- Email: [email protected]
Marketing value-chain of smallholder sheep and goats in crop-livestock mixed farming system of Alaba, Southern Ethiopia
Small Ruminant Research 96 (2011) 101–105
Contents lists available at ScienceDirect
Small Ruminant Research journal homepage: www.elsevier.com/locate/smallrumres
Short communication
Marketing value-chain of smallholder sheep and goats in crop-livestock mixed farming system of Alaba, Southern Ethiopia Tsedeke Kocho a,∗ , Girma Abebe b , Azage Tegegne c , Berhanu Gebremedhin c a b c
Areka Agricultural Research Center, P.O. Box 79, Areka, Ethiopia University of Hawassa, P.O. Box 05, Awassa, Ethiopia International Livestock Research Institute (ILRI), P.O. Box 5689, Addis Ababa, Ethiopia
a r t i c l e
i n f o
Article history: Received 24 August 2010 Received in revised form 11 January 2011 Accepted 17 January 2011 Available online 16 February 2011 Key words: Sheep Goats Smallholder farmers Marketing system Value chain Constraints Market innovation Alaba Southern Ethiopia
a b s t r a c t This study was conducted in Alaba district of Southern Ethiopia to describe smallholder sheep and goats marketing systems, identify marketing constraints and suggest improvement options to enhance incomes of smallholder producers. Informal and formal study tools of focused group discussion, key informant interview, household survey and rapid market appraisal were employed to gather information from development partners, smallholder farmers, traders, transporters and consumers. Smallholder farmers sale sheep and goats to fulfill immediate household cash needs, particularly to acquire food items. Smallholder producers, small and large traders, brokers, transporters and consumers are the major market participant across the market channels. Mode of marketing is mainly on ‘eye-ball’ basis with one-on-one price negotiation. Farmers market animals of different age, sex and weight either at farm gate or local markets, while a range of traders are involved at various stages of markets until the animals reach final consumers. Supply, demand and price of animals have clear seasonal variations. Abuse by brokers, lack of price information, access to incentive markets, poor market infrastructure and seasonality of markets are the major challenges in improving benefit and livelihood of smallholder sheep and goat producers. Commercialization of smallholder systems, standardizing marketing with marketing information and infrastructures, integrated intervention of the market channels along the value chains and market actors, formation of marketing groups and co-operatives could improve marketing efficacy and profitability of smallholder sheep and goat system. © 2011 Elsevier B.V. All rights reserved.
1. Introduction Ethiopia has 24,017,000 sheep and 21,884,000 goats (CSA, 2009) which is one of the largest and most diverse in Africa (CSA, 2009). They are owned by smallholder farmers and are widely distributed across different agro-ecological zones. The production system is virtually traditional and
∗ Corresponding author. Current address: Animal Breeding and Genomics Centre, Wageningen University, P.O. Box 338, 6700 AH Wageningen, The Netherlands. Tel.: +31 7 482335; fax: +31 7 483929. E-mail address: [email protected] (T. Kocho). 0921-4488/$ – see front matter © 2011 Elsevier B.V. All rights reserved. doi:10.1016/j.smallrumres.2011.01.008
contributes to both subsistence and cash generation (Ehui et al., 2000; Ayalew et al., 2003). Sheep and goats are considered as investment and insurance and provide income to meet seasonal purchases of food, improved seed, fertilizer and medicine and during crop failure and drastic drops in crop prices (Legesse et al., 2008). Although Ethiopia has a large sheep and goat population that significantly contribute to the livelihoods of smallholder farmers (IPMS, 2005), there is lack of information on sheep and goat and skin marketing, market constraints and opportunities for improvement. In order to shift sheep and goat production from subsistence to a more commercial outlook, it is important to understand aspects of market
102
T. Kocho et al. / Small Ruminant Research 96 (2011) 101–105
and marketing (Legesse et al., 2008). Farmers need to be aware of the preferred characteristics of animals as well as price patterns so that they can plan breeding and fattening programs consistent with the market demand and consumers’ preferences (Andargachew and Ray, 1993). Thus, this study is aimed at describing the smallholder sheep and goats and skin marketing systems, identifies marketing constraints in the context of holistic value chain approach and to pinpoint improvement options to enhance benefits to smallholder producers.
2. Materials and methods The study was conducted in Alaba district of Southern Nations, Nationalities and People’s Regional (SNNPR) State of Ethiopia located in 7◦ 17 N latitude and 38◦ 06 E longitude. Altitudes range from 1554 to 2149 meter above sea level, with dry to moist agro-ecology. Annual rainfall varies from 857 to 1085 mm occurring in a bimodal pattern. Crop-livestock mixed farming is the dominant production system with the ruminant livestock population composed of 161,566 cattle, 43,141 goats and 34,760 sheep (IPMS, 2005). Informal and formal survey tools, focus group discussions and key informants interview with producers and traders were held using checklists on production, marketing and consumption of sheep and goats. Expert consultation, field visits and secondary data were used for sampling the study sites and households. The district was stratified into three sites of sheep dominating (comprising proportional households of 30), goat dominating (60 households) and sheep-goat mixed (60 households) based on total land holding and distribution of sheep and goat flocks. Then, a total of 150 households owning flocks of at least one breeding female were randomly selected for household survey. A structured questionnaire was framed, pre-tested, translated into local language and administered by trained Development Agents. Rapid market appraisal (Holtzman, 2004) was employed to study the holistic marketing system. Randomly selected traders (total of 14), agents of abattoirs (7), abattoirs (3), transporters (5) and consumers (19) in different markets and marketing days were interviewed. Twenty-five sheep and goat market channels to and from Alaba were mapped using Geographical Information System (GIS) after readings by Geographical Positioning System (GPS) (GARMIN® GPS72 2002–2003) and assessed. Marketing services and infrastructure were documented. Alaba Kulito and Adilo markets were studied to document the types of animals, volume of supply, demand patterns, prices, major market participants and routes of animals. Preferences and purchasing prices of consumers in Addis Ababa were assessed. Butcher, catering service providers in Alaba Kulito town were interviewed regarding consumption patterns, preferences and uses of sheep and goat meat, as well as preferences of customers to mutton and goat meals. Collection, processing and marketing of skins by legally registered business centers at Alaba Kulito were also assessed. The household survey data was analyzed using descriptive statistics of SPSS (2009). A Pearson’s chi-square test (X2 ) was used to assess the statistical significance of household responses across the study sites. Data were fitted to a simple linear model, considering study sites as a factor.
