1. Agricultural Growth Program- Livestock Market Development Ethiopia’s Livestock Sector: Ethiopian Livestock Investment Forum Adama Sept 4, 2014

2. Agricultural Growth Program- Livestock Market Development Dairy Producers  10.5 million dairy cows produce 3.3 bil. l of milk  Large non-commercial dairy sector (~ 97%)  Not connected to markets (rural)  Focus on home/community consumption & processing  Local breed cows (1 – 3 liters/day)  Small commercial dairy sector (~ 3%)  ~ 150,000 to 300,000 cross-bred dairy cows producing ~ 250 mil to 500 mil liters – ~ 15,000 farmers?  Urban & peri-urban  Direct connection to markets (consumers & processors)  Cross breed cows (5 – 20 liters/day)  Specific milk shed regions - highlands

3. Agricultural Growth Program- Livestock Market Development Dairy Processors  215 mil liters of milk processed by 20 processors (2012/3)  ~ 60,000 liters/day  $6.8 mil value  Profitable activity  9 new processors (~ 250,000 l/day new capacity) Processor SizeCapacity (l/day)Actual Small & Medium< 10,00060 – 90% Large10,000 – 60,00030 – 85%

4. Agricultural Growth Program- Livestock Market Development Livestock Producers (Beef Cattle, Sheep & Goats) Livestock produced in all regions High mortality – Low productivity Low off-take rates (8% cattle – 30% shoats) Livestock breeding at small scale farmer level –Few improved breeds –Few ranches Livestock Population Cattle52 mil Sheep24 mil Goats23 mil

5. Agricultural Growth Program- Livestock Market Development Meat Processing Sector  15,700 MT of meat products processed & exported by 5 abattoirs & 2 by-product processors  76 mil USD value  80% goat – 20% sheep – Chilled carcass & offals  Almost all meat to Middle East markets  Most offals to Asia & Turkey  Most abattoirs operating below capacity (<70%)  Profitable activity  6 new export abattoirs/processors

6. Agricultural Growth Program- Livestock Market Development Live Animal Sector  647,713 live animals exported via ~ 20 active livestock exporters  187 mil USD value  Cattle – 32% volume – 63% value  Shoats – 60% volume – 15% value  Camels, etc – 8% volume – 22% value  Export via Metema for African countries  Export via Djibouti for Middle East countries  Additional 80% exported informally?

7. Agricultural Growth Program- Livestock Market Development Dairy – Challenges & Opportunities  Factories operating below capacity due to lack of milk supply, & poor quality milk 95% of milk is not reaching the processors Quality is low due to lack of cold chain Many processors only collect 50% of a farmers’ production (morning milk) Fasting Opportunities:  Milk chilling tanks at collection sites and on transport vehicles  Pay farmers a high price for higher quality (or lower price/lower quality)  Longer shelf life products  Breed improvement through artificial insemination  Growing number of commercial dairy farmers

8. Agricultural Growth Program- Livestock Market Development Meat – Challenges & Opportunities  Factories operating below capacity due to:  lack of export markets, partly due to low quality products  lack of value addition, and  lack of supply, mostly due to high domestic prices Opportunities:  Improve abattoir standards – HAACP, ISO, traceability  Develop new markets – Beef to Asia (non-Halal)  New export abattoirs plan to sell primal cuts, value added products  New private domestic abattoirs to meet local demand

9. Agricultural Growth Program- Livestock Market Development Live Animals – Challenges & Opportunities  Poor Quality Livestock  Breed Improvement – Ranching  Improvements in small scale and large scale fattening  Specialized live animal transport  Privatized animal health services  Feed production  Embedded services from processors & buyers for feed and other services

10. Agricultural Growth Program- Livestock Market Development THANK YOU!