BULE HORA UNIVERSITY

COLLEGE OF AGRICULTURAL SCIENCE

DEPARTMENT OF AGRICALTURAL ECONOMICS

A SENOR SEMINAR PAPER ON CHALLENGES AND OPPORTUNITES OF

LIVESTOCK MARKATING IN ETHIOPIA

Set By: Hailu Amare

ID NO: RU 0971/12

Advisor: Mr. Anmut

BULE HORA, ETHIOPIA

MAY, 2015

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 Table of Contents
ACKNOWLEGEMENT.............................................................................................................................iii
ABREVATION..........................................................................................................................................iv
ABSTRACTS..............................................................................................................................................v
1 . INTRODUCTION................................................................................................................................1
1.1 Background of the seminar................................................................................................................1
1.2 Objectives..............................................................................................................................................2
1.2.1 General objective............................................................................................................................2
1.2.2 Specific objectives..........................................................................................................................3
2. LITERATURE REVIEW........................................................................................................................3
2.1 Challenges and opportunities of livestock marketing in Ethiopia..........................................................3
2. 2 Livestock marketing in Ethiopia......................................................................................................3
2.3 Opportunities of livestock market in Ethiopia.......................................................................................4
2.3.1. High demand of animals by the local abattoirs..............................................................................4
2.3.2. Official exports..............................................................................................................................4
2.3.3. Domestic Consumption..................................................................................................................6
2.3.4. Policy and project initiatives..........................................................................................................7
2.4. Challenges of livestock marketing........................................................................................................9
2.4.1.1 Supply Problems............................................................................................................................10
2.4.1.1.1 Inadequate Information on Available Resource......................................................................10
2.4.1.1.2 Prevalence of Diseases...........................................................................................................10
2.4.1.1.3 Archaic Traditional Production System..................................................................................10
2.4.1.1.4 Illegal Export Trade................................................................................................................11
2.4.1.2 Problems Related to Development Initiatives................................................................................11
2.4.1.2.1 Inadequacy of Infrastructure...................................................................................................11
2.4.1.3 Problems Related to Marketing.....................................................................................................11
2.4.1.3.1 Absence of Effective grading System.....................................................................................11
2.4.1.3.2 Absence of Market Information System.................................................................................12

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 2.4.1.3.3 Absence of Promotional Activities.........................................................................................12
2.4.1.3.4 Absence of Capable Private Sector.........................................................................................12
2.4.1.3.5 Absence of Quarantine Facilities............................................................................................12
2.4.2 External Challenges..........................................................................................................................12
2.4.2.1 Competition...............................................................................................................................12
2.4.2.2 Repeated Bans...........................................................................................................................13
2.4.2.3 Inadequate Port Facilities...........................................................................................................14
3. CONCLUSION AND RECOMMENDATION.....................................................................................14
3.1 Conclusion.......................................................................................................................................14
3.2 Recommendation.............................................................................................................................14
4. REFERENCE........................................................................................................................................16

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ACKNOWLEGEMENT
First and for most, I would like to thank Almighty God and his mother’s St.Shibre for all things
and for his forgiveness, charity and strength he has given to me.

Secondly, I would like to express my deepest sincerity and respect full gratitude for my advisor
ANMUT (MSC) for his valuable and fruit full advice in giving clue or hint and showing best
direction in what manner that I could prepare this senior seminar paper.

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ABREVATION
LMA Livestock Marketing Authority

