Assessing the Economic Impact of the Coronavirus Pandemic on the Production and Distribution of Livestock Across Value Chain Approach: The Case of Kellem Wollega Zone, Oromia National Regional State, Ethiopia

Abstract

The aim of the study was to assess the economic impact of the Coronavirus on the production and distribution of livestock across the value chain approach in the case of Kellem Wollega Zone, Oromia National Regional State, Ethiopia, based on a total survey of 320 farmers. Descriptive statistics were used to present the effects of the pandemic on the marketing and consumption of major crop production and dairy products in the study areas. Survey result indicated that about 160 small holder farmers those involved in agriculture in the study areas were impacted by COVID-19 crises because the revenue of the farmer were close to down from 25 per cent to 50 per cent. The survey results also indicated that more than 37 per cent of the sample households in the study area affected by the COVID-19 crisis on workforce reduced consumer confidence. Lower demand in virus-affected states across the world will be transferred down the value chain, affecting demand and production levels at each stage, even in areas not directly affected by the virus. It seems that logistical issues linked to the COVID-19 crisis are creating extra costs in the coffee marketing system. Logistical and administrative issues regarding to the COVID-19 during the production time in the study areas were very low to providing service particularly input and fertilizer for the farmers on the time. Therefore, this study recommends that both fiscal and monetary policy instruments introduced by the government to fight the pandemic shall be continued, enforced and implemented in a coordinated way to support the effectiveness of interventions until the economy recovers.