PERFORMANCE OF CATTLE MARKETING IN AGRO-PASTORAL AREAS: THE CASE OF FAFAN ZONE OF SOMALI REGION, EASTERN ETHIOPIA

Abstract

With regard to sustained increase in agricultural production, and farmer’s income; The market for cattle is one the largest markets in Ethiopia in terms of the volume of output handled the number of market participants involved, and the vastness of the geographical area of operation. This thesis research examines performance of the cattle marketing in agro pastoral areas of Fafan zone of Somali Region, Eastern Ethiopia. It attempts to identify marketing channels, and the role and linkages of marketing agents, analyze the costs and margins for marketing channels and identifies factors influencing cattle marketed supply in the study area.. Structure, conduct and performance model was used to analyze marketing channels and the role and linkages of marketing agents. This particular study revealed that out of the total 158 sampled households 107 individuals were market participant- Agro pastoralists in the study area .The degree of market concentration was carried out for four sample markets, namely, Jigjiga, Harta Shek, Lafa Isse and Obosha. It was measured by the percentage of cattle handled by the largest four traders The result shows that in primary and secondary markets (Lafa Isse, and Obosha) cattle traded were relatively concentrated in the hands of a few traders and pastoralist trader as village collectors dominate the transactions in the primary markets Along the chain, butchers incurred the highest cost of marketing (245 Birr/head) while pastoralists incurred 104.5 Birr/head. Rural collectors get the highest gross margin 22% of the final consumers’ prices whereas amateur traders get 9.3), itinerant traders and butchers get 26.3% and 21.1% respectively. The major barriers to entry into cattle trade was included lack of transparency and the presence of height proportion of unlicensed trader. Econometric analysis results of the Tobit model estimating the factors affecting cattle marketed supply among the pastoral and agro pastoral cattle keepers were analyzed. Of the 11 independent variables hypothesized to affect cattle marketed supply ; distance to the market, gender of the household head, market information, and price had a positive and significant effect while, size of the grazing area owned and alternative source of income were significant and had negative effect. The most important cattle production problems cited to affect the agro pastoralists in the study area were reported that diseases were ranked as the most important constraint followed by pasture scarcity, water shortage as the third and inadequate veterinary services as the fourth