ESAP Ethiopian Society of Animal production

NEPAD New Partnership Africa Development

CAADP Compressive Africa Agricultural Development Program

LLP Livestock and Livestock Product

IFAD International Fund for Agricultural Development

ARMD Animal Resource Marketing Department

ADF Africa Development Fund

NLDP National Livestock Development Project

LMIS Livestock Market Information System

CAP Common Agricultural Policy

MOA Minatory Of Agriculture

RVFR Rift Valley Fever

FMD Foot-Mouse Disease

CAP Common Agricultural Policy

CSA Central Agricultural Agency

MEDaC Ministry of Economic Development and Cooperation

SNNP South Nations Nationalities of People

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ABSTRACTS
Livestock is used broadly to include large and small ruminants, camels, poultry, and apiculture
and fish resources. Ethiopia has the largest livestock population in Africa. Its varied agro
ecological zones have put the country at an advantageous position in possessing relatively
huge number of different livestock species as compared to other African countries. However,
this country has been facing different challenges in livestock marketing over the last decades.
As such, this seminar paper sought to review the challenge and opportunity of livestock
marketing.
Literatures have identified many opportunities as well as challenges in Ethiopia’s livestock
marketing. Some of the opportunities include high demand of animals by local abattoirs,
official export, domestic consumption and policy and project incentives. However, inadequate
market infrastructure, virtual absence of market information system, absence of market
oriented livestock production system, inadequate number of exporting firms with low level of
capacities, inadequate knowledge of international trade, low level of quarantine facilities and
procedures, prevalence of various diseases, repeated bans, excessive cross-border illegal trade
and stiff competitions are the major challenges that hinder the smooth livestock trade of
Ethiopia.
Although it needs continuous commitment to reduce the different constraints through need
assessments and promotional activities to boost the economic contribution of livestock sector.

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1. INTRODUCTION

1.1 Background of the seminar

The livestock sector in Ethiopia contributes 12 and 33% of the total and agricultural Gross
Domestic Product (GDP), respectively, and provides livelihood for 65% of the population
(MEDAC 1998).The sector also accounts for 12–15% of total export earnings, the second in
order of importance. ‘Livestock’ is used broadly to include large and small ruminants, camels,
and poultry, apiculture and fish resources. Ethiopia has the largest livestock population in Africa.
According to CSA (2008) the estimated livestock population kept by farmers in rural areas was
about 43.1 million cattle, 23.6 million sheep, 18.6 million goats, 616,500 camels, 34.2 million
chicken, 4.8 million beehives, 6.5 million equine and 40,000 ton of annually harvestable fish.
Despite the largest number of livestock population in the country, farmers lack strategic and
market-oriented production system hence livestock failed to assist the effort of transforming
subsistent farming system in to a commercial production system.

Hence farmers also failed to meet the quality required by the different markets for their live animals. This
is associated with the absence of critical support services that can ensure strong link between producers
and the various participants along the marketing chain. These missed support services include lack of
commercial animal health service, non-existence of appropriate trucking equipment, lack of sufficient air-
cargo capacity, underdeveloped feed industry, lack of commercial fattening and holding facilities (Adina
and Elizabeth, 2006).

ESAP 2003, states problems related to livestock marketing as: Absence of Effective grading
System, Absence of Market Information System, Absence of Promotional Activities, Absence of
Capable Private Sector, and Absence of Quarantine Facilities. In addition to this Problems
related to supply include inadequacy of information on supply, prevalence of diseases, traditional
management system, illegal exports and failures to introduce exogenous inputs. additionally,
most of the local traders operating in the primary and secondary markets are suffered with the
marketing problems of lack of market demand, price instability, lack of financial services; and
the recurrent drought followed by livestock disease makes the assembling and holding situations
worth even to preserve the original costs of animals (Tesfaye, 2008).

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 Despite this measure, however, development of efficient livestock marketing in most African
countries including Ethiopia has remained a major challenge due to the prevailing under
development and lacks of market orientation and entrepreneurial capacity by the stakeholders.
And many internal and external challenges of livestock marketing have been cited as the major
problem in livestock marketing in Ethiopia. There is little evidence of strategic production of
livestock for marketing except some sales targeted to traditional Ethiopian festivals.

Hosting one of the largest livestock populations in Africa, this opportunity is particularly vital
for Ethiopia to be exploited if appropriate strategies are designed to meet the demand of the
changing global markets for high quality livestock products with consistent supply. So,
Livestock largely contribute to the sustainable livelihoods and security of the rural poor by
providing natural capital (meat, milk, hide, wool, water, rangeland and pasture), source of
financial capital (cash, saving, credit, insurance, gifts, and remittance), social capital (traditions,
wealth, prestige, identity, respect, festivity, marriage dowry). Therefore, it is ideal to review
and reconcile varying evidences of challenges and opportunities of livestock markets in
Ethiopia as it contributes improved welfare of farmers at household level and income from the
sector at national level. Since

Livestock largely contribute to the sustainable livelihoods and security of the rural poor by
providing natural capital (meat, milk, hide, wool, water, rangeland and pasture), source of
financial capital (cash, saving, credit, insurance, gifts, and remittance), social capital (traditions,
wealth, prestige, identity, respect, festivity, marriage dowry). Therefore, it is ideal to review
and reconcile varying evidences of challenges and opportunities of livestock markets in
Ethiopia as it contributes improved welfare of farmers at household level and income from the
sector at national level.

