1. BEEF AND FEED VALUE CHAIN STUDY IN ADAMA AREASBy
Dr. Solomon Mengestu
Addisu Abera
Solomon Abeyi
Fantahun Dereje
May, 2012
EIAR

2. Introduction Adama Area:
One of the major beef animal source for the domestic markets of Adama-Addis Ababa areas
Its proximity to the large consumer base in Addis Ababa,
Farmers of the area have got Long tradition in Fattening cattle
It is an important means of livelihood for the farmers,
In the study villages, cattle are the dominant livestock species having multiple functions i.e. traction, income source
Feed scarcity is a major problem that limits animal productivity,
Improvement in livestock productivity can be achieved by alleviating feed constraints,

3. The scope of the study is limited to small scale beef producers.
Scope & Objectives
The scope of the study is limited to small scale beef producers.
The major objective of this study is to select the best bet Feed technologies
Describe and map the core functions and major actors involved and their market channels in each value chain,
Identifying major constraints and opportunities in each value chain,
Testing and further refining of the VCA tool for wider scale use in the future,

4. Methodology Sampling procedures: Adama was selected
Two kebeles based on their proximity to input & output market were purposively selected with wereda staff thus,
The two villages were kechema & Kuriftu wenji
A total of 40 producers participated
Source of data
Secondary data and review of relevant literatures were undertaken,
PRA was conducted with producers for production and marketing issues,
A focused group discussions using a checklist prepared for this purpose.
Key informant interview conducted with, Input suppliers, traders, processors, retailers and consumers,
Data analysis was conducted using simple descriptive statistics,

5. METHODOLOGY Adama District Kechema Wonji Kuriftu And
Targeted value chain actors as well

6. Methodology Selection Criteria: Districts Village Sites Kuriftu
Kechema
15 M F M F
Selection Criteria:
One near market (input & Outputs source)
the other Relatively far from market (input & Outputs source)
Districts
Village Sites

7. Methodology of The VCA Tool
Review of Available Information
Group discussion with farmers:
Kechema 20 (15 men and 5 women)
kuriftu 20 (11 men and 9 women)
PRA
Exercise
Questioner survey on key value chain Actors
Quantitative information
Individual actor interview
Data gathered synthesized in to report
Research results,
Previous studies
Secondary Data
Data
Analysis & Reporting

8. Results and discussion

9. Core function in Beef Value Chain

10. Mapping The Actors, Function & Service Providers
in Beef Value Chain

11. Major Beef marketing channels identified #3
Channel one- Beef cattle purchased by Hotels and individual consumers in the Adama areas,
2. Channel two- Beef cattle transported from Adama to Mojo, Zeway, Bishoftu, Dukem and Addis Ababa consumer markets,
3. Channel three- Beef cattle purchased for fattening purpose by farmers of the Adama areas,

12. Core functions of the feed value chain
Input Supply
Production
Processing
Marketing
Consumption
Seed supply
Supply of fertilizers
Supply of Industrial by-products
Tillage
planting
weeding
harvesting
Transportation
Retailing
Whole selling
Feed Formulation
Treatment
Supplementation
Feeding
Baling
Stacking
Grinding/crus hing
Mixing

13. Feed VC Actors, functions & Support services
Marketing
Consumption
Enabling Environment
Production
Smallholder farmers
Agro-processing industries
Traders
Unions/coops
Small holder Cattle fatteners
Institution/colleges, research centers etc
Urban & peri- urban farmers
Input Supply
Extension services
Provision of Planting materials & fertilizer
Credit services
Technology
Land availability
Laws
Drought
Processing

14. Major Feed marketing channels identified #5
Channel 1- Supply of teff straw from Debrezeit areas to Adama beef fatteners,
2. Channel 2- Supply of grass hay from Sululta and Sendafa areas to Adama area beef fatteners,
3. Channel 3-Supply of Molasses from wonji and Metahara sugar factories to Adama areas beef fatteners,
4. Channel 4- Supply of oil cake and flour mill by products to Adama areas beef fatteners,
5. Channel 5- Supply of crop residues (teff straw, wheat straw and maize Stover for fattening purpose by farmers of Adama areas,

15. Costs and margins of actors involved in the Beef marketing channel and the Share of producers from final price
 Cost description
*Export Abattoirs
Butchers-IIV
Super mart.
Hotels
Butchers-III
Butchers-II
Butchers-I
Producers selling price (Birr/head) to d/t actors
6000
8000
10000
13000
Selling price (Birr/head)
9000
8500
12000
11000
14000
18000
Marketing cost (Birr/head)
500
450
900
800
600
1000
Marketing margin (Birr/head)
1750
1250
2850
1850
1950
2950
Net margin (Birr/head)
2050
1150
Producer's share of final price (%) 80 85
66.7
72.7
71.4
72.2
*Export Abattoirs , in this case they are producing for domestic consumption , i.e .
For supermarkets, hotels, Universities & institutions.

16. Costs and margins of actors involved in a market channel selling crop residue (Teff straw) and concentrate to users
Crop residue (Teff straw)
Price per One donkey cart (10 Baler)
Producers
Small trader/user
Selling price (Birr/10baller)
120
200
Marketing cost 30
Marketing margin 80
Net margin 50
Producer's share of final price (%) 60
Concentrate
Price per One quintal of (concentrate) straw
Producers
Small trader/user
Selling price (Birr/10baller)
240
310
Marketing cost 30
Marketing margin 70
Net margin 40
Producer's share of final price (%)
77.41

17. I. Constraints along the Beef value chain
Input Supply
Shortage of feed supply (quantity & Quality)
Lack of awareness about feed formulation
Inefficient vet services & supply of vet drug
Insufficient provision of credit and problematic collateral arrangements
Production
High feed cost & low conversion ratio of older animals
Lack of skill and knowledge with regard to profitable beef production
Processing
Low level technology take up,
Poor sanitary practices
Low level of technical skill & knowledge of the staff

18. Marketing
High cost of sell and unfair distribution of the food item
High cost of marketing margin to end actors in the chain
Lack of chilling facilities (most of the traders) commodities
Few types of salable commodities at retail shelf
Fraudulent brokerage in the market places
Consumption
Presence of fraudulent slaughter and weak regulatory services (Road side slaughter, back yard slaughter
Long fasting days of the Orthodox Christian followers
Lack of consumers’ knowledge on eating preference (as raw meat)

19. II. Constraints in feed value chain
Input Supply
Land shortage
Shortage of seed and other planting materials
Lack of training on forage production and pasture management
Shortage of raw materials for agro-industries and feed processing plants
Production
Low productivity of pasture; Lack of forage production skill
In-effcient feed preservation practices
Processing
Few processing plants that are congested around Addis
Most of them operate under their installed capacity
No quality control on feed

20. Cont’d Marketing Seasonality in availability and price of feed
High transportation costs
Absence of feed quality control in the market
Few actors monopolizing the concentrate feed market
Consumption
High feed price & Shortage of supply
Lack of awareness on improved feeding
High adulteration
High transportation cost
Low level of understanding of feed quality by consumers

21. Opportunities identified
High number of cattle population
An increasingly high demand for beef meat and animal feed in local markets
High population growth with better income and demand for better quality food
Expanding livestock industry with high demand for better quality feed resources

22. Lessons learned
Beef and feed production constraints in the study area are identified.
Production intervention should focus to solve constraints indicated in the areas of the 5 core functions (input supply, production, processing, marketing and Consumption)
Major beef and feed market channels identified by this study.