PRODUCTION SYSTEM CHARACTERIZATION FEED

TECHNOLOGY PRIORITIZATION AND SHEEP VALUE CHAIN ANALYSIS, IN

HORRO DISTRICT OF OROMIA REGION, ETHIOPIA

Africa-RISING Quick Feed Project Synthesis Workshop, Addis Ababa, 3-4 September 2012

Gemeda DugumaBako Agricultural Research Center

OARI

OUTLINE OF PRESENTATION

Production systems characterization (FEAST) Feed technologies prioritization (TechFit) Sheep value chain analysis

BACKGROUND AND JUSTIFICATION

Horro is located at about 315 km from Addis Ababa

9º 34´N latitude and 37º 06´ E longitude Two major agro-ecologies: highland (49.8%)

and midland (48.96%) Lowland area covers only about 1.24% of the

total area of the district Diverse crops and livestock resources due to

its favorable production environments (Mixed crop-livestock agriculture)

•Human population ≈ 103,707 •Average family size ≈ 7 people•Livestock population ≈ 351,305 heads•Cattle 43.3 % and sheep 16.8%•Total land area of the district ≈ 77,998 ha•Average landholding/HH ≈ 1.8ha•Grazing lands ≈ 8.3% grazing lands•AGP District, ICARDA-ILRI-BOKU project site, USAID financed wheat seed production site of ICARDA

FEAST

Characterization of the Farming and Livestock

Production Systems and the Potential for enhancing

Productivity through Improved Feeding in

Horro District, Ethiopia

Objectives:

To assess feed resource availability and utilization using FEAST within the context of the overall farming and livestock production systems

To determine the potential of site-specific feed interventions in selected areas

METHODOLOGY

o Three kebeles were selected from Horro district o Criteria used to select the kebeles were:

Sheep production, crop production potential and accessibility About 15 farmers were selected from each kebele

Land holding, age, education and gender were considered in selecting the interviewees.

Kebeles № of households Altitudes (m.a.s.l.) GPS coordinates

Gitlo 501 2758 09 33´ N and 37 03´ E⁰ ⁰

Lakku 388 2710 09 34´ N and 37⁰ ⁰ 03´ E

Oda Buluq 457 2490 09 38´ N and 37⁰ ⁰ 04´ E

OVERVIEW OF FARMING SYSTEM

The average farm size was about 2 ha for Gitlo and Lakk and 1.6 ha for Oda Buluq kebele.

There is only one cropping season that coincides with the rainfall season in the three kebeles.

Predominant crops grown in the three kebeles include wheat, tef and barley in order of importance.

About 66.0% of households in Gitlo and 10.4% in Lakku have access to irrigation. The other kebele does not have irrigation access

CONTRIBUTION OF LS TO HOUSEHOLD INCOME

About 59%, 38% and 28% of the HH income contributed by LS in Gitlo, Oda Buluq and Lakku, respectively.

LIVESTOCK PRODUCTION SYSTEM

Livestock species

Uses

% of HH Av. № % of HH Av. № % of HH Av. №

Gitlo Lakku Oda Buluq

Local dairy cows

Traction, milk, income and manure 90 5 94.1 3 66.7 4

Improved dairy cows

Milk, traction, income from sell of male calves 0.20 3 3.8 3 0.22 1

Draught cattle Traction, threshing and income 70 2 91.1 2 77.8 2

Fattening cattle

Income (fattened cattle fetch higher price) 3 1 14.8 1 5.5 1

Sheep Income and manure97 15 100 15 88.9 8

Goats Income (twin and triplet bearers, fast reproduction and growth, etc) and manure 10 5 50 3 7.5 4

FEED AVAILABILITY

FEED QUALITY

Gitlo

Oda Buluq

Lakku

PROBLEMS

№Identified problems

Gitlo Lakku Oda Buluq

1. Knowledge 1 1 1

2. Feeds 2 3 2

3. Health 3 2 3

SOLUTIONS SUGGESTED BY FARMERS

№Identified problems

Suggested solutions for the identified problems by the farmers

1. Knowledge Training on improved animal husbandry practices in general and market-oriented animal production in particular

2. Feeds Improved forage production, conservation of crop residues, establishment of backyard forage production and reduction of number of animals owned

3. Health Equipping veterinary clinics with necessary equipment, drugs and skilled technicians, and proper feeding and housing managements to animals

WAY FORWARD--- FEAST Opportunities:

Availability of abundant crop residues

Good initiatives by ICARDA-ILRI-BOKU

Enlightened farmers

Recommendations:

Available feed technologies has to be prioritized for the specific kebeles using appropriate tool, like TechFit.

Optimizing the use of crop residue as animal feed has to get due attention.

success histories from different countries can be borrowed in this regard.

knowledge/skill gap of producers has to be filled through tailor made training.

