Ethiopia’s Livestock Sector: Ethiopian Livestock Investment Forum Adama Sept 4, 2014

1. Ethiopia’s Livestock Sector: Ethiopian Livestock Investment Forum Adama Sept 4, 2014

2. Dairy Producers • 10.5 million dairy cows produce 3.3 bil. l of milk • Large non-commercial dairy sector (~ 97%) • Not connected to markets (rural) • Focus on home/community consumption & processing • Local breed cows (1 – 3 liters/day) • Small commercial dairy sector (~ 3%) • ~ 150,000 to 300,000 cross-bred dairy cows producing ~ 250 mil to 500 mil liters – ~ 15,000 farmers? • Urban & peri-urban • Direct connection to markets (consumers & processors) • Cross breed cows (5 – 20 liters/day) • Specific milk shed regions - highlands

3. Dairy Processors • 215 mil liters of milk processed by 20 processors (2012/3) • ~ 60,000 liters/day • $6.8 mil value • Profitable activity • 9 new processors (~ 250,000 l/day new capacity)

4. Livestock Producers (Beef Cattle, Sheep & Goats) • Livestock produced in all regions • High mortality – Low productivity • Low off-take rates (8% cattle – 30% shoats) • Livestock breeding at small scale farmer level • Few improved breeds • Few ranches

5. Meat Processing Sector • 15,700 MT of meat products processed & exported by 5 abattoirs & 2 by-product processors • 76 mil USD value • 80% goat – 20% sheep – Chilled carcass & offals • Almost all meat to Middle East markets • Most offals to Asia & Turkey • Most abattoirs operating below capacity (<70%) • Profitable activity • 6 new export abattoirs/processors

6. Live Animal Sector • 647,713 live animals exported via ~ 20 active livestock exporters • 187 mil USD value • Cattle – 32% volume – 63% value • Shoats – 60% volume – 15% value • Camels, etc – 8% volume – 22% value • Export via Metema for African countries • Export via Djibouti for Middle East countries • Additional 80% exported informally?

7. Dairy – Challenges & Opportunities • Factories operating below capacity due to lack of milk supply, & poor quality milk • 95% of milk is not reaching the processors • Quality is low due to lack of cold chain • Many processors only collect 50% of a farmers’ production (morning milk) • Fasting Opportunities: • Milk chilling tanks at collection sites and on transport vehicles • Pay farmers a high price for higher quality (or lower price/lower quality) • Longer shelf life products • Breed improvement through artificial insemination • Growing number of commercial dairy farmers

8. Meat – Challenges & Opportunities • Factories operating below capacity due to: • lack of export markets, partly due to low quality products • lack of value addition, and • lack of supply, mostly due to high domestic prices Opportunities: • Improve abattoir standards – HAACP, ISO, traceability • Develop new markets – Beef to Asia (non-Halal) • New export abattoirs plan to sell primal cuts, value added products • New private domestic abattoirs to meet local demand

9. Live Animals – Challenges & Opportunities • Poor Quality Livestock • Breed Improvement – Ranching • Improvements in small scale and large scale fattening • Specialized live animal transport • Privatized animal health services • Feed production • Embedded services from processors & buyers for feed and other services

10. THANK YOU!