Daily Summary Report Subsector: Poultry Tool: EMMA Location: Eastern and Southern Cluster Assessment Duration: 5th June-20th Jun’2013 Team A Date Location 06/06/13 Jijiga 06/06/01 3 Jig-jiga Business/Insti tution interviewed Somali Region Livestock, Crop and Rural Devlopment Office SoRPARI Contact Address Summary of Assessment of the Day Mr. Muyedin Mohamed (Deputy Bureau Head) Discussion about poultry market system in the region was made using semi structured interview. According to D/Bureau Head, poultry in SRS is a neglected subsector. However, in the last three years the general outlook of poultry is improving given the commercialization is still very crippling. He mentioned the business enabling env’t is favorable and they are welcoming any new investors in poultry subsector. Hassan Abdirahman The Somali region (SORPARI), has not yet Key findings Recommendations 1. Region LCRDO has been tried poultry & technology transfer at FTC with Haramaya University by demonstrating poultry production in cage system, but due to lack of layers and brooders stocks supply it didn’t continued 2. Youth groups, Coops and up to 3 private investors has been engaged in poultry business but not successful due to Shortage of improved breading stocks High mortality due to hygienic problem Less expertise in poultry business Source of 3 month old chicken providers are located more than 500km from the region 3. There is high demand for poultry products from individual and institutional consumers, e.g. About 4 universities in the region are buying egg from Harar, but very low supply at higher price(price of 1 egg=3:00 ETB) 4. At pastoralists and agro-pastoralists area poultry production is in extensive system i.e. - In Jijiga Zone, Fafen Zone, Citi Zone, Shebele, K/dehar etc. poultry keeping is increasing as awareness of income and nutritional aspect of poultry is improving among pastoralists and agro pastoralists community 5. Poultry feed and Vet service almost has got no attention since the regional Gov’t is focusing only on large animals. However, he mentioned will not be major problem to strengthen it since there is well established animal health services and flour factors in the region. Poultry production is less practiced in Somali region, due to high consideration of other 1. Establishing Regional Breeding center will expand commercializing and expansion of poultry production at pastoralists and agro-pastoralist level. The key informant mentioned that in this regard they are fetching support to make this happen 2. Encouraging and engaging of at least one Commercial Poultry farm in the region can play significant role in supply three month old layers to communities Poultry production is so Livestock, forage and technology delivery department head 0915189064 08/06/13 DD Hamdail Hatchery Hamdail Imirael 0911605539 conducted research on poultry production system. The production and consumption of poultry is in the region is very limited in general while is relatively high in the urban areas particularly the consumption of eggs. Market suppliers collect the product from Harar and Debreziet, and small amount from the local surrounding agropastoralists and distribute to the open market areas. To make a research on poultry production system, such as characterization (traditional poultry, semi intensive, intensive system) and the genotype (local and exotic breed) to make an insemination livestock animals such as, camel cows, goat and sheep which is the major asset for pastoral and agro-pastoral society in the region. Hence, the research institute has given less attention the poultry production system. The government has prioritized as a major concern of doing research on livestock animals (camel cows, goat and sheep) and the major challenges that pastoralists confront with, in order to improve the production and productivity and prevent out break diseases, reduce overgrazing through forage utilization etc. Plan The Somali SoRPARI has planned next year (2006 EC) to conduct research on poultry production system, types of available local breeds, and major challenges on production the pastoralist face. Hamdail Hatchery was the only small scale hatcher business that we found and interviewed about the poultry hatchery business. It is owned by two enthusiastic brothers and self-made innovators who have learned poultry and dairy business from their Business model -Hamdail is the only hatchery business we have found in DD -have self-made incubators with a capacity of 1000 & 4000 each at same time. -Business have its own feed processing unit and use homemade simple mixer for feed processing at hatchery -Every week 3-4 people come and buy up to 30 day old-week old chickens Most buyers come from around DD and East important to establish in the region which is a big opportunity for the investors. To strengthen the awareness level of community so as to upgrade the knowledge and techniques production and consumption of poultry in the market system 4. Challenges Lack of awareness on the benefit and nutritional value of poultry in the pastoral and agropastoral society regarding production and consumption of poultry They have highly transmission of diseases. Total loss of poultry when outbreak diseases occurs There is no vet/MD.CAHWS. The community preference to the consumption of chicken’s meat is very low which has decreased the demand of meat. The EMMA team impressed by what Hamdail is doing and recommended to leverage on this actor as source of input to the area and strength and link them with producers. And coach this business grandparents. 