Prioritizing feed technologies using TechFit in Horro district

Purpose:

Feed was reported to be one of the major problems

Paramount feed problems intervention technologies have been generated over years.

However, most of them were poorly adopted.

There has not been any workable approach or tool for filtering and prioritizing feed technologies for a specific situations.

Objectives : To prioritize and recommend suitable technologies for Gitlo, Lakku and Oda Buluq kebeles of Horro district using TechFit.

METHODOLOGIES Pre filter was made based on the context relevance (1 – 6) and impact potential score (1-6) scores.

Main filter was based on availability of attributes (score1 – 5), requirements of the attributes (score1 – 5) and scope for improvement

Costs of the technologies were compared with benefits obtained based on assumptions

Fattening of yearling rams was used for the cost benefit analysis

Out of 38 technologies 21 were dropped at pre filter.

The reasons were: Un availability Not known in the area Land demanding Agro ecological limitation

FINDINGS --- PRE FILTER

FINDINGS … MAIN FILTER

№ Technology filter

Gitlo Lakku Oda Buluq

Score Rank Score Rank Score Rank

1Feeding of home grown legume residues

67 1 57 1 35 7

2Re-threshing and mixing of crop residues

62 2 52 2 43 5

3Use of weeds, cut grass, tree leaves

61 3 52 5 52 1

4Hand chopping of crop residues

53 4 45 4 45 3

5Generous feeding of crop residues

53 4 44 2 44 4

6Supplement with agro-industrial by-products

46 6 43 6 42 6

7 Fodder trees 24 11 21 8 42 6

High ranked feed technologies

Feeding of home grown legume residues and re-threshing

and mixing of crop residues

The requirement for the techno attributes is minimum.

Re-threshing and mixing of crop residues is labor intensive compared to feeding home grown legumes .

FINDINGS … MAIN FILTER

Hand chopping of crop residues was not economical at the three kebeles

More additional costs attributed to: chopping of the residues purchase of chopper

The Benefit Cost ratio ranged from 1.43 to 1.93 at Gitlo/Lakku and from 1.34 to 1.93 at Oda Buluq

Net return ranged from ETB 20.18 to 38.95 and 15.66 to 43.18 at Gitlo/Lakku and Oda Buluq, respectively.

MAIN FINDINGS … COST BENEFIT ANALYSIS

Challenges

Cost benefit analysis was based on assumption

Most of the feed technologies make only partial contribution

Valuation of reproductive traits was not easy.

Lessons learned

The tool has strong power in screening technologies that are not relevant

Saves time and resource in identifying suitable technologies

Better understanding of why some technologies are not adopted

CHALLENGES, LESSONS AND WAY FORWARD

WAY FORWARD --- TECHFIT

Manual has to be prepared for users on how to use the tool

Validation of the cost-benefit analysis has to be made

Technologies related with crop residues have to be accompanied by supplementation with high quality feeds.

Valuation of non-marketable attributes or intangible attributes (eg. reproductive traits) is needed

FEAST AND TECHFIT RESULTS

Farmers suggestion for feed problems during FEAST discussion

Improved forage production, conservation of crop residues, establishment of backyard forage production and reduction of number of animals owned

TechFit result

Improved forage was not among the top ranked Crop residue related technologies favored

Farmers suggestion (improved forage) may based on advise of development workers

Discussion is needed with farmers to reach on agreement

VALUE CHAIN ANALYSIS OF SHEEP IN HORRO DISTRICT OF OROMIA

REGION, ETHIOPIA

G. Duguma, K. Degefa, T. Jembere, W. Temesgen, A. Haile and G. Legese

PURPOSE AND OBJECTIVES

Non-market oriented production Poor quality animals Inconsistent supply highly disorganized markets producers not linked to proper market and high

transaction cost Objectives

To identify major constraints and opportunities that influence development of sheep value chain

To suggest key intervention areas for development practitioners and policy action

To document important elements and modalities of market strategies to develop sheep value chain

METHODOLOGIES

A combination of different techniques were applied Secondary information (from DLHA, consulting relevant literatures and documents)

Focused Group Discussions (FGD) Key informants interview, and Visual observations

Different set of checklists were used for different group of actors

MAJOR FINDINGS – MAP OF CORE FUNCTIONS

Input supply

Production Marketing ProcessingConsumption

s

Supply of:

Breeding stockVeterinary services

Supply of:

Breeding stockVeterinary services

FeedingHerdingHousingBreeding

FeedingHerdingHousingBreeding

CollectionTransportingFeedingSelling

CollectionTransportingFeedingSelling

Slaughtering Frying / cookingMeat retailingChillingTreating Packing

Slaughtering Frying / cookingMeat retailingChillingTreating Packing

ConsumptionConsumption

Hotels, butcheries

,E.

