Journal of Agricultural Economics and Rural Development

Vol. 7(1), pp. 907-919, January, 2021. © www.premierpublishers.org, ISSN: 2167-0477

Research Article
Value Chain Analysis of Goat in South Omo Zone,
SNNPR, Ethiopia
*Asmera Adicha1, Mekete Girma2, Dawit Darcho3, Kutoya Kuse3
1&3Directorate of Socio Economics and Gender Research, Southern Agricultural Research Institute, Jinka Agricultural
Research Center, Jinka, Ethiopia, P.O.Box 96
2Directorate of Livestock Research, Southern Agricultural Research Institute, Jinka Agricultural Research Center, Jinka,

Ethiopia, P.O.Box 9
*Corresponding Author Email Address: asmera05@gmail.com

Value chain analysis of goat was conducted in Benatsemay and Hamer district of South omo
zone with objective of analysing value chain; identifying opportunities, constraints and
intervention areas. A three stage sampling technique was employed to select 160 households
from seven sample kebeles. Focus group discussion and in depth interview were made with goat
producers, different actors in the study area and export abattoirs at Modjo. Descriptive statistics
and marketing margin share calculation was used for analysis. The main marketing routes
identified were from origin to export abattoirs, Addis Ababa, and Kemesse. The analysis of costs
and margins along the five goat market channels shows that the producer’s share of final goat
price was higher when producers sell in Channel I (66%); channel II (57%), channel xii (55%),
channel xi (53%) and channel x (52%). Study areas are the major sources of goats for the central
markets but are constrained by different factors of production and marketing such as only rely
on browse, frequent drought, high incidence of diseases and lack of formal market information
about customers demand. Therefore, working on production and marketing constraints, and
organizing producers in group and link to export abattoirs could increase margin of producers.
Keywords: Goat production, Marketing, Margin, Value chain and Benatsemay and Hamer

INTRODUCTION

Ethiopia is endowed with diverse and large number of
livestock resources. Goats are among the most common
livestock species in Ethiopia with an estimated population
of 32.74 million, of which 70.49 % are females (CSA, 2018).
Goat production in Ethiopia contributes significantly to
national export earnings and the livelihoods of producers,
especially poor rural households (Adane & Girma, 2008).
According to Gezahagn (2019) Ethiopian export abattoirs
production capacity per year was 56,556 tons sheep and
goat, and 40,411 tons beef meat; the foreign currency
earnings from meat export was 92.65million USD.
Moreover, foreign demand for Ethiopian goat meat has
dramatically increased after market promotion by
development projects in close collaboration with the
government of Ethiopia. The role of goats in improving the
income and livelihood of rural people in the country is
gaining importance (Kocho et al., 2011). Despite the
reported high livestock population of the country and
national export earnings, the major meat exporters are
complaining of shortage of supply shoats. The problem
could be because less linkage of producers to abattoirs or
market information system, poor market infrastructures,
seasonality in production or a combination of several
factors. Therefore, analyzing goat value chains was
important to determine constraints and opportunities for
enhancing the efficiency of meat export from Ethiopia. In
South omo zone approximately 297,486 pastoral and agro-
pastorals people inhabit along the omo river valley keeping
large number of cattle, sheep and goats (PHCC, 2008). The
pastoral and agro-pastoral districts possess 98% of the
estimated 912, 889 goat population of the zone (CSA,
2018). Goats in the study area are used for household
consumption; cultural values, cash income/ liquid asset,
used as adaptation strategy and determines wealth status
for pastoralists and high shares in food security. Thus, they
play a great role in improving the income and livelihood of
pastoralists in the study area. However, there is no market
oriented production and poor market linkages to improve

Value Chain Analysis of Goat in South Omo Zone, SNNPR, Ethiopia

Asmera et al. 908
household income and to meet the demands of the growing
human population and foreign markets. As a result, linking
goat producers to the market and strengthening the whole
livestock/goat market systems increases cash income and
improves livelihood for pastoralists. Therefore, the
objective of this study is to analyze goat value chain,
identifying opportunities, constraints, intervention areas in
the production and marketing of goat.
Objectives of the Study
The overall objective of the study is to analyze goat value
chain in Benatsemay and Hamer district of south omo
zone Southern Ethiopia. The specific objectives were:
 To identify actors and their functions in the goat
marketing.
 To analyse and map value chain and marketing
routes/channels of goat
 To identify potential opportunities, constraints and
intervention areas in the production and marketing
of goat.
Figure 1: Map of the study area
Source: own sketch, 2019
Value Chain Analysis of Goat in South Omo Zone, SNNPR, Ethiopia
RESEARCH METHODOLOGY
Description of the Study Area
South omo zone is found in Southern Nations, Nationalities
and Peoples' Region (SNNPR) in Ethiopia. It is located 4º
27’-6º 26’north and 34º 57’-37º 49’ east bordering on the
south by Kenya, on the west by Bench Maji, on the
northwest by Keffa, on the north by Konta, Gamo Gofa and
Basketo, on the northeast by Dirashe and Konso, and on
the east by the Oromia Region. The administrative center
of South omo zone is Jinka. This zone is named for the
Omo River, a river that flows south into Lake Turkana on
the western side. West of the Omo is the most sparsely
populated part of Ethiopia, inhabited by nomadic and semi-
nomadic ethnic groups. The study was conducted in
Hammer and Benatsemay districts of South omo zone. The
districts are located 4º 27′ -5º 39′ north and 35º 23′- 37º 49′
east, bordering Kenya to the south. The study districts are
characterized by semi-arid and arid climatic conditions, with
mean annual rainfall increasing from the extreme south
lower part, with some 350 mm, to the upper part where it
ranges to 1400 mm. The districts have high ambient
temperature ranging from 26 to 35ºC. The dominant types
of land use in Hammer district is pastoralism while that of
Benatsemay is agro-pastoralism. The two districts possess
50% of the goat population from the pastoral and agro-
pastoral districts of South Omo zone. The Hammer, Bena
and Tsemay are the major ethnic groups in the study
districts (SOFEDD, 2009).

