BAHIR DAR UNIVERSITY

SCHOOL OF BUSINESS AND ECONOMICS

DEPARTMENT OF ECONOMICS

PERFORMANCE OF LIVESTOCK SECTOR AND ITS

CHALLENGES (IN THE CASE OF ZIQUALA WOREDA)

A SENIOR ESSAY SUBMITTED FOR PARTIAL FULFILLMENT OF THE

REQUIREMENT FOR BA DEGREE IN ECONOMICS

PREPARED BY:- GROUP MEMBERS

NAME ID NO-

1. Haymanot

2. Teketath Sisay..............

3. Temesgen Bitweded.........

4. Wedmshet Adane................1010512

ADVISOR:

JUNE 201 BAHIR DAR, ETHIOPIA

1
 Acknowledgement

I would like to express genuine apparition to our advisor ........ for

his guidance and spent his precious time and provide constructive
suggestions in organizing and structuring the contents of these
paper. I sincerely thank him for his guidance and sense of
responsibility without whose advice this paper would not have been
what it is know.

2
 Abstract

The study is going to be assess the livestock performance and challenges in

Zikuala Woreda. The livestock performance in Ziquala Woreda is low due to
different reasons such as animal disease lack of adequate feeding system and
absence of animal breading system in the modern way and so on.

The livestock in Zikuala Woreda includes: cattle, sheep, goat and donkey. Then
the study will have to compare from these animals which is going to be
highest ,middle and lowest perscent of market share to get earning to the
Woreda. That means study giong to give a great emphasis for the live animal
export of Zikuala Woreda.The method that we will use in this research
paper is descriptive statistics.

Acronym

CARE-Centeral Agency Of Research

CSA- Central Statistical Authority

3
 GDP- Gross Domestic Product

ZWAP- Ziquala Woreda Agricultural Annual Plan

FAO – Food and Agricultural Organization

ETB- Ethiopian Birr

ACMC- Australian Agricultural Consisting and

AGDP – Management Company

AGDP- Agricultural Gross Domestic Product

ILRI – International Livestock Research Institution

Table of contents
Acknowledgment
Abstract
Acronyms
TITLE Page
CHAPTER ONE ..................................................................
1. Introduction...............................................................

4
 1.1. Back ground of the study ...................................
1.2. Statement of the problem .................................
1.3. Objectives of the study.......................................
1.4. Significance of the study ....................................
1.5. Scope of the study................................................
1.6. Limitation of the study ..........................................
CHAPTER TWO
2. Literature review
2.1. Theoretical review literature
2.1.1. Definition and concepts
2.1.2. Livestock production in Ethiopia
2.1.3. Livestock production system in pastoral areas
2.1.4. Improvement method of livestock production system
2.1.5. Constraints of livestock production in pastoral
society it Ethiopia.
2.2. Empirical studies
2.2.1. Livestock off take
2.2.2. The domestic livestock markets
2.2.3. Exports
2.2.3.1. Official export
2.2.3.2. Unofficial export
2.2.4. Market structure and price formation
2.2.5. Marketing problems
CHAPTER THREE
3. Methodology

5
 3.1. Source of data
3.2. Methods of data collection
3.3. Methods of data analysis
CHAPTER FOUR
4. Budget and Work Plan

4. 1 Work plan

4. 2 Budget Break Down

CHAPTER ONE

1. INTRODUCTION
1.1 Background of the study

6
Ethiopia is well known for its huge size of livestock production that
plays an important role in Ethiopian economy and it has various
economic importances especially for rural household. It serves as a
source of food, income, agricultural input etc. It has also a big role
in the growth of overall economy of the country .Data indicates that
in 2010 livestock subsector alone, accounts for nearly 9% up to
10% of the value of country exports(CSA, 1999).

Despite numerical importance of livestock in Ethiopia, their

productivity is very low due to poor management, disease and
inadequate nutrition. The benefit obtained from the subsector has
not been equalized with the size of livestock and their potential
(Berhanu, 1998).That is, its contribution to the country GDP is very
low as compared to the natural potential of subsector.

The existence of various types of endemic disease and absence of

improved animal health service such as inadequate veterinary
clinics, health professional etc, result in a remarkable economic
loss, These loss occur through mortalities, reduced weight gain,
reproductive performance and condemnation of diseased organs at
the abattoir(Tembley,1998).

Most of the low land areas of the country area exclusively

dominated by pastoral and agro-pastoral production system, Out of
the total population in habiting the low land areas 93% are
pastoralist and agro-pastoralist (Taffese, 2000) and only 7% are
engaged in other economic activities.

7
For pastoralist, livestock production is the basic requirement of
their life 50% or above of pastoralist households income comes from
livestock production.

The Ethiopian pastoralists way of life is mostly associated with

struggle against harsh environment, scarcity of power and water
resources. To reduce these resource constraints, pastoralists of the
study area adopt mobile life style in accordance with the availability
of food to their livestock. Whereas, such life style considered as
backward way of life, they are also blamed for damaging the range
land through bad management, overstocking and over grazing.

