Value chain Analysis and Identification of
potential interventions
Oromia Regional State
Group members
1. Ato Tadesse Kudhema
2. Ato Seyoum Etana
3. Dr. Amenu Oljira
4. Ato Awol Sultan
5. Ato Tesefaye Moreda
6. Dr. Bultuma Keno
7. Dr. Tilahun Geleto
13. Dr. Ephrem Tesema
Group members
8. Ato Edossa Etissa
9. Ato Abera Ketema
10. Ato Andarge Senbeta
11. Ato Nigatu Alemayehu
12. Dr. Abule Ebro
A. Dairy
I.
Break up the value chain into its constituent parts/stages
1.1. Input supply
• Heifers (Local and cross-bred)
• Feed (cut and carry, concentrate, crop residues, urea
molasses, and etc )
• Chopper
• Feeding and water troughs
• Drugs, vaccines and veterinary facilities
• Finance/Credit service
• Milking equipments and utensils
A. Dairy
1.2. Production
• Management (Shelter, health, feeding, breeding)
• Milk quality
1.3. Transportation
1.4. Storage
1.5. Processing/Packing (Cheese, Butter and Ergot)
1.6. Marketing
Collection centers
Market information
Selling price
Market infrastructure
Quality and standards
A. Dairy
II. Identify the functions of the chain actors at the different
stages
2.1. Producers ( Produce milk and milk products)
Small holder farmers (Producers,
Cooperatives (Producers, milk collection,
2.2. Input suppliers (supply of inputs)
– Private
– Livestock Agency
– Research centers (Not continuous)
– EMDTI (Not frequently)
– Universities (Not frequently)
– NGOs (Not frequently)
A. Dairy
– Smallholders
2.3. Processors
– Private
– Cooperatives`
– Smallholders (Cheese, Butter)
2.4. Marketing
– Private (produce/process/collect/process)
– Cooperatives
– Retailers (Hotels, restaurants, cafeterias,
– Whole sellers (Butter)
A. Dairy
III. Identify the services provided and the services providers
at each stage of the chain
3.1. Services provided
• Veterinary service
• Genetic material (AI service, Bull and etc)
• Extension service (field-day and advisory)
• Credit service
• Capacity building (education, short term training, tour,
on job training )
•
A. Dairy
3.2. Service providers
• Public
– Livestock Agency
– NVI
– Sebata Laboratory
– EMDTI
– Oromia ARI
– EIAR
– FVM (Addis Ababa University)
– Universities
– Others
• Community AI technicians (Arsi zone, East Shewa, etc)
• Private sector
• NGO
A. Dairy
IV. Develop a vision/model of the value chain
“If you don’t know where you are going, any road will take
you there”
Vision: Improved/increased production and productivity of
dairy farms of small holder farmers (Male and Female
household) that increase the economic benefits and
livelihoods through proper value chain on sustainable
natural resource basis.
•
A. Dairy
Enhancing the production and productivity of dairy cattle
– Local from 1.5 to 3.25 litres/cow/day
– Cross from 8.2 to 12 litres/cow/day
Actor
Input supplier
Vision
Provision of inputs in the required quantity, quality,
affordability and timely for the value chain system
Provide quality and quantity inputs timely which will satisfy
the target groups
Service providers
Market infrastructure (To establish sustainable market for the
smallholder farmers
Effective and efficient service delivery system on sustainable
base in the value chain system
The private sector should be ready to provide services in
accordance with the needs of dairy farmers
Empowerment of the private sector through proper policy and
strategy in accordance with the needs of dairy farmers
A. Dairy
• V. Identify constraints and opportunities and opportunities
to realize the vision
5.1. Constraints
• 5.1.1. Input
– Shortage of improved dairy cattle (Local and improved)
– Shortage of feed in quantity and quality (Basic seed, timely,
– Shortage of veterinary inputs (drugs, vaccine, equipment
and etc)
– Shortage of genetic materials (AI, bull service, liquid
nitrogen, semen, etc)
– Shortage of milking utensils/equipment
A. Dairy
5.1.2. Production
– Poor husbandry and management (Shelter, health, feeding,
breeding, Milk quality and etc)
5.1.3. Shortage of Transportation (Standard vehicle shortage,
5.1.4. Shortage of storage (Cooling) facilities
5.1.5. Shortage of Processing/Packing materials
5.1.6. Marketing (shortage of
• Collection centers
• Market information
• High cost of inputs (Unfair selling price)
• Market infrastructure
• Poor Quality and lack of proper standards
• Less involvement of cooperatives in
A. Dairy
Shortage of skilled manpower
5.2. Opportunities
– Policy and strategy
– Demand
– Income growth of consumers
VI. Identify the required knowledge and capacities to realize
the vision
• AI, cooperatives, finance, credit, service, skilled manpower,
training and education, facilities (field and laboratory),
transportation and storage, updated market information
and etc)
A. Dairy
VII. Identify the required services to realize the vision
Services
Indicated on above
VIII. Identify the required enabling environment conditions to
realize the vision
• Policy and strategy
• Responsibility and commitment
• Expansion of infrastructure
B. Poultry
I.
