Beef Cattle Marketing and Illegal Trading in North Western Amhara, Ethiopia

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1 Available online at Dynamic Journal of Animal Science and Technology Vol. 1(2), pp.43-48, December 2015 Article ID: DJAST15/014 Author(s) retain the copyright of this article Copyright 2015 Original Research Paper Beef Cattle Marketing and Illegal Trading in North Western Amhara, Ethiopia Kefyalew Alemayehu 1 and Addis Getu 2* 1 Bihardar University, Department of Animal Production and Technology,Ethiopia 2 University of Gondar, Department of Animal Production and Extension, Ethiopia. *Corresponding Author. addisgetu2002@yahoo.com. Received 14 August, 2015; Accepted 16 November, 2015 Open Access article distributed under the terms of the Creative Commons Attribution License permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly credited. ABSTRACT An assessment of cattle marketing, trading systems and its chains was conducted in North and west Gondar and Gojam zones, northern Ethiopia. An exploratory field survey was considered to characterize beef marketing and illegal cattle trading system. Beef marketing constraints prioritized by the respondents in the study area included live animal exporting, taxation in Ethiopia and no taxes in Sudan, Sudan demand deflation and absence of quarantine. Most respondents frequently mentioned taxation in Ethiopia and non-taxes (Free) in Sudan as the first ranked constraint in all districts followed by Sudan demand deflation as the second major problem. Absence of quarantine between Ethiopia and Sudan was the bottleneck of cattle marketing in Maksegnit district in particular and in north Gondar zone in general where exportation of live animals was identified as a common limitation in all districts. The main actors of beef cattle marketing in the study area include brokers, licensed traders and illegal traders with the proportion of 34%, 48% and 88%, respectively. Beef marketing mainly practiced in the local market is correlated with seasons and traders. Identification constraints are routinely affected by the resources in the country. Key words: Beef, Cattle, Market, Illegal Trade. INTRODUCTION Livestock systems represent a potential pathway out of poverty for smallholders in the developing world. The majority of the world s rural and urban poor keep livestock and use them for income generations activities (Bailey et al., 1999). The value chain approach in livestock provides the basic understanding needed for designing and implementing appropriate breed development programs and policies to support their market participation entry point for engaging poor farmers (GTZ, 2007). Value chain is characterized by a physical commodity flows within a sector of stakeholders though domestic markets and ignoring dynamic adjustments and relationships (Raikes et al., 2000; Kaplinsky and Morris, 2001). Practitioners and researchers tried to capture and examine the interaction effects of dynamic markets inter-relationships between diverse actors (Giulani et al., 2005; Pietrobelli and Saliola, 2008). The economic contribution of the livestock sub sector in Ethiopia is about 12% of the total GDP of the country and 33% of agricultural Gross Domestic Product (GDP). In addition the sector also provides about 65% of the livelihood of the population (Ayele et al., 2003). Informally,

2 44 Dyn. J.Anim. Sci. Technol. Figure 1. Map of the study area: the study districts are indicated with Triangular shape. Ethiopia exports approximately 200,000 livestock annually (Yacob and Catley, 2010). This is higher than the annual official exports of cattle (12,934 head), sheep (13,554 head) and goats (1,247 head) between 1998 and 2003 (Asefaw and Mohammad, 2007). In Ethiopia, recent studies estimated that annual illegal flow of livestock through boundaries reaches as high as 320,000 cattle (Workneh, 2006). The actual export potential has remained very low (55 to 85%) of the projected livestock off take for the unofficial cross-border export and the domestic market. Market-focused collaboration is important to bring a product to final consumers passing through the different phases of value-added products. The primary livestock export from Ethiopia to Sudan is adult to old male cattle from Amhara region. According to CSA (2007) about 100,000 head of cattle were exported to Sudan both in formal and informal marketing (Elias et al., 2007). This investigation work stated that feed scarcity, marketing and marketing involved actors are the critical constraints to livestock production. Therefore the objective was to characterize beef cattle marketing and cattle trading in north western Amhara regional state, Ethiopia MATERIALS AND METHODS Description of the study area This study was conducted on three zones of the Amhara regional state, namely North Gondar, South Gondar and West Gojam zones. From each zone one district was considered having three Peasant associations. Maksegnit from North Gondar, Farta from south Gondar and Bahir dar zuria from West Gojam were the considered districts (Figure 1). The mean annual rainfall Farta district is 1651 mm. The monthly average temperature is C. The altitudes range from meters above sea level. Maksegnit is also found in amahara national and regional state from the North Gondar zone and has also tipid moist to cool mountains. The altitude ranges from masl. The mean annual rainfall is 1161 mm with the average temperature of 19.1 C. Whereas, Bahir Dar zuria district is found in ANRS which is tipid moist to cool plains with altitude ranging from masl in the mean annual rainfall of 1,224 mm and the mean annual daily temperature of C. The main crops produced in these three study areas are barely, wheat, teff, and other pulse crops. Study Sites Selection Techniques The study was conducted in the three agro climatic zones. From each agro-climatic zone one district was selected for this study. Similarly, from each district two Peasant Associations (PAs) were purposively selected. Districts and PAs were purposively selected based on accessibility and number of livestock. Assessment Tools and Design The assessment study was considered based on confirmatory approaches to gather important information about climate change issues. Collection of secondary data, desk reviews of different documents and studies, focus group discussions, key informants interviews and different projection models were used. Desk Reviews and Secondary Data Collection The secondary data were collected pertaining to the investigated issues from different concerned bodies. Routine activities and reporting formats will be developed