Raising large number of herd on limited area leads to overgrazing,

soil erosion and reduction of palatable species of gross (Berhanu,
1998).

However, pastoralists way of life is the mode of production best

suited to the unsuitable environment, best strategic exploitation of
seasonality available pasture and water resource (Tembley, 1998).
Pastoral people face various problems in their traditional livestock
production system, besides the impact of natural phenomena of
drought and marginalities of the environment in which they live.

Other important problem pastoralist face is policy issue, which

affect their traditional livelihood. Land use policy of government in
pastoral areas is not directly considering the welfare of nomadic
people; rather it facilitates the expansion of state and commercial
farms (Taffesse, 2000).

8
1.2 Statement of the problem

The performance of Zikuala Woreda livestock sector is very poor the

relative to large animal population with the high potential for
production. It does not compare with the average performance of
Wag Himra zone with in an other woredas in this sector the major
contribution for the economy is hold by small older rather than
large private investment. This is due to lack of infra structure and
many investors are unwilling to go and invest in rural areas
particularly in areas where climatic conditions is not comfortable
consequently the failure in livestock production exists. (Zikuala
Woreda agricultural annual plan 2003).

Livestock mostly found in the low land areas where rainfall is too
low than highland areas. Mostly livestock will disappear due to this
and other problems livestock is security investment, sources of food
and sources of additional income for farmers in Zikuala Woreda.
But this livestock production lacks quality and productivity because
of various constraints: such as wide spread of animal diseases, lack
of enough water, inadequate feed including quality and quantity,
poor health, poor genetic potential for production, lack of market
information, absence of institutional change, appropriate livestock
performance policy with respect to credit extension and marketing

9
are the major constraints that affects the performance of livestock
sector in Zikuala Woreda.

The interrelated cause and effect of these problems should be

investigated through successful livestock development strategies to
address the cause of problem.

1.3. The objective of the study

1.3.1. General objective

The general objective of the study is to assess the contribution of

livestock sector and its role to agricultural sector and the country’s
in come compared to its potential.

1.3.2. Specific objectives

 To assess the performance of livestock sector in Zikuala

 To examine major constraints of livestock sector in Zikuala

 To identity the total population or number of livestock in

Zikuala

 To compare the market share of animals

 To indicate potential and future prospects of livestock in

Zikuala

 To provide possible recommendation for livestock sector

1.4. Significance of the study

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The significance of this study is going to know(identify) the exact
root causes of problems for livestock production and their
solution,And also after finishing the study will gives better
understanding of the performance of livestock sector, identifying the
prospects from the livestock sector improvement for providing
information to the government and policy makers. So the
government will gives care for pastoralists to reduce their harsh of
mobile life style and low incme.

1.5. Scope of the study

The study will have only explains to major contribution, constraint

and the possible alternative solutions for problems and use to
improve the performance of the sector although the study aspects
are going to be very broad.The study will be going to limite the
economic aspects of the sector mainly: cattle, sheep, goat and
donkey.

1.6. Limitation of the study

The main limitation in under taking this study will not have include
all types of livestock(animal) populations and their production.
Such as Been, Chicken, pigs, Mule, Hourse and Fish production.

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 CHAPTER TWO

2. LITERATURE REVIEW

The main objective of this literature have to specify the bask

concepts and definitions related to the study and over view the
empirical studies that give butter understanding to identify gaps
further research Books, research workers and different word wide
have been used.

2.1. Theoretical literature

2.1.1. Definition and concepts

Livestock the term livestock is nebulous and may be defined
narrowly or broadly on a broader view livestock refers to any breed
or population of animal kept by humans for a useful commercial
purpose. This can mean domestic animals, semi domestic animals,
or captive wild animals. Semi domesticated refers to animals when
are only lightly domesticated or of disputed status. These
populations may also be in the process of domestication. Some
people may use the term livestock to refer to only domestic animals
or over to only red meat animals. Animal /types domestication
status wild ancestor time of first captivity, domestication current
commercial uses. Livestock refers to one or more domesticated
animals raised in an agricultural setting to produce commodities
such as food, fiber and labor
(http://www.pn.wiliped:a.org/w:k:/livestock/

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2.1.2. Livestock production in Ethiopia
Ethiopia is repetitively exemplified as the most potential a country
in livestock resources. The resource forms an integral part in the
agriculture system and basis of livelihood for entire rural and semi
urban population in most part of the country.