08/06/13 DD Ababit & friends dairy business, (previously poultry farm) Abebit 0911263628 Abebit poultry farm was converted to dairy after unsuccessful run in the poultry business. To learn the reason for failure in the poultry business, we have made telephone interview with Abebit and shared the actual challenge faced by their business and they reason they have changed to dairy. Hararghe (youth group, BOA) -Price for day old chick is 15 ETB Breed -Its first generation breed was Feyumi breed from Egypt (disease tolerant & high egg yield) and white leg horn Veterinary -Only vaccinated first generation when they started business - Claimed they prevent disease by hygiene and developing the immune system of the birds by feeding concentrate and relevant vitamins Old hens -Old hens when stopped laying eggs and molted, few people will buy them for meet, otherwise will be culled Employment -2 casual labors and 2 permanent workers (owners) Constraints -Lack of market information and never done market research. -Their outreach is limited to selling only in the hatchery center & only when they get order, they will put eggs in incubator and customers will wait at least 3 weeks to get day old chicks Capacity and source of 3 month chicken -nearly 500 birds - Got 3 month old chicken from Haramaya University and Harar with the help of BOA Challenges -No vet service for poultry -Space shortage (in the space we had difficult to keep birds in their age and separate diseased chickens) -Limited experience in poultry production and management -No profile of chickens when purchased from HU and Harar to find appropriate vet service -Shortage of feed (have no processing unit and there are no supplier of concentrated poultry feed in the area Cease poultry -Due to the above reasons they have decided to shut down the poultry business and started dairy which they think now manageable and less difficult to do market research and expand their innovative capacity to expand the hatchery center Poultry business at commercial level is not as simple as selling chickens and collecting eggs. Before establishing the farm good input and output market research has to be made. Which is availability of day old or three month chicken, vet service, feed and experts must be ensured to buy down the risk and do profitable business an than poultry -Sold the male chickens for meat and layers for egg to people want to keep one or two birds extensively and some of them died 08/06/13 10/6/13 10/6/13 DD Harar Harar Pioneer Urban Agriculture Shewanadew Takele 913312230 The team has visited a farm that used to integrate poultry as part of their business but now left it out and focuses on dairy and vegetables and fruit production Harari Regional Agriculural Office Dr. Mohammed Redwan- Regional Vet. Officer In the Harari region there are two types of production, back yard productions by rural community and commercial production in urban areas. Commercial farms; both formal and informal commercial firms are existing. The pro The proposes for commercials are to produce table eggs, meat processing, lovebirds and fertile eggs poses for commercials are to produce table eggs, meat processing, lovebirds and fertile eggs. Mulugeta and Sons Poultry Darage MulugetaOwner of the farm Mulugeta and Sons Poultry farm -This business has tried poultry in micro scale with 15 birds in intensive system, but after keeping for less six month they said that realized that in small skill production cost for chicken is more expensive than its revenue - unable to increase their stock due to financial constraints - Decided to leave poultry production due to high cost of feed and vet drugs for few birds •There are about 3,000 to 5,000 birds per firm in commercials firms about 15 -25 birds in the rural areas. •The inputs for commercial farms are live birds (day old & 3 month’s old chicken), Fertile Eggs, feeds and cages •The sources for inputs are Debra Zeit, and Haramaya University •The government distributes the improved layers breeds of 3 months old birds for the farmers through extension services with the 50% subsidies •Currently there is no structure /legal frame work for poultry production but the bureau are on the process for structuring. •There high demand for poultry production both in rural and urban areas. Challenges •Lack of legal frame work/ structure for the poultry production •Limited technical and financial support for the sector •Poultry diseases – limited services for the poultry •Shortage /Limited source and high price of inputs. Plan Establishment of the state farm in the region to improve the inputs supply Structuring and allocating sufficient budget for poultry production Capacity •The farm has a capacity of 75,000 but operates Structuring and Strengthening the regulatory system to encourage private sector •Support and Stakeholders farm 14/0613 Yabello Yabello Pastoral Areas research center is one of the largest and the oldest ( 7 years old) firm in the region. Currently it has about 5,000 birds and produces 2,000 eggs per day. Despite the raised challenges, the firm located in suitable areas for the current production and future expansions Dr. Derege Teshome 0910395766 Birhanu Bekele 0928030958 During