Agricultural Growth Program- Livestock Market Development

 

Ethiopia’s Livestock Sector:Ethiopian Livestock Investment

Forum

AdamaSept 4, 2014

Agricultural Growth Program- Livestock Market Development

 

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

Agricultural Growth Program- Livestock Market Development

 

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)

Processor Size Capacity (l/day) Actual

Small & Medium < 10,000 60 – 90%

Large 10,000 – 60,000 30 – 85%

Agricultural Growth Program- Livestock Market Development

 

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

Livestock Population

Cattle 52 mil

Sheep 24 mil

Goats 23 mil

Agricultural Growth Program- Livestock Market Development

 

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

Agricultural Growth Program- Livestock Market Development

 

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?

Agricultural Growth Program- Livestock Market Development

 

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

Agricultural Growth Program- Livestock Market Development

 

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

Agricultural Growth Program- Livestock Market Development

 

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

Agricultural Growth Program- Livestock Market Development

 

THANK YOU!