Analysis of Poultry Production and Marketing in Addis Ababa, Ethiopia: The Case of Small Scale Intensive Poultry Producers

Sena Amsalu

doi:10.7176/jmcr/62-01

Abstract

This article investigated the structure conduct and performance of poultry market and determinants of total sale value of poultry supply in Addis Ababa, using survey data 2017/18. To address these descriptive statistics and econometric models were employed. The study used the structure-conduct-performance model to determine the structure conduct and performance of poultry market and multiple linear regression econometric models to analyze determinants of poultry marketable supply. The data were generated by individual interview using pre-tested semi structured questionnaires and take a total of 100 farmers sample and 75 traders. This was supplemented by secondary data. Following the four firms’ criteria of concentration ratio, Addis Ababa poultry market showed tight oligopolistic behavior in bird market and loss oligopoly in egg markets with 64.4 and 24.90 percent concentration ratio respectively. The maximum total gross marketing margin in bird and egg trading channel were about 53 and 41 percent respectively in channel XI and the highest producers share for bird and egg marketing were along producer- consumer. From OLS model sex, flock size, production cost and average lagged price of egg were found to affect total sale value of poultry significantly and positively, while distance to market affect poultry value negatively. The findings suggests that, effective market information service has to be established to provide accurate information on current poultry supply, in addition, emphasis should be given in reducing the level of oligopolistic nature of bird market and the government set strategies that improve competitiveness and efficiency of poultry market. Keywords: poultry market; Structure conduct performance; Concentration ratio; marketing margin; oligopoly DOI : 10.7176/JMCR/62-01 Publication date: November 30 th 2019

Highlights

Agriculture is the main economic activity in Ethiopia and more than 80% of Ethiopian population is dependent on agriculture of which livestock plays a very important role (Duguma et al, 2012)
The demand for eggs and poultry meat has significantly increased across large parts of the continent Africa including Ethiopia (WHO, 2010)
Four traders with the largest volume of chicken handled were used for the calculation at main poultry market places (Table 2)

Summary

Introduction

Agriculture is the main economic activity in Ethiopia and more than 80% of Ethiopian population is dependent on agriculture of which livestock plays a very important role (Duguma et al, 2012). Livestock contributes about 20% of the GDP, supporting the livelihoods of 70% of the population and generating about 11% of annual export earnings (SPS-LMM, 2010). It is the source of many social and economic values such as food, draught power, fuel, cash income, security and investment in both the highlands and lowlands/pastoral farming systems (FDRE, 2010). The demand for eggs and poultry meat has significantly increased across large parts of the continent Africa including Ethiopia (WHO, 2010). It is estimated that the consumption of poultry meat and eggs will increase by 200% between 2010 and 2020 for at least some countries in Sub-Saharan Africa (USDA, 2013). To meet up the increasing demand, efficient marketing system is needed for availability of product supply at a fair price and to encourage higher production (Omar et al, 2013)

Methods

Results

Conclusion