COST-BENEFIT ANALYSIS OF SMALL RUMINANTS FATTENING WITH FEED CONCENTRATES IN THE HIGHLANDS OF ETHIOPIA

Glenn Jenkins () and Mikhail Miklyaev

No 2013-12, Development Discussion Papers from JDI Executive Programs

Abstract: Ethiopia is characterized by the high cost and poor access or inaccessibility of livestock feed concentrates. The producers of the concentrates operating in the market claim that the limited demand for their products prevents the expansion of the sector. A very limited research has been made to determine whether the benefits from concentrate feed, i.e. higher weight gains, allow outweigh the high feeding cost to livestock producers. This study is financial and economic cost-benefit analysis to determine the feasibility of a small scale lambs and kids fattening exercise using concentrate feed. The study revealed that this livestock fattening activity produces results a negative net present value for the households. An incentive does not exist to use the concentrate feed. These findings explain the low demand for such feed by the rural households. A sensitivity analysis is used to test the range of feed prices that would enable the farmers to use it profitably. A distributive analysis shows that the government of the country would be the main beneficiary of the increased concentrate feed adoption. These benefits would come from the increased meat exports, i.e. increased foreign exchange earnings and taxes.

Keywords: cost-benefit analysis; investment appraisal; stakeholder analysis; small ruminants fattening; lamb and kids fattening; meat value chain; high feeding cost; concentrate feed; poverty reduction; sustainable development; access to finance; loan enabling intervention (search for similar items in EconPapers)
JEL-codes: D13 D31 D61 D62 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2014-01
New Economics Papers: this item is included in nep-afr and nep-agr
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