Type and Sources of Data
Qualitative and quantitative data were collected from
primary and secondary data sources. The primary data
such as input costs and output data was collected.
Performance of marketing functions such as handling,
transport and transaction activities related to marketing of
goat, market price of goat, main actors and their role,
margin share, marketing infrastructure and information,
market participants, opportunities and threats of goat
production data were also collected from key value chain
actors and stakeholders. These included producers
including women pastoralists, collectors, small and medium
scale traders, domestic consumers and exporters involved
in goat value chain. Secondary data was collected from
literatures, reports, documents both published and
unpublished data source.
Methods of Data Collection
Primary data were collected using informal and formal
survey methods such as focus group discussions, in-depth
interviews with key informants, direct observation with
transact walk, and structured survey questionnaires. Key
informant discussion was done with district trade industry
sector and livestock production experts at each district of
the study area on goat production and marketing. Two
focus group discussion in each districts with minimum of 8
known social strata groups (e.g. known goat producers,
women, youths, elders, others) was conducted. Face to
face interview was made with 4 local collectors/traders, 6
hotels and restaurants, 4 small-scale traders, 6 medium-
scale traders from two district and exporter abattoirs at
Modjo.
Sampling Technique
A three-stage sampling technique was employed to draw
samples from a given population of goat producer and
traders. In the first stage, from two districts, potential goat
producing and marketing kebeles was identified based on
goat production potential and in the second stage 7 sample
kebeles were identified by random sampling technique. In
third stage 5% of the households from selected kebeles
were taken. Accordingly, 160 sample respondents were
selected from sample kebeles goat producers. Main value
chain actors from two district were randomly selected and
Modjo modern exporter abattoirs was selected because of
goat traders from two district mostly supply to it.
Data Analysis
Descriptive statistics was used for the analysis.
Observations along the value chain were summarized
using strength, weakness, opportunity and threat (SWOT)
analysis. Software called Statistical Package for Social
Science (SPSS) was used for the analysis.
Value Chain Analysis of Goat in South Omo Zone, SNNPR, Ethiopia
J. Agric. Econs. Rural. Dev. 909
Marketing margin was analyzed using the price difference
of the actors in the market chain. The producers’ share in
the marketing margin can be expressed algebraically as:
px 𝑀𝑀
Ps= = 1 - where, Ps = producers’ share, Px = producers’
𝑝r 𝑝r
price, Pr = retailers’ price, MM = marketing margin
consumer price − producers/pastoralists
TGMM = x100
consumer price
Where TGMM=Total gross marketing margin
consumer price − marketing gross margin
GMMP = x100
consumer price
Where GMMp= producer’s gross margin
Gross margin − Marketing costs
NMM = x100
End buyer price (Consumers price)
Where NMM = net marketing
RESULTS AND DISCUSSION
Goat Value Chains in the Benatsemay and Hamer
Woreda
Input Supply System
Breeding Stock
In the study area, sources of breeding stock are pastoralists
themselves or local breeds. The pastoralists buy breeding
stock from the surrounding markets, or maintain female
goats as replacement stock. They buy goats from known
local markets such as Alduba, Keyafer, Woito, Kako and
Dimeka market locations for breeding purposes. In most of
kebeles breeding rams and bucks are obtained from other
pastoralists. But recently Jinka agricultural research center
(JARC) has been introducing improved breed (Boar) in very
few kebeles of the district with the objective of improving
local breeds. All households in the study district own
indigenous goat genotypes which are identified by their
locality or tribe names as Hamer, Bena, Tsemai, Ari or
Malle goats. The majority of pastoral households reported
that the origin of goats was from Borana, Dasanech and
north Kenya whereas some of the households in the upper
part of Bena-Tsemay district reported Malle and Gofa area
as the source for their goat types. The households also
indicated that there is high variability in performance traits
within their goat genotypes. According to Berhanu et al.
(2012), the households have varying perceptions on
performances of goat types within their locality.
Feed Availability and Sources
Goat production depends mainly on feed availability such
as browsing leaves of trees, bushes and shrubs. In study
areas pastoralists travel long distances along with their
goats in search of browse, pasture and water. As a result
they are deprived of services like education and still most
of them are not educated. According to focus group
discussion made with producers, range land condition of
Benatsemay and Hamer district is deteriorating from time
to time. The increase in human population also seriously
affected the rangeland condition through clearing range
Asmera et al. 910

