Africa-RISING Quick Feed Project Synthesis Workshop, Addis Ababa, 3-4 September 2012

1. production system characterization feed technology prioritization and Sheep value chain analysis, in Horro district of Oromia region, Ethiopia Gemeda Duguma Bako Agricultural Research Center OARI Africa-RISING Quick Feed Project Synthesis Workshop, Addis Ababa, 3-4 September 2012

2. Outline of presentation • Production systems characterization (FEAST) • Feed technologies prioritization (TechFit) • Sheep value chain analysis

3. Background and justification • Horro is located at about 315 km from Addis Ababa • 9º 34´N latitude and 37º 06´ E longitude • Two major agro-ecologies: highland (49.8%) and midland (48.96%) • Lowland area covers only about 1.24% of the total area of the district • Diverse crops and livestock resources due to its favorable production environments (Mixed crop-livestock agriculture)

4. Human population ≈ 103,707 • Average family size ≈ 7 people • Livestock population ≈ 351,305 heads • Cattle 43.3 % and sheep 16.8% • Total land area of the district ≈ 77,998 ha • Average landholding/HH ≈ 1.8ha • Grazing lands ≈ 8.3% grazing lands • AGP District, ICARDA-ILRI-BOKU project site, USAID financed wheat seed production site of ICARDA

5. FEAST Characterization of the Farming and Livestock Production Systems and the Potential for enhancing Productivity through Improved Feeding in Horro District, Ethiopia Objectives: • To assess feed resource availability and utilization using FEAST within the context of the overall farming and livestock production systems • To determine the potential of site-specific feed interventions in selected areas

6. Methodology • Three kebeles were selected from Horro district • Criteria used to select the kebeles were: • Sheep production, crop production potential and accessibility • About 15 farmers were selected from each kebele • Land holding, age, education and gender were considered in selecting the interviewees.

7. OVERVIEW OF FARMING SYSTEM • The average farm size was about 2 ha for Gitlo and Lakk and 1.6 ha for OdaBuluqkebele. • There is only one cropping season that coincides with the rainfall season in the three kebeles. • Predominant crops grown in the three kebeles include wheat, tef and barley in order of importance. • About 66.0% of households in Gitlo and 10.4% in Lakku have access to irrigation. The other kebele does not have irrigation access

8. Contribution of LS to Household income About 59%, 38% and 28% of the HH income contributed by LS in Gitlo, Oda Buluq and Lakku, respectively.

9. LIVESTOCK PRODUCTION SYSTEM

10. FEED AVAILABILITY

11. FEED QUALITY Lakku Gitlo Oda Buluq

12. PROBLEMS

13. SOLUTIONS SUGGESTED by FARMERS

14. WAY FORWARD--- FEAST • Opportunities: • Availability of abundant crop residues • Good initiatives by ICARDA-ILRI-BOKU • Enlightened farmers • Recommendations: Available feed technologies has to be prioritized for the specific kebeles using appropriate tool, like TechFit. Optimizing the use of crop residue as animal feed has to get due attention. success histories from different countries can be borrowed in this regard. knowledge/skill gap of producers has to be filled through tailor made training.

15. Prioritizing feed technologies using TechFit in Horro district Purpose: Feed was reported to be one of the major problems Paramount feed problems intervention technologies have been generated over years. However, most of them were poorly adopted. There has not been any workable approach or tool for filtering and prioritizing feed technologies for a specific situations. Objectives : • To prioritize and recommend suitable technologies for Gitlo, Lakku and OdaBuluqkebeles of Horro district using TechFit.

16. Methodologies Pre filter was made based on the context relevance (1 – 6) and impact potential score (1-6) scores. Main filter was based on availability of attributes (score1 – 5), requirements of the attributes (score1 – 5) and scope for improvement Costs of the technologies were compared with benefits obtained based on assumptions Fattening of yearling rams was used for the cost benefit analysis

17. Findings --- pre filter Out of 38 technologies 21 were dropped at pre filter. The reasons were: • Un availability • Not known in the area • Land demanding • Agro ecological limitation

18. Findings … Main filter

19. Findings … Main filter High ranked feed technologies Feeding of home grown legume residues and re-threshing and mixing of crop residues The requirement for the techno attributes is minimum. Re-threshing and mixing of crop residues is labor intensive compared to feeding home grown legumes .

20. Main findings … Cost benefit analysis Hand chopping of crop residues was not economical at the three kebeles More additional costs attributed to: • chopping of the residues • purchase of chopper The Benefit Cost ratio ranged from 1.43 to 1.93 at Gitlo/Lakku and from 1.34 to 1.93 at OdaBuluq Net return ranged from ETB 20.18 to 38.95 and 15.66 to 43.18 at Gitlo/Lakku and OdaBuluq, respectively.