1.2 Objectives

1.2.1 General objective

 To review the challenges and opportunities of livestock marketing in Ethiopia.

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 1.2.2 Specific objectives
 To review the challenge of livestock marketing in Ethiopia.
 To review the opportunities of livestock marketing in Ethiopia.

2. LITERATURE REVIEW

2.1 Challenges and opportunities of livestock marketing in Ethiopia

2. 2 Livestock marketing in Ethiopia

Despite the largest number of livestock population in the country, farmers lack strategic and
market-oriented production system hence livestock failed to assist the effort of transforming
subsistent farming system in to a commercial production system. Farmers take a very small
proportion of their non-homogenous livestock to the market in order to secure some finance to
cover unforeseen expenses. It is observed that many smallholder farmers and pastoralists do not
participate in the livestock market. Furthermore, for those smallholder farmers and pastoralists
who participate in the market, the size of transaction (sale or purchase of cattle or shoats) is
found to be very small (ILRI, 2008). Farmers also failed to meet the quality required by the
different markets for their live animals. This is associated with the absence of critical support
services that can ensure strong link between producers and the various participants along the
marketing chain. These missed support services include lack of commercial animal health
service, non-existence of appropriate trucking equipment, lack of sufficient air-cargo capacity,
underdeveloped feed industry, lack of commercial fattening and holding facilities (Adina and
Elizabeth, 2006).
Livestock marketing chain is influenced by the activities of different market
agents/participants. These include: Producers, Collectors, Feedlot operators, Medium/small
traders, Cooperatives and Brokers.

The proper functions along the marketing chain among these different agents are highly
constrained by a number of problems which intern impedes the overall performance of small-
scale livestock marketing in Ethiopia. These include poor market infrastructure, absence of
market information and market support services, poor coordination among market agents, clan

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conflicts, disorganized purchasing practices of abattoirs, lack of standardized unit of transaction
in shoat markets, lack of access to credit and extension services as well as animal diseases
(ILRI, 2008; Mohammed et al, 2006; ILRI, 2009).

2.3 Opportunities of livestock market in Ethiopia

2.3.1. High demand of animals by the local abattoirs

Ethiopian recently breeds of cattle ,sheep, goats and camels are highly demanded by
neighboring countries as well as the strategic livestock markets of the middle east (Belachew
and Jemberu,2003) Since the the demand export abttoirs are required to ensure a consistent and
continuous supply of meat in order to meet Ethiopian recently of the customers in the
importing countries

The export abattoirs are required to ensure a consistent and continuous supply of meat
in order to meet the demand of the customers in the importing countries. Thus, there is
an urgent need for export abattoirs to devise alternative strategies to ensure adequate
market supply of quality live animals to meet their processing needs in order to
improve their efficiency and competitiveness. ACDI/VOCA (2008) stated that there
were seven abattoirs in Ethiopia which processed canned meat products mainly for the
army, domestic market and some exports. These abattoirs are located in Addis Ababa,
Melge Wondo, Dire Dawa, Kombolcha, Gondar and Debre Zeit. Of these plants,
Melge Wondo was to some extent preparing frozen beef and that of Debre Zeit
abattoir produced chilled beef, sheep and goat meat for both domestic and export
markets. With policy reformations after government change in 1991 in response to the
available potential for meat export and the liberalization policy, the number of export
standard abattoirs has increased.

2.3.2. Official exports

According to Belachew and Jemberu (2003), there are few legal exporters engaged in
the export of live animals and meat in the country. These exporters secure livestock
from pastoral areas by themselves or through agents for export in live or meat form

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(chilled mutton, goat meat and beef). The Livestock Marketing Authority (LMA)
(2004) estimated the annual potential for export at 72,000 metric tons of meat.
NEPAD-CAAD (2004) identified the Middle East and North African countries which
are considered important for the country’s export in livestock and livestock products
(LLP) to be Saudi Arabia, United Arab Emirates, Bahrain, Yemen, Jordan, Kuwait,
Oman, Qatar, Iran, Syria and Egypt. The annual demand of these countries is
estimated to be 206,846 tons of meat and 12 million heads of live animals (cattle,
sheep and goats). Based on Workneh (2006), the estimated national offtake rates of
10% for cattle, pastoral areas of the country alone, could produce 734 000 heads of
beef cattle per annum. When these are compared to the current demand in the Middle
East, they meet only 42% for beef. However, the live beef cattle supplies are well over
the demand (144%), thus requiring new market outlets.