Break up the value chain into its constituent parts/stages
1.1. Input supply
• Chicken (day old, layer and broiler)
• Feed (Concentrate, )
• Drugs, vaccines and veterinary facilities
• Finance/Credit service
• Poultry equipments like waterer, feeder, brooder,
incubator, and etc
1.2. Production
• Management (Shelter, health, feeding, parent stock, egg
and meat quality)
B. Poultry
1.3. Transportation
1.4. Storage
1.5. Processing/Packing (Dressing,
1.6. Marketing
–
–
–
–
Market information
Selling price
Market infrastructure
Quality and standards
B. Poultry
II. Identify the functions of the chain actors at the different
stages
2.1. Production
– Small holder farmers (Producers,
– Cooperatives (Producers,
2.2. Input suppliers
– Private
– Livestock Agency
– Research centers (Not continuous)
– Universities (Not frequently)
– NGOs (Not frequently)
– Smallholders
B. Poultry
2.1.4. Processors
– Private
– Cooperatives (Non existent)
2.1.5. Marketing
– Private
– Cooperatives
– Retailers (Hotels, restaurants, cafteria
– Whole sellers (egg, chicken)
III. Identify the services provided and the services providers
at each stage of the chain
B. Poultry
3.1. Services provided
•
•
•
•
•
Veterinary service
Genetic material (chicken)
Extension service (field-day, advisory)
Credit service
Capacity building (education, short term training, tour,
on job training )
B. Poultry
3.2. Service providers
3.2.1. Public
– Livestock Agency
– NVI
– Sebata Laboratory
– Oromia ARI
– EIAR
– Universities
– Others
3.2.1. Private sector
3.2.3. NGO
B. Poultry
IV. Develop a vision/model of the value chain
Improved/increased production and productivity of poultry farms
of small holder farmers (Male and Female household) that
increase the economic benefits and livelihoods through proper
value chain with a balanced supply of cereal production (Human
competition).
• Local from 50 to 70 eggs/year/chick
• Exotic from 140 to 280 eggs/year /chick
Actor
Input supplier
Vision
Provision of inputs in the required quantity, quality,
affordability and timely for the value chain system
Provide quality and quantity inputs timely which will satisfy
the target groups
Service providers
Market infrastructure (To establish sustainable market for the
smallholder farmers
Effective and efficient service delivery system on sustainable
base in the value chain system
The private sector should be ready to provide services in
accordance with the needs of poultry farmers
Empowerment of the private sector through proper policy and
strategy in accordance with the needs of poultry farmers
B. Poultry
V. identify constraints and opportunities and
opportunities to realize the vision
5.1. Constraints
5.1.1. Input
– Shortage of improved parent stock, day old chick, pullets,
broiler and layers
– Shortage of feed in quantity and quality ( timely,
– Shortage of veterinary inputs (drugs, vaccine, equipment
and etc)
– Shortage of poultry equipments
B. Poultry
•
5.1.2. Production
– Poor husbandry and management (Shelter, health,
feeding, breeding, quality and etc)
5.1.3. Mode of transportation
5.1.4. Shortage of storage (chilling and Cooling) facilities
5.1.5. Shortage of Processing/Packing materials
5.1.6. Marketing
– Collection center (Lack)
– Market information (Shortage)
– High cost of inputs
– Market infrastructure (lack)
– Poor Quality and lack of proper standards
– Less involvement of cooperatives
Shortage of skilled manpower
B. Poultry
5.2. Opportunities
• Policy and strategy
• Demand
• Income growth of consumers
B. Poultry
VI. Identify the required knowledge and capacities to realize
the vision
Cooperatives, finance, credit, service, skilled manpower, training
and education, facilities (Field and laboratory), transportatio and
storage, updated market information and etc)
VII Identify the required services to realize the vision
• Services
• Indicated on above
B. Poultry
• VIII. Identify the required enabling environment
conditions to realize the vision
• Policy and strategy
• Responsibility and commitment
• Expansion of infrastructure
C. Apiculture
• I. Break up the value chain into its constituent parts/stages
1.1. Input supply
• Bee Colony, Bee hive
• Feed (Bee forage)
• Drugs and veterinary facilities
