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Business Oriented Livestock Farm for Sustainability: Experience of Haramaya University 

Mengistu Urge and Tekalign Tsegaw  

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Introduction   Haramaya University (HU) is a pioneer agricultural University that offers training in agriculture at medium and high levels in Ethiopia. At present, the University offers training in diversified fields of agriculture at the Bachelor of Science, Master of Science and Doctor of Philosophy levels. In connection with training of Agriculture professionals, research and community service, HU established farms of the major domestic livestock species, Beef, Dairy, Sheep and Goats and Poultry. The primary objective of establishing these farms was to support the practical teaching, research and community service activities in the field of animal sciences. Data obtained from some of these farms showed that the majority of the budget needed to run the farms was obtained either through research or development projects attached to the farms or a small amount of money from the government treasury through support to practical training. Reports also showed that the Dairy and Poultry farms generated revenue that covered the cost of production in years when nutrition and health of the animals were in good condition. The other farms are entirely project-funded and/or University budget dependent and the revenue generated from these farms was very minute and given little importance. The data showed that these farms were not business oriented and used external project and annual government budgetary funds to support the teaching and research activities of HU. Among the disadvantages of running farms with such budget sources is that less attention is given to improvements and sustainability of the farms, since the budget allocated for this purpose is usually very small. Thus, the infrastructure available for teaching and research activities at these farms remained very poor over the years. A good example of poor sustainability of a farm funded through external project funding was the declining activity at the Sheep and Dairy Goat farms during the recent past, particularly after the completion of the project initiated by FARM Africa. Realizing this fact, and because of other driving forces, HU is upgrading its livestock farms to the level of a business enterprise to better provide the following three basic services:

1) To serve as model farms for teaching 2) To facilitate staff and student research activities 3) To generate revenue transforming the farms into self-sufficient and profitable

enterprises. Beyond the need to sustain the farms and develop better infrastructure that can support quality education and research, the other driving force of this business-oriented transformation is the vision of the University and the future financial policy of higher learning institutions. Future finance policy requires Ethiopian universities to increase their income so that reliance on government funds will gradually decline. As a result, HU is working towards transforming its activities to business-oriented enterprises. Among these activities is the

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upgrading of animal farms with the aspiration to make them profit oriented enterprises. In so doing, the farms are not only used as a teaching and research facility, but also self-supporting and revenue generating profitable enterprises. Currently, the upgrading of Dairy, Poultry and the Beef fattening unit farms of the University were fully completed and the performance of these farm enterprises is encouraging. The upgrading of other farms is currently on-going. This paper is, therefore, presented with the following objectives. Objectives 

To highlight the major activities accomplished by HU in the process of transforming livestock farms to business enterprises.

To share lesson learnt with other institutions/firms involved in keeping research/teaching oriented livestock farms.

 Livestock farms at Haramaya University and the process of transformation.  Dairy Farm The Dairy Farm at Haramaya University was established in 1963 on the main campus of the University. The objective was to develop a dairy program and to improve dairy cattle productivity (Wells et al., 1969). Milk yield data from 1965 to 1996 showed that average lactation yield declined from over 4000 to about 2000 kg and the average daily milk yield per cow was 11.1 kg over the years mentioned. In view of the favorable climate at Haramaya, this level of milk production is low compared to some tropical countries (Moges and Baars, 1998). Although data are not well organized and reported, average lactation and daily milk yields per cow decreased to less than 2000 and 10 kg in the years from 1997 to 2004, respectively. Some of the reasons for the decline in productive performance of the dairy cows are poor management and disease problems such as mastitis. For example, it is reported that over 40 unproductive, diseased, and mastitis-affected cows were kept for many years and only culled in the year 2005/06 (Miscellaneous Dairy farm Records and Reports). Moges and Baars (1998) also concluded that feeding management is the major factor that caused the decline in milk production of the HU Dairy Farm. Furthermore, much of the Dairy Farm infrastructure prior to 2005/06 had deteriorated since it was installed at the farm’s inception. It is clear from these facts that the farm was not business oriented and was mainly focused on teaching activities. The Dairy Farm renovation and transformation activities started in the year 2005/06. Major changes made include the following:

Shelter/barns for lactating cows, replacement heifers, calves and bulls either underwent major repair or maintenance or were replaced by new buildings (Fig. 1).

