BEEF CATTLE VALUE CHAIN ANALYSIS IN BORA AND DUGDA DISTRICTS, OROMIA REGIONAL STATE, ETHIOPIA

Abstract

This study was aimed at analyzing beef cattle value chain in Bora and Dugda districts, Oromia Regional State, Ethiopia. The specific objectives of the study were to:- identify major beef cattle value chain actors and their roles in beef cattle value chain in the study areas; Identify the major constraints and opportunities in beef cattle value chain; analyzing the determinants of smallholders farmers' market participation decision and quantity of beef cattle supplied to the market in the study areas; and identifying marketing channels and determinants of farmers' decision to choose market outlets. The survey was conducted in five purposively selected kebele administrations in the districts. About 120 smallholder beef cattle producers have been selected randomly from the five kebele administrations proportionally. Both primary and secondary data were collected from different sources. Primary data were collected from sample household farmers and traders using structured questionnaires. Secondary data was collected form woredas livestock and fisheries resource development offices and input suppliers using key informant interviews. Descriptive statistics and Econometric models were used to analyze the collected data. The value chain analysis results showed that the major value chain actors in the study areas are input suppliers, producers, traders, small feedlot operators, processors/butcheries and consumers. The study results also revealed that feed shortage, high prices of inputs, disease outbreak and poor managements are the major constraints that farmers were faced on behalf of production side. From market side, market price instability, low price offered for the commodity and involvement of intermediatiaries are the major constraints. The result of Heckman two-stage indicated that age of household head, sex of household head, education level of household head, family size, farm income and access to market information were determined households' decision to sell beef cattle. Distance to market, education level of household head, land holding size, farm income and access to market information were significantly affect the quantity of beef cattle supplied to the market. Multivariate probit model results indicated that family size, age of household head, current average selling price, herd size, accessed to extension services, off-farm income and access to market information were significantly influence the likelihood of farmers to choose the alternative market outlets. Improvements of market infrastructure, marketing information service, improving animal production and management, intensive land use, integrating crop- beef cattle production and upgrading beef cattle value chain were recommended for policy implications