• Finance/Credit
• Bee equipment and accessories
• Foundation sheet
1.2. Production
• Management (Shelter, health, feeding, Queen rearing
and colony splitting)
• Honey, wax, pollen, propolis, bee venom quality
C. Apiculture
1.3. Transportation
1.4. Storage
1.5. Processing/Packing
1.6. Marketing
– Collection centers
– Market information
– Selling price
– Market infrastructure
– Quality and standards
C. Apiculture
II. Identify the functions of the chain actors at the different
stage
• 2.1. Producer
– Small holder farmers (Producers,
– Cooperatives/Micro enterprises (Producers, honey and wax
collection)
• 2.2. Input suppliers
–
–
–
–
–
–
–
Private
Livestock Agency
Research centers (Not continuous)``
Universities (Not frequently)
NGOs (Not frequently)
Smallholders
MSE
C. Apiculture
2.1.4. Processors
– Private
– Cooperatives
– Smallholders
2.1.5. Marketing
– Private (produce/process/collect/process)
– Cooperatives
– Retailers (Tej bête, cafeteria, Hotels, restaurants)
– Whole sellers (Honey and wax)
C. Apiculture
III. Identify the services provided and the services providers at
each stage of the chain Services provided
3.1. Services provided
• Queen rearing and colony splitting
• Extraction
• Extension service (field day and advisory)
• Credit service
• Capacity building (education, short term training, tour,
on job training )
C. Apiculture
3.2. Service providers
• Public
– Livestock Agency
– Oromia ARI
– EIAR
– Universities
– Others (Ethiopian bee keepers association)
• Private and cooperatives
• NGO
C. Apiculture
IV. Develop a vision/model of the value chain
Vision: Improved/increased production and productivity of
Apiculture of small holder farmers (Male and Female
household) that increased the economic benefits and
livelihoods through proper value chain on sustainable natural
resource basis.
Enhancing the production and productivity of Apiculture
– Traditional hive 5 to 8 kg/hive
– Transitional 11 to 20 kg/hive
– Modern 25 to 40 kg/hive
Actor
Input supplier
Vision
Provision of inputs in the required quantity, quality,
affordability and timely for the value chain system
Provide quality and quantity inputs timely which will satisfy
the target groups
Service providers
Market infrastructure (To establish sustainable market for the
smallholder farmers
Effective and efficient service delivery system on sustainable
base in the value chain system
The private sector should be ready to provide services in
accordance with the needs of beekeepers
Empowerment of the private sector through proper policy and
strategy in accordance with the needs of bee keepers
C. Apiculture
V. Identify constraints and opportunities and opportunities to
realize the vision
5.1. Constraints
• 5.1.1. Input
– Shortage of colonies, wax,
– Shortage of feed in quantity and quality (Basic bee forage
seed)
– Absence of veterinary inputs and services
– Shortage of bee equipment (hives/accessories, foundation
sheet
• 5.1.2. Production
– Poor husbandry and management (Shelter, health,
feeding, , honey and wax quality etc)
C. Apiculture
5.1.3. Shortage of storage, post harvest handling
5.1.4. Shortage of Processing/Packing materials
5.1.5. Marketing Constraints
– Collection centers
– Market information
– High cost of inputs (Unfair selling price)
– Market infrastructure do not have separate slot in the
shops for the product
– Poor Quality and lack of proper standardization
– Less involvement of cooperatives in marketing
• Shortage of skilled manpower
• Environmental constraints: improper utilization of agro
chemicals
C. Apiculture
5.2. Opportunities
Policy and strategy
Demand
Income growth of consumers
VI. Identify the required knowledge and capacities to realize
the vision
• Cooperatives, finance, credit service, linkage among chain
actor, skilled manpower, training and education, facilities
(Field and laboratory, transportation and storage, updated
market information and etc)
C. Apiculture
• VII. Identify the required services to realize the vision
– Indicated on above
VIII. Identify the required enabling environment conditions
to realize the vision
– Policy and strategy
– Responsibility and commitment
– Expansion of infrastructure
– Proper standardization and certification
