End Market Analysis of Ethiopian Livestock and ... - USAID Microlinks

Pastoral households, which depend on livestock for their livelihoods, own relatively more livestock—Borena
pastoralists, for instance, own an average of 13 head of cattle, five goats and two sheep. 22
Although the majority of Ethiopia’s livestock is found in the highlands, 95 percent of the livestock supplied for export
is supplied by the pastoral and agro-pastoral areas of Afar, Somali and Borena. A large percentage of the cattle and
beef meat exported from Ethiopia originates in Borena, and this area stages a fierce purchasing competition between
live animal and meat exporters. 23 This is likely due in large part to consumer preferences for Boran cattle and is
facilitated by Borena Zone’s relative ease of access from the feedlots and abattoirs in Adama (Nazreth), Modjo and
Bishoftu (Debre Zeit). In 2007, the SPS-LMM program found that on 180 feedlot centers in Oromiya, all 20,500 cattle
were sourced in southern (e.g. Borena) or southeastern rangelands. 24 Many of the sheep and goats exported from
Ethiopia are lowland breeds from Somali and Afar. These have a relatively low dressing weight (8-10 kg per animal,
compared to 16-20 kg in neighboring countries). 25
Reasons for sale vary across regions and across households. For non-pastoral households, a large proportion of sales
(up to 75 percent, according to ILRI researchers Asfaw Negassa and Mohammad Jabbar) are of non-productive
animals such as older draught oxen. The periodic need for cash may lead a household to sell an animal, usually a
shoat, and the decision of when and where to sell is generally informed by the limited market information available to
the seller. In some instances, fear of theft plays a role. For pastoralist households, seasonality is an important factor as
rangelands can support fewer animals during the dry season, leading owners to sell livestock during the dry season and
keep them during the wet season. Pastoralist households sell small ruminants to obtain cash for grain purchases or
other expenditures. Somali households seem to be more market-oriented than other pastoralist households, with a
good knowledge of markets in cross-border areas of Somaliland and Somalia.
Research by Asfaw Negassa and Mohammad Jabbar found that a significant proportion of smallholder farmers and
even some pastoralists do not participate in livestock markets—and when they do, the volume of transactions is
usually low. This, combined with high mortality and low birth rates, contributes to low off-take rates.
The gross and net commercial off-take rates for livestock in Ethiopia are summarized in the following table:
Table 2. Gross and Net Off-take Rates for Livestock
Pastoral Areas Non-pastoral Areas
Livestock type Gross off-take Net off-take Livestock type Gross off-take Net off-take
Cattle 11% 9% Cattle 17% 7%
Sheep 10% 6% Sheep 19% 7%
Goats 11% 7% Goats 15% 8%
Source: Asfaw Negassa and Mohammad Jabbar 2008: p. 8 (using GL-CRSP data for pastoral areas and CSA data for non-pastoral
areas)
These off-take rates are significantly lower than other countries in the Horn/East Africa region (e.g. Kenya with an
off-take rate estimated at 16.1 percent per year). 26
2. COLLECTORS (TRADERS AND COOPERATIVES)
Pastoralists and highland livestock owners typically sell their livestock to small traders in bush markets or primary
markets. Traders purchase animals on a sight basis, without the use of scales. Experienced traders can estimate the
weight of sheep and goats—and sometimes even the dressing weight of cattle—to near accuracy. They then trek the
22 Asfaw Negassa and Mohammad Jabbar 2008: ix
23 Getachew Legese et al, 2008: viii
24 Little et al 2010: slide 12
25 Amha Sebsibe 2008: p. 326
26 Sullivan 2007
END MARKET ANALYSIS OF ETHIOPIAN LIVESTOCK AND MEAT 9