Value chain analysis of beef: the case of sodo zuria and offa districts in wolaita zone, southern nations, nationalities and peoples region, Ethiopia

Abstract

Ethiopia ranks first in Africa and tenth in the world for livestock population and cattle take the lion share of this population of the country. Now a day the demand for beef in SubSaharan and eastern African countries is increasing. However, the overall performance of beef sector in Ethiopia is very low as compared to other countries in the world; this is because of poor value chain of the beef sector in our country. Therefore, undertaking the beef value chain analysis and upgrading the beef sector by one step is the major issue now and then. The study was conducted in Sodo Zuria and Offa districts in Wolaita Zone, Southern, Nations Nationalities and Peoples Regional State with the general objective of analyzing beef value chain. The random sampling procedure was used to select value chain actors such as 104 farm household heads from 7 rural kebeles, 16 beef cattle traders and 20 beef retailers whereas 50 beef consumers were sampled purposively. Primary data were collected from sample respondents through structured questionnaires and checklists and secondary data were also used. Data on socioeconomic and demographic characteristics of beef value chain actors and their roles were presented by using the tools of descriptive statistics. Benefit shares of the chain actors are determined by using costs and margins (value share) and financial position indicators like value share and value added calculations along the beef value chain. Heckman two-stage model was used to identify variables affecting the decision to participate in beef cattle fattening/marketing and value of marketed supply of beef cattle. Independent variables at conventional level of significance in the first stage are: age of the household head, credit access, income from other sources, experience in beef cattle fattening, sex of the household heads, distance to the nearest beef cattle market and educational level of the household heads. The result also indicated that family size of the household heads and other livestock in TLU are statistically significant variables. Recommendations forwarded are creating advanced awareness on family planning practices in the rural areas, empowering females’ participation in beef value chain, encouraging savings of income obtained from other sources, practicing adult education policy in the rural areas, improving credit delivery system and also accessing it, providing trainings on improved beef cattle fattening practices, providing trainings on beef value chain governance and value addition activities.