our visit in Borena Zone we have made key informants interview in the research center. We learned that the center has no dept. or unit that only on 5000 due to many reasons (mostly due to lack of support from regional got) -The main products of the firm are table eggs, live birds (day old and 3 months old) and male birds for meat consumptions. Feed •The source of feed for the firm is by product from Beer factory (brewery yeast), Academic institution (remained meal) and oil factory ( fagullo). •The Hatchability of the farm is 40% because of factors such as electricity power and parent characteristics. The farms can produce 9,300 birds per week •Breeds are Bovance Brown and White leg hornslayers •The customers for table eggs are: Cafes and Restaurants in Harar and Dire dawa. Live birds for commercial farms, NGOs and Local government in order to distribute for the farmers and sometimes to central markets. •There is unattached demand for the production, and higher during public holidays. Vet Service -Hire consultant from Debre zeit that visits and advise him once a month - Vaccination is conducted by TVET technicians from Kombolcha TVET Production The farm produces 2000 egg/day on average Employment -the farm has created employment opportunity for 15 people Challenges . Poultry is the most neglected sector by all actors (public and private, NGOs sectors) . Luck of integration among actors in the poultry production . Luck of infrastructures such roads, water supply and limited electric power. Feature of Poultry in Borena Zone -Poultry production in commercial and HH level is very limited -It was a religious taboo in the area to eat chicken meet, and still this exists in some part of the areas -recently the trend has been changed and people integration (partners with government) for the sector development by public and private sectors •Support from the government for improving infrastructures -Do PRA in the community and facilitate awareness creation on the benefits of poultry production, feed 14/06/13 Yabello Yabello Pastoral Areas TVET Dr. Diriba (Academic Vice Dean ) 0917090912 14/06/13 Yabello Hawe Poultry farm Wendu Gelgelo 0912275078 deal with poultry but they shared their information based on the one time survey they have conducted in collaboration with CRISP project. around town area started to consume poultry products -To diversify their livestock stated to keep poultry Who keep poultry -Poor HH in the community mostly keep poultry, particularly women and students who are pursuing their study in town keep poultry in their families backyard to generate additional income Average Birds -Agro pastoralist +/- 5 birds/HH -Pastoralists almost none -SMEs +100 -Big commercial farm is not available Market -In Towns like yabello in Borena zone - Collectors buy from producers and sell to local consumers -often there is shortage of supply in the market Mostly Cocks (male chickens) are for sale Feed and Vet -No input and service providers in the Zone -It is scavengers type of production Assuming if Yabello TVET is giving training on Poultry production as part of its vocational training, we visited to make key informant interview. Apparently this TVET has no program that provides training in poultry and so that our discussion was short-lived with the key informant We came across with one SME established by three university graduates. During our visit we have observed how poultry subsector is faced by many challenges and neglected by Zonal BOA -Poultry is not in their curriculum and has no plan yet to include in the future -Only provide poultry in one course in level II training as General livestock Capacity -Started with 200 layers but now reduced to 143 due to death resulted from disease -The farm seems to have good housing )one big and one small house) Source of chicken and fund -Brought 3 month old chicken from Debreziet Genesis farm (bovan breeds 120 br/chicken -Startup capital from Oromia MFI (took 130,000 ETB) and vet service for poultry -Conducting reseach to identify adaptable varity of poultry for Borena Zone -No one should start commercial poultry farm without knowledge/expertis e, availability of feed locally and proper veterinary service -Government should support in Feed -Initially brought formulated Debre Ziet and since it is too expensive and has high transaction cost, now they use wheat and maize which is local available -fetch water from nearby stream Production -Even through it is 4 month since they brought the chickens none of them stated laying eggs and this pretty much scared the groups and they are at risk to bankrupt -Due to no production yet and unable to feed their chickens, they seek job in GoE office and from their salary buy feed - Despite they seek advice from research center and BOA; no one could explain why the delay in laying eggs caused and its solution. BOA experts are suspecting it might be genetic defection due segregation Challenges This SME is sounded by many challenges -They are not expert in poultry but running their farm by reading literature -The farm has no electricity and coursed many chickens to became blind due to darkness -The Breed they bought from Debre ziet is not lay egg in 7 month, which threaten the business to be bankrupted due to no revenue yet expect cost - They said that since there is no production they are unable to service their debt and the MFI is going to file court sue