The exports of meat and live animals have dramatically increased in 2010-2011
Ethiopian fiscal. Ethiopia exported 16,877 tons of meat and 472,041 head of live
animals, recording a 69 % increment from last year’s export revenue Yacob A and
Catley A (2010). Ethiopian revenue and customs authority reported that live animal
export in 2010 contributed 70% of the earnings while 30% was obtained from meat
export (Trade bulletin, 2011). The same bulletin also revealed that chilled sheep and
goat carcass accounted for 80%, beef 9% and offal 11% of the exported meat. Of the
number of exported live animals, cattle accounted for 46%, sheep 35%, camels 13%
and goats 6%. In terms of revenue, cattle contributed 67%, camels 25% and sheep and
goats 8% to the revenue generated. There is also the possibility of expansion to Asian
markets such as Malaysia, which require halls-slaughtered, frozen, skin-off carcasses
with less stringent hygienic regulationsTrade bulletin 5, (2011).

Livestock and livestock products are the major foreign exchange earners, only second to coffee,
with hides and skins contributing the most. For example, in 1995/1996 livestock exports
accounted for close to 14% of the value of agricultural exports, of which 96% came from hides
and skins. Exports dropped from 5% of the total value of exports in 1987/88 to 0.02% in 1995/96
due to decreased live animal exports, and an overall increase in the value of all exports (Zewdu
1995; MEDAC 1998). The share of live animal exports in total livestock and livestock products

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export earnings have declined in recent years (Figure 1. Skins and hides exports increased during
this period while meat exports remained relatively constant.

Source: Assegid (2000).

Figure 1. Export of animals and animal products.
Increased domestic demand due to population growth and stagnant or declining production in the
early 1990s might lead to major decrease in exports. It was predicted that because of a 2.9%
population growth rate, official exports were absorbed by domestic consumption, and an increase
in productivity was recommended to prevent the decline in export levels (FAO, 1993). This was
based on the premise that increased population growth coupled with increased urbanization and
income would significantly increase demand for meat while, in the absence of productivity
growth, increased domestic demand would be met by reducing export. However, the main reason
for recent decline in export was not increased domestic demand but an import ban by some
importing countries.

2.3.3. Domestic Consumption

The domestic meat demand is believed to increase with increasing literacy and family
income. Meat consumption is often an indicator of the economic status of a country or
an individual. People with a higher social or economic status demand a greater amount
of high-quality meat products. The per capita consumption of meat in
developed/industrialized countries is much higher than in developing countries.

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Countries whose population consumes the least amount of meat are located in Africa
and Asia.Developed countries consumed a consistent level of 77 kg of meat per capita
annually, while developing countries struggled to maintain a diet with only 25 kg of
meat per capita annually Abbey A , (2004). Ethiopians remained slightly below the
meat intake of all low-income countries and consuming 9 kg per capita annually
(Abbey A, 2004). Livestock market value chain structure that should be taken as an
opportunity is indicated in Figure 1.

Figur1.Livestockmarketvaluechainstructure
Sources: International Fund for Agricultural Development (IFAD, 2007)

2.3.4. Policy and project initiatives

The Ministry of Agriculture’s Animal Resources Marketing Department (ARMD)

initiated a LMIS in 1988 with the assistance of FAO. Together, they developed the
computer program CATTLEMARKET with the objectives of: improving the
transparency of market operations by providing equal access to all participants providing