Yij = + i + εij
where Yij = response of marketing variables; = population mean; i = 1–3 study sites; εij = residual. The questionnaire was an open-ended and households provide single or multiple responses for a given question and thus the column sums often exceed 150 (Tables 1–3). Results presented in column of sheep–goat mixed sites are total count of respondents with its corresponding percent in bracket, obtained by dividing total respondents in a cell by total households of the site [nij /30 * 100]. Column in goat dominant site is total respondents with its percent [nij /60 * 100]. Similarly, sheep dominant site presented with total respondents and its percent in bracket [nij /60 * 100]. The overall responses of the district are presented with sum of respondents in a row with its percent in bracket [nij /150 * 100].
3. Results The main reasons household sale sheep and goat are to generate cash for purchasing food and farm inputs, school and medical expenses, pay credit, purchase livestock and build assets (Table 1). The district is prone to drought and thus sales peak during crop failures and food shortage. Farmers market sheep and goats of different age, sex, weight and condition. Overall, 32% goat and 28% sheep owners prefer to dispose intact male animals, while 22% sheep and 27% goat owners prefer to sale castrated males that fetch higher prices. Rural assemblers, often farmers, buy animals at farm gates and local markets. All the sheep and goat markets lack animal holding and measurement facilities and marketing made without price information. Individual consumers and catering service providers purchase animals from Alaba Kulito market, larger livestock market in the district and other small local markets. Agents of export abattoirs purchase young male sheep and goats weighing 13–30 kg from Alaba and other surrounding markets. Specialized and large traders from terminal markets, especially Addis Ababa purchase animals from Alaba Kulito, Adilo and other local markets during major holidays and festivals. The majority of producers (96.7%) market animals on ‘eye-ball’ basis, in which transactions are made on individual basis and agreements reached after a long one-to-one bargaining between buyers and sellers. Local and terminal traders are better informed about demand and prices and fix prices, thus producers are often price takers. The reason for ‘eye-ball’ marketing is due to lack of measurement infrastructures. Only agents of export abattoirs buy animals on live weight basis. Sheep and goats are marketed at farm gates or nearest local markets regardless of ethnic and administrative boundaries. There are two major market routes (Fig. 1) through which animals exit from Alaba district. The first route is agents of export abattoirs purchase and assemble young male animals from local markets. The second and most important route is traders collect animals from Alaba and Adilo and supply to secondary and terminal domestic markets in large cities including Addis Ababa. Adilo is the famous market visited by terminal traders in the SNNPR. Besides the live animals, skins are important marketable by-product in Alaba. Although skins are used for various household purposes, about 60% of total produced skins are marketed. However, one-third of the total household sale skins to illegal traders. There is a remarkable seasonal variation of supply, demand and price of animals. Sales peak during holidays, crop planting and harvesting and drought periods. Although the supply of animals increases during major holidays, prices remain high due to sky rocketing demand within and outside the district. Demand and price for breeding and fattening animals increase right after crop harvest. Sales become higher during crop failure and drought, and as a result prices become very low. Id Al Fetir, Id Al Adha, New Year, Easter and Christmas in that order are peak seasonal markets in the district (Table 2). Animals are collected, assembled and transported to terminal markets as the festival days approach. In Addis Ababa, sheep from Adilo, Alaba, Kambata Tambaro, Dawuro, Wolaita, Gamo
T. Kocho et al. / Small Ruminant Research 96 (2011) 101–105
103
Table 1 Purposes of selling sheep and goats. Purposes
Purchase farm inputs School expenses Medical expenses Escape loss risks Purchase food items Pay back credits Purchase livestock, cloth, assets, etc.
Mixed flock site (n = 30)
Goat dom. site (n = 60)
Sheep dom. site (n = 60)
Overall (N = 150)
Test
(Percent)
(Percent)
(Percent)
(Percent)
2
P-value
7 (23.3) 7 (23.3) 8 (26.7) 2 (6.7) 19 (63.3) 7 (23.3) 10 (33.3)
10 (16.7) 6 (10.0) 4 (6.7) 0 22 (36.7) 7 (11.7) 2 (3.3)
19 (31.7) 13 (21.7) 13 (21.7) 1 (1.7) 30 (50.0) 13 (21.7) 8 (13.3)
36 (24.0) 26 (17.3) 25 (16.7) 3 (2.0) 71 (47.3) 27 (18.0) 20 (13.3)
6.265 2.463 3.556 0.750 4.139 7.902 0.686
0.180 0.651 0.469 0.521 0.388 0.095 0.953
Table 2 Seasonal holiday and festival markets targeted by respondents in Alaba district. Targeted holiday markets
New year Easter Christmas Meskel Id Al Adha Id Al Fetir
Mixed flock site (n = 30)
Goat dom. site (n = 60)
Sheep dom. site (n = 60)
Overall (N = 150)
Test
(Percent)
(Percent)
(Percent)
(Percent)
2
P-value
18 (60.0) 22 (73.3) 9 (30.0) 0 20 (66.7) 26 (86.7)
21 (35.0) 11 (18.3) 17 (28.3) 5 (8.3) 39 (65.0) 39 (65.0)
37 (61.7) 32 (53.3) 21 (35.0) 0 35 (58.3) 45 (75.0)
76 (50.7) 65 (43.3) 47 (31.3) 5 (3.3) 94 (62.7) 110 (73.3)
9.842 28.710 0.651 7.759 0.826 4.943
0.007 0.000 0.722 0.021 0.662 0.084
Table 3 Constraints to sheep and goats and skin marketing. Constraints
Sheep and goats Excessive tax Brokers/dealers Seasonality of markets Lack of market access Lack of price information Skins Lack of price information Lack of technical support Poor skin quality
Mixed flock site (n = 30)
Goat dom. site (n = 60)
Sheep dom. site (n = 60)
Overall (N = 150)
Test
(Percent)
(Percent)
(Percent)
(Percent)
2
12 (40.0) 21 (70.0) 8 (26.7) 9 (30.0) 19 (63.3)
5 (8.3) 21 (35.0) 7 (11.7) 19 (31.7) 20 (33.3)
24 (40.0) 36 (60.0) 15 (25.0) 15 (25.0) 22 (36.7)
41 (27.3) 78 (52.0) 30 (20.0) 43 (28.7) 61 (40.7)
18.175 0.000 12.38 0.002 4.375 0.112 0.685 0.710 8.123 0.017
20 (66.7) 27 (90.0) 3 (10.0)
50 (83.3) 52 (86.7) 7 (11.7)
47 (78.3) 54 (90.0) 6 (10.0)
113 (75.3) 133 (88.7) 16 (10.7)
1.281 0.527 0.398 0.820 0.105 0.949
Gofa and Hadiya areas of the SNNP region are collectively called ‘Wolaita sheep’. They are highly preferred and fetch highest prices due to their pleasant flavor and tender meat, high carcass and edible non-carcass component yields and high aesthetic value of sheep with white, brown or mixed
coat color, big size, short and shiny hairs and good body condition. Smallholder farmers confront various marketing constraints (Table 3). ‘Eye-ball’ marketing usually involves brokers and they interfere transactions. About 52% of total
Agents for Export Abattoirs
Producers
Rural Assemblers
P-value
Alaba Kulito Market
Export Abattoirs
Terminal Market Traders
Consumers in Alaba Fig. 1. Market channels of sheep and goats in Alaba district, Ethiopia.
