OROMIA IRRIGATION AND

PASTORALIST DEVELOPMENT
BUREAU

De-Risking, Inclusion and Value Enhancement of the Pastoral

Economies in the Horn of Africa (DRIVE)
Financed By: World Bank,
Component 2:Livestock Value Chains & Trade Facilitation
Expected Contributions of Cooperatives and Unions in achieving PDO &
Major Zone Cooperative Offices in Strengthening Cooperatives and Unions in
LVCMs
1
November 30, 2023
De-risking, Inclusion and Value Enhancement of Pastoral
Economies (DRIVE)

Component 2:Livestock Value Chains & Trade Facilitation

Expected Contributions of Cooperatives and Unions in

achieving PDO &
Major Zone Cooperative Offices in Strengthening Cooperatives
and Unions in LVCMs

November 11, 2023

Adama, Oromia
a. Project Development Objectives
• The project development objectives (PDO) are to enhance
pastoralists' access to financial services for drought risk
mitigation, include them in the value chains, and facilitate
the livestock trade in the Horn of Africa.
Cont….
The progress towards the PDO will be measured by the
following PDO level results indicators:
(a) pastoralist groups supported by the project and
connected to the market;
(b) increase in trade in livestock and livestock products that
will be measured by number of live animals exported
through Ethiopia quarantine center;
 Cont…
Intermediate results of:
•(a) livestock value chains and trade facilitation that will be
measured by the amount of investments supported that limit
greenhouse gas emissions or support adaptation of
pastoralists and the number of national quality infrastructure
(NQI) professionals trained on quality infrastructure using
cross-border collaboration;
• (b) private capital enabled or mobilized that will be measured
by the amount of private capital mobilized through the facility
to de-risk private investment in Ethiopia.
1. Coops engage pastoralists and agro-
pastoralists in livestock value chain
managements
• Engaging pastoralists and Agro-pastoralists in to
Livestock Value Chain Management include
commercialization of livestock rearing systems (market
oriented production system) and engagements into
members managed livestock businesses(including
livestock fattening ,livestock trading businesses).
Cont…

• Organizing pastoralists into Livestock Value Chain

Managements are inclusion endeavors in which
pastoralists and agro-pastoralists would participate in
livestock value chain management (including production
and supply of livestock products to markets) .Organizing
pastoralists and agro-pastoralists in Livestock Value
Chain would increase the level of influences pastoralists
and agro-pastoralists in value chain.
Cont….
Cont….
• Schemes for organizing pastoralists & agro-pastoralists
into LVM through Cooperative Developments /including
establishment of Cooperatives in LVC) and
Strengthening of existing Cooperatives in LVC.
• Schemes of open memberships are springboard to
include pastoralists and agro- pastoralists into livestock
value chain management than other types of business
entities (including SMEs).
 2. Coops could improve level of influence in
LVCMs
• Connecting organized pastoralist and agro-pastoralist with
reliable markets would increase the level of livestock
products supplies. Members could tribute their respective
Cooperative Societies with livestock products that could
increase livestock supply and marketing.
• Members engagements in transecting livestock products to
respective Cooperative Societies could increase supply of
livestock across Cooperative Societies Unions , and
Exporters/Processors.
Cont…
• Cooperative Societies could interact to markets through
operating joint level businesses/livestock fattening,
livestock trading/ and supply livestock products to
respective Unions/Private Exporters/Processors and end
markets.
Cont…
• Exporters and Processessors. Contract farming and
enforcements schemes could be introduced in this
regard.
• Cooperatives in livestock value chain management
could revise their existing by law endeavors engage in
pastoralist and agro- pastoralist into livestock value
chain managements.
3.Coops contribute to improve level of Capital or
Equity for Investments
• Organizing pastoralists into LVCM through Cooperative
Developments , & Strengthening of existing Cooperative
Societies in LVCM ) would increase the level of equity or
capital that could be devoted into commercialization of
livestock .
• Returns on equity/capital from members engagements into
businesses/investments through own resources
contributions increase members incomes and thus ,
pastoralists and agro-pastoralist could benefit from LVCM
endeavors.
Cont….
• Linking Cooperative Societies with Unions and Exporters /
Processors . Pastoralists would be linked to Cooperative
Societies , and thus, pastoralists and agro-pastoralists
would contribute to livestock product supplies and export
markets.
4. Coops in LVCMs Improve incomes of
Pastoralists and Agro- Pastoralists

• Members engagements into investments would increase

members capacity to save and thus, improved incomes
from members engagements into commercialization of
livestock could lead to mobilize more savings.
Establishment or organizing members into VSLA groups
help to increase members to access financial services.
Institutionalizations of savings here are not saving
incentives induced by external sources.
 5. Coops in LVCM
• 359 Coops in LVCM were identified during 2015
Assessment.
• Verifications of Coops and Unions were carried in
2016EFY .Clusters have conducted verifications on Coops
and Unions.
 Cont….
• Coops identified in 2015 EFY Assessment

Members
#of
M F T Cooperati
Clusters Capital ves

Yabello 4,245 4,643 8,872 39,070,860.57 137

Robe 13,978 3,959 17,937 36,138,556.62 131

Chiro 8,033 2,664 10,697 39,731,222.13 91

11,26
TOTAL 26,256 6 37,506. 114,940,639.32 359
6.Selection and Verification of Coops in
LVCMs
• Selection and Verification of Coops in LVCMs was
carried by clusters. 182 Coops were identified and
verified by clusters.
 Cont….

No. of
verified Amount of loan
Clusters coops Male Female Total Capital wants to borrow

Yabello 53 2460 2320 4780 47,647,388.67 191,507,045.00

Robe Cluster 57 7935 3348 11283 60,126,099.63 213,955,272.52

Chiro Cluster 72 6691 2948 9639 39,257,888.99 193,954,866.95

Total 182 17086 8616 25702 147,031,377.29 599,417,184.47

 7. VARIFIED AND SELECTED UNIONS IN 2016EFY
#of
Unio Amount Unions
S.N Clusters ns Total Capital want to borrow Threshold

1Yabello 3 26,296,064.37 170,000,000.00 49,500,000.00

2Robe 3 387,531,617.31 190,000,000.00 49,500,000.00

3Chiro 5 688,365,977.00 200,000,000.00 82,500,000.00

Total 11 1,102,193,658.68 560,000,000.00 181,500,000.00

 8.SUMMERY OF COOPS & UNIONS SELECTED AND
VARIFIED IN 2016EFY

Amount of loan to
be borrowed from
Beneficiaries No Capital DBE

Cooperatives 182 147,031,377.29 599,417,184.47

Unions 11 1,131,817,415.68 181,500,000.00

Total 1,278,848,792.97 780,917,184.47

9.Major Activities to be accomplished Zonal
Cooperative Sector
• In collaborations with cluster Provide regular technical
supports to Woredas and field support missions .
• Conduct Ranking Coops and engage them in LVC and
Loan Services,
• Provide supports to Woredas ,Unions, and Coops in
preparations of Business Plans
• Create and Strengthen linkages between Unions and
Cooperative Societies in endeavors to facilitate LVCs
Cont….
• In collaboration with Clusters , provide training capacity
buildings/trainings for selected Coops & Unions
• Provide supports to Woreda Sectors in strengthening
Cooperatives and Unions
• Follow up implementations (including application of for
loan, financing of loan, and implementations of Business
Plans), and Woreda Sectors supports to Cooperative
Societies
• Organize & Submit Reports for line sectors, and PCUs