Market Chain Analysis of Live Cattle in South Omo Zone, Southern Ethiopia

Abstract

                                                                  Abstract

The research was conducted in South Ari and Bena-tsemay districts of South Omo Zone of southern Ethiopia. The Zone is known for its live cattle production and supply for internal or domestic and external or international markets, but still, now the benefits they get from the sector is unsatisfactory. This study, therefore, conducted to identify market chain actors and their function in the market, analyze the structure conduct and performance of live cattle in South Ari and Bena-tsemay districts of South Omo Zone. Both primary and secondary data were used for this study. Primary data were collected from 120 sampled pastoralists and agro-pastoralists and from 27 traders. Before conducting the household survey, key informant interviews and focus group discussions were undertaken in the study area. Descriptive Statistics and qualitative data analysis techniques were used to analyze the cattle market structure, conduct, and performance. Regarding the market structure of the live cattle, the market is known to be dominated by a few traders. Although the degree of competition varies, the cattle market structure varies from loose oligopoly to tight oligopoly. This shows that only a few traders have the majority of market share and earn an abnormal profit. Besides, the cattle market is characterized by entry barriers, distant market points, and high trucking costs. Also, market structure varies with the type of cattle. Thus, linking producers to the market and its benefits, establishing cooperatives and development of infrastructure could play a significant role in optimization of the sector.