The purpose of livestock production is diversified and includes the

provision of draft power food supply source of income means of
transportation attenuate energy source. In pastoral areas beyond
the economic advantage as sources of income it matters social
prestige and status in the community. With regard to the buttes
about one third of agriculture’s share of GDP or nearly 15 percent
of total GDP, the country’s estimated livestock population is after
said to be the largest in Africa. There are approximately 31 million
cattle, 23 million sheep, 17 million goats, 5 million horses and
mules, 2 million camels and 57 million poultry. Livestock was
distributed thought the country, with the greatest concentration in
the highlands where more than 90 percent of these animals were
located. The raising of livestock always has been largely a
subsistence activity. Cattle in Ethiopia are almost entirely of the
zebu type and are sources of milk and meat. However, these cattle
do relatively well under the traditional production system. About 70
percent of the cattle are in the highlands and the remaining 30 are
kept by pastoralists in the lowlands areas. Meat and milk yields are
low and losses high, especially among calves and young stock.
Contagious disease and parasite infections are major causes of
death, Factors that are exacerbated by malnutrition and starvation
13
due to frequent drought. Recurring draught is factor for the lass of
huge livestock resource that influence the animal population,
although it is difficult to determine the extent of loses practically all
animals are range fed during the rainy seasons, water and gross
are generally plentiful. But with the onset of the dry season, forage
25 generally insufficient to keep animals nourished and able to
resist disease (CARE, 2009).

In spite of the existing enormous livestock resources and great

potential far increased livestock production, the productivity is
disproportional lower various livestock management problems,
prevalence of major endemic disease, poor feeding and high stock
rats on grazing lands. Thus the contribution of this sector in the
agricultural economy of the country remains lower. Indeed, it
accounts for merely 30% of the national agricultural output and 4%
of the agricultural export (ILRI, 1995). Lack of support services,
insufficient data with when to plan improved services and
inadequate information on how to improve animal breeding
marketing and processing are also critically affect the production.
Milk production in Ethiopia is largely from by small holder farmers
in the high lands the pastoralists in law land areas of the countries.
However, the production not market oriented and a minor portion of
the locally produced milk enters the commercial sector owing to the
marketing constraints and lack of processing techniques suitable
for small holder dairying. In order to sustain milk production to
satisfy the increasing demand, efforts to increase milk production

14
should go hand in hand with efforts and knowledge to dispose milk
surpluses above local requirements (ILRI, 1995).

2.1.3. Livestock production system in pastoral areas

Pastoralists are classified into broad classes, agro pastoralism and
pure pastoralism. Agro pastoralist are found in semi arid areas, of
they are involved in cropping/farming and livestock activities. They
practice different economic activities and techniques together with
herding and care of livestock. However, pure pastoralists have no
ot means except rearing animals
(http://ww:en.wikipidia.org/wiki/pastoralist). Livestock production
is an essential part of the livelihood of almost all total population.
Production of livestock is therefore, one of the steps in the process
of developing agrarian based economy livestock products play
significant role in the economy as well as consumption of all
pastoralists’ people. For this reason, pastoralist keep large stock of
livestock for the purpose of security and achievement of food self
sufficiency. The purpose of livestock production extents, further
from the provision on cash and food (Tembley, 1998)

In addition to draft power of oxen, horse mule and camel the

manure of animals is also used as natural fertilized for crop
production and sometimes as fuel. Equine animals including camel
and donkey are used as the means of transportation of people and
goods in all pastoralist areas around the world (Ibid)

Milk and milk products have important place in traditional diets.

The pastoralist people largely depend on milk as their staple food

15
from their stock. It is generally consumed by all people living in
rural areas. Almost all milk production is consumed at home and a
small portion is marketed in the farm of butter classified milk
production system as traditional and modern systems. The
traditional system of milk production is highly dependent on the
milk provided from low producing and unselective native cattle of
the local pastoralists. It is a subsistence, hand to mouth, type of
production system. However, it is major milk producing system in
all pastoral areas, and mainly used far home consumption. It is
hardly market oriented. The second type of milk production sector
is defined by their words as fallows. The modern sector is where
exotic cross breeds and pure breed cattle are used by either
individual farmer’s or government institutions. This sector is not
very much developed, but is coming increasingly important, and is
major supply of milk to the urban population unfortunately; this
system is almost non existent in the law long pastoral areas where
people highly depend on milk and milk product for food. This sector
is largely found in areas where conditions are favorable for dairy
development, not in areas where demand is high (Adugna and
Aster, 2007)

2.1.4. Improvement method of livestock production system

Livestock production in nomadic area is greatly limited by
communal grazing practices and forage quality. But it is less
dependent on external inputs “The scattered living habit and
movement of the nomadic pastoral peoples in addition to some
cultural aspects make it difficult to introduce some improved
16
pasture usage and control of livestock in the nomadic areas (Tafese,
2000). The high productivity of livestock in advanced countries
attained by generous feeding of animals with high quality forage.
That means, feeding large amount of grains and proteins to
livestock selected for high level of specialized production of meat
and milk under good management and health care. In spite of this,
the direct transfer technology or experience from developed to
developing countries where nomadic pastoralists found, is not
always successful. To salve the problems faced in livestock
husbandry of developing country pastoral areas. Counties in which
nomadic people found should test improved grass of forage
production system which has experienced in some over seas
countries, aiming at more efficient production. This can be
obtained by greater use of improved pastures and forage including
legumes and by better use of by products. Better use of crop.
Residues in the mixed farmer stock owner areas, is also one of the
methods of using pasture, to reduce the need for expensive
concentrates.