21. Challenges, lessons and way forward Challenges • Cost benefit analysis was based on assumption • Most of the feed technologies make only partial contribution • Valuation of reproductive traits was not easy. Lessons learned • The tool has strong power in screening technologies that are not relevant • Saves time and resource in identifying suitable technologies • Better understanding of why some technologies are not adopted

22. WAY FORWARD --- TechFit • Manual has to be prepared for users on how to use the tool • Validation of the cost-benefit analysis has to be made • Technologies related with crop residues have to be accompanied by supplementation with high quality feeds. • Valuation of non-marketable attributes or intangible attributes (eg. reproductive traits) is needed

23. FEAST and TechFit results • Farmers suggestion for feed problems during FEAST discussion • Improved forage production, • conservation of crop residues, • establishment of backyard forage production and • reduction of number of animals owned • TechFit result • Improved forage was not among the top ranked • Crop residue related technologies favored Farmers suggestion (improved forage) may based on advise of development workers Discussion is needed with farmers to reach on agreement

24. Value chain analysis of sheep in Horro district of Oromia Region, Ethiopia G. Duguma, K. Degefa, T. Jembere, W. Temesgen, A. Haile and G. Legese

25. Purpose and objectives • Non-market oriented production • Poor quality animals • Inconsistent supply • highly disorganized markets • producers not linked to proper market and high transaction cost • Objectives • To identify major constraints and opportunities that influence development of sheep value chain • To suggest key intervention areas for development practitioners and policy action • To document important elements and modalities of market strategies to develop sheep value chain

26. Methodologies • A combination of different techniques were applied • Secondary information (from DLHA, consulting relevant literatures and documents) • Focused Group Discussions (FGD) • Key informants interview, and • Visual observations • Different set of checklists were used for different group of actors

27. Major findings – map of core functions Input supply Production Marketing Processing Consumptions • Supply of: • Breeding stock • Veterinary services • Feeding • Herding • Housing • Breeding • Collection • Transporting • Feeding • Selling • Slaughtering • Frying / cooking • Meat retailing • Chilling • Treating • Packing • Consumption DLHA, BARC, ICRDA, ILRI traders Smallholder Framers Farmers, Collectors, Traders E. abattoirs Hotels, butcheries, E. abattoirs • Consumers • Foreign • Domestic

28. Major findings – market routes Fincha’a sugar factory Bahirdar Export abattoirs High way to Bahirdar 20 % Fincha’a town Dongoro Saqala 10 % 30 % 20 % 10 % Addis Ababa H. Shoxi 10 % Shambu 10 % GabaSanbata Anger Gute 25 % 15 % Baqale 15 % 10 % 10 % Jare Harato Sheboka 50 % 80 % Sire Bako Nekmete

29. Export market Technology Land tenure Rules and regulations Security Enabling environments Individual consumers Consumption Farmers (Breeding purpose) Butchers Hotels Export abattoirs Processing Addis Ababa traders Marketing Big traders Collectors Small traders Production Smallholder sheep producers Market information Veterinary services Extension services Finance/credit Input supply Major findings – market channels

30. Major findings – major channels • Six major sheep marketing channels identified: • Channel 1: Sheep slaughtered at hotels • Channel 2: Sheep slaughtered at butcheries • Channel 3: Sheep purchased by individual consumers • Channel 4: Sheep purchased to Addis Ababa markets • Channel 5: Sheep purchased by other farmers for breeding purposes • Channel 6: Sheep slaughtered at export abattoirs

31. Major findings – market margins

32. Major findings – constraints • Input supply • Shortage of veterinary drugs • Shortage of skilled technicians (6) • Lack of transportation facilities • Production constraints • Feed shortage (1) • Poor/traditional housing • High incidence of liver fluke and lice infestation (2) • Lack of training on market sheep production and management (4) • Market constraints • Transportation problems – road problem • Limited access to market information and low bargaining power (3) • Animal theft and gaps in the law to penalize the criminals • Shortage of consistent supply of quality sheep and multiple taxation (5) • Lack of vertical linkage of sheep producers with other actors in the value chain (8) • Weak horizontal linkages among sheep farmers (7) • Seasonality of demand for sheep

33. Major findings – opportunities • Very enthusiastic sheep producers that have been tested for about four years (ILRI-ICARDA-BOKU sheep breeding site) • The presence of large sized, fast grown & prolific sheep breed – respond well to supplementary feeds (150-200g/h/d) • An increasing trend of demand for live sheep and sheep meat • The presence of community-based sheep breeding project • Possibility of scaling up community-based sheep breeding program to wider areas • Market access and conduciveness of the district for various crops and livestock production particularly sheep • The district is the USAID financed ICARDA wheat seed production site • Government’s commitment and support to increase export of meat • The presence of higher learning institution (WU)- Gitlo is the experimental site of the university • Skilled and enthusiastic research staff • The area is AGP district

35. Conclusion • Both domestic and export markets prefer young and fattened animals • However, due to the following factors producers are not benefited from the huge sheep population • The existing market is fragmented and transaction cost is high • The existing production system is not market oriented – poor quality animals, supply is inconsistent • There is shortage of feeds particularly during dry seasons • Animal health problems (liver fluke, lice infestation, etc.) • Seasonality of demand for sheep • Lack of credit

36. Seasonality of sheep price Source: Duguma et al. (2012, unpublished)

37. Recommendation • Strengthening and scaling up of the community-based sheep breeding – to ensure continuous supply of quality animals • Use of fattening technologies • Training of producers and extension workers in livestock marketing • Creating /strengthening horizontal linkage among farmers to improve their exchange of breeding stock and their market supply • Conservation and wise utilization of crop residues • Assigning skilled manpower • Provision of transportation facilities • Provision of training on market oriented sheep production and management • Organizing sheep farmers into breeding and marketing coops • Proper use of the revolving fund allocated for purchase of veterinary drugs • Training community-health workers

38. Meeting expectation • Sheep producers of the study area generously provided their experiences and information without any reservation • In return, they expect further intervention based on recommendations resulting from the three studies conducted in the area • I believe that we, ILRI, ICARDA, OARI/BARC, need to find a means in responding to these expectations

39. Thank you!