land for different purposes such as housing, firewood for
home, selling and others. Primary sources of feed are
common grazing land, private grazing land and to some
extent crop residue. There is no improved feed or fodder in
the study area.
Veterinary and Drug Supply
Vet drug supply and vaccination services are the major
important aspect of veterinary service. Animal health
technicians in the district reported that there was shortage
of transport facilities to reach pastoralists and pastoralists
also raised shortage of drugs and less vaccination support.
Even though there is a large population of goats in the study
areas there were few Vet drug suppliers. There were four
drug suppliers in each district which were not easily
accessible to pastoralist because suppliers are in the
district town but pastoralists are located in distant for
grazing and watering of their goat. As a result, pastoralist
must travel very long distances to get treatment for their
goats; in some cases the goats die on the way. Another
important problem identified in study areas was shortage of
veterinary clinical equipment at district clinics and health
posts. The primary sources of drugs and vaccination
treatment was purchasing from government, private vet
services and in some cases some NGOs gave free of
charge. The major livestock diseases reported in the study
areas were Contageouscaprine Pleuro Pneumonia, peste
des petits ruminant, Trypanosomiasis, Anthrax, Blackleg,
Internal and External parasites and Foot rot.
Goat Production System
Goats are the second largest and most important
components of livestock production after cattle in the study
area. This is mainly because of their resistance to drought
than other livestock’s. Of the total goat population of the
South omo zone about 1,172,037 and 571,049 heads of
goats were found in Hamer and Benatsemay woreda. And
also the largest share of the zone, about 35.5% and 17.49
% is found in the study woreda and as well has high goat
production potential and they ranked as the first and second
respectively in the South omo zone.

Table 1: Estimated livestock population of Benatsemay and Hamer woreda

Type of Zone Hamer % share of livestock by Benatsemay % share of livestock by
livestock Population Hamer Benatsemay
Cattle 3,766,027 717,362 19.05 564,042 14.98
Goats 3,265,321 1172037 35.9 571049 17.49
Sheep 1,760,087 525833 29.88 202971 11.57
Source: SOFEDD (2016/17)

Survey result showed that average goat holding per Woreda was 50 and 2 goat’s respectively. Whereas the
household in Hamer and Benatsemay woreda were 15 and maximum and minimum goat holding per household of
12 goats respectively. The maximum and minimum goat sample respondents in Benatsemay woreda were 30 and 2
holding per household of sample respondents in Hamer goat’s respectively.

Table 1: Goat holding per household of sample respondents in study area

District Goat holding per household
Mean Maximum Minimum
Hamer(n=89) 15.09 50.00 2.00
Benatsemay(n=71) 11.68 30.00 2.00
Source: own survey (2019)

Goat Marketing System

Selling and Buying Practices
There are different ways of exchange in the study areas.
These are bartering, eye ball estimate and weighing scale.
Pastoralists sell their goats to anyone who pays an
acceptable price and the buyers are mainly other
pastoralists, local collectors, small and medium scale
traders. As revealed in FGD most of study areas use
bartering system and it depends on exchangeable good
quality and the bargaining power of seller and buyer
determine the transaction. In the study area male goats
were sold or bought by weighing scale. But female goats
sold and bought by bargaining skills of buyers and sellers
in the market. Modjo modern export abattoir buys
slaughtered carcass weight of goat meat from the medium
scale traders that means they slaughter goat then measure
the exportable meat/carcass in kilogram. More clearly the
abattoir’s buying price of goat was ETB 135 per kilogram of
exportable meat/carcass weight. This means nearly live
weight of ETB 66 per kilogram. The abattoirs selling price
of meat/carcass weight to Dubai is 5.2 USD per kilogram
and 5.3 USD per kilogram to Saudi Arabia. From key
informant interviews and market observation the average
live body weight of goats supplied to market in the study
area was 22 kilogram. At the time of this study, the price of