The major constraints for lower animal production in pastoral

areas, Among others, the low genetic potential, low productivity, low
nutritive value of pastures, poor quality and inefficient usage of
crop residuals and inadequate extension advisory and veterinary
services are the causes for low performance of local breeds. The
appropriate solution of breeding under nomadic pastoralists is
crass breeding of suitable exotic with adapted indigenous local
breeds. Simply, local animal provide a multitude of advantages to

17
this local people as compared to pure exotic breeds. In addition to
this, these local breeds can give solution of the problems of cultural
and social impact of handling purse breeds.

2.1.5 Constraints of livestock production in the pastoral

society of Ethiopia

Like in any other part of Ethiopia, human population is growing at

alarming rate in the pastoral areas. It has been growing faster than
that of livestock resources. As result it is becoming difficult to bring
a critical balance between human need and animal population in
the pastoral areas. The growth in livestock population retarded due
to combination of various interrelated factors such as animal
disease and poor performance of veterinary service, drought
resource and forage utilization problems and mobile life style effects
of climate on livestock market (Belachew and Jembers, 2002).

A animal diseases and poor performance of veterinary service

Unit out put of the livestock resources in Ethiopia is one of the

lowest in the world. Disease of various types or organization is
among numerous factors responsible. It is believed that animal
disease cause not only direct mortality impact. But also are
responsible for indirect losses. The direct mortality loss from cattle

18
herds is estimated to be 8-10% and from that of sheep and goat is
15% and 12% respectively. The indirect impact like losses from
milk, meat, body weight and less from draft power, infertility, etc,
out weight the direct losses (Tembly, 1998).

Major animal disease known to cause great loss of livestock like

Rinderpeste, anthrax, trypanosomiasis, etc are believed to be
endemic in most pastoral area of Ethiopia and are one of the major
factors that reduce the size of livestock population and their
productivity (Ibid). For instance, anthrax causes 100 percent
mortality rate in the low land areas which occurs when there is
prolonged drought followed by heavy rain. Therefore, productivity
and fertility rates are generally poor in the pastoral areas. Having
this in mind pastoralists to have as many livestock as possible, it is
because livestock are bred far their resilience to drought and
disease than for their productivity (Blood, 1989)
Although the development and expansion of veterinary service is
very important in order to tackle such problems, its performances
and availability is negligible particularly in the pastoral areas (Ibid).

Even in the highland of Ethiopia where infrastructure and social

service are provided relatively better than nomadic areas, veterinary
services are unable to meet the requirements of livestock keepers.
Government veterinary staff is limited in a number and cannot
cover such vast area to adequately address the demand. Veterinary
service privatization has been given; however, the availability of the
service is not yet improved. Because many drug imparters and

19
private pensioners are concentrated in big towns far from pastoral
areas that need their service on regular basis

B Drought

Drought causes a decrease in the availability of food and forage far

livestock. Drought causes frequent failure in crops and livestock
resources as a result livestock per capital is declining over time be
cause of the decrease in the availability of forage the low land
erratic rainfall is the major constraints that pastoralists face. It is
believed that draught is an intermittent but normal event in
Ethiopia thus, booms and declines in the livestock is determined by
nature rather than by pastoralists themselves, pastoralists
understand the relation between hard number and stress on
resource, they believe that a person with a large number of animals
has a better chance of recovery after drought. It is a natural
phenomenon which has been affecting the livelihood of both
cultivators and pastoralists but its impact is more serious in low
lands (UNICEF, 2001).

The frequent occurrence of drought in the pastoralists area to

increase in poverty and mortality rate decrease, in income food self
sufficiency, and environmental degradation (Taffese, 2000)

C Effects of climate on livestock market

Pastoralist’s food consumption requirement is directly obtained

from livestock products. Additional cereal energy is obtained by
exchanging livestock resource for cereals through markets. The

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exchange mechanism is an important link between pastoral and
cereal economics. It is on important life support system both during
stress and normal times (Anthony, 1994).

Climate has great affect on the market condition in law-land areas.

In times of drought terms of trade gets disrupted. Pastoralists are
always forced to sell at lower price and buy at higher price, because
in dry season the supply of cattle far market increases, their price
falls sharply and the price of grain shoots up causing market
imbalance. The livestock products supply and price is also
susceptible for climatic variation.

Pastoralists are peculiarly vulnerable to fluctuation in terms of

trade between livestock and agricultural produces. In the dry
season while milk yield decline pastoralists depend on the market
to buy grain in exchange for milk or meat, If terms of trade is
unfavorable, pastoralists risk losing reproductive and non
reproductive capital to obtain grain.

