Livestock Market Value Chain Assessment in Selected Sites of Tigray , North Ethiopia : Challenges and Opportunities for Enhancing Animal Product Export

Livestock systems represent a potential pathway out of poverty for many smallholders in the developing world. Ethiopia ranks in the top ten countries from the world by livestock population number but benefits less because of various factors, like poor market networking. This study was therefore conducted from November 2013 to June 2014 in selected districts of Tigray state, northern Ethiopia to assess market opportunities and challenges and key actors on value chain existing in livestock, hide and skin market linkage from the source to the inlet of the sector. A cross-sectional study design with multistage sampling technique was employed. Questionnaire survey and observational data collection were conducted to collect the required information. Four hundred four individuals (Farmers: 256; Skin and hides traders: 35; fattening cooperatives: 4; homestead slaughter house: 70; live animal traders: 29; export abattoir staff members: 5; and leather industry staff members: 5) were interviewed. Documented data were also taken for retrospective study. Among the farmer respondents 148(57.81%) had habit of branding their animals by hot iron when they get diseased. 143(55.86%) used raw skin and hide for traditional use rather than selling to skin and hide traders. In other direction, all participants from leather industry indicated inadequate supply of raw skin and hide to the industry. Hence, many hides and skins remain uncollected in the village areas of the region despite the amount of raw skin and hide supply to nearby leather industry is inadequate. As per the output of this study, 16(55.17%) live animal traders, 48(68.57%) homestead slaughter house and 198(77.04%) farmers participants replied lack of market information as major challenges. However, export abattoir is suffering from inadequate supply of live animals. Majority of the value chain problems observed on live animals and skins and hides in the region were resulted from lack of awareness of farmers, absence of market information and training services to the key actors on the network. Empowering livestock farmers and animal fatteners in order to supply high-quality and sustainable livestock production with an identified market destination will enhance the input supply.