assessment report on best practices and lessons … to business and trade associations (btas) in...

Assessment Report on

Best Practices and Lessons Learned on Support Methodologies to Business and Trade Associations (BTAs) and on Support Methodologies

to Government on Pro-Poor Growth Interventions

Prepared by:

Dr. Workneh Kassa and Mr. Desalegn Amlaku

November, 2013

Haramaya University

2013 Assessment Report on Best Practices and Lessons Learned

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TABLE OF CONTENTS Acronyms ...................................................................................................................................2

Executive Summary …………………………………………………………………………….3 1. Introduction…………………………………………………………………………………...4

2. Context Analysis ....................................................................................................................4

3. Methodology ..........................................................................................................................5

4. Best Practices and Lessons Learned on Support Methodologies to Business and Trade

Associations (BTAs) ..................................................................................................................5

4.1. Establishment of pastoral livestock marketing groups (PLMGs) in Borena and linking

them with livestock traders and exporters ................................................................................5

4.2. Pastoralist Community-Led Livestock Marketing Groups .................................................7

4.3. Establishment of livestock marketing Share Company ......................................................8

4.4. Establishment of pastoralist camel milk marketing cooperatives in Kereyu .......................9

4.5. Commercial destocking programs by the International Rescue Committee (IRC) and

Mercy Corps ......................................................................................................................... 10

4.6. Slaughter destocking to improve food security of Borena pastoralists during the drought

…………………………………………………………………………………………13

4.7. Strengthening the livestock value chains of pastoralist communities .............................. 14

5. Best Practices and Lessons Learned on Support Methodologies to Government ............. 16

5.1. Rangeland enclosures in pastoralist areas ........................................................................ 16

5.2. Organized high-level trade missions to importing countries ............................................ 17

5.3. Group based small-scale pump irrigation in the Somali Region of Ethiopia .................... 18

6. Conclusion and recommendations ...................................................................................... 19

7. References ............................................................................................................................ 20

8. Annexes ..................................................................................................................................0


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ACRONYMS

ABGs Asset‐Building Groups ACDI/VOCA Agricultural Cooperative Development International and Volunteers in

Overseas Cooperative Assistance

AFD Action for Development APHRD Animal and Plant Health Regulatory Directorate (APHRD

AUIBAR Inter African Bureau for Animal Resources BTAs Business and trade associations

CAPE Community-based Animal Health and Participatory Epidemiology

CFW Cash‐for‐work

CFW/FFW Cash for Work/ food for Work CHF Cooperative Housing Foundation

GL-CRSP Global Livestock – Cooperative Research Services Program GL-CRSP Livestock Marketing Authority, ,

GoE Government of Ethiopia IGGs Income Generating Groups

IRC International Rescue Committee LMA Livestock Marketing Authority

LMGs Livestock marketing groups MoA Ministry of Agriculture

NGOs Nongovernmental Organizations NRM Natural resource management

PFE Pastoralists Forum Ethiopia PLI-LM Pastoralist Livelihoods Initiative-Livestock Marketing

PLMG Pastoral livestock marketing groups PNRM Participatory Natural Resources Management approach

PRIME Pastoralist Areas Resilience Improvement through Market Expansion SC- US Save the Children, US

SPS-LMM Ethiopia Sanitary & Phytosanitary Standards and Livestock & Meat Marketing Program

UGITSC Utuba Gumi International Trade Share Company


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EXCUTIVE SUMMARY

Several interventions have been conducted by government and NGOs either to improve the

livelihoods of pastoralists or to minimize the impact of severe droughts on pastoralists’

livelihoods. To this respect, many interventions are also focused on improving the livestock

marketing system of pastoralists by improving the business and trade associations such as

linkages of pastoralists with the livestock exporters. Interventions are also aimed on improving

the pastoralists’ livelihood through income diversification such as by improving crop farming.

This report therefore highlights the best practices and lessons learned with respect to the support

methodologies to business and trade associations (BTAs) in pastoralist livestock marketing and

on support methodologies to government on pro-poor growth interventions. The report is based

on the field visits to the three PRIME clusters and supported by extensive literature search.

Among the best practices and lessons learned, the report presents the establishment of pastoralist

livestock marketing groups and their linkages with livestock traders and exporters. This practice

has shown that pastoralists respond to the demands of exporters when market conditions are

facilitate for them. The report, among others, also shows how marketing cooperatives in Kereyu

became successful to supply their camel milk to the markets of Addis Ababa and Nazreth. Both

cases can demonstrate that by establishment business and trade associations in the areas of

pastoralists, it is possible to enhance the market participation of pastoralists for their increased

income generation. Best practices of slaughter and commercial destocking programs by the

involvement of the NGOs are also crucial not only because they improve the food security of

pastoralists during droughts but also because they positively contribute to the livestock

marketing system by minimizing the level of price depression during droughts. Thus, short-term

based destocking measures seemingly emergency based might have a positive impact to the

marketing system by narrowing the demand and supply gap for livestock of pastoralists. The

report also highlights the best practices and lessons learned on the support methodologies to

government on pro-poor growth interventions, among others, through rangeland enclosures and

group based small-scale irrigation schemes. While designing interventions to the pastoralists,

bringing the traditional institution up front (for example to select the most needs people for the

intervention), taking into consideration the location and the benefits that might accrue to

pastoralists in the specific area might be crucial. To sum, future government and/or NGO based


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interventions might benefit from the best practices and lessons learned that are indicated in this

report.