2.2 Empirical Studies

2.2.1 Livestock off take

Off take rate is estimated at about 8% for cattle, one of the lowest in
Africa in terms of proportion to the livestock population. This
amount to between 2.2 and 2.8 million head of cattle year, off take
far sheep and goats is estimated at 40.5% and 34% respectively or a
total of about 14.5 million goats annually. Nevertheless, there is a

21
possibility that the FAO estimate may not include the off take that
takes place through the cross border trade to Somalia, Djibouti and
Kenya various estimates put the volume of the cross border trade to
these three countries at about 260,000 head cattle, 12 million goats
and 16,000 camels .Thus the off take level of livestock particularly
for goats and to some extent cattle could be relatively higher than
both estimates (FAO, 2006).

2.2.2 The domestic livestock markets

Livestock market in Ethiopia function at three levels consisting of
primary, secondary and terminal markets. Some also include a
nominal forth their at the farm gate level, which could hardly be
considered to function as a market. Primary markets have been
identified as village level markets with supply of less than 500 head
of cattle/week where primary producers (farmers and pastoralists)
sell small number of animals to small traders other farmers
(replacement animals). Farmer or pastoralists traders and in same
cases to consumers and local butchers such markets are not fenced
have no scales and no feeds and watering facilities purchasing is
done through “eye ball” negotiations. A good majority of the
livestock markets in Ethiopia belong to this group (Solomon et al,
2000).

2.2.3 Export
The share of animals and animal products from total export earring
has been declining steadily over the last five years from 12.4% in
2003/04 to 8.4% in 2006/07. This was not because export in other

22
types of commodities has increases. It was rather due to the under
performance of the livestock sector far a variety of reasons.

2.2.3.1 Official export

Livestock and livestock products are the major foreign exchange
earners, only second to coffee, with hides and skins contributing
the most. For examples, in 1995/1996 livestock export accounted
for close to 14% of the value of agricultural exports, of which 96%
came from hides and skins. Export dropped from 5% of the total
value of exports in 1995/96 to 0.02% in 2003/04 due to decreased
live animal exports and an overall increase in the value of all
exports the share of live animal exports in total livestock and
livestock products export earning have declined in recent years
(zewdu,1995).

2.2.3.2 Unofficial export

A number of studies have tried to estimate losses from illegal export
and generated widely variable estimates. In 1976 the Ethiopia
government estimated that ETB 50-250 million equivalents in
foreign exchange were lost due to controband trade in cattle sheep.
Goats and camels, in 1983, indicated losses of 1.1million animals
excluding camels valued at us $136million or us$120million
similarly, 1984 estimated 225,450 cattle and 758,200 sheep and/or
goats were illegally exported in 1983/84 causing the country to lose
ETB 94. 959,540 (US$51 million) in revenue (ACMC, 1984).

23
2.2.4 Market structure and price formation
Generally, the livestock marketing structure follows a four tier
system. The maim actors of the first tier are local farmers and rural
traders who transact at farm level with very minimal value, 1-2
animals per transaction irrespective of species involved. Same
traders may specialize in either small or large animals. Those small
traders from different corners bring their livestock to the local
market (2nd tire). Traders purchase a few large animals or a fairly
large number of small animals for selling to the secondary markets.
In the secondary market (3rd tier) both smaller and larger number of
mainly slaughter type animals. From the terminal markets and
slaughter houses and slabs, meat reaches consumers through a
different channel and a different set of traders/businesses. The
channels from Addis Ababa terminal market to consumers.
Consumers get meat through one of the three channels. They may
purchase live animals directly from the terminal market and
slaughter by themselves or they may purchase live animals directly
from the terminal market and slaughter by themselves or they may
get meat from markets. Which by pass the formal procedures
through abattoirs; or they may access from butchers who process
the meat via abattoirs. In the former two cases, consumers “health
may be at risk 7 zoon tic disease and the government is also denied
revenue from service charge from abattoirs (Getachew 1977).

24
2.2.5 Marketing problems
The structure and performance of the animal market both for
domestic consumption and for export, is generally perceived to be
poor, under development and lack of market. Oriented production,
lack of adequate information on livestock resources inadequate
permanents animal route and other facilities like water and holding
grounds, lack or non provision of transport, ineffective and
inadequate infrastructural and institutional set ups prevalence of
diseases, illegal trade and inadequate market information (internal
and external) are generally mentioned as Same of the major reasons
far the poor performance of this sector (Belachew and Jembers
2002)

Livestock impacts on the environment

The livestock sector is undergoing a complex process of technical

and geographical change livestock impacts the environment. The
challenge is to reconcile two conflicting demands for animal food
products and environmental services. A new report from FAO says
livestock production is one of the major causes of the world's most
pressing environmental problems including global warming, land
degradation are and water pollution and loss of biodiversity. Using a
methodology that considers the entire commodity chain, it
estimates that livestock are responsible for 18% of green house gas
emissions, a bigger share than that of transport. However the
livestock sector contribution to salving environmental problems is
equally large and major improvements could be achieved at

25
reasonable cost. Based on the most recent data available,
livestock’s long shadow takes into account the livestock sector’s
direct impacts consume. Despite its wide ranging environmental
impacts livestock is not major force in the global economy
generating just under 1.5% of total GDP. But livestock sector is
socially and politically very signification in developing countries
(FAO, 2006).