Value Chain Analysis of Goat in South Omo Zone, SNNPR, Ethiopia


goats per kg of live weight was ETB 45. The price sharply
increased from ETB 43-45 in the last two months.
Market Information System
Better information can improve pastoralists bargaining
power, reduce search costs, reduces transportation costs
and exit tax when they take back to home due to lower price
offered, inaccessibility to market, low quality supplied and
less demand. As provided in study result 59.6 % of
pastoralists face difficulty in finding buyers when they
wanted to sell their goats and 40.4 did not faced. As they
are located in the rural areas where access to the primary
market information is difficult, most of them use informal
Figure 2: Sources of market information in the study area
50
precentage
40
30
20
10
0
neighbours friends &
relatives
assessment
Traders get market information from market in the market
day and no any other known source of information for them
in the study area. Pastoralists do not have specific
information on price, time, and quality of goats required by
the market as a result goat producers’ supply to the market
fail to meet market requirement.
Seasonal Supply of Goats
Pastoralists regularly sell their goats in need of cash for
household problems, however, recurrent drought in the
Figure 3: Reasons pastoralists sell their goats in the study area
4.4%
34.4%
57.4%
3.8%
Value Chain Analysis of Goat in South Omo Zone, SNNPR, Ethiopia
J. Agric. Econs. Rural. Dev. 911
sources of information. In order to get market information,
about 31.9% and 43.1% of pastoralists in study area search
for last week marketed friends and a neighbor in local
boarde drinking places respectively. And approximately
14.7% of respondents relied on previous weeks’ market
information or if available, the information which they get
from the nearby goat traders. The marketing behavior of
producers varies from place to place. Though it is not
reliable, pastoralists also try to get information from village
or local collectors who are members of their community.
Also the result showed 9.5% of respondents sold their goat
with no information whereas 0.9% was get information from
experts in their kebeles about the price.
last week no experts
market infromation
study area influence the selling decision and supply of
goats to the market. Decision about when to sell goat is
based on drought and demand for food grains which is the
main driving force to pastoralists to sell their goat (figure 3).
Among the main factors where pastoralists sell their goat or
livestock were mainly the purchase of grains and other
foodstuffs during drought seasons, to pay for medical
expenses for family, and vaccination and drug purchase, to
buy honey for social ceremonies such as wedding.
Maturity
Fear of drought
Market price
Food shortage, health
& others problems
Asmera et al. 912
Despite the economic importance of goat rearing, its
marketing is a major challenge for most of the pastoralist
because they do not know when to sell, how much, for
whom to sell and etc. As discussion with pastoralists they
sometimes unable to sell or take back to home due to lower
price offered by buyers for their goats. On the opposite side,
pastoralists become reluctant to sell their goat during the
rainy seasons because they have no problem with fodder,
water and grazing land whereas there is very high demand
from small and medium scale traders at Dimeka and
Keyafer markets because of high demand at end markets.
For instance, during the month April/May of the year there
is high export demands (Dubai and Saudi Arabia) because
at the end of the months that there is a Ramadan or
Muslims festivals ceremony. And also during the month of
May/September of the year there is high domestic demand
because at the beginning of two months in Ethiopia there is
ceremony of Easter at May and New Year of Ethiopia at
September. The price of goat varies as seasons like dry,
rainy and festivals by averagely 2-3 ETB per kilogram.
Transportation and Road Access
Pastoralists trek goats to market as household need arises.
The main means of transporting goats from farm gates to
the bush/village or primary markets was trekking for
pastoralists. In study area goats transport to a long distant
market places without resting, getting feed and water and
this cause, poor meat quality, high weight loss and even
sometimes mortality. Small and medium scale traders hire
Isuzu trucks to transport goats from Keyafer and Dimeka to
Addis Ababa and Modjo export abattoirs.
Goat Fattening Practices
Pastoralists were aware of the external demand but they
don’t have concept of fluctuating external demand
depending on seasons. The production system has not
been yet transformed in to market oriented production
system in both district. The pastoralists still supply goats as
need for purchase of food grain arises and household
health problem occurs. Producer groups and cooperatives
are not well developed in the study areas that could supply
goats in wholesale.
Processing and Consumption
In the study areas processing and consumption of goat
meat is carried out by hotels and restaurants, and also by
pastoralist households during cultural ceremonies such as
cattle jumping and for dowry. Individual households and
Hotels in Jinka, Keyafer and Dimeka process and consume
meat. Different dishes such as key wat (stews), tibs
Value Chain Analysis of Goat in South Omo Zone, SNNPR, Ethiopia
(roasted meat) and red meat mixed with spices and butter,
and wotele (culturally processed). The butchers in Addis
Ababa and Kemesse slaughter goats and sell either the
roasted or raw meat for consumers. Goats from the study
area are slaughtered at Modjo modern export abattoirs and
exported to foreign consumer
.
Marketing Channels, Market Actors and their
Functions in the Chain
Market Channels of Goat in Benatsemay and Hamer
Woreda
Marketing channels of goat in the study area starts from the
farm gate and flow out through various paths to reach final
consumers. To depict the distribution of marketing costs
and margins, this study identified 12 possible marketing
channels for pastoralists as follows:
Marketing channels for domestic consumers
Channel I: producers > local hotels & restaurants >
consumers
Channel II: producers > local collectors > local hotels &
restaurants > consumers
Channel III: producers > consumers
Channel IV: producers > producers/pastoralists
Channel V: producers > NGOs > producers/pastoralists
Channel VI: producers > local collectors > consumers
Channel VII: producers > local collectors > small scale
traders > Addis Ababa & Kemesse (wollo)
Channel VIII: producers > brokers > small scale traders >
Addis Ababa & Kemesse (wollo)
Channel IX: producers > small scale traders > Addis Ababa
& Kemesse (wollo)
Marketing channels for exports abattoirs
Channel X: producers > local collectors > medium scale
trader > Modjo export abattoirs
Channel XI: producers > brokers > medium scale trader >
Modjo export abattoirs
Channel XII: producers > medium scale trader > Modjo
export abattoirs
Market actors and their functions in the chain
Marketing of goats in the study areas starts with the
collection of goats from production areas moving on to the
‘end markets’. In the process, goats pass through different
market actors before they reach end-users.

