ANALYSIS OF LIVE ANIMAL MARKET CHAIN: THE CASE OF GURSUM DISTRICT, EAST HARARGHE ZONE, OROMIA NATIONAL REGIONAL STATE, ETHIOPIA

Abstract

Live animals in the Gursum district contribute to the well-being of farmers by providing food, cash and other advantage. However, the sector faces challenges such as a lack of knowledge about participants in the animal market and animal supply to the market. This study aimed to examine the live animal market chain in the Gursum district using both primary and secondary data. In 2022, data were collected from 150 randomly selected households and 58 sample selected traders. The analysis of the data collected involves descriptive statistics and the econometrics of the Heckman two-stage selection model. According to the survey findings, key participants in the animal market chain actors included consumers, hotels, restaurants, small- and large-scale traders, cooperatives, local collectors, and producers. The study employed the S-C-P approach to analyze the structure, conduct and performance of the animal market. The district market exhibited a loose oligopolistic, with a concentration ratio of 34.63% for the top four among animal traders. The primary barrier to entry for large-scale traders and local collectors was identified as a lack of capital. Business traders employed cash on hand as their preferred payment method, and negotiation was the main strategy for fixing prices. The market’s performance was assessed using marketing margin, and the determination of margins was associated with the market. The study identified six main alternative channels for live animal marketing in the study area. Among the animals supplied to the district market, the largest quantity passed through producers to consumers (channel, I), while the smallest number went through producer to collectors, then to small-scale traders, and finally to ultimate consumers (channel, III). The total gross marketing margin was highest in the producer-to – collector-to-large-scale traders’ channel, accounting 42.5%, and lowest in channel the producer-to collector- to- final consumer, accounting for 14.5%.The finding revealed that family size, extension contact frequency, and access to veterinary services were positive and significant determinants of the participation decision, while the age of the household head and distance to the market negatively and significantly influenced the decision to participate. Furthermore, the results indicated that the quantity supplied to the market was positively and significantly affected by family size, the number of livestock owned and extension contact, while distance to the market had a negative and significant impact to supply.Thestudyrecommendstheneedtoenhancemarketcompetitiveness,marketinfrastructures,improvetheca pacityofproductivelabor and provision of awareness creation training towards animal trading business.