CHAPTER THREE

3. METHODOLOGY

3.1. Sources of data

The study was mainly use secondary data which are gathered from
different document reviews of published and un-published
materials held at different institutions, such as journals, books,
annual reports, internet, website etc.

3.2. Methods of data collection

Data was collecte from different intuitional livestock research

institute (ILRI), Zikuala Woreda agricultural development bureau,
different magazines and annual reports on the issue of livestock,
the collection of data and reviews of relevant data and information
are obtaine from different lixisting documents.

26
3.3. Methods of data analysis

The method that was use in this research paper is descriptive

statistics analysis on the production and export performance of
livestock. The collecte data was tabulated, by using percentage,
analyzed by graphical representation and interprete in different
parts of the study.

CHAPTER FOUR
BUDGET AND WORK PLAN
4.1 Work plan

No Activity Time

1 Research topic selection and

modification

2 Reviewing literature s

3 Drafting and developing the

proposal

4.2 Budget Break Down

s.no Item Unit Amount Unit Total Remark

needed price cost

1 Paper Pack

27
s.no Item Unit Amount Unit Total Remark
needed price cost

2 Pen pcs

3 Typing Page

4 Print Page

5 Internet ….
service

6 Photo page
copy

Total

CHAPTER FOUR

4. DATA ANALYSIS AND INTERPRETATION

Live stock is one of the economic activities from agricultural sector

and used for many purposes such as contributing towards gross
domestic product (GDP). It is also used as a source of food, source
of additional income and also contributes raw materials towards
industry etc.

The study mainly used secondary data which are gathered from
different documentary reviews of intuitions such as Dire Dawa
28
 agricultural development bureau and Dire Dawa federal live animal
export institutions bureau.

4.1. Live animal export

Animal export is very important in order to increase foreign

exchange earnings and the result of this is the improvement of
country’s economy. This is also more profitable it is based on
processed animal export rather than exporting directly lives
animals. The data collected from different institution are presented
in the following table.

Table 4.1. Live animal export and their percentage shares

(1999-2003)

Year Cattle Sheep and goat Camel Total export

(E.C) Export %shar Export %share Export %sha Export %shar
e re e
1999 2758 7.58 19,643 54.00 139646 38.34 36,347 100
2000 2003 2.79 43,339 61.32 25708 35.88 71,650 100
2001 4358 8.01 36925 67.93 13071 24.04 54,354 100
2002 3496 5.77 42,457 70.14 14576 24.08 60,529 100
2003 4005 6.56 35,348 57.91 21685 35.52 61.038 100
Total 16620 30.7 178,312 311.3 88986 157. 283918 100
export
Source: - Dire Dawa live animal export institution 2003

The percentage share of exported live animal can be tabulated in

the following way and which is calculated from the above given data

29
(1999-2003) that live animal export in dire Dawa includes cattle,
sheep and goat and camel.

From these live animal export sleep and goat take the highest share
from the year 1999 to 2003 in aggregate which accounts about 178,
312 totally year 1999 to 2003.

The share of the cattle export accounts 7.58% and this shows that
more than double decrement of cattle export in the year 2000 which
accounts 2.79% and it is the minimum from the rest of the given
year of cattle export.

From the year 1999 to 2000 cattle export declined very highly this
means, that the cattle export reached an alarming decremented rate
which is accounted only 2.79% which shows the minimum level.
This shows that live cattle export in the year 2000 becomes
decreased the distribution of animal disease which is known as
“foot and mouth animal disease” which reduces the consumption
preferences of Dire Dawa exported cattle by foreigners due to the
fear of these diseases.

In the year 1999 and 2001, Dire Dawa cattle is highly exported or
demanded by foreigners and due to the increase in the demand for
cattle by foreigners, export of cattle increased between the year
1999 and 2001 which accounts 7.58% and8,01% respectively.

The percentage share of sheep and goat export increase from year to
year which accounts 54.00% in the year 1999, 61.32% in the year
2000, 67.93% in the year 2001,70.14% in the year 2002 and

30
showed a failure in the year 2003 which accounts about 57.91% .
the main problem for decrement in the export of sheep and goat in
this year is that increase in the domestic demand for sheep and
goat because they are easy to be consumed by individual or small
group based on the purchasing power of their income and the rest
years shows increment in the four years ( 1999-2002). Especially in
year 2002 the share of sheep and goat export account about
70.14% of total export of the sheep and goats.

Camels also plays an important role in brings foreign earnings and

the export of camel is high in the year 1999 which accounts for
38.34% and in the years 2001 and 2002 the camel export is
accounted for about 24.04% and 24% .08% respectively. This shows
that in these two years, camel export becomes lower as compared to
other years.

The increase or decrease in the percentage share of cattle sheep,

goat and camel export is due to different reasons such as
improvement in the livestock production system resulted in the
increasing in the percentage share, where as animal diseases, lack
of water livestock also affected negatively and other problems which
have its own impact on the living standard of the people in the city
and economy as well. It can be presented by using graph in the
following based on the table above 4.2.(percentage share of live
animal export from the year 1999 to 2003) that means for five
years).

