The Impact of Live Animals Exports and Its Implication to Leather and Leather Products Export in Ethiopia

Gebremedhin Gebremicael

doi:10.7176/jmcr/58-03

Abstract

The livestock sub-sector plays a significant role in the Ethiopian economy to both agricultural value-added and national GDD. In addition Ethiopian livestock and livestock product exports include finished leather, skins and hides, leather products, live animals and meat. But the sector contributes little to exports as compared to the potential and the output from the sector is underutilized. The emphasis of this study is assessing the impact of the live animal export on the leather products export. The data used in this study were secondary and are mainly obtained from secondary sources and analysed using descriptive analysis and it was fit in multiple regression models to assess the impact of live animals export on leather products export. The first thing in time series analysis is get a view of the time series plot of the variables in the analysis. We found that there is high export of live animals compared to the export of skin and hide, leather and its products. The study proved that value addition activities would improve leather products export in terms of value and volume. Keywords : Export, Industries, Leather, livestock Products DOI : 10.7176/JMCR/58-03 Publication date :July 31 st 2019

Highlights

Exporting value added livestock products is the focus of Ethiopian Government to earn the best possible foreign exchange from our Livestock resources, the export of Live animals make a considerable contribution to Ethiopian economy in terms of export Earnings, a large number of the country’s ruminants have been traditionally smuggled to neighbouring countries
Empirical Analysis 3.1.1 Leather products and live animals export trend value in millions of USD The official statistics from Ethiopian Revenue and Customs Authority shows that the total leather product export earning is still about 73%, which had the potential to be converted to other value added products such as shoes, bags, gloves or garment
On the contrary Ethiopia is still importing a huge amount of shoes and leather plastic products from across the world spending millions of hard currency annually

Summary

INTRODUCTION

Background of the study Livestock plays an important role in providing export commodities, such as Meat and meat By-products live animals, hides, and skins, finished leather products and leather products to earn foreign exchanges to the country. Livestock and livestock products are the major foreign exchange earning sources of Ethiopia, with hides and skins contributing the most. With its huge livestock resources development potentials, the contribution of value added livestock products towards the economic development of Ethiopia is still at its infancy stage. Exporting value added livestock products is the focus of Ethiopian Government to earn the best possible foreign exchange from our Livestock resources, the export of Live animals make a considerable contribution to Ethiopian economy in terms of export Earnings, a large number of the country’s ruminants have been traditionally smuggled to neighbouring countries. Given the untapped potential of the livestock resource, it is important to establish relationship between export demand and its determinant factors to reap more benefits from the sector in Ethiopia

Materials and Methods

Results and discussions

Stationarity and unit root test result