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a database for the analysis of cattle marketing and for making planning decisions on the
livestock sub-sector based on empirical data (Zewdu et al, 1988). Initially, information on
throughput, prices, grades, live weight and other variables were collected from seven
markets. Data collection expanded to include an additional 13 markets. Only one of 20
markets was located in the pastoral area. The project was discontinued partly due to lack
of funding, and all the weighing scales became non-functional (MOA, 1996). Whether
there was any appreciable benefit from these past efforts on livestock marketing is not
known, as there is no evidence that ex post evaluation of the impact of these projects
have been done. Knowing what was successful and what failed is crucial for the success
of future projects. The present government has drafted a livestock development policy in
1992 a part of an overall agricultural policy. A more specific livestock policy and
programme was outlined by the ARMD to develop the livestock sub-sector. Along the
same lines, the African Development Fund Appraisal Report outlines a US$ 40 million,
5-year project, the National Livestock Development Project (NLDP), which began in
January 1999 with the aim of livestock health and breed improvement (ADF, 1998). The
government’s livestock policy objectives, and the NLDP’s aims are to increase livestock
productivity through increases in animal health and forage production. There is no
mention of livestock market development in the NLDP or livestock policy outlined by the
ARMD. Yet markets and market structures/mechanisms must be vertically and
concurrently created or enhanced to serve as an outlet for existing and increased livestock
numbers. In spite of many efforts, basic marketing infrastructure for livestock, e.g.
physical market facilities in the domestic market such as holding grounds and quarantine
facilities, export routes and port facilities, disease diagnosis, screening and certification
facilities and market information flow from the producer to the consumer at home and in
the importing countries remain very poor. The mandate of the newly created Livestock
Marketing Authority (LMA) is livestock market development to complement national
livestock policy. Four subject areas have been recently identified by the LMA, in the
process of developing and understanding livestock marketing in Ethiopia, i.e.: livestock
resource census livestock marketing studies (assessment of the livestock market; review
of previous livestock information service and design of a Livestock Market Information
System, LMIS) hides and skins market assessment and investigation on contraband

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livestock trade. Implementation of these studies and activities are progressing slowly.
Apart from financial resources, lack of trained manpower is a constraint for
implementation of these activities.

2.4. Challenges of livestock marketing

Although Ethiopia has ample potential to export its livestock and livestock products to the
Middle East and make further improvement to enter other markets (Assefa et al, 1972),
According to (Belachew and Jemberu, 2003), the country to export its livestock to the Middle
East and make further improvement to enter other markets; there are internal and external
challenges that Ethiopia should be dealt with in order to realize these benefits. The issue was
presented in the following figure.
Figure 2.1 major challenges of live animal export

Source: self-extracted

2.4.1. Internal Challenges

The internal challenges are many and inter connected. Their major cause is under development
and lack of market oriented production approach and entrepreneurial capacity by the
stakeholders. These internal problems can be grouped into four depending upon the specific area
to which they fall

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2.4.1.1 Supply Problems

2.4.1.1.1 Inadequate Information on Available Resource

The country’s livestock number, annual off-take, productivity, and consumption levels are not
adequately known. This creates problems in planning and designing of policies to enhance the
sector’s development(Belachew and Jemberu,2003)

2.4.1.1.2 Prevalence of Diseases.

In Ethiopia, there are many livestock diseases that create frequent livestock mortalities. The
presence of livestock diseases apart from affecting the efficiency of production (Belachew and
Jemberu,2003). Hampers export market development as a result of frequent bans by importing
countries. Over the past few years, the country has lost a substantial market share and foreign
exchange earnings due to frequent bans by the Middle East countries due to the RVF and FMD
outbreaks respectively in the Republic of Yemen and U.K (Belachew and Jemberu,2003).
Middle East countries banned imports of live animals from six countries in the Horn of Africa
and Nigeria due to an outbreak of Rift Valley fever. Although the outbreak of Rift Valley fever
triggered the recent ban on imports of animals from Ethiopia (and other Horn of Africa
countries), most likely the ban has been prompted by a number of other factors

2.4.1.1.3 Archaic Traditional Production System

Pastoralists consider their livestock as means of saving or capital accumulation. Livestock are
sold when need arises for cash income or when shortage of feed and water occurs. There is no
effort to strategically produce for the market by adjusting and planning production to market
needs (Belachew and Jemberu, 2003) Production planning in terms of time, type and quality of
supply to maximize income is nonexistent due to lack of entrepreneurial awareness (traditional
handling system) (MoA 2000; Jabbar and Benin, 2004) Further, the private sector has not yet
proved its adequacy in promoting production through additional investment and creation of
marketable surplus. Further, the scattered individualistic production system is exposed to the
vagaries of natural conditions (drought, disease outbreak – etc.), which frequently affects the
herd size and outputs.