Terminal Domestic Market
104
T. Kocho et al. / Small Ruminant Research 96 (2011) 101–105
respondents complained the higher commission requested by brokers and also misinform and repel of potential buyers. Due to lack of standardized marketing systems with transparent price information, 40.7% of the total respondents reported they are recipient of trader prices. About 28.7% of total respondents also indicated that lack of access to incentive domestic and export markets hinder them from obtaining incentive benefits. Incentive markets appear only during major festivals. Regarding skin marketing, about 11% of the respondents supplied poor grade skins and received low prices. Respondents reported that skins from their animals are of poor quality due to ectoparasite infestation and poor nutrition. Farmers usually supply poor quality skins to traders and processors who remove meat leftovers, apply salt, wash, dry, pack, grade and supply to central markets. Local processing units operate with poor facilities and less experienced workers. Central markets are few in number and pay lower prices. The extension system provides little or no technical support to farmers regarding production, preservation and marketing skin. 4. Discussion In Ethiopia, livestock are marketed in four-tier structure in which animal are channeled from smallholder farmers to consumers with multiple transactions and actors at several levels (Ehui et al., 2000; Solomon et al., 2003). Rural assemblers, large traders and butchers transact animals at local and secondary markets. Big traders and butcher purchase animals in terminal markets. Consumers either purchase of the animals from terminal markets or butchers. The markets often do not have proper infrastructures, and yet buyers and sellers are subjected to service charges by local authorities (Solomon et al., 2003). Animals are generally traded by ‘eye-ball’ pricing on a per-head basis and agreements are reached after bargaining involving brokers. Markets operating under such conditions offer little benefits to producers and also increase the costs on the final consumer (Andargachew and Ray, 1993). Supply and demand of small ruminants reach peak during religious holidays and festivals (Andargachew and Ray, 1993). Factors affecting market supply include high demand during festivals, lambing season, quality and quantity of grazing, as well as cash needs for crop inputs and, later, for food purchase before harvesting (Ehui et al., 2000; Solomon et al., 2003). Excess supply effectively suppresses producer prices since the more mobile traders are better informed on market prices, and are in a better position during price negotiation (Solomon et al., 2003). Poor marketing infrastructure, lack of marketing information, high transaction costs, lack of access to formal credit sources, poor roads and exorbitant transport fees, lack of standardization and grading and low purchasing power of buyers are major constraints affecting the efficiency of livestock marketing (Ajala and Adesehinwa, 2007). Sheep and goat skins are channeled to central markets and tanneries through extensive network of traders and sub-agents. As a result, it takes a long time along the channels and this deteriorates the quality and value of skins (Mahmud, 2000) and as the result there is a total loss of 5–10% sheepskins and 30–40% goatskin in the country (Kebede, 1998).
Population growth, urbanization and income growth increase meat and milk consumption and create a veritable Livestock Revolution (Delgado et al., 1999); expanding market opportunities for smallholder livestock producers (Peacock and Sherman, 2010). However, productivity of smallholder livestock has to be improved, which is possible only if the system is partly commercialized through market outlets and pricing policy offering farmers and pastoralists more incentives (Beets, 1990; Musemwa et al., 2007). To achieve improved marketing efficiency, attention must be given to improvement in infrastructure, market information and intelligence, formulation of new marketing policies and institutional reforms to ease constraints on market involvement (Solomon et al., 2003; el Dirani et al., 2009). Low purchasing power of traders in informal marketing channels limit their capacity to increases number and volume of trade (Musemwa et al., 2007) and provision of credit to small and large traders overcomes their market entry due to lack of own-capital (Ajala and Adesehinwa, 2007). Value-chain has a vital role in the process of rural development (Marsden et al., 2000) illustrates the interactions of increasingly dynamic and complex markets and examine the inter-relationships between diverse actors involved in all stages of the marketing channel (Schmitz and Knorrina, 2000). Production per se is only one of a number of value added links and there are ranges of activities within each link of the chain (Anandajayaskeram et al., 2008). Value chain innovation helps for understanding problems of market access, distribution of gains along the chain, nature and determinants of smallholder competitiveness in market chains and find leverage points for designing and implementing appropriate development programs and policies that enhance market participation of smallholder producers (Rich et al., 2009). Partnership and networks among actors of the chain can improve the development and delivery of innovations that directly affect the livelihoods of smallholder sheep and goat producers (Anandajayaskeram et al., 2008). As many factors interact, adequate marketing innovation requires better planning and coordination among smallholder producers, producer organizations, small and larger traders, private sectors, concerned governmental and non-governmental organizations and consumers (Beets, 1990). The formation of small farmer groups and associations has the potential to increase access to information, increase participation in formal markets and lower transaction costs (Musemwa et al., 2007). Identifying and establishing new market niches could also help improve rural communities to generate greater incomes (Juma et al., 2010). Smallholders could take advantage of niches domestic and export markets that could pay higher prices for specific breeds and locations through formation of marketing groups (Musemwa et al., 2007). A group of small farmer established co-operatives for marketing beef cattle (Marsden et al., 2000) and vegetables (Musemwa et al., 2007) has improved collective strength in the supply chain and enhanced financial returns to farmers. Trade associations like co-operatives could also build trust, promote reputation and social capital and enhance livestock marketing efficiency of smallholder farmers (el Dirani et al.,
T. Kocho et al. / Small Ruminant Research 96 (2011) 101–105
2009) could enhance profitability, market oriented production and sustainability of smallholder systems (Peacock and Sherman, 2010). 5. Conclusion Sheep and goat are an integral part of the smallholder crop-livestock mixed farming systems of Alaba district providing multiple functions as in the other dry and mid agro-ecologies of Ethiopia. They are kept for sale to generate immediate cash to meet household needs. A chain of market channels and actors are involved in the marketing of sheep and goats and their products. Animal marketing is explicitly made on ‘eye-ball’ basis and prices are set by bargaining between producers and traders. Almost all markets operate without price information and marketing infrastructures and are major bottlenecks to offer better incentives to smallholder producers. Opportunities for export markets are limited due to food safety and quality requirements. However, there are potential domestic markets paying higher price for animals. A value chain intervention along market channels and possible actors, coordinated efforts of all concerned stakeholders and integrated marketing policy could alleviate the current market barriers and empower smallholder producers to participate in formal markets. Establishing marketing groups or cooperatives and creating efficient marketing systems could strengthen their capacity to supply their animals directly to consumers in the existing or emerging incentive market niches. This could help smallholder farmers overcome the marketing constraints and improve their income and livelihood through market-oriented commercialization of subsistence smallholder production practices. Acknowledgements We thank the Improving Productivity and Market Success (IPMS) of Ethiopian Farmers for financing the study and the Southern Agricultural Research Institute (SARI) for providing study leave for the senior author. The contribution of development agents in data collection and farmers, traders, consumers, and transporters who provided the necessary information is sincerely acknowledged. References Ajala, M.K., Adesehinwa, A.O.K., 2007. Roles and efficiency of participants in pig marketing in the northern part of Nigeria. J. Central Eur. Agric. 8, 311–326. Anandajayaskeram, P., Puskur R, Workneh, S., Hoekstra, D., 2008. Concepts and Practices in Agricultural Extension in Developing Countries: A Source Book. IFPRI (International Food Policy Research Institute), Washington, DC, USA, and ILRI (International Livestock Research Institute), Nairobi, Kenya, 275 pp.