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Fig. 1. Partial view of Dairy barns

The old milking parlors have undergone a complete repair and maintenance and an additional well-equipped milking unit was built (Fig.2).

Fig. 2. Partial view of the milking section of HU dairy farm

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A new milk processing and packaging system was installed and put in operation (Fig. 3). Before the transformation activity, milk was sold unprocessed and unpackaged. Now, milk is pasteurized, packaged and sold to consumers. This not only improves milk quality but also adds value to the teaching activity.

Fig. 3. Milking parlor and milk processing equipment of the HU Dairy Farm.

Improved feeding and health management has been introduced (forage production, Fig. 4), feeding cows according to production level, improved calf and replacement stock rearing, etc.)

Fig 4. Partial view of recently established forage fields.

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With the changes made, the total volume of milk, average daily milk production per cow and profitability of the farm has been improved from the year 2004-2008 (Fig. 5 and 6). The average daily milk yield per cow during the current year reached 14.5 kg. The increased milk volume has been achieved with a lower number of lactating animals than previous years.

Fig. 5. Volume of Milk Production at Haramaya University Dairy Farm (2002-2008).

2002

2003

2004

2005

2006

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2008

100000

125000

150000

175000

200000

225000

250000

275000

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ume o

f Milk

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(kg)

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Fig.6. Profitability trend of HU Dairy farm.

2006 2007 20080

100000

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900000Total revenueTotal costProfit

Year of producton

Tota

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Poultry Farm The Poultry Farm at the HU main campus was established in the 1960s with the initiation of an undergraduate program in Animal Science. Since then, the farm has rendered service to teaching and research as well as supplying poultry products to the University and the surrounding community. The renovation and transformation of the Poultry Farm to a profitable enterprise is largely complete with some works still in progress. Major changes made include the following:

Cage system layer house, with a capacity of over 5,000 was built almost two years ago (Fig. 7). Currently, about 4,000 synthetic strain egg layers are kept in this system. The percentage egg production from this system during the first year was greater than 85%.

A brooder house with a capacity of over 10, 000 baby chicks is newly constructed and is currently in use (Fig. 7). This house is fitted with automatic feeders and waterers.

Fig. 7. Cage system for layers and brooder poultry house of HU.

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New incubators that were not properly installed and put in use as well as some old incubators that were not used because of simple electrical and mechanical problem were repaired and installed (Fig.8). As a result, the hatchery unit which had almost ceased functioning for several years has currently grown its capacity to 21,000 eggs in one setting/incubation.

Fig. 8. Hatchery unit of HU Poultry Farm with large capacity incubators.

With this expansion, the total egg production grew from 99,486 eggs in the year 2002 to 672,162 during the first half of 2008, a 6 month production (Fig.9 and 10). The unit has started a process for introducing parent stock of layers and broilers in the near future. The farm has also a plan to satisfy the need for day old chicks/pullets in the eastern part of Ethiopia, and to expand its business and community service. Generally, the farm has been transformed to a model poultry farm that can be used for training, to undertake research with better facilities and resources and to generate satisfactory revenue to HU and further improvement of the farm (Fig.9 and 10).

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Fig. 9. Number of eggs produced at Haramaya Universit Poultry Farm (2001-2008)

2001

2002

2003

2004

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2008

50000

150000

250000

350000

450000

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650000

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*

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*six month production only

Num

ber o

f Egg

s

Fig. 10. Profitability trend of HU poultry farm.

2006 2007 20080

50000100000150000200000250000300000350000400000450000500000550000600000650000

Total RevenueTotal cost

Profit

Year of Production

Tota

l sal

es, c

ost a

ndpr

ofit

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Beef Farm The HU Beef Farm, like the other animal farms, was also established in the 1960s. During those years, a well established beef breeding program was carried out by the then Alemaya College of Agriculture from 1961 to 1967. This breeding work included crossbreeding Boran cattle with imported semen of Herfored, Aberden, Charolais, Brhaman and Santa Gertudis breeds (Wagner et al., 1969). In the 1980s, evaluation of the Ogaden cattle breed was started and continues today. However, the activities in beef production improvement lack continuity and business orientation as is the case in other farms. Very recently, the renovation and upgrading of the beef farm has bgun. The upgrading program consists of two sections, the fattening and breed evaluation. Activities include:

The construction of a new fattening unit (Hundred Day Beef Cattle Fattening Unit), with a capacity of over 400 animals, was completed and fattening has already started (Fig. 10). The unit is currently supplying meat to the student cafeteria at a reasonable price (35 Birr per kg meat) and with a profit. Since the end of September 2008, 761 head of cattle (9000 kg of meat) was supplied to the cafeteria. From the sale of the meat and other by products, the farm earned a gross profit of over 200,000 Birr. The future plan of the unit is to supply processed and packed meat (meat cuts) to the HU supermarket and to other Universities in the region.

Fig. 11. Cattle fattening unit of HU.

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Construction of modern abattoir is underway (fig.11)

Fig.12. New construction of modern abattoir at HU

Construction of breed evaluation unit is started (Fig. 12).

Fig 13. Beef breeding unit at HU.

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Sheep and Goat Farms The Sheep and Goat Farms are situated on the HU campus. The Sheep Farm was established at the opening of the undergraduate Animal Science Department in the 1960s to support small ruminant teaching and research activities. The Goat Farm was established in 1988 with an agreement between FARM Africa and the Ministry of Agriculture through a dairy goat development project. The infrastructure and management of the Sheep Farm has been poor and has served only teaching and research activities since its establishment. The Goat Farm has been better equipped and managed. Unlike the Sheep Farm, the Goat Farm has served the community during the last 20 years through distribution of crossbred goats to female farmers. The primary objective of establishing the Goat Farm was to serve as a breeding center. Crossbred goats (Anglo-Nubian×Somali) were distributed to the community, particularly women, to increase their income through improved milk production capacity. Records at the Goat Farm indicate that over 400 crossbred goats were distributed from the then Alemaya Goat Breeding and Distribution Center. As the FARM Africa goat project was ending, HU continued the breeding activity and distribution of goats on a smaller scale in response to the demand for crossbred dairy goats in the region. However, since budget to support these activities was erratic and dependent on the availability of projects, and because of the lack of supply of the pure exotic breed animals, the breeding and distribution activities decreased over the years. Currently, the farm is on the verge of losing the pure exotic breed. The flock at the Sheep Farm was de-stocked some four years ago because of low activity and poor management. Poor performance of the Sheep and Goat Farms, as indicated earlier, could be a good example of poor sustainability of livestock farms that are mainly or solely dependent on project funds. Currently, both the Sheep and Goat Farms are under renovation and expansion with the intention to transform them towards business oriented enterprises. Business plans are being prepared for the farms. According to the plans, both farms will have a breeding and a fattening unit. The breeding unit is supposed to be a continuation of the ESGPIP project. The progress to date includes:

Business plan preparation in progress Breeding block construction is near completion at the Goat Farm and started at

the Sheep Farm (Fig. 13 and 14).

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Fig. 14. New breeding unit of the HU Goat farm

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Fig.15. Excavated site at the Sheep Farm (breeding quarter) and preparation of construction material

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Lessons learned 

Business orientation stimulates development of university farms. This will not only contribute to the sustainability of the farm but also put in place facilities for research and practical training.

The sustainability of project-supported livestock farms is poor and an appropriate exit strategy for the period when project funding ends is required.

References  

Farm Africa Goat project, Miscellaneous Reports and Publications. Haramaya University Revenue generation Department Miscellaneous Reports. Moges Dereje and Baars R., Long term Evaluation of Milk Production and Reproductive

Performance of Dairy Cattle at Alemaya. 1998. Proceedings of the 6th Annual Conference of the Ethiopian Society of Animal Production. 14-15 May 1998, Addis Ababa, Ethiopia. pp176-183.

Wagner, O.G., Holland, G.L., and Tessera, M., 1969. Crossbreeding studies with

Ethiopian beef cattle using imported semen. East African Agriculture and Forestry Journal, 34 (4).

Wells, M. E., Wagner, D. G., Holland, G. L. Stringer, B. and Teshome Wondafrash,

1969. Production characteristics and management of dairy cattle in Ethiopia. East African Agricultural and Forestry Journal, 34:293-298.