1. 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
Advisors
Major Advisor: Legesse Dadi (PhD)
Co- Advisor: Girma Abebe (PhD)
Hawassa University
School of Governance and Development Studies
June 2012
Hawassa

2. Presentation Outline
• Introduction (Background)
• Statement of the Problem
• Research Questions and
• Objectives of the study
• Research Methodology
• Results and Discussion
• Conclusion and
• Recommendations

3. • 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
BackgroundBackground

4. • 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
BackgroundBackground

5. • 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
BackgroundBackground

6. • 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

7. • 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

8. • Research Question
1.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 study
1.To assess the contribution of SR fattening VC in improving
CFI HH financial I & FS
2.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 andResearch Question and
ObjectivesObjectives

9. 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 Methodology
Study 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

10. Research MethodologyResearch Methodology

11. 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
Research MethodologyResearch Methodology

12. 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 MethodologyResearch Methodology
SGP = Turnover (gross sales) – Direct cost
SGM =
………………….. (1)
…………………… (2)

13. Conceptual Framework of the studyConceptual Framework of the 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/NGO
MFI
Government Service providers/NGO
MFI
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
MFI
Government Service providers/NGO
MFI

14. Demographic characteristics of the respondents
Results and DiscussionResults and Discussion
Description Dale (n=92) Loka Abaya (n=95) Test
Mean 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 %
Sex
Male 66 71.7 70 73.7 136 72.7
Female 26 28.3 25 26.3 51 27.3
Marital Status
Single 3 3.3 0 0 3 1.6
Married 79 85.9 75 78.9 154 82.4
Widowed 10 10.9 19 20 29 15.5
Divorced 0 0 1 1.1 1 0.5
Education level
Illiterate 36 39.1 48 50.5 84 44.9
Read and write 15 16.3 22 23.2 37 19.8
Elementary 37 40.2 22 23.2 59 31.6
High School 4 4.3 3 3.2 7 3.7

15. SR fattening practice in the study areas
Results and DiscussionResults and Discussion
Description Woreda Name Overall
(N=187)
Test
Dale (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 90
Owning
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

16. 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

17. 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

18. 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 DiscussionResults and Discussion
Description Dale (n=92) Loka Abaya (n=95) Overall (N=187)
X2
P-ValueCount % Count % Count %
Fattened SR buyers
Butchers/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 by
Butchers/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

19. Results and DiscussionResults and Discussion
Fattened SR Price decision

20. Results and DiscussionResults 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

21. 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 0.802
Medium 636.94 650.00 0.019 0.892 619.09 675.56 4.100 0.045
Low 495.28 550.00 0.431 0.516 475.30 549.33 9.481 0.002
Average SGP when the price was …
High 290.58 328.00 0.099 0.755 353.24 335.42 0299 0.585
Medium 85.44 178.00 0.979 0.329 117.48 146.38 1.251 0.265
Low -56.22 78.00 2.540 0.120 -26.30 20.15 3.120 0.079
Average SGM when the price was …
High 33.26 41.27 0.568 0.456 40.15 36.28 2.734 0.100
Medium 16.41 33.68 0.966 0.332 17.00 18.70 0.245 0.621
Low -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)

22. 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,
Shabadino
Export market (not
discussed by this
study)
Supermarket at
Addis, Adama,
Debre Zeit
Cont …

23. Pd C* R/W Pr E C**
SmallRuminant
Fatteners
SmallRuminant
Fatteners
Village level
collectors
Village level
collectors
TradersTraders
Butchers & Hotels/ RestaurantsButchers & Hotels/ Restaurants
Local
Consumers
Local
Consumers
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
SupermarketsSupermarkets
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 …

24. SR contribution for HH income and
FS
Results and DiscussionResults and Discussion
Description Dale (n=92) Loka Abaya (n=95) Overall (N=187)
X2
P-ValueCount % Count % Count %
SR contribution for HH income
Increasing 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 0.518
I do not know 0 0 37 38.9 37 19.8 44.670 0.000
Income 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 0.015
Petty Trading 496.73 7.26 296.00 5.58 3.596 0.059
Daily 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 0.256
Total 6,841.86 100.0 5,300.18 100.0

25. Results and DiscussionResults and Discussion
• 97% from Dale and 78% from Loka Abaya (P<0.05)
confirmed that SR fattening has a contribution for HH FS
The way SR
contribute
for HH FS
Dale (n=89) Loka Abaya
(n=74)
Overall
(N=163) X2
P-
Value
Count % 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 ...

26. Results and DiscussionResults and Discussion
• 90% from Dale and 95% from Loka Abaya respondents did not
slaughter SG for HH consumption
Descriptio
n
Dale (n=92) Loka Abaya
(n=95)
Overall
(N=187) X2
P-
Valu
eCount % Count % Count %
SR contribution for HH income
To 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 ...

27. • 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 Discussion
SR Fattening Challenges and
opportunities

28. 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

29. HH Food Security Related
Results and DiscussionResults and Discussion
1. Access and
availability
Dale (n=92) Loka Abaya (n=95) Overall
(N=187)
X2
P-
Value
Count % Count % Count %
Producing own
food production
Yes 92 100.0 95 100.0 187 100.0 0.974 0.508
No 0 0 0 0 0 0
Enough amount
of own
production
Yes 7 7.6 15 15.8 22 11.8 3.013 0.065
No 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 0.003
No 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 0.017
No 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 0.414
No 45 48.9 49 51.6 94 50.3
Afford the market Yes 19 20.7 19 20.0 38 20.3 0.012 0.528

30. 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

31. 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 DiscussionResult and Discussion
Food self-sufficient HHs
Coping 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 0.508
Minimize 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

32. 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

33. 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

34. ConclusionConclusion
• 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

35. RecommendationRecommendation
• 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

36. RecommendationRecommendation

37. Thank you