105
Andargachew, K., Ray, F.B., 1993. Intra-annual sheep price patterns and factors underlying price variations in the central highlands of Ethiopia. Agric. Econ. 8, 125–138. Ayalew, W., Rischkowsky, B., King, J.M., Bruns, E., 2003. Crossbreds did not create more net benefits than indigenous goats in Ethiopian smallholdings. Agric. Syst. 76, 1137–1156. Beets, W., 1990. Raising and Sustaining Productivity of Smallholder Farming Systems in the Tropics. AgBe Publishing, Alkmaar, Holland. CSA (Central Statistical Agency of the Federal Democratic Republic of Ethiopia), 2009. Agricultural Sample Survey, 2008/09). Report on Livestock and Livestock Characteristics (Private Peasant Holdings). Statistical Bulletin 388. Vol. II, Addis Ababa, Ethiopia. Delgado, C., Rosegrant, M., Steinfeld, H., Ehui, S., Courbois, C., 1999. Livestock to 2020: The Next Food Revolution. 2020 Vision Initiative Food, Agriculture, and the Environment Discussion Paper 28. IFPRI, FAO. Ehui, S.K., Benin, S., Gebreselassie, N., 2000. Factors affecting urban demand for live sheep: the case of Addis Ababa, Ethiopia. Socioeconomics and Policy Research Working Paper 31. ILRI (International Livestock Research Institute), Nairobi, Kenya, 32 pp. el Dirani, O.H., Jabbar, M.A., Babiker, I.B., 2009. Constraints in the Market Chains for Export of Sudanese Sheep and Sheep Meat to the Middle East. Research Report 16. Department of Agricultural Economics, University of Khartoum, Khartoum, the Sudan, and ILRI (International Livestock Research Institute), Nairobi, Kenya, 93 pp. Holtzman, J.S., 2004. Markets and Agro Enterprises. Rapid Appraisals of Commodity Sub Sectors, Abt Associations Inc. IPMS, (Improving Productivity and Market Success) of Ethiopian Farmers, 2005. Alaba Pilot Learning Site Diagnosis and Program Design. IPMS, Addis Ababa, Ethiopia. Juma, G.P., Ngigi, M., Baltenweck, I., Drucker, A.G., 2010. Consumer demand for sheep and goat meat in Kenya. Small Ruminant Research 90, 135–138. Kebede, Z., 1998. Marketing of sheep and goat skins in Ethiopia. In: Proceeding of Conference. Phase II. Ministry of Agriculture, Addis Ababa, Ethiopia and Technical Cooperation Programme, FAO, Italy, Rome: MoA Conference on In-Service Training Exercise on Hides and Skins Improvement, Addis Ababa, Ethiopia, 9–12 February. Legesse, G., Abebe, G., Siegmund-Schultze, M., Valle Zarate, A., 2008. Small ruminant production in two mixed-farming systems of southern Ethiopia: status and prospects for improvement. Expl. Agric. 44, 399–412. Mahmud, A., 2000. Development potential and constraints of hides and skins marketing in Ethiopia. In: Proceeding of a Conference of Opportunities and Challenges of Enhancing Goat Production in East Africa. Langston University, OK (USA). E(Kika) da la Garza Inst. for Goat Research; Debub Univ. Awassa (Ethiopia). College of Agriculture, 10–12 November 2000, Awassa, Ethiopia, pp. 113–117. Marsden, T., Banks, J., Bristow, G., 2000. Food supply chain approaches: exploring their role in rural development. Sociol. Ruralis 40, 424–438. Musemwa, L., Chagwiza, C., Sikuka, W., Fraser, G., Chimonyo, M., Mzileni, N., 2007. Analysis of cattle marketing channels used by small scale farmers in the Eastern Cape Province, South Africa. Livestock Res. Rural Dev., p. 19. Peacock, C., Sherman, D.M., 2010. Sustainable goat production—some global perspectives. Small Rumin. Res. 89, 70–80. Rich, K.M., Baker, D., Negassa, A., Ross, R.B., 2009. Concepts, applications, and extensions of value chain analysis to livestock systems in developing countries. In: International Association of Agricultural Economists Conference , Beijing, China, August 16–22. Schmitz, H., Knorrina, P., 2000. Learning from global buyers. J. Dev. Stud. 37, 177–205. Solomon, A., Workalemahu, A., Jabbar, M.A., Ahmed, M.M., Hurissa, B., 2003. Livestock Marketing in Ethiopia: A Review of Structure, Performance and Development Initiatives. Socio-economics and Policy Research Working Paper 52. ILRI (International Livestock Research Institute), Nairobi, Kenya. SPSS (2009) for Windows, Rel. 17.0, 2009. Chicago: SPSS Inc., Chicago, IL.