Figure 3: Value chain map of goat in Hamer and Benatsemay woreda
Pastoralists/agro pastoralist
Most of pastoralists sell goats either in the villages or on the
road to the market and in market places. Pastoralists in the
study area usually buy goats for breeding purposes. They
buy goats in their farm gate by bartering. Moreover, their
chosen sources of goats are pastoralists from known
market locations such as Keyafer, Alduba and Kako for
Benatsemay district and Dimeka, Turmi and Alduba for
Hamer district since they want to make sure that whether
the goat they bought will adapt to their environment.
Local collectors
These market agents in the study area are working
independently or in commission for other traders. The
commission for collectors working for other traders
depends on getting a good price from producers in villages
or remote goat markets. Thus, they collect goats from their
locality and bush or remote markets for supply usually to
small/medium scale traders in Keyafer and Dimeka. They
use their local knowledge and social relationships to collect
goats from pastoralists in bush markets and resell them to
hotels and restaurants and household consumers in local
known markets places such as Keyafer or Dimeka market.
They use their own money to collect and sell to any buyer,
getting a margin of up to ETB 100-200 per goat.
Value Chain Analysis of Goat in South Omo Zone, SNNPR, Ethiopia
J. Agric. Econs. Rural. Dev. 913
Brokers
Brokers are market agents that mediate buyers and sellers
in transaction. Brokering activities in livestock (goat) market
depends on the mode of transaction. In the study area
known markets are Keyafer and Dimeka and transaction of
male yearling goats was weight based that price per live
weight in kg of goat is known to everybody which is 45ETB
per kg; their task is to channel more sellers to a buyer. In
such cases they do not influence the price of live weights of
goats for individual sellers. But it is up to the buyer to
provide a certain amount of premium payment above the
weight-based price. As revealed in interview of buyers,
most of time they pay ETB 1 per kg in addition to the
calculated weight based payment to attract more sellers.
Small/medium scale collectors
Small scale traders supply hundreds of goats every week
to Addis Ababa as well as to hotels in Keyafer, Dimeka and
Jinka town. There are 3 small scale traders who purchase
goats from pastoralists, local collectors or brokers from
Kako, Beneta, Alduba, Woito, Luka and Keyafer market and
supply to Addis Ababa. They have their own network of
collectors and operate using their own capital and
sometimes receive advance payments from buyers.
Medium scale traders are those market actors that supply
minimum of 150-200 goats per a week to Modjo modern
Asmera et al. 914
export abattoirs. About 3 medium scale traders who buy
goats from pastoralists or local collectors at Dimeka market
on official market day Saturday and 3 medium scale traders
in Keyafer collect goats from Kako, Beneta, Alduba, Woito,
Luka and Keyafer on a weekly or biweekly basis and
transport them directly to Modjo modern abattoirs using
rented vehicles.
Domestic/ Individual consumers
These are individual goat market actors who buy
goats/meat for their own home consumption directly from
producers or local collectors, small scale traders and
hotels. They buy live goats from markets such as Dimeka,
Turmi, Kako, Alduba, Keyafer, and Jinka depending on
where they live. They also buy raw meat from hotels on a
kilogram basis in Jinka town. Individual consumers buy live
goats to slaughter for religious festivals and special
occasions. Although it varies with income of the household,
they usually go for fattened female or male goats. Individual
consumers in pastoral areas usually buy from pastoralists.
In the Dimeka, Keyafer and Jinka town, individual
consumers buy from any seller for household consumption.
Hotels/restaurants
Hotels and restaurants in the study area important actors in
goat value chain that they process goat meat in to different
dishes. Hotels and restaurants buy mainly infertile or
matured female goat with price range from ETB 600-800.
This is because of infertile or matured goats have a higher
carcass yield and cheaper price than young male goat
which is expensive (ETB 2000-2500) and bought in price
per kilogram. They commonly go for infertile/matured goats
because they are regarded as having a larger proportion of
meat (Legese et al., 2014) and are cheaper. While buying
goats, they give serious consideration to body size and
condition.
Export abattoirs
Modjo modern export abattoir is the export abattoir located
in Modjo area and highly demand goat from south omo
areas mainly Benatsemay and Hamer district because of
high carcass quality. As discussion made with technical
managers of Modjo modern export abattoir, South omo
goats have 50% exportable carcass of its live weight which
means after slaughtering the quality exportable meat
weight is half percentage of its live weight. Comparing
south omo goats with goats from other areas, it has special
quality that others areas have 30% exportable carcass of
its live weight which is 20% less than that of south omo
areas. Modjo modern export abattoir slaughters goats,
removes the skins, chills the carcasses and wraps them in
Value Chain Analysis of Goat in South Omo Zone, SNNPR, Ethiopia
cotton fabric before transporting them to cargo planes. The
abattoir exports chilled carcasses to the Saudi Arabia and
Dubai. Studies by Denbela et al., (2018) in Bena-Tsemay
district at Goat Research Stations of JARC shown that the
live /slaughter weight and hot carcass weight for yearling
male Woyto-Guji goats was 17.4 and 7.93 kilogram. Saudi
Arabia and Dubai are the main demanders of goat meat
from Modjo modern export abattoir. Modjo modern export
abattoir export chilled goat carcass on their specific
requirements in terms of the carcass weight. The Dubai
market needs goat carcasses of 5.5–9 kg, which
necessitates slaughtering animals/goats of 14–22 kg in live
weight. Saudi Arabia needs larger goat carcasses of 8–14
kg, which means slaughtering goats of 18–30 kg in live
weight. In general, although quality requirements vary, the
goat export market generally requires animals/goats having
the following characteristics: male, young (1–2 years) and
with a live weight of 14–30 kg. The export market prefers
non-castrated goat with lower proportions of fat; the
domestic market prefers castrated males or female animals
(Getachew et al., 2008). Export abattoir slaughters 2000
goats per day and exports chilled goat carcasses to the
Saudi Arabia and Dubai. The abattoir has also domestic
outlets for their offal meat (Addis Ababa and surroundings
of Modjo town). And also they sold skin to the skin
processing factory at Modjo town. As they revealed both
Dubai and Saudi Arabia markets demand of goat meat
throughout the year. But high demand of goat meat in Dubai
is during Ramadan season (Muslim festivals) (Month of
April/May) whereas Saudi Arabia demands throughout the
year. Low demand occurs in both (Dubai and Saudi Arabia)
markets at month of September.
Distribution of cost and benefits among actors in
main market channels (along the goat value chain)
Marketing costs and margins were calculated for five out of
the selected twelve goat value chains. The calculation is
based on the assumption that, in the first two channels
(channel I&II) producer’s supply infertile female goats to
local hotels and restaurants because of the preference by
hotels and restaurants due to high carcass quality.
Moreover, production/purchase cost of the goats and price
are similar that buying or selling is by bargaining or eye ball
estimation. In the second three channels (channel X, XI &
XII) the product goes to export abattoirs. An export abattoir
needs the young male with good body condition. The
production cost of the goat and producers price are similar
throughout the three channels. However, the marketing
costs and selling price for the three channels vary since the
product undergoes different processes in each of three
channels.
 J. Agric. Econs. Rural. Dev. 915