3 Alemayehu and Getu 45 Table: 1. Livestock size and structures/hh in north western Amhara (Least squire mean ± SE). Districts Number of LVK/hh Farta Maksegnit Bahirdar zuria Cattle b a b Sheep a b b Goat b a b Chickens b a a Donkey a b b Mule a b b Different subscription in the raw is significant difference (p<0.05). and thoroughly assessed at different pertinent offices. Based on the assessments of secondary data, desk reviews were conducted with pertinent bodies. Focus group discussion The focus group discussions were formed by selecting communities of the targeted population. One focus group discussions were conducted at each selected PA. Therefore, a total of 3 focus group discussions were conducted during the study period. Interview: The in-depth information was collected using interviewing key informants who have deep knowledge on genetic diversity and animal breed distribution pattern in the area. Ten peasants and animal science professionals from each selected PAs were interviewed using prepared probe semi-structured questionnaire. Therefore, a total of 120 key informants and Available professionals, livestock officers, animal sciences assistants, veterinarians /officers and NGOs participating in animal science were interviewed. Checklists were also used during discussions with key informants (professionals) at district offices of agriculture and rural development and politicians in administrative councils and this was enabled to get understanding of existing constraints and opportunities animal marketing pattern in the respective districts. Data Analysis Both qualitative and quantitative data were undertaken. Simple descriptive statistics was considered in addition to ANOVA using available version of SPSS and SAS. Mapping of beef value chain and market development was done from the results analysed. RESULT AND DISCUSSION Livestock Sizes and Structure Livestock populations in the study area were varied in each district. The current investigation showed that livestock number per household was significant (p <0.05) different (Table 1). The same number of flock sizes observed in different districts might be adaptation ability of livestock s from their own production environment. Finally, the result also showed that the number of live animal per house hold is not always constant due to selling as immediate farmers expense, occurrence of diseases and presence of illegal trading. Genetic Diversity, Environment and Distribution Trends According to the secondary data (Table 2), showed that the genetic diversity of the area interms of tmprature and rain fall was not significantly influanced. Assesing the climate variability relation ship on genetic diversity interms of temprature and rainfall Major Constraints of Beef Cattle marketing in the Study Area Major constraints of beef production are presented in Table 3. Among the reported constraints of beef marketing prioritized by the respondents in the study area were Export, Tax in Ethiopia and Free in Sudan, Sudan Demand Deflation and Absence of Quarantine. Most respondents frequently mentioned Tax in Ethiopia and Free in Sudan as the first ranked constraint in all districts whereas Sudan Demand Deflation was the send problems. Absence of quarantine between Ethiopia and Ethiopia was the bottleneck of cattle marketing in Maksegnit district in particular and in north Gondar zone in general where as Exporting live animals were identified as a common limitation in all districts. Constraints aren t different from those reported by others in Ethiopia such as who reported that the main constraint of traditional cattle marketing and production system was body condition. The above resources are available for marketing system in different parts of the area with different places. According to the information given by the respondents the purchaser and supplier are get in at random beef cattle

4 46 Dyn. J.Anim. Sci. Technol. Table 2. Assesing the climate variability relationship on genetic diversity interms of temprature and rainfall. Year Cattle Sheep Goats Mean Max Temp Annual Rainfall Sources: Livestock Marketing Authority (LMA, 2004). Table 3. Rating of major constraints of beef cattle marketing in the study area. Major Constraints Exporting Tax in Ethiopia and Free in Sudan Sudan Demand Deflation Absence of Quarantine Districts Farta Maksegnit Bahirdar zuria 0.29 (1) 0.26 (2) 0.21 (4) 0.12 (4) 0.06 (5) 0.20 (2) 0.22(3) 0.16 (4) 0.22 (3) 0.30 (2) 0.28 (1) 0.27 (1) marketing at unrestricted site. During marketing the participants were bought animals based on the conformation and visual judgment. Figure 2 During the investigation cattle and other are transportation with the same walk way. The respondents and other people who live around the local marketing site stated that sometimes some aggressive animals have their own negative impact on humans. Especially oldies, women and children are the sensitive part for this irregular marketing. Cattle Trading and Main Actors Involved The beneficiaries (actors) in beef cattle in the study area, brokers were dominant in both Farta and Maksegnit, where as licensed traders were common in Bahirdar zuria