D. BEEF
I. Break up the value chain into its constituent parts/stages
1.1. Input supply
• Fattening (Bulls, steers, oxen, cows and etc)
• Feed (Cut and carry, concentrate, crop residues, and others)
• Chopper
• Drugs, vaccines and veterinary facilities
• Finance/Credit service
• Feeding, and water troughs and others
1.2. Production
• Management (Shelter, health, feeding, breeding
• Meat and hide quality
D. BEEF
1.3. Transportation, holding pens, trucking/treking
routes
1.4.Storage (Feed)
1.5. Processing and Packing (Meat and hide)
1.6. Marketing
–
–
–
–
Market information (Broker)
Selling price (Low for the producer)
Market infrastructure (Holding pens,)
Quality and standards (Weight, age, sex)
D. BEEF
II. Identify the functions of the chain actors at the
different stages
2.1. Producers
– Small holder farmers
– Cooperatives/ME
2.2. Input suppliers
– Private
– NVI
– Livestock Agency
– Research centers (forage seed)
– Universities (forage seed)
– NGOs (Not frequently)
– Smallholders
D. BEEF
2.3. Processors
Private
Public
2.4. Marketing
Private (produce/process/collect/process)
Cooperatives
Retailers (Hotels, restaurants, cafeterias, butchers)
Whole sellers (East Shewa
III. Identify the services provided and the services providers
at each stage of the chain
D. BEEF
3.1. Services provided
•
•
•
•
Veterinary service
Extension service (field day, advisory)
Credit service
Capacity building (education, short term training, tour,
on job training )
3.2. Service providers
• Public
– Livestock Agency
– NVI
– Sebata Laboratory
– EMDTI
D. BEEF
•
•
•
•
– Oromia ARI
– EIAR
– Universities (FVM, Jimma, Ambo, Adama)
– Others
Private sector
NGO
Cooperatives
Credit providers and micro-finance (e.g., Oromia
cooperative
D. BEEF
IV. Develop a vision/model of the value chain
• Vision: Improved/increased production and productivity of
beef by small holder farmers (Male and Female household)
that increased the economic benefits and livelihoods through
proper value chain on sustainable natural resource basis.
Enhancing the production and productivity of
• Dressing weight (kg) 110 to 120/animal
Actor
Input supplier
Vision
Provision of inputs in the required quantity, quality,
affordability and timely for the value chain system
Provide quality and quantity inputs timely which will satisfy
the target groups
Service providers
Market infrastructure (To establish sustainable market for the
smallholder farmers
Effective and efficient service delivery system on sustainable
base in the value chain system
The private sector should be ready to provide services in
accordance with the needs of beef cattle farmers
Enhancing the capacity of the private sector in accordance
with the needs of beef cattle farmers
D. BEEF
V. Identify constraints and opportunities and opportunities to
realize the vision
5.1. Constraints
5.1.1. Input
Shortage of improved fattening
Shortage of feed in quantity and quality ( timely,
Shortage of veterinary inputs (drugs, vaccine, equipment
and etc)
Shortage of feeding and water troughs, holding pens,
5.1.2. Production
Poor husbandry and management (Shelter, health, feeding,
breeding, meat quantity and quality etc)
D. BEEF
5.1.3.Lack of suitable transportation system
5.1.4. Shortage of storage (Cooling) facilities
5.1.5. Shortage of Processing/Packing materials
5.1.6. Marketing (shortage of
– Holding pens
– Market information
– High cost of inputs
– Market infrastructure
– Poor quality and lack of proper standards
– Less involvement of cooperatives
Shortage of skilled manpower (e.g. meat inspectors)
D. BEEF
5.2. Opportunities
– Policy and strategy
– Demand
– Income growth of consumers
VI. Identify the required knowledge and capacities to realize
the vision
AI, Cooperatives, finance, credit, service, skilled manpower,
training and education, facilities (Field and laboratory,
transportation and storage, updated market information and etc)
D. BEEF
VII. Identify the required services to realize the vision
Services
Indicated on above
VIII. Identify the required enabling environment conditions
to realize the vision
• Policy and strategy
• Responsibility and commitment
• Expansion of infrastructure
E. Small ruminant