Table 2: Total cost of goat marketing for each actor identified in market channels.
Actors Total cost/head (ETB) by each actor
Producers 854
Local collectors 35
Medium scale traders 88.5
Hotels and restaurants 440
Modjo modern export abattoir 180
Source: own survey, 2019

In channel I goats are sold to local hotels and restaurants. producers’ share of the final product (goat) is 66%. I.e. goat
This channel includes only producers and local producers obtain about 66% of the final price of the
hotels/restaurants. As can be seen from Table 4, the processed goat meat sold by the hotels.

Table 3: Costs and margins of the actors involved in selling goat to local hotels & restaurants
Margin analysis Pastoralists/producers Local hotels & restaurants
Production or purchase cost 824 950
Marketing cost 30 440
Total cost 854 1390
Channel I

Selling price 950 1450

Marketing margin - 500
Net margin - 60
Value added 96 60
Proportion of value added (%) 61.5% 38.5%
Producer’s share of final price (%) 66%

In channel II goats are sold to hotels/restaurants by local actors like producers and local collectors. In this channel,
collectors. This channel includes producers, local collectors the producers’ share of the final selling price is 57% (Table,
and hotels/restaurants. The amount of value added by 5), which is lower than the share observed when producers
hotels was higher when compared to value added by other directly sold goats/animals to local hotels/restaurants.

Table 4: Costs and margins of the actors involved in selling goat to local hotels & restaurants through local
collectors
Margin analysis Producer Local collectors Local
hotels/restaurants
Production or purchase cost 824 880 970
Marketing cost 30 35 440
Total cost 854 915 1410
Channel II

Selling price 880 970 1550

Marketing margin - 90 580
Net margin - 55 140
Value added 26 55 140
Proportion of value added (%) 11.8% 24.9% 63.3%
Producer’s share of final price (%) 57%