% share of cattle Sheep, goat and camel

31
Figure 4.1. The three live animal exports

In the year 1999 live animal export of sheep and goat accounts
more than half of the total percentage share of exports which
accounts about 54.00% and in the year 2001 the percentage share
of cattle export increase highly from 2.79% to 8.01% due to the
encouragement from government to people or institution who export
cattle. Due to qualities improved, conductive infrastructure and
usage of modern way of cattle breeding; the demand for cattle
increases.

In the year 2001 to 2003 cattle export declines alarmingly,

especially in the year 2002. This is due to unexpected animal
diseases like foot and mouth animal disease that affects live stock
population. This affects the economic development of Dire Dawa as
well as country in general. Because it reduces the benefit that the
country gains it affects the additional sources of individual income.

32
But the export of sheep and goat increased due to increase in their
production based on modern way and other better breading and
feeding system.

Generally the live animal export of Dire Dawa shows decrement.

This is due to the preference of other country, who import live
animal from Dir Dawa becomes decreased due to fraud of animal
diseases like foot and mouth, which have negative impact on
human health. The other reason for decrement of animal growth
rate of export is the existence of illegal export and at this time
animals are exported only related with different international
holidays like “x-mass, Easter; meskel’ and etc that required by
foreign country for consumption in the form of meat.

4.4. Livestock population

Livestock population is the summation of totality of live animals.

Here, the study focuses on cattle, sheep, goat and camel. The
following table 4.3. Represents the performance of different
livestock from the year (1994-2003) which accounted about ten
years and it includes different types of livestock’s.

33
 Table 4.4. Livestock population in Dire Dawa (1991-2003)

Year Cattle Sheep Goat Camel Total

EC

popn %share popn %shar popn %sha popn %sh popn %sh
e re are

1994 66346 26.26 64370 25.48 112065 44.36 9843 3.89 252624 100
1995 71200 25.91 70300 25.58 123190 44.83 10090 3.67 274780 100
1996 76395 25.65 76717 25.76 134364 45.12 10312 3.46 297788 100
1997 79980 25.24 81000 25.56 145300 45.86 10500 3.31 316780 100
1998 60725 32.98 43918 23.85 71264 38.70 8215 4.46 184122 100
1999 61000 30.01 50000 24.60 82000 40.35 10200 5.01 203200 100
2000 57129 26.15 55778 25.53 98000 44.86 7513 3.43 218420 100
2001 61050 25.5 61700 25.77 108000 45.12 8600 3.60 239350 100
2002 49465 18.0 56397 20.53 161027 58.62 7790 2.83 274679 100
2003 47153 15.76 67790 22.60 178567 59.69 5624 1.88 299134 1000
Total 251.46 245.32 467.5 35.5
1 4

Source: Dire Dawa agricultural development bureau 2003

The percentage share of each livestock population is represented in

the following form, which is calculated from the above given data
from the year 1994 to 2003.

4.4.1. Performance of cattle

The percentage share of cattle in the year 1994 is 26.26% and

starting from this year up to 1996 the percentage share of cattle
increases and it shows a decline in 1997 which is 25.24%. The

34
reason for this is that the absence of appropriate breeding system
and in adequate live stock production management. But in the year
1998 it becomes high because of the change in breading system
and adequate livestock production management. After the year
1998, the percentage share of cattle decreases from year to year
and specially low in the year 2003 due to the reason mentioned
above.

The performance of cattle from the year 1994 –2003 can be

represented also graphically as follows:

% share of cattle

Figure 4.2. Percentage share of cattle population.

From this figure we can see that the percentage share of cattle
population in Dire Dawa is not more increasing or it is decreasing
from year to year, especially it shows decrease in the last two years
(2002) and 2003). This is due to the absence of enough provision of

35
education for the cattle producers, inviolability of good food for
cattle and etc. as result the country’s benefit gained decreased.

4.4.3. Performance of goat and sheep

The percentage share of goat production was increased from the

year 1994 up to 1997 but in the year 1998 declined from 45.86% to
38.70% starting from the year 1999 the percentage share of goat
increased continuously up to the year 2003.

The percentage share of sheep also showed the increment form the
year 1994 up to 1996. But in the year 1997 the percentage share of
sheep starts to decrease from 25.76% 25.56. This implies that there
is no more decrement of the percentage share of sheep from the
year 1996 to 1997. From the year 1997 to 1998, the percentage
share of sheep also decreased from 25.56% to 23.85% and finally in
the year 2003 the percentage share of sheep becomes minimum.
The immediate cause for this is that unexpected animal disease and
drought which affected both economic and environment like
population, famine, starvation, reducing living standard of people
and others.

The percentage share of sheep and goat can be showed by using

graphs from the year 1994 to 2003

36
Figure 4.3. Sheep and goat performance

The above graph shows that the percentage share of goat is higher
than that of sheep in general. This is because of the weather
conditions of Dire Dawa is suitable for goats than that of sheep. The
other reason is that adaption of goat is higher than sheep to visits
drought and animal disease.