5 Alemayehu and Getu 47 Figure 2. Random Beef Cattle Marketing At Unrestricted Site. Figure 3. Beef cattle transportation and going. with the frequency of 34, 48 and 88, respectively. Formal marketing for various livestock species and products are well characterized from the local market in and the vicinity of the studied zone of the country. Cattle Exporting Performance Respondents stated that livestock are usually sold to meet family needs for cash income and to cover expenses when shortage of rainfall is observed. The owners are forced to supply is constrained by inability to plan sales in accordance with market need (time and quality). Market outlets in these areas are recipient for household consumption, local areas consumption, contraband trade/ illegal traders and legal exports. Figure 3 Beef Cattle Market Value Chain and Activities The identified opportunities to participate in value chain was added production and livestock products by marketing

6 48 Dyn. J.Anim. Sci. Technol. Table 4. Proportion of involved actors in beef cattle marketing. Districts Dominant Actors Farta Maksegnit Bahirdar zuria Brokers Licensed Traders Illegal Traders owners to local market, brokers, licensed traders and direct consumers. According to the interviewed respondents, brokers are highly benefited vulnerable groups from the beef cattle market value chain activities. Both formal and informal marketing activities for various livestock species and products are operated in local, national and international markets. Value chain is included the actors, the flows of products, information and knowledge. Table 4. Conclusion In summary, it can be concluded that the zone has considerable livestock export potentials. The major encouraging factors for such opportunity are availability of surplus and exportable resources. The internal challenges are many and interconnected. Their major cause could be attributed to under development and lack of market orientation and industrial capacity by the stakeholders. Recommendation In order to realize the systems of market in livestock, exporting of live animal Tax in Ethiopia and free in Sudan should be assessed Sudan demand deflation and quarantine availability in various supplies and at market should be understood Further, the external challenges need to be overcome through need assessment and promotional activities. REFERENCES Asefaw N, Mohammad J (2007). Commercial 0ff take of Cattle under Smallholder Mixed Crop-Livestock Production System in Ethiopia, its Determinants and Implications for Improving Live Animal Supply for Export Abattoirs. ILRI, Addis Ababa, Ethiopia. Ayele S, Workalemahu A, Jabar MA, Belachew H, 2003 Livestock Marketing in Ethiopia. A Review of Structure, Performance and Development Initiatives. Socioeconomic and Policy Research Working Paper 52. International Livestock Research Institute (ILRI), Nirobi, Kenya. p.35. Bailey D, Barrett CB, Little PD, Chabari F (1999). Livestock markets and risk management among East African pastoralists: a review and research agenda. GL- CRSP Pastoral Risk Management Project Technical Report No. 03/99. Utah State University. Elias M, Berhanu G, Hoekstra D, Jabbar M (2007). Analysis of the Ethio-Sudan cross-border cattle trade: The case of Amhara Regional State. IPMS (Improving Productivity and Market Success) of Ethiopian Farmers Project Working Paper 4. ILRI (International Livestock Research Institute), Nairobi, Kenya. p.41. GTZ (Deutsche Gesellschaft für Technische Zusammenarbeit GmbH), (2007). Value Links Manual: The Methodology of Value Chain Promotion, First Edition. Found at Internet address Kaplinsky R,Morris M (2001). A Handbook for Value Chain Research. Working Paper Prepared for the IDRC, Brighton, UK, Institute for Development Studies. Pietrobelli C, Saliola F (2008). Power relationships along the value chain: multinational firms, global buyers and performance of local suppliers, Cambridge Journal of Economics, 32(6): pp Raikes P, Jensen M F, Ponte S (2000). Global commodity chain analysis and the French filiere approach: comparison and critique. Economy and Society 29(3): Workneh A (2006) Getting the Incentives Right: Concerns Associated with Expansion of Cattle Export Markets in Ethiopia. Ethiopian Journal of Animal Production 6(2), Livestock Marketing Authority (LMA), (2004). Meat Exports Market Study, MoARD,b Addis Ababa, Ethiopia. In: New Partnership for Africa s Development (NEPAD) Comprehensive Africa Agriculture Development Programme (CAADP), (2005). Ethiopia: Investment Project Profile Live Animal and Meat Export Preliminary Options Outline. Yacob A, Catley A (2010). Livestock Exports from Pastoralist Areas: An Analysis of Benefits by Wealth Group and Policy Implications. IGAD LPI Working Paper No p.52.