Livestock play important roles in farming systems in developing countries, as it can be a source of food, draught power, bio-fertilizer and fuel, cash income and wealth accumulation. Despite its enormous livestock wealth, the country has not yet tapped it well. nbv
As various documents indicates, Ethiopia has over 52.1 m. cattle, 24.2 mln. sheep, 22.6 mln. Goats, 987 thousand camels, 44.9 mln. poultry and nearly 5 mln. Beehives, which makes the nation home to one of the largest livestock population in Africa.
Livestock sector contributes to 12-16 percent of the country’s GDP and about 16 percent of foreign earning. And IGAD’s recent study shows that livestock contribution to the national economy was over 350 percent of what was estimated in 2008/09, taking into consideration animal transport, traction power, fertilizer, dung and so on.
Even if this is the case, the sector is challenged by various internal and external factors such as genetic limitation for production, inadequate and poor quality of feed resources, prohibitive price of crossbred heifers and poultry, lack of poultry parent stock, and prevalent animal diseases, according to studies from the Ministry of Agriculture.
Moreover, there are institutional constraints as well, like poor linkage between research, extension and technology users, inadequate extension and training service, unreliable market and unavailability of credit. In addition to these socio-economic constraints, there are also common bottlenecks seen in terms of less availability of adequate land, shrinkage and degradation of rangelands, recurrent drought and conflict.
Issues in relation to export and local market is also a huge challenge facing the sector. Various efforts done so far to link meat exporters with livestock producers is limited, and the issue still remains a challenge for investors engaged in the sector.
According to Dr. Bishaw Benti, an Investor involved in Livestock Processing and Export sector, livestock market is the biggest problem in the country as many of the animals in the bordering parts of Ethiopia are traded in an illegal way, which is challenging to those engaged in the sector and in the legal market routes.
As someone who owns a company involved in agro-processing sector, Excel Agro-Industry PLC., he said Ethiopia is losing a lot by exporting live animals. "We are working to export processed animals in the near future, if contraband marketing of live animals is controlled by the government."
Dr. Bishaw further noted that his company was formed with the objectives of fattening and exporting beef to Middle East countries, and gradually turn into a huge player in the meat marketing business by constructing modern and world standard slaughter houses that would be used to process value added products.
For the last five years, he said, he had been engaged in fattening and exporting cattle to the af oremen tioned countries and to Northern Africa, especially to Egypt. Curr ently, he is under preparation for the construction of a modern and world standard slaughter house.
"This forthcoming slaughter house is hoped to be the first of its kind in Ethiopia, and is expected to foster the meat marketing sector by processing and exporting meat and meat products to European markets with European brand meat and meat products."
Dr. Bishaw further noted that his company is working with various companies from Hungary and China to work under joint venture to build a big processing company. The government is often heard saying that livestock processing should be given focus by establishing world standard and competitive meat processing factories that would highly process milk and meat products. The aim of this is to empower exporting firms that would fulfill commitments and satisfy clients requirements to tap the opportunities in the sector.
Even if it is not yet tapped to the level expected, the sector has amazing potential that need to be overlooked both by the government and the private sector. One among these opportunities is the conducive government market policy, which is a pillar for inter and intra-regional market related relationship.
In addition to this, the grace period given by the government through is another opportunity for the investor to peacefully operate its duties without external intervention, Dr. Bishaw highlighted.
Even if much is needed to be done in the area, the international market routes, such as cargo airlines, international sea-routes and roads, which connect Ethiopia with the neighboring countries and beyond, provides a key opportunity for fast moving meat and meat products to any desired destinations.
Besides, the country has a long history for its peaceful environment and being the seat of international organizations such as European Commission (EU), the Economic Commission for Africa (ECA) and the African Union (AU) and others known Agencies.
Hence, it is now time to tap and manage this potential more than singing about the potential of the country. And this needs concerted efforts from the regional and federal governments, agricultural bureaus and research organizations at various levels, higher learning institutions, private sector and NGOs.