for failing to repay their loan in accordance to their agreement (the repayment should start 3 month ago every month) verifying the breeds brought from Hatcheries and big farms that they are viable breeds -Research centers should identify which breed is adaptable to the area 14/06/13 Yabello Private Poultry Producer Aynalem Taye We have visited the second private farm in Yabello. The farm is owned by a woman who has been in this business for the past 6 years. She have explained how she was successful in micro poultry production 17/06/13 Debre Zeit National Veterinary Institute (NVI) Dr. Marta (General manager) 0911510894 Mesfin Tadesse (Marketing dept.) 0912140436 As NVI is the only institute producing vaccine for livestock and poultry we pay visit to the institute to conduct key informant interviews. We have discussed with the general manger and marketing department team on who they treat poultry vaccination supply and their business model to reach out the pastoralist’s community. Capacity -105 birds with moderately constructed housing -now she sold all her stock for meat due to all hens became old and when egg production dropped decide to replace them with new breed -waiting the winter to pass to restock to avoid disease risk Feed and Vet service -She buy formulated feed from debre zite. Since she had ISUZU truck transaction cost is less -Though there is drug for poultry in the area she used livestock drug in smaller dose based on the advice she got from Vet technician in the area Production -The chicken she brought stat laying eggs in 4 months after should brought them while they are 3 month old -On average she used to collect 80 eggs/day until recently she has sold all her stocks -She is planning to bring again 3 month chickens from debre zite Market -She supply eggs to cafeteria and restaurants (2br/egg) -She sold old hens 50/head for meat purpose Generally unlike the other farm she claimed poultry production is profitable for her Challenges So far she claimed faced by shortage of feed and vet services and overcome the challenge as mentioned above Capacity -in the last 10 months 14.4 million poultry vaccine Produced Type of vaccination produced -3 type of Newcastle 7.8 million -Gomboro 4.1 million -Fowl pox 1.2 million -Fowl typhoid 1.3 million -Marix (Imported) Targets market -Commercial farms, Small and medium enterprises -Have done very little for backyard production system Availability of breeding center in the area will help getting stocks easily -Projects need to work in a bilateral basis or PPP (public private partnership)to create awareness with NIV on importance of vaccination for backyard producers -Provide training to producer group on importance of prevention of 17/06/13 Bushoftu Almaz poultry farm Ms. Almaz Ayale 09 11 22 33 49 Bushoftu Almaz poultry is the oldest farm in Debr-Zeit which is operating since 1993. The total employees are 37 of which 2 are trained professionals and the remaining are support staffs and laborers. The major products are live birds of layers and boilers, eggs and meat of -FOA plans to do vaccination for back yard and ordered NVI 4 million vaccine -GoE vaccines for backyard when there is an outbreak (for free) Price and volume of sell -Price for poultry vaccine ranges from 0.25-045 birr/vial -Now they are planning to prepare vaccine for backyard producers and this will alter their packaging system in to smaller dosage and may rice price -Generally, price is set by BOA -On average annually they sell up to 7 million vaccine Competitors -Have no competitors (Monopoly) and have protection by law from any competition. - Recently big commercial farms allowed to import vaccine when they import parent stock but still they are buying from NVI Additional Service -Provide training for producers group on poultry production and vaccination annually to communities and SMEs Challenges -reaching out the backyard producing community is a main challenge, because the attention given to poultry especially in pastoralists area is very low -Preparing vaccine for backyard producers might be challenging sine it may alter the current commercial packing and rise price -Transportation and access to all weather road limits vaccine distribution •The Price of live birds for both eggs and meat varies from 23 to 25 Birr depending on the cost of inputs imported. •The price fluctuate based on the public holidays and higher before and after Fasting period and wedding time and rainy season as layers demand is higher than meat production •The marginal profit of the farm is 55% •Other services that farm provide for main customers are credit services based on trust build, transportation over 500 KG and market information disease through vaccination -Strengthen breeding centers to improve availability of parent stocks •Training of private small scale practitioners on the basic production, feeding and hygienic •Government focus and improve the infrastructure related to the sectors •Financial support exotic breeds of Holland origin. The farm produces about 40,000 chickens per years. The main customers are Supermarkets, Hotels Retailers and Private practitioners from Addis Ababa, Bishoftu, Adama, and Mojo Areas. •High demand for production, government policy encouraging the sector •The major constraints are limited finance, fluctuations of feed and limited electric power for the actors in the in the poultry productions