28.1% while it was 88% and 14.8% in Somalia none of the sample region had information on tertiary market. The average flock sizes was found 11.8 (std dev. = 33.8) per house-hold while average annual supply was found to be 2.7 (std.dev=1.9). Actors in chain were found as pastorals, input suppliers, district butcher, restaurants, district fatteners, district traders, retailers, sub-national traders, national traders, exporters, Enablers and facilitators. In Amibara (Afar) the highest concentration of the four trader that bought heads of goat share controlled over 91% from total bought in the market fiscal year, while in Babilie (Somalia) and Fentale (Oromia) 84% and 71%. The average marketing cost incurred per head of goat for regional whole sealers was found 71.16 Eth. Birr/head while 31.11, 27.5 and 57.65 Eth. Birr/head of goat was for retailers, pastorals and pre-urban assemblers’ consecutively  in the sample regions. The marketing margin for the second rout-to Addis Ababa is expensive than compare to the first rout Amhara and Tigray

Corporate Author: 
Ethiopian Economics Association (EEA)
Publisher: 
Ethiopian Economics Association (EEA)
ISBN/ISSN: 
978-99944-54-59-4
Primary Descriptors: 

Goat, marketing margin, average marketing cost

Secondary Descriptor: 

Value Chain, Spatial Market Price Integration

Geographic Descriptors: 
Ethiopia
Cataloge Date: 
09/28/2017
Broad Subject heading: 
Pastoralism
Call Number: 
330.0963 PRO 2017
Serial Key Title: 
Proceedings of the Fourteenth International Conference on the Ethiopian Economy
Publication catagory: 
Content type: 
Volume: 
I
Year: 
2017
Publication date: 
2017-06-01 00:00:00
Conference Place: 
Addis Ababa, EEA Multi-purpose Building Conference Hall
Place of publication: 
Addis Ababa, Ethiopia
Type of material: 
Book
Current frequency: 
Annually
Thematic area: 
Macroeconomics, Trade and Industry Related Topics
Conference date: 
July 21 – 23, 2016