In channels (X, XI and XII) goats are sold to Modjo modern
export abattoirs. In the market channel X, goats
slaughtered at export abattoirs, market actors are
producers, local collectors and medium scale traders
(Table 6). In channel X, goat producers obtain about 52%
of the final price of the goat slaughtered at the export
abattoirs. Goat producers’ share of final price was even
lowest when compared to goat slaughtered at local hotels.
This is mainly due to differences in the types of
goats/animals demanded by the two buyers. Local
hotels/restaurants buy matured and infertile female goat,
while the export abattoir buys young male with good body
condition. Modjo modern Export abattoir’s buying price was
ETB 135 per kilogram of exportable meat/carcass weight.
Modjo modern Export abattoir’s indicated that South omo
goats have 50% exportable carcass of its live weight which
means after slaughtering the quality exportable meat
weight is half percentage of its live weight. The abattoirs
selling price of meat/carcass weight to Saudi Arabia is USD
5.3 per kilogram. From KII and market observation the
average live body weight of goats supplied to market in the
study area was 22 kilogram. Exchange Rate, 18, Apr 2019,
1 USD = ETB 28.73.

Value Chain Analysis of Goat in South Omo Zone, SNNPR, Ethiopia

Asmera et al. 916

Table 5: Costs and margins of the actors involved in selling goat to export abattoirs
Margin analysis producers Local Medium scale Modjo modern
collectors Traders export abattoirs
Channel X

Production or purchase cost 824 924 990 1485

Marketing cost 30 35 88.5 180
Total cost 854 959 1078.5 1665
Selling price 924 990 1485 1786
Marketing margin - 66 495 301
Net margin - 31 406.5 121
Value added 70 31 406.5 121
Proportion of value added (%) 11.13% 4.93% 64.67% 19.27%
Producer’s share of final price (%) 52%

In channels XI goats are sold to Modjo modern export medium scale traders (Table 7). In this marketing channel,
abattoirs. In this channel goats were slaughtered at export goat producers obtain about 53% of the final price of the
abattoirs, major market actors are producers, brokers and goat slaughtered at the export abattoirs.

Table 6: Costs and margins of the actors involved in selling goat to export abattoirs
Margin analysis Producers Brokers Medium scale Modjo modern
Traders export abattoirs
Production or purchase cost 824 946 990 1485
Marketing cost 30 - 88.5 180
Channel XI

Total cost 854 946 1078.5 1665

Selling price 946 990 1485 1786
Marketing margin - 44 495 301
Net margin - 44 406.5 121
Value added 92 44 406.5 121
Proportion of value added (%) 13.86% 6.63% 61.27% 18.24%
Producer’s share of final price (%) 53%

In channels XII goat are sold to Modjo modern export medium scale traders (Table 8). In this marketing channel,
abattoirs. In this channel goats are slaughtered at export goat producers obtain about 55% of the final price of the
abattoirs and major market actors are producers and goat slaughtered at the export abattoirs.

Table 7: Costs and margins of the actors involved in selling goat to export abattoirs
Margin analysis Producers Medium scale Modjo modern
Channel XII

Traders export abattoirs

Production or purchase cost 824 990 1485
Marketing cost 30 88.5 180
Total cost 854 1078.5 1665
Selling price 990 1485 1786
Marketing margin - 495 301
Net margin - 406.5 121
Value added 136 406.5 121
Proportion of value added (%) 20.49% 62.27% 18.24%
Producer’s share of final price (%) 55%

Opportunities and Constraints of Goat Production and
Intervention Areas
Potential Challenges Pastoralist Women’s Face in
Goat Production and Marketing
In the study area pastoral women along with their husbands
engage in goat rearing, feeding and day to day
management and are also solely responsible for
maintaining hygiene and dung collection. But in most
cases, they are either excluded from selling and controlling
the income from their sales or, they jointly control the sales
and income with their husbands. Moreover, during FGD
they revealed that culturally women do not have control
over the resources but do have access. This means,
women may use milk, butter and get money but culturally
pastoral women’s cannot sell stocks (goat) for past
decades due to cultural taboos. Inherited social practices,
gender stereotypes and resistance to change hinder the
participation of pastoral women in goat marketing business.