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2.4.1.1.4 Illegal Export Trade
Recent studies estimate annual outflow of livestock through borders (illegally) at 325,800 cattle,
1.15 million shoats and 16,000 camels. The sources of this illegal export are Afar and Somali
Regions, Borena and East Hararghe Zones in Oromia and South Omo of the SNNP (Belachew
and Jemberu,2003.) The immediate destinations for such exports are Djibouti, Somalia and
Kenya. ( Belachew and Jemberu, 2003) The livestock are mostly for re-export to the Middle East
Countries from Somalia. The Djibouti's and Kenyans` re-export after meeting their domestic
consumption. This loss of exportable surplus has affected the country through loss of foreign
exchange; income taxes and its impact on legal livestock trade(Eyob and Zewdu,2003).

2.4.1.2 Problems Related to Development Initiatives

The traditional herd management system is not adequately supported through introduction of
improved breeding and feeding system. The local breeds are not differentiated and improved for
particular purpose. As a result, off take rates and yield has not kept pace with the virtually
growing demand. Unlike other countries, there is no breeding policy (Belachew and
Jemberu,2003).

2.4.1.2.1 Inadequacy of Infrastructure

The sources of livestock for export are pastoral areas that are far from the center. The Afar and
Somali Regions, parts of Borena in Oromiya are lowland areas forming internal boundary to
neighboring countries. Further, the pastoral livestock producers are scattered through large
expanse of lowland and semi-arid areas. For efficient marketing, adequate livestock markets,
stock routes, resting places, quarantine stations need to be developed to allow easy access to
traders for assembling and transporting livestock. However, these infrastructures are poorly
developed in the pastoral areas. Further, export standard slaughterhouses are located in central
areas far from surplus producing areas. In addition, transport facilities that allow adequate flow
of livestock and meat are not adequately employed (Belachew and Jemberu,2003).

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2.4.1.3 Problems Related to Marketing
2.4.1.3.1 Absence of Effective grading System:-
Livestock marketing is based on quality standards. Animal’s selection is purely based on eye-
appraisals and exchange takes place on bargaining (Belachew and Jemberu, 2003)
2.4.1.3.2 Absence of Market Information System –
There is no reliable source of information neither on export demand nor on domestic supply
situations. Thus, producers, traders, exporters and support giving institutions are constrained by
shortage of market information to rely on for enhancing production, marketing and exports
(Belachew and Jemberu,2003).

2.4.1.3.3 Absence of Promotional Activities –

Effective export requires knowledge of the client’s requirement, producing according to needs
and creation of awareness on availability of products to the clients. So far, little effort has been
undertaken to strengthen demand in the clients’ countries and creating segments in other
counties, by publicizing the special features of our products (Belachew and Jemberu, 2003).

2.4.1.3.4 Absence of Capable Private Sector

Active participation of private sector is required to enhance production and promote export.
However, currently there are few livestock exporters and a few meat processors and exporters.
These firms have relatively low capital as well as inadequate knowledge of international trade
(Belachew and Jemberu,2003).

2.4.1.3.5 Absence of Quarantine Facilities

To inter the international markets, well-equipped livestock quarantine stations are required.
However, under our conditions these facilities are not in a place. The Ministry of agriculture
should establish necessary quarantine facilities at appropriate locations and introduce necessary
procedures. The government should also allocate necessary budgets and assign relevant staff.
Livestock maintaining costs could be covered by the stakeholders (Belachew and Jemberu,
2003).

