Livestock Market Chain Analysis: The Case of Live Cattle in Hadiya Zone of Southern Ethiopia

Abstract

Ethiopia is known for its high potential of livestock population ranking first in Africa. However, the benefit the country is getting from the sector is far below the existing potential. Similarly in Hadiya zone, beside its high potential, the contribution of the sector is very low. Improvement of market chain is the most important way out to enhance the contribution of the sector to the country in general and to the study area in particular. The study was conducted with the aim of identifying major market channels, key actors and their major roles, opportunities and challenges, assessing marketing costs and margins, and determining factors affecting cattle market supply in the study area. The study used both primary and secondary data sources. To select representative respondents, the study employed multi-stage sampling technique. Out of ten districts of the Zone, two districts: Soro and Misha were randomly selected. Representative kebeles were randomly selected based on probability proportional to size of each district. Respondent household heads were randomly selected and interviewed to generate the data. The study also undertaken focus group discussion and key informant interview. Both descriptive statistics and econometric model were used to analyze the data. The results of the study revealed that the market chain of live cattle had long chain without adding a significant value. The determinant factors influencing live cattle market supply were households’ age, educational level, market information, market price, credit utilization and number of livestock ownership. Thus, the concerned bodies should focus on the aforementioned variables for the increment of producers’ margin share and live cattle market supply. Keywords: Livestock, Live Cattle, Market Chain, Hadiya Zone DOI: 10.7176/JBAH/11-21-03 Publication date: November 30 th 2021