Contents lists available at ScienceDirect
Small Ruminant Research journal homepage: www.elsevier.com/locate/smallrumres
Short communication
Marketing value-chain of smallholder sheep and goats in crop-livestock mixed farming system of Alaba, Southern Ethiopia Tsedeke Kocho a,∗ , Girma Abebe b , Azage Tegegne c , Berhanu Gebremedhin c a b c
Areka Agricultural Research Center, P.O. Box 79, Areka, Ethiopia University of Hawassa, P.O. Box 05, Awassa, Ethiopia International Livestock Research Institute (ILRI), P.O. Box 5689, Addis Ababa, Ethiopia
a r t i c l e
i n f o
Article history: Received 24 August 2010 Received in revised form 11 January 2011 Accepted 17 January 2011 Available online 16 February 2011 Key words: Sheep Goats Smallholder farmers Marketing system Value chain Constraints Market innovation Alaba Southern Ethiopia
a b s t r a c t This study was conducted in Alaba district of Southern Ethiopia to describe smallholder sheep and goats marketing systems, identify marketing constraints and suggest improvement options to enhance incomes of smallholder producers. Informal and formal study tools of focused group discussion, key informant interview, household survey and rapid market appraisal were employed to gather information from development partners, smallholder farmers, traders, transporters and consumers. Smallholder farmers sale sheep and goats to fulfill immediate household cash needs, particularly to acquire food items. Smallholder producers, small and large traders, brokers, transporters and consumers are the major market participant across the market channels. Mode of marketing is mainly on ‘eye-ball’ basis with one-on-one price negotiation. Farmers market animals of different age, sex and weight either at farm gate or local markets, while a range of traders are involved at various stages of markets until the animals reach final consumers. Supply, demand and price of animals have clear seasonal variations. Abuse by brokers, lack of price information, access to incentive markets, poor market infrastructure and seasonality of markets are the major challenges in improving benefit and livelihood of smallholder sheep and goat producers. Commercialization of smallholder systems, standardizing marketing with marketing information and infrastructures, integrated intervention of the market channels along the value chains and market actors, formation of marketing groups and co-operatives could improve marketing efficacy and profitability of smallholder sheep and goat system. © 2011 Elsevier B.V. All rights reserved.
1. Introduction Ethiopia has 24,017,000 sheep and 21,884,000 goats (CSA, 2009) which is one of the largest and most diverse in Africa (CSA, 2009). They are owned by smallholder farmers and are widely distributed across different agro-ecological zones. The production system is virtually traditional and
∗ Corresponding author. Current address: Animal Breeding and Genomics Centre, Wageningen University, P.O. Box 338, 6700 AH Wageningen, The Netherlands. Tel.: +31 7 482335; fax: +31 7 483929. E-mail address: [email protected] (T. Kocho). 0921-4488/$ – see front matter © 2011 Elsevier B.V. All rights reserved. doi:10.1016/j.smallrumres.2011.01.008
contributes to both subsistence and cash generation (Ehui et al., 2000; Ayalew et al., 2003). Sheep and goats are considered as investment and insurance and provide income to meet seasonal purchases of food, improved seed, fertilizer and medicine and during crop failure and drastic drops in crop prices (Legesse et al., 2008). Although Ethiopia has a large sheep and goat population that significantly contribute to the livelihoods of smallholder farmers (IPMS, 2005), there is lack of information on sheep and goat and skin marketing, market constraints and opportunities for improvement. In order to shift sheep and goat production from subsistence to a more commercial outlook, it is important to understand aspects of market
102
T. Kocho et al. / Small Ruminant Research 96 (2011) 101–105
and marketing (Legesse et al., 2008). Farmers need to be aware of the preferred characteristics of animals as well as price patterns so that they can plan breeding and fattening programs consistent with the market demand and consumers’ preferences (Andargachew and Ray, 1993). Thus, this study is aimed at describing the smallholder sheep and goats and skin marketing systems, identifies marketing constraints in the context of holistic value chain approach and to pinpoint improvement options to enhance benefits to smallholder producers.
2. Materials and methods The study was conducted in Alaba district of Southern Nations, Nationalities and People’s Regional (SNNPR) State of Ethiopia located in 7◦ 17 N latitude and 38◦ 06 E longitude. Altitudes range from 1554 to 2149 meter above sea level, with dry to moist agro-ecology. Annual rainfall varies from 857 to 1085 mm occurring in a bimodal pattern. Crop-livestock mixed farming is the dominant production system with the ruminant livestock population composed of 161,566 cattle, 43,141 goats and 34,760 sheep (IPMS, 2005). Informal and formal survey tools, focus group discussions and key informants interview with producers and traders were held using checklists on production, marketing and consumption of sheep and goats. Expert consultation, field visits and secondary data were used for sampling the study sites and households. The district was stratified into three sites of sheep dominating (comprising proportional households of 30), goat dominating (60 households) and sheep-goat mixed (60 households) based on total land holding and distribution of sheep and goat flocks. Then, a total of 150 households owning flocks of at least one breeding female were randomly selected for household survey. A structured questionnaire was framed, pre-tested, translated into local language and administered by trained Development Agents. Rapid market appraisal (Holtzman, 2004) was employed to study the holistic marketing system. Randomly selected traders (total of 14), agents of abattoirs (7), abattoirs (3), transporters (5) and consumers (19) in different markets and marketing days were interviewed. Twenty-five sheep and goat market channels to and from Alaba were mapped using Geographical Information System (GIS) after readings by Geographical Positioning System (GPS) (GARMIN® GPS72 2002–2003) and assessed. Marketing services and infrastructure were documented. Alaba Kulito and Adilo markets were studied to document the types of animals, volume of supply, demand patterns, prices, major market participants and routes of animals. Preferences and purchasing prices of consumers in Addis Ababa were assessed. Butcher, catering service providers in Alaba Kulito town were interviewed regarding consumption patterns, preferences and uses of sheep and goat meat, as well as preferences of customers to mutton and goat meals. Collection, processing and marketing of skins by legally registered business centers at Alaba Kulito were also assessed. The household survey data was analyzed using descriptive statistics of SPSS (2009). A Pearson’s chi-square test (X2 ) was used to assess the statistical significance of household responses across the study sites. Data were fitted to a simple linear model, considering study sites as a factor.