I. Break up the value chain into its constituent parts/stages
1.1. Input supply
• Meat shoat
• Feed (Cut and carry, concentrate, crop residues, and
others)
• Chopper
• Drugs, vaccines and veterinary facilities
• Finance/Credit service
• Feeding, and water troughs and others
E. Small ruminant
1.2. Production
– Management (Shelter, health, feeding, breeding)
– Meat and skin quality
1.3. Transportation, holding pens, trucking/treking
routes
1.4. Storage (Feed)
1.5. Processing and Packing (Meat and skin)
1.6. Marketing
Market information (Broker)
Selling price (Low for the producer)
Market infrastructure (Holding pens,)
Quality and standards (Weight, age, sex)
E. Small ruminant
II. Identify the functions of the chain actors at the different
stages
2.1. Producers
Small holder farmers
Cooperatives/ME
2.2. Input suppliers
– Private
– NVI
– Livestock Agency
– Research centers
– Universities
– NGOs (Not frequently)
– Smallholders
E. Small ruminant
2.3.Processors
– Private
– Public
2.4. Marketing
Private (produce/process/collect/process)
Cooperatives
Retailers (Hotels, restaurants, cafeterias, butchers)
Whole sellers
E. Small ruminant
III. Identify the services provided and the services providers
at each stage of the chain
3.1. Services provided
• Veterinary service
• Extension service (field day, advisory)
• Credit service
• Capacity building (education, short term training, tour,
on job training )
3.2. Service providers
• Public
– Livestock Agency
– NVI
E. Small ruminant
•
•
•
•
– Sebata laboratory
– EMDTI
– Oromia ARI
– EIAR
– Universities (FVM, Jimma, Ambo, Adama)
– Others
Private sector
NGO
Cooperatives
Credit providers and micro-finance (e.g., Oromia
cooperative
E. Small ruminant
IV. Develop a vision/model of the value chain
Vision: Improved/increased production and productivity of small
ruminants by small holder farmers (Male and Female
household) that increased the economic benefits and
livelihoods through proper value chain on sustainable natural
resource basis
Enhancing the production and productivity of
– Sheep dressing weight (kg) 10 to 12/animal
– Goat Dressing weight (Kg) 9 to 11/animal
Actor
Input
supplier
Vision
Provision of inputs in the required quantity, quality, affordability and
timely for the value chain system
Provide quality and quantity inputs timely which will satisfy the target
groups
Service
providers
Market infrastructure (To establish sustainable market for the smallholder
farmers
Effective and efficient service delivery system on sustainable base in the
value chain system
The private sector should be ready to provide services in accordance with
the needs of small ruminant farmers
Enhancing the capacity of the private sector in accordance with the needs
of small ruminant farmers
E. Small ruminant
V. Identify constraints and opportunities and opportunities to
realize the vision
5.1. Constraints
5.1.1. Input
Shortage of improved fattening shoats
Shortage of feed in quantity and quality ( timely,
Shortage of veterinary inputs (drugs, vaccine, equipment
Shortage of feeding and water troughs, holding pens,
5.1.2. Production
– Poor husbandry and management (Shelter, health,
feeding, breeding, meat quantity and quality etc)
E. Small ruminant
5.1.3. Lack of suitable transportation system
5.1.4. Shortage of storage (Cooling) facilities
5.1.5. Shortage of Processing/Packing materials
5.1.6. Marketing (shortage of
– Holding pens
– Market information
– High cost of inputs
– Market infrastructure
– Poor quality and lack of proper standards
– Less involvement of cooperatives
E. Small ruminant
Shortage of skilled manpower (e.g. meat inspectors)
5.2. Opportunities
Policy and strategy
Demand
Income growth of consumers
E. Small ruminant
VI. Identify the required knowledge and capacities to realize
the vision
• AI, Cooperatives, finance, credit, service, skilled manpower,
training and education, facilities (Field and laboratory,
transportation and storage, updated market information and
etc)
VII. Identify the required services to realize the vision
• Indicated on above
E. Small ruminant
VIII. Identify the required enabling environment conditions
to realize the vision
– Policy and strategy
– Responsibility and commitment
– Expansion of infrastructure