abattoirs

DLHA, BARC, ICRDA,

ILRItraders

Smallholder Framers

Farmers,Collectors,

TradersE. abattoirs

Consumers

Foreign Domestic

10 %

H. Shoxi

15 %

10 %10 %20 %

15 %10 %

80 %

10 %

50 %

25 %

20 %

10 %

30 %

Sheboka

MAJOR FINDINGS – MARKET ROUTES

Gaba Sanbata

Saqala

BahirdarFincha’a sugar

factory

Shambu

Harato

Baqale

Dongoro

Jare

Bako

Addis Ababa

Nekmete

Anger Gute

Sire

Export abattoirs

Fincha’a town

MAJOR FINDINGS – MARKET CHANNELS

Farmers(Breeding purpose)

Farmers(Breeding purpose)

Individual consumersIndividual consumers

Addis Ababa traders

Addis Ababa traders

Processing Processing Butchers Butchers Hotels Hotels

Marketing Marketing

Big traders Big traders Small traders Small traders CollectorsCollectors

Production Smallholder sheep producersSmallholder sheep producers

Export abattoirsExport

abattoirs

Land tenure Land tenure

ConsumptionConsumption

SecuritySecurityRules and regulations Rules and regulations Enabling environmentsEnabling environments

Veterinary services

Veterinary services

Extension services

Extension services

Finance/credit Finance/credit TechnologyTechnologyInput supply Input supply Market information

Market information

Export market

MAJOR FINDINGS – MAJOR CHANNELS

Six major sheep marketing channels identified:

Channel 1: Sheep slaughtered at hotels

Channel 2: Sheep slaughtered at butcheries

Channel 3: Sheep purchased by individual consumers

Channel 4: Sheep purchased to Addis Ababa markets

Channel 5: Sheep purchased by other farmers for breeding

purposes

Channel 6: Sheep slaughtered at export abattoirs

MAJOR FINDINGS – MARKET MARGINS

Marketing cost

Marketing margin

Net margin Producer’s share of final price %

Proportion of value added (%)

Channel 1 292.2 531.75 239.55 55.0 27.8

Channel 2 190.95 223.0 32.05 70.0 4.9

Channel 4 16.45 250.0 233.55 60.0 21.2

Channel 6 87.5 256.9 169.4 57.0 25.2

Input supply Shortage of veterinary drugs Shortage of skilled technicians (6) Lack of transportation facilities

Production constraints Feed shortage (1) Poor/traditional housing High incidence of liver fluke and lice infestation (2) Lack of training on market sheep production and management (4)

Market constraints Transportation problems – road problem Limited access to market information and low bargaining power (3) Animal theft and gaps in the law to penalize the criminals Shortage of consistent supply of quality sheep and multiple taxation

(5) Lack of vertical linkage of sheep producers with other actors in the

value chain (8) Weak horizontal linkages among sheep farmers (7) Seasonality of demand for sheep

MAJOR FINDINGS – CONSTRAINTS

MAJOR FINDINGS – OPPORTUNITIES Very enthusiastic sheep producers that have been tested for

about four years (ILRI-ICARDA-BOKU sheep breeding site) The presence of large sized, fast grown & prolific sheep breed –

respond well to supplementary feeds (150-200g/h/d) An increasing trend of demand for live sheep and sheep meat The presence of community-based sheep breeding project Possibility of scaling up community-based sheep breeding

program to wider areas Market access and conduciveness of the district for various

crops and livestock production particularly sheep The district is the USAID financed ICARDA wheat seed

production site Government’s commitment and support to increase export of

meat The presence of higher learning institution (WU)- Gitlo is the

experimental site of the university Skilled and enthusiastic research staff The area is AGP district

CONCLUSION

Both domestic and export markets prefer young and fattened animals

However, due to the following factors producers are not benefited from the huge sheep population The existing market is fragmented and transaction cost

is high The existing production system is not market oriented –

poor quality animals, supply is inconsistent There is shortage of feeds particularly during dry

seasons Animal health problems (liver fluke, lice infestation, etc.) Seasonality of demand for sheep Lack of credit

SEASONALITY OF SHEEP PRICE

Source: Duguma et al. (2012, unpublished)

RECOMMENDATION

Strengthening and scaling up of the community-based sheep breeding – to ensure continuous supply of quality animals

Use of fattening technologies Training of producers and extension workers in livestock marketing Creating /strengthening horizontal linkage among farmers to

improve their exchange of breeding stock and their market supply Conservation and wise utilization of crop residues Assigning skilled manpower Provision of transportation facilities Provision of training on market oriented sheep production

and management Organizing sheep farmers into breeding and marketing

coops Proper use of the revolving fund allocated for purchase of

veterinary drugs Training community-health workers

MEETING EXPECTATION

Sheep producers of the study area generously provided their experiences and information without any reservation

In return, they expect further intervention based on recommendations resulting from the three studies conducted in the area

I believe that we, ILRI, ICARDA, OARI/BARC, need to find a means in responding to these expectations

Thank you!