Yij = + i + εij
where Yij = response of marketing variables; = population mean; i = 1–3 study sites; εij = residual. The questionnaire was an open-ended and households provide single or multiple responses for a given question and thus the column sums often exceed 150 (Tables 1–3). Results presented in column of sheep–goat mixed sites are total count of respondents with its corresponding percent in bracket, obtained by dividing total respondents in a cell by total households of the site [nij /30 * 100]. Column in goat dominant site is total respondents with its percent [nij /60 * 100]. Similarly, sheep dominant site presented with total respondents and its percent in bracket [nij /60 * 100]. The overall responses of the district are presented with sum of respondents in a row with its percent in bracket [nij /150 * 100].
3. Results The main reasons household sale sheep and goat are to generate cash for purchasing food and farm inputs, school and medical expenses, pay credit, purchase livestock and build assets (Table 1). The district is prone to drought and thus sales peak during crop failures and food shortage. Farmers market sheep and goats of different age, sex, weight and condition. Overall, 32% goat and 28% sheep owners prefer to dispose intact male animals, while 22% sheep and 27% goat owners prefer to sale castrated males that fetch higher prices. Rural assemblers, often farmers, buy animals at farm gates and local markets. All the sheep and goat markets lack animal holding and measurement facilities and marketing made without price information. Individual consumers and catering service providers purchase animals from Alaba Kulito market, larger livestock market in the district and other small local markets. Agents of export abattoirs purchase young male sheep and goats weighing 13–30 kg from Alaba and other surrounding markets. Specialized and large traders from terminal markets, especially Addis Ababa purchase animals from Alaba Kulito, Adilo and other local markets during major holidays and festivals. The majority of producers (96.7%) market animals on ‘eye-ball’ basis, in which transactions are made on individual basis and agreements reached after a long one-to-one bargaining between buyers and sellers. Local and terminal traders are better informed about demand and prices and fix prices, thus producers are often price takers. The reason for ‘eye-ball’ marketing is due to lack of measurement infrastructures. Only agents of export abattoirs buy animals on live weight basis. Sheep and goats are marketed at farm gates or nearest local markets regardless of ethnic and administrative boundaries. There are two major market routes (Fig. 1) through which animals exit from Alaba district. The first route is agents of export abattoirs purchase and assemble young male animals from local markets. The second and most important route is traders collect animals from Alaba and Adilo and supply to secondary and terminal domestic markets in large cities including Addis Ababa. Adilo is the famous market visited by terminal traders in the SNNPR. Besides the live animals, skins are important marketable by-product in Alaba. Although skins are used for various household purposes, about 60% of total produced skins are marketed. However, one-third of the total household sale skins to illegal traders. There is a remarkable seasonal variation of supply, demand and price of animals. Sales peak during holidays, crop planting and harvesting and drought periods. Although the supply of animals increases during major holidays, prices remain high due to sky rocketing demand within and outside the district. Demand and price for breeding and fattening animals increase right after crop harvest. Sales become higher during crop failure and drought, and as a result prices become very low. Id Al Fetir, Id Al Adha, New Year, Easter and Christmas in that order are peak seasonal markets in the district (Table 2). Animals are collected, assembled and transported to terminal markets as the festival days approach. In Addis Ababa, sheep from Adilo, Alaba, Kambata Tambaro, Dawuro, Wolaita, Gamo
T. Kocho et al. / Small Ruminant Research 96 (2011) 101–105
103
Table 1 Purposes of selling sheep and goats. Purposes
Purchase farm inputs School expenses Medical expenses Escape loss risks Purchase food items Pay back credits Purchase livestock, cloth, assets, etc.
Mixed flock site (n = 30)
Goat dom. site (n = 60)
Sheep dom. site (n = 60)
Overall (N = 150)
Test
(Percent)
(Percent)
(Percent)
(Percent)
2
P-value
7 (23.3) 7 (23.3) 8 (26.7) 2 (6.7) 19 (63.3) 7 (23.3) 10 (33.3)
10 (16.7) 6 (10.0) 4 (6.7) 0 22 (36.7) 7 (11.7) 2 (3.3)
19 (31.7) 13 (21.7) 13 (21.7) 1 (1.7) 30 (50.0) 13 (21.7) 8 (13.3)
36 (24.0) 26 (17.3) 25 (16.7) 3 (2.0) 71 (47.3) 27 (18.0) 20 (13.3)
6.265 2.463 3.556 0.750 4.139 7.902 0.686
0.180 0.651 0.469 0.521 0.388 0.095 0.953
Table 2 Seasonal holiday and festival markets targeted by respondents in Alaba district. Targeted holiday markets
New year Easter Christmas Meskel Id Al Adha Id Al Fetir
Mixed flock site (n = 30)
Goat dom. site (n = 60)
Sheep dom. site (n = 60)
Overall (N = 150)
Test
(Percent)
(Percent)
(Percent)
(Percent)
2
P-value
18 (60.0) 22 (73.3) 9 (30.0) 0 20 (66.7) 26 (86.7)
21 (35.0) 11 (18.3) 17 (28.3) 5 (8.3) 39 (65.0) 39 (65.0)
37 (61.7) 32 (53.3) 21 (35.0) 0 35 (58.3) 45 (75.0)
76 (50.7) 65 (43.3) 47 (31.3) 5 (3.3) 94 (62.7) 110 (73.3)
9.842 28.710 0.651 7.759 0.826 4.943
0.007 0.000 0.722 0.021 0.662 0.084
Table 3 Constraints to sheep and goats and skin marketing. Constraints
Sheep and goats Excessive tax Brokers/dealers Seasonality of markets Lack of market access Lack of price information Skins Lack of price information Lack of technical support Poor skin quality
Mixed flock site (n = 30)
Goat dom. site (n = 60)
Sheep dom. site (n = 60)
Overall (N = 150)
Test
(Percent)
(Percent)
(Percent)
(Percent)
2
12 (40.0) 21 (70.0) 8 (26.7) 9 (30.0) 19 (63.3)
5 (8.3) 21 (35.0) 7 (11.7) 19 (31.7) 20 (33.3)
24 (40.0) 36 (60.0) 15 (25.0) 15 (25.0) 22 (36.7)
41 (27.3) 78 (52.0) 30 (20.0) 43 (28.7) 61 (40.7)
18.175 0.000 12.38 0.002 4.375 0.112 0.685 0.710 8.123 0.017
20 (66.7) 27 (90.0) 3 (10.0)
50 (83.3) 52 (86.7) 7 (11.7)
47 (78.3) 54 (90.0) 6 (10.0)
113 (75.3) 133 (88.7) 16 (10.7)
1.281 0.527 0.398 0.820 0.105 0.949
Gofa and Hadiya areas of the SNNP region are collectively called ‘Wolaita sheep’. They are highly preferred and fetch highest prices due to their pleasant flavor and tender meat, high carcass and edible non-carcass component yields and high aesthetic value of sheep with white, brown or mixed
coat color, big size, short and shiny hairs and good body condition. Smallholder farmers confront various marketing constraints (Table 3). ‘Eye-ball’ marketing usually involves brokers and they interfere transactions. About 52% of total
Agents for Export Abattoirs
Producers
Rural Assemblers
P-value
Alaba Kulito Market
Export Abattoirs
Terminal Market Traders
Consumers in Alaba Fig. 1. Market channels of sheep and goats in Alaba district, Ethiopia.