Value Chain Analysis of Goat in South Omo Zone, SNNPR, Ethiopia


Furthermore, pastoralist women have low levels of
access to finance, low access to markets and market
information, low skills and knowledge on market oriented
goat production.
Opportunities’ for Pastoralist’s Women in Goat
Production and Marketing
Better experience of production
Better experience of the pastoral women for the goat
rearing in the study area enable them to easily adopt
market oriented goat production and benefit from the
product marketing business. As pointed out in FGD
pastoral women play a significant role in the production
of goats by taking care of young kids by feeding and
watering which help them simply engagement in goat
production and marketing business.
Increasing high demand for south omo goats
Technical managers of Modjo modern export abattoirs
revealed that goats from South omo are highly
demanded by them because of high exportable carcass
weight and quality than goats from other areas. As
discussion made with district experts, they identified that
there is high domestic demand. In the study area there is
also demand by individual consumers and
hotels/restaurants. This creates an opportunity for
pastoral women’s those involve within the goat
production and marketing business to sell more number
of goats at better prices at domestic markets and export
abattoirs.
Suitable agro-ecology and feed resources for goat
production
The districts mainly depends on the natural grazing land
which mainly includes a mixture of Acacia, Boswellia and
Commiphora woody species and short grasses type with
varying density of woody vegetation. Study by Berhanu
et al. (2017) the major feed sources for livestock/goat
was natural pastures from rangelands (pasture grasses,
legumes, fodder tree and shrubs) in Hamer and Bena-
Tsemay district.
Threats and weakness of goat production and
marketing
As per group discussion made with pastoralist major
threats for goat production and marketing are predators
, drought and disease whereas weakness are little work
on breed improvement, no or weak feed collection and
preservation for droughts seasons, low animal health
input supply and poor livestock husbandry practice in the
study.
Value Chain Analysis of Goat in South Omo Zone, SNNPR, Ethiopia
J. Agric. Econs. Rural. Dev. 917
CONCLUSION
The study district are endowed with huge goat resources
in South omo zone with the highest share of about 35%
Hamer and 17% Benatsemay of the total goat population
in the zone. These areas are the major sources of goats
for the central markets (Addis Ababa, Kemesse) and
export abattoirs (Modjo). However, the study areas were
constrained by different factors of production and
marketing. The major constraints were only rely on
browse of bushes and trees, no additional feeds are
provided to goats in drought seasons, so goats taken to
the market during dry seasons are not demand by buyer
and do not make attractive prices. Moreover, lack of
breed improvement practices like Boar goat introduction,
frequent drought and consequent feed shortage, high
incidence of diseases and parasites and a very weak
input delivery system. Moreover, goat fattening is not
common in the study area that they follow traditional
husbandry practices, with less support by extension
agent on fattening and they are unable to make use of
the existing market opportunity. Lack of formal market
information and seasonality of market demand and unit
of transactions are also common problems in the study
area. Pastoralist women involvement in production and
marketing is important as they play a great role in the
production process of goats in taking care of young kids
by feeding and watering. However, cultural taboos,
beliefs, perceptions, and inherited social practices
lowered the participation of pastoral women in goat
marketing and culturally income sources like cattle/goat
are hold by their husbands. And also pastoralist women’s
are low access to markets, finance/credit services,
market information, and no knowledge on market
oriented goat production and marketing. Enabling
producers to provide their goats in channel I, II and xii
could increase margin of producers and improve their
livelihoods.
RECOMMENDATIONS
Based on the findings of this study, the following
recommendations are made to improve the goat value
chain in the study area.
Improve the goat breeding stock through:
Strengthening traditional breeding practices and
designing an appropriate goat breeding program by
establishing close relationship with the community by
supplying inputs needed. Introduce improved breed
(Boar) and train pastoralists on maintenance of breeding
bucks and the dangers of inbreeding.
Asmera et al. 918
Improve the supply of veterinary drugs and
vaccination services through:
Improve supply of drugs and vaccination support through
allocating sufficient dose of vaccines to district or
kebeles. Providing regular vaccinations to prevent the
outbreak of major diseases for which vaccines are
available identification of the different strains of disease
properly for effective vaccinations and treatments.
Provide transportation facilities for animal health
technicians at the health posts and clinics.
Improve availability of feeds and the feeding
practices through:
Developing habit of collecting and preserving either the
naturally grown feeds or forage to pastoralists which can
be used for drought season. Supporting forage during
drought months mainly from December to February
because seasonality of feed is common problems that
leave of trees, shrubs and bushes fall on those months.
Introducing adaptable forages generated through
research, and by encouraging the establishment of new
feed producers or suppliers through credit services.
Promote conservation of locally available feed resources
through the training of extension agents and pastoralists.
Improve goat production and marketing
Change mind sets through training both men and
women on goat marketing business and gradually break
the cultural taboos that traditionally goat marketing
business are tasks of male and income from it is hold
by their husbands.
Design capacity building to enlarge women’s
participation in marketing
Provide awareness creation and demonstrate improved
goats housing through training and demonstration.
Provide training for pastoralists and extension agents
on goat fattening and marketing in order to meet
demand requirements of buyers.
Linking producers and buyers are essential because
producers do not know about the quality requirements
of the different buyers of goats in the market.
Create awareness on effective management of market
information system and information flow in district level
trade and industry department
Organize pastoralist women’s/producers in group and
enable them to trek their goats direct to Modjo modern
export abattoirs without any intervention of other market
actors.
Advice pastoralist women’s/producers to supply goats
directly to the local hotels so as to benefit margin that
actors in the market obtain.
Value Chain Analysis of Goat in South Omo Zone, SNNPR, Ethiopia
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Accepted 1 November 2020

Citation: Asmera A., Mekete G., Dawit D., Kutoya K. (2020). Value Chain Analysis of Goat in South Omo Zone,
SNNPR, Ethiopia. Journal of Agricultural Economics and Rural Development. 7(1): 907-919.

Copyright: © 2021: Asmera et al. This is an open-access article distributed under the terms of the Creative Commons
Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original
author and source are cited.

Value Chain Analysis of Goat in South Omo Zone, SNNPR, Ethiopia