Journal of Agricultural Science and Food Research
Open Access

Abstract

Market Chain Analysis of Live Goats: The Case of Korahe Zone, Somali Regional State, Ethiopia

Mulugeta Tadesse*, Wubaye Tsega, Debesay Kidanie and Ahmed Mohamed

Somali regional state is known for livestock production. Millions of pastoralists are relay on livestock and their byproducts as a major livelihood strategy. Despite the potential relevance of livestock production in improving the living conditions of pastoralists, little was done to understand the structure, conduct and performance of the livestock market. This study aimed to analyze the structure, conduct and performance of live goats marketing by selecting two districts from Korahe zone of Somali regional state. Cross sectional survey research design was applied for this study and data from primary and secondary sources were complemented through direct observations from the field along the market chain. Both traders and pastoralists were providing information through structured interviews, focus group discussions and key informant interviews. The data was analyzed by using market structure conduct-performance framework. Pastoralists, commission men, local collectors, small and large scale traders, hotels and restaurants were found to be major market actors. Four firms Concentration Ratio (CR4) result indicated that live goats marketing was characterized by a very less concentrated traders with traders concentration ratio of 18.99%. In relation to price setting mechanism, the price of live goats was set by both buyers and sellers however in case of sellers the negotiation is done by commission men. The highest total gross marketing margin was 45.69% when producers sold goat to local collectors through commission men and then to small scale traders, medium scale traders, and hotel and restaurants until reaches to consumers. Based on the findings, the study area has tremendous potential and the contributions of commission men in facilitating the marketing activity are incredible. Therefore, attention has to be given to reduce the problems through supporting commission men in order to reduce production and marketing cost.

Published Date: 2022-06-06; Received Date: 2022-05-02