Terminal Domestic Market
104
T. Kocho et al. / Small Ruminant Research 96 (2011) 101–105
respondents complained the higher commission requested by brokers and also misinform and repel of potential buyers. Due to lack of standardized marketing systems with transparent price information, 40.7% of the total respondents reported they are recipient of trader prices. About 28.7% of total respondents also indicated that lack of access to incentive domestic and export markets hinder them from obtaining incentive benefits. Incentive markets appear only during major festivals. Regarding skin marketing, about 11% of the respondents supplied poor grade skins and received low prices. Respondents reported that skins from their animals are of poor quality due to ectoparasite infestation and poor nutrition. Farmers usually supply poor quality skins to traders and processors who remove meat leftovers, apply salt, wash, dry, pack, grade and supply to central markets. Local processing units operate with poor facilities and less experienced workers. Central markets are few in number and pay lower prices. The extension system provides little or no technical support to farmers regarding production, preservation and marketing skin. 4. Discussion In Ethiopia, livestock are marketed in four-tier structure in which animal are channeled from smallholder farmers to consumers with multiple transactions and actors at several levels (Ehui et al., 2000; Solomon et al., 2003). Rural assemblers, large traders and butchers transact animals at local and secondary markets. Big traders and butcher purchase animals in terminal markets. Consumers either purchase of the animals from terminal markets or butchers. The markets often do not have proper infrastructures, and yet buyers and sellers are subjected to service charges by local authorities (Solomon et al., 2003). Animals are generally traded by ‘eye-ball’ pricing on a per-head basis and agreements are reached after bargaining involving brokers. Markets operating under such conditions offer little benefits to producers and also increase the costs on the final consumer (Andargachew and Ray, 1993). Supply and demand of small ruminants reach peak during religious holidays and festivals (Andargachew and Ray, 1993). Factors affecting market supply include high demand during festivals, lambing season, quality and quantity of grazing, as well as cash needs for crop inputs and, later, for food purchase before harvesting (Ehui et al., 2000; Solomon et al., 2003). Excess supply effectively suppresses producer prices since the more mobile traders are better informed on market prices, and are in a better position during price negotiation (Solomon et al., 2003). Poor marketing infrastructure, lack of marketing information, high transaction costs, lack of access to formal credit sources, poor roads and exorbitant transport fees, lack of standardization and grading and low purchasing power of buyers are major constraints affecting the efficiency of livestock marketing (Ajala and Adesehinwa, 2007). Sheep and goat skins are channeled to central markets and tanneries through extensive network of traders and sub-agents. As a result, it takes a long time along the channels and this deteriorates the quality and value of skins (Mahmud, 2000) and as the result there is a total loss of 5–10% sheepskins and 30–40% goatskin in the country (Kebede, 1998).
Population growth, urbanization and income growth increase meat and milk consumption and create a veritable Livestock Revolution (Delgado et al., 1999); expanding market opportunities for smallholder livestock producers (Peacock and Sherman, 2010). However, productivity of smallholder livestock has to be improved, which is possible only if the system is partly commercialized through market outlets and pricing policy offering farmers and pastoralists more incentives (Beets, 1990; Musemwa et al., 2007). To achieve improved marketing efficiency, attention must be given to improvement in infrastructure, market information and intelligence, formulation of new marketing policies and institutional reforms to ease constraints on market involvement (Solomon et al., 2003; el Dirani et al., 2009). Low purchasing power of traders in informal marketing channels limit their capacity to increases number and volume of trade (Musemwa et al., 2007) and provision of credit to small and large traders overcomes their market entry due to lack of own-capital (Ajala and Adesehinwa, 2007). Value-chain has a vital role in the process of rural development (Marsden et al., 2000) illustrates the interactions of increasingly dynamic and complex markets and examine the inter-relationships between diverse actors involved in all stages of the marketing channel (Schmitz and Knorrina, 2000). Production per se is only one of a number of value added links and there are ranges of activities within each link of the chain (Anandajayaskeram et al., 2008). Value chain innovation helps for understanding problems of market access, distribution of gains along the chain, nature and determinants of smallholder competitiveness in market chains and find leverage points for designing and implementing appropriate development programs and policies that enhance market participation of smallholder producers (Rich et al., 2009). Partnership and networks among actors of the chain can improve the development and delivery of innovations that directly affect the livelihoods of smallholder sheep and goat producers (Anandajayaskeram et al., 2008). As many factors interact, adequate marketing innovation requires better planning and coordination among smallholder producers, producer organizations, small and larger traders, private sectors, concerned governmental and non-governmental organizations and consumers (Beets, 1990). The formation of small farmer groups and associations has the potential to increase access to information, increase participation in formal markets and lower transaction costs (Musemwa et al., 2007). Identifying and establishing new market niches could also help improve rural communities to generate greater incomes (Juma et al., 2010). Smallholders could take advantage of niches domestic and export markets that could pay higher prices for specific breeds and locations through formation of marketing groups (Musemwa et al., 2007). A group of small farmer established co-operatives for marketing beef cattle (Marsden et al., 2000) and vegetables (Musemwa et al., 2007) has improved collective strength in the supply chain and enhanced financial returns to farmers. Trade associations like co-operatives could also build trust, promote reputation and social capital and enhance livestock marketing efficiency of smallholder farmers (el Dirani et al.,
T. Kocho et al. / Small Ruminant Research 96 (2011) 101–105
2009) could enhance profitability, market oriented production and sustainability of smallholder systems (Peacock and Sherman, 2010). 5. Conclusion Sheep and goat are an integral part of the smallholder crop-livestock mixed farming systems of Alaba district providing multiple functions as in the other dry and mid agro-ecologies of Ethiopia. They are kept for sale to generate immediate cash to meet household needs. A chain of market channels and actors are involved in the marketing of sheep and goats and their products. Animal marketing is explicitly made on ‘eye-ball’ basis and prices are set by bargaining between producers and traders. Almost all markets operate without price information and marketing infrastructures and are major bottlenecks to offer better incentives to smallholder producers. Opportunities for export markets are limited due to food safety and quality requirements. However, there are potential domestic markets paying higher price for animals. A value chain intervention along market channels and possible actors, coordinated efforts of all concerned stakeholders and integrated marketing policy could alleviate the current market barriers and empower smallholder producers to participate in formal markets. Establishing marketing groups or cooperatives and creating efficient marketing systems could strengthen their capacity to supply their animals directly to consumers in the existing or emerging incentive market niches. This could help smallholder farmers overcome the marketing constraints and improve their income and livelihood through market-oriented commercialization of subsistence smallholder production practices. Acknowledgements We thank the Improving Productivity and Market Success (IPMS) of Ethiopian Farmers for financing the study and the Southern Agricultural Research Institute (SARI) for providing study leave for the senior author. The contribution of development agents in data collection and farmers, traders, consumers, and transporters who provided the necessary information is sincerely acknowledged. References Ajala, M.K., Adesehinwa, A.O.K., 2007. Roles and efficiency of participants in pig marketing in the northern part of Nigeria. J. Central Eur. Agric. 8, 311–326. Anandajayaskeram, P., Puskur R, Workneh, S., Hoekstra, D., 2008. Concepts and Practices in Agricultural Extension in Developing Countries: A Source Book. IFPRI (International Food Policy Research Institute), Washington, DC, USA, and ILRI (International Livestock Research Institute), Nairobi, Kenya, 275 pp.