The other problem is like shortage of animal food and absence of

scientific method of breeding system affect both the production of
sheep and goat this tends to affect other economic sectors because
their skins and hides are regarded as a source of raw material for
industrial sector.

This also implies that the annual average percentage share of goat
is 46.75% which represents the number of goat is 46.75% per year.

4.4.5. Performance of camel

37
As we have seen from table 4.4. The percentage share of camel is
vey low as compared with the other livestock percentage share. This
is because f the society, government, absence or lack of institutional
change, unchanged

Cultural and regional point of view that means no more attention is

given to the improvement of camels. Because of the contribution of
camel to Dire Dawa as well as to the country’s economy is very low
and they are used more or less for transportation purpose. The
dung of the camels is also used to compensate soil fertility rather
than for food. Camel is also sued as a source of food in a very
limited are or else by small number of people.

Generally from the total live stock population, the highest

percentage is covered by goat, cattle and sheep which accounted for
46.75%, 25.14% and 24.53% respectively and the lowest percentage
is covered by camel which accounts for 3.55%.

38
 CHAPTER FIVE

5. CONCLUSION AND RECOMMENDATION

5.1. Conclusion

The study mainly focused in the area of Dire Dawa regarding

livestock performance of the city. There are various types of
livestock in Dire Dawa which includes cattle, sheep, goat and
camels.

These livestock’s are important for many purposes to improve the

developing of city by contributing different important activity such
as source of food, source of additional income for farmers, provides
raw materials to other sectors like skins and hides. This is also
sued as raw material for industry to produce leather and leather
products, increase the inflow of capital from outside country
through exporting livestock products and also through exporting
live animal which is held by small holders rather than large scale
private investment. This is due to low attention provided by
different institutions, government and NGOS towards livestock
performance.

Dire Dawa as a city is also engaged in foreign market through live

animal export and these activities were better at the beginning year
and start to decline except sheep and goat which have the highest
percentage share as compared with cattle and camel.

39
The amount of live animal export decreased after some years. This
is due to the increase in livestock consumption with in domestic
market which results to decrease the value of animal exported.

The other reason for decrease in a live animal export in Dire Dawa
was due to a fraud of animal disease known as toot and a month
animal disease which also transmitted to woman being and creates
heal the problem.

The reduction in quality of livestock in the foreign market also leads

to decline animal export. This is as a result of people give more
emphasis for quantity rather than quality and as the people give
attention to quantity the livestock populating increases and this
results in ability to control different diseases feeding system and
quality improvement is also difficult.

3.4. Recommendation

The researcher recommends the following points from the study for
actions to be taken in order to improve livestock performance in
Dire Dawa. These are

 Improving availability of enough water and increase both

quality and quantity of food for live stock.

 Controlling live stock disease through providing Vaccination

for animals continuously and giving more emphasis for
livestock quality rather than quantity. Because as the number

40
 of livestock population increase the capacity of farmer to
provide the whole facility is difficult and as facility towards live
stock decreases, the quality also decreases and also difficult to
control animal diseases.

 Institutional change is recommended in order to improve

livestock performance provide credit extension for farmers. As
credit extension increases, it leads livestock producer to sue
modern technology.

 Improving livestock health and implement it properly through

taking policy actions which follows livestock disease
prevention program.

 Diversifying livestock productivity to improve foreign exchange

earnings received from exported animals that means
diversifying livestock demand for other purpose like changing
livestock to process to increase live stock productivity which
improves live stock foreign exchange earnings rather than
exporting live animal directly to the world market without any
process.

 Diversification method of livestock population is

important than intensification and also using mixing
system of livestock production is also important to
overcome future uncertainty such as un expected animal
disease and drought which is major factors that lends
livestock performance to decline.

41
  Expanding the provided education or advice by
development agents for farmers how they can improve
their livestock productivity using modern technology and
scientific breeding system or identifying livestock that
have high adoption or ability to resist animal diseases.

References
AAC MC (Australian agricultural consulting and management
company), (1984), livestock marketing main report prepared by
AACMC, Addis Ababa.

42
 Belachew,(2002), changes and opportunities of livestock trade
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Ethiopian society of animal production ( ESAP), Addis Ababa,
Ethiopia.

 Belay, (2009). Traditional sheep management and production

situation in south western part of Ethiopia.

 D.C, BOLOOD (1998). Veterinary medicine, London

 FAO (Food and Agricultural Organization) of the UN.2001.

Ethiopian Livestock Development Project.

 FAO ;( 2006). Report livestock impacts on environment

 MoRD (Ministry of agriculture and rural developments, (2005).

Agricultural input and product marketing strategy and
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 Tafese,(2000). Pastorialism and agro partoralism past and

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 Tembley, S, (1998). Small ruminant production in Ethiopia

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 Zewdu Kebede (1995). Hides and skins in Ethiopia. In

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Abba, Ethiopia.
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