Ethiopian Livestock sector current

status and future prospects

Introduction: Livestock production

• Ethiopia is endowed with

diverse agro-ecology

• A country of plant and animal

diversity

• Habitat to different species

and breeds of animal

• Production systems:

• Mixed crop livestock production

system

• Pastoral production system

• Specialized urban and periurban

Livestock population (CSA 2016)

Species 2016 (in million)

Cattle 59.5

Sheep 30.7

Goat 30.2

Camel 1.2

Poultry 59.5

• Livestock: livelihood base, job creation, draft power, source of income, manure, etc

• Production system is subsistence:

– Dependent on indigenous breeds

– Low input and low output

– Dependent on natural resources (free grazing)

– Not market oriented

• Production and productivity is low

Demand for livestock products is increasing:

Population growth

Trends in human population in Ethiopia (1950-2050)

Demand for livestock (cont..)

• Population increase

• Urbanization

• Increase per capita income

Projections of production with (PW) and without (PWO) intervention and

consumption (Source: Ethiopian livestock master plan )

Panel A: Red meat

C

PWO

PW

500

1000

1500

2000

2500

3000

2013 2018 2023 2028

Panel B: Chicken meat

PW

C

PWO0

200

400

600

2013 2018 2023 2028

Panel C: All meat

PWO

PW

C

1000

1500

2000

2500

3000

2013 2018 2023 2028

Panel D: All milk

PWO

CPW

4000

6000

8000

10000

12000

14000

2013 2018 2023 2028

Panel E: Eggs

PW

C

PWO0

5000

10000

15000

2013 2018 2023 2028

Source: Based on LSIPT results.

Consumption

Production with intervention

Production without interventiion

Legend:

PW=

C=

PWO=

Production-Consumption

Balance

Prospect of the livestock sector

• Livestock is considered as a second economic driver (16-19% GDP, 35-40% GDP of Agriculture)

• Livestock for job creation

• Livestock for food and nutrition security

• Livestock and livestock products for export and import substitution

• Thus, requires transformation from subsistence to market oriented, clustered based production

Production

Post-harvest

handling

Processing

Retailing

Consumption

Transporting

Bulk Trading

Market information and intelligenceMarket information and intelligence

Financial servicesFinancial services

TransportationTransportation

CommunicationsCommunications

Govt. policy regulationGovt. policy regulation

Tech. & business training & assistanceTech. & business training & assistance

Production input supplyProduction input supply

ResearchResearch

Collection

Transporting

Example: Dairy value

chain

Enabling Environment

• Most of the investment is expected from the

private sector

• Government role is creating enabling

environment for private sector engagement

– “ An investment guide to Ethiopia”

• Support to smallholder producer

– Infrastructure development (animal health clinics,

farmers training centers, laboratories, etc)

– Provision of inputs (forage seeds, vaccines, vet.

Drugs, artificial insemination inputs, etc)

– Provision of services (extension service, animal

health, artificial insemination, vaccination, etc)

– Capacity development at different levels

– Market linkages

• Integrated agro industry parks

Roles of integrated agro-industry parks

• Sustainable market for producers

• Solves problem of market and market seasonality

• Encourages farmers to engage in market oriented livestock production

• Encourages farmers to use inputs to increase production

• Enables inventors to get all services at one place and shorten process of acquiring land, electricity, road, water, etc

Thank you