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2.4.2 External Challenges

2.4.2.1 Competition
Many countries compete for livestock and products markets in the Middle East. The main
competition for Ethiopia comes from Somalia, Sudan, South America, Australia, Newzealand,
Eastern Europe and the European Union. Available information indicates that Somalia exports
up to 2 million heads of sheep and goats and 10,000 heads of cattle a year. Its major source of
supply is believed to be the Ethiopian Somali Region, Eastern Hararghe and parts of Bale zones
of Oromia. In South America, the major exporters are Uruguay and Argentina. These countries
have a disease free status that has given them comparative advantages within their regions,
Europe and the Middle East. According to FAO (2002) database, Australia and Newzealand are
the largest exporters of live sheep and mutton to the Middle East. They have gained a secure
market position through the benefits of extensive livestock production and the strategy they have
adopted for sustainable supply at competitive prices to these countries. Further, they have a
livestock disease free status as well. The European Union is a surplus producer of livestock and
livestock products, which has been possible through the Common Agricultural Policy (CAP).
Their Exports are competitive due to the export subsidies adapted to maintain a reliable domestic
production. However, because of FMD and mad cow disease their market share in the Middle
East has relatively declined. As compared to others, Ethiopia has certain advantages on its
competitors which it can capitalize upon. These are the preferred animal types, location and
stable supply. The Ethiopian livestock (cattle, sheep and goat) are the preferred breeds in the
Middle East, as they are organically produced and the meat is of good tastes. The proximity of
the country to the Middle East has also cost advantage due to lower transport costs (Belachew
and Jemberu, 2003).

2.4.2.2 Repeated Bans

Importing countries frequently ban imports of meat and livestock from the horn as a result of
outbreaks of livestock diseases (Belachew and Jemberu, 2003). The long-term impact of the

19
import ban on the local economy, especially in the pastoral areas, which supply most of the
exporting animals, is likely to be severely negative on several fronts. There will be increased
pressure on feed resources due to increased population. Unsold animals will depress domestic
prices of animals and meat, thereby reducing the income and purchasing power of livestock
owners. This will further reduce domestic trade for other commodities, creating a downward
spiral in several directions (The Daily Monitor, 19 October 2000). Nearly half of the animals
were exported from Ethiopia, so the negative effects have been more seriously felt there
(Ethiopian Network on Food Security Newsletter, December 2001). The Republic of Yemen
lifted its ban in December 2001, but the more lucrative Saudi market is still apparently closed.

2.4.2.3 Inadequate Port Facilities

Currently, the Djibouti port is the only port for exporting livestock to the Middle East countries.
However, the port is ill-equipped for handling large number of livestock. The livestock-resting
place is too small. It has no sufficient fencing and there is no compartment for handling different
categories of livestock and isolation of sick animals (Belachew and Jemberu, 2003).

3. CONCLUSIONAND RECOMMENDATION

3.1 Conclusion
Livestock’s is used broadly to include large and small ruminants, camels, and poultry, apiculture
and fish resources. Ethiopia has the largest livestock population in Africa. There are many
opportunities as well as challenges that occur in livestock marketing in Ethiopia. Some of the
opportunities include high demand of animals by the local abattoirs, official exports, domestic
consumption and policy project initiatives. However, there are also challenges and constraints
that should be well addressed in order to realize the benefits. These challenges can be grouped
into two major parts: the internal and the external challenges. The internal challenges are many
and interconnected. Their major cause could be attributed to under development and lack of
market orientation and entrepreneurial capacity by the stakeholders. These internal problems can
be grouped into four parts depending upon the specific area to which they fall those are supply,
infrastructure, marketing and others.
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3.2 Recommendation
In order to realize the available export potentials, I recommend that the various supply problems
and marketing should be understood so as to devise measures. Further, the external challenges
need to be overcome through need assessment and promotional activities.
 For effective planning, the country’s livestock resources should be studied in detail so
that the type breeds and their geographical distribution could be known.
 In order to avoid the frequently imposed bans and increase supply, major diseases should
be controlled by strengthening the present veterinary service through vaccination and
availing veterinary medicine.
 Creating Market Awareness among the community should be developing in to market
oriented production system that takes in to account market demand and profits.
 To develop the major infrastructures for livestock marketing include livestock routes and
transportation facilities, improved slaughters houses, livestock resting sites, and storage
and quarantine facilities.
 Effective promotional activities designed to acquaint products with potential buyers
through workshops, seminars, brochures, and mass media, trade fair both locally and
abroad by involving all concerned.
 The government should allow to design policies and regulations that bring effective
production and marketing system internally and too much supply with external demand
 It should be implement research and dissemination activities to communicates lessons It
learned and assist with scaling up
 To improve productive of livestock, it is advisable to follow methods like improving
infrastructure, increasing quality and quantity of food and water supply, training of
farmers and improving genetics etc.

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4. REFERENCE

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