105
Andargachew, K., Ray, F.B., 1993. Intra-annual sheep price patterns and factors underlying price variations in the central highlands of Ethiopia. Agric. Econ. 8, 125–138. Ayalew, W., Rischkowsky, B., King, J.M., Bruns, E., 2003. Crossbreds did not create more net benefits than indigenous goats in Ethiopian smallholdings. Agric. Syst. 76, 1137–1156. Beets, W., 1990. Raising and Sustaining Productivity of Smallholder Farming Systems in the Tropics. AgBe Publishing, Alkmaar, Holland. CSA (Central Statistical Agency of the Federal Democratic Republic of Ethiopia), 2009. Agricultural Sample Survey, 2008/09). Report on Livestock and Livestock Characteristics (Private Peasant Holdings). Statistical Bulletin 388. Vol. II, Addis Ababa, Ethiopia. Delgado, C., Rosegrant, M., Steinfeld, H., Ehui, S., Courbois, C., 1999. Livestock to 2020: The Next Food Revolution. 2020 Vision Initiative Food, Agriculture, and the Environment Discussion Paper 28. IFPRI, FAO. Ehui, S.K., Benin, S., Gebreselassie, N., 2000. Factors affecting urban demand for live sheep: the case of Addis Ababa, Ethiopia. Socioeconomics and Policy Research Working Paper 31. ILRI (International Livestock Research Institute), Nairobi, Kenya, 32 pp. el Dirani, O.H., Jabbar, M.A., Babiker, I.B., 2009. Constraints in the Market Chains for Export of Sudanese Sheep and Sheep Meat to the Middle East. Research Report 16. Department of Agricultural Economics, University of Khartoum, Khartoum, the Sudan, and ILRI (International Livestock Research Institute), Nairobi, Kenya, 93 pp. Holtzman, J.S., 2004. Markets and Agro Enterprises. Rapid Appraisals of Commodity Sub Sectors, Abt Associations Inc. IPMS, (Improving Productivity and Market Success) of Ethiopian Farmers, 2005. Alaba Pilot Learning Site Diagnosis and Program Design. IPMS, Addis Ababa, Ethiopia. Juma, G.P., Ngigi, M., Baltenweck, I., Drucker, A.G., 2010. Consumer demand for sheep and goat meat in Kenya. Small Ruminant Research 90, 135–138. Kebede, Z., 1998. Marketing of sheep and goat skins in Ethiopia. In: Proceeding of Conference. Phase II. Ministry of Agriculture, Addis Ababa, Ethiopia and Technical Cooperation Programme, FAO, Italy, Rome: MoA Conference on In-Service Training Exercise on Hides and Skins Improvement, Addis Ababa, Ethiopia, 9–12 February. Legesse, G., Abebe, G., Siegmund-Schultze, M., Valle Zarate, A., 2008. Small ruminant production in two mixed-farming systems of southern Ethiopia: status and prospects for improvement. Expl. Agric. 44, 399–412. Mahmud, A., 2000. Development potential and constraints of hides and skins marketing in Ethiopia. In: Proceeding of a Conference of Opportunities and Challenges of Enhancing Goat Production in East Africa. Langston University, OK (USA). E(Kika) da la Garza Inst. for Goat Research; Debub Univ. Awassa (Ethiopia). College of Agriculture, 10–12 November 2000, Awassa, Ethiopia, pp. 113–117. Marsden, T., Banks, J., Bristow, G., 2000. Food supply chain approaches: exploring their role in rural development. Sociol. Ruralis 40, 424–438. Musemwa, L., Chagwiza, C., Sikuka, W., Fraser, G., Chimonyo, M., Mzileni, N., 2007. Analysis of cattle marketing channels used by small scale farmers in the Eastern Cape Province, South Africa. Livestock Res. Rural Dev., p. 19. Peacock, C., Sherman, D.M., 2010. Sustainable goat production—some global perspectives. Small Rumin. Res. 89, 70–80. Rich, K.M., Baker, D., Negassa, A., Ross, R.B., 2009. Concepts, applications, and extensions of value chain analysis to livestock systems in developing countries. In: International Association of Agricultural Economists Conference , Beijing, China, August 16–22. Schmitz, H., Knorrina, P., 2000. Learning from global buyers. J. Dev. Stud. 37, 177–205. Solomon, A., Workalemahu, A., Jabbar, M.A., Ahmed, M.M., Hurissa, B., 2003. Livestock Marketing in Ethiopia: A Review of Structure, Performance and Development Initiatives. Socio-economics and Policy Research Working Paper 52. ILRI (International Livestock Research Institute), Nairobi, Kenya. SPSS (2009) for Windows, Rel. 17.0, 2009. Chicago: SPSS Inc., Chicago, IL.