1. INTRODUCTION

Several interventions have been conducted by government and NGOs either to improve the livelihoods of pastoralists or to minimize the impact of severe droughts on pastoralists’ livelihoods. These interventions could vary in terms of their contribution and sustainability. To this respect, identifying the best practices to support methodologies to business and trade associations (BTAs) and on the support methodologies to government could be important while intending to make further interventions to pastoralists. This report highlights the best practices and lessons learned with respect to the support methodologies to business and trade associations (BTAs) in pastoralist livestock marketing. The report also highlights the best practices and lessons learned on the support methodologies to government on pro-poor growth interventions.

2. CONTEXT ANALYSIS

The current levels of contributions of the livestock sector in the Ethiopian economy, at either the macro or micro level is below potential. There have been remarkable efforts in pastoral areas during the past two or three decades by the Ethiopian government and international development partners in water development, rangeland enclosure, infrastructure development, livestock marketing cooperatives and associations supports, and linking livestock business associations to central markets. These efforts aimed to improve the competitiveness of the livestock business sector and its contribution to the country’s economy. In spite of these efforts made by government and international development partners, the competitiveness of the livestock sector remain below average as a consequence of the pastoral production system that are becoming inadequate to accommodate and absorb the growing human and livestock resources. Declining access to rangeland resources, unfavorable government policies and ongoing climate change are also worsened the problem.

Although these challenges are intense, there are opportunities for long-term development interventions that have the potential for significant positive impact on pastoralists. Demand for livestock and livestock products on the domestic and international market continues to rise exponentially, the Government of Ethiopia (GoE) is opening the economy to encourage private-sector growth, and improved infrastructure is spurring economic growth in pastoral areas. In recognition of these positive movements, development efforts by government and international development partners should now come together around integrated market development approaches that combine life-saving assistance with efforts to enhance broad-based resilience.


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One of main objectives of Pastoralist Areas Resilience Improvement through Market Expansion (PRIME) program is to stimulate increased productivity and competitiveness in the livestock and livestock products markets. It is widely recognized that such program with innovative approach to enhance broad-based pastoralist resilience should not be started without validating the best practices and lessons learned of past livestock business supports and GoE support strategies and methodologies. It was with this context that this Best Practices and Lessons Learned Assessment was designed to identify major gaps with respect to the support methodologies to business and trade associations (BTAs) in pastoralist livestock marketing and support methodologies to government’s pro-poor growth interventions.

3. METHODOLOGY

In the processing of identifying the best practices and lessons learned, we employed individual interview with the heads of different bureaus at the government offices from the three PRIME clusters (Afar, eastern and southern). To this respect, we conducted face to face interview with the heads/representatives of Borena Zone Agricultural Bureau, Yabello Woreda Agricultural Bureau, Moyale Woreda (Somali Region part) Agricultural Bureau, Awash Fentale (Afar Region) Woreda Agricultural Bureau, Jijiga Zone Agricultural Bureau, and Shinile Zone Agricultural Bureau. We also conducted interview with experts at the Pastoralist Forum Ethiopia (PFE), and CARE Ethiopia (Yabello Office). In conducting face to face interview with government bureaus in the three PRIME clusters, we followed a check list (See annex 1). Based on the information obtained from the face to face interviews, we further conducted literature search on topics that were mentioned frequently during the interviewing process. Thus, the best practices and lessons learned on support methodologies to business and trade associations (BTAs) and on support methodologies to government are selected and presented in this report.

4. BEST PRACTICES AND LESSONS LEARNED ON SUPPORT METHODOLOGIES TO BUSINESS AND TRADE ASSOCIATIONS (BTAS)

This part of the report highlights the best practices and lessons learned with respect to the support methodologies to business and trade associations (BTAs) in pastoralist livestock marketing.

4.1. Establishment of pastoral livestock marketing groups (PLMGs) in Borena and linking them with livestock traders and exporters

In 2003 eleven pastoral groups were selected and these groups have received financial support from Global Livestock – Cooperative Research Services Program (GL-CRSP), and Action for Development (AFD). Alternate members of the group are given loans for a period of six months usually for petty trading. The groups receive technical support from GL-CRSP, AFD and the relevant Agriculture Bureaus in Negelle and Moyale through the co-operative department. Each PLMG received 23,000 Birr for the same undertaking. Three of these groups are located in


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Moyale, of which two are women groups. Five other groups are located in Did Hara where their members constituting both men and women. Three of the remaining groups are located near Negelle. All members of the Negelle groups are women. Technical and administrative support is provided by the woreda co-operative units of Moyale and Negelle. The groups in Yabelo received similar support from AFD, which is the lead agency for this project. The project commenced by introducing the pastoral livestock marketing groups to the owners of export abattoirs and tanneries. First, selected members of the PLMGs were taken on a tour to the abattoirs and tanneries located around Mojo and Debre-zeit towns to visit the facilities. This meeting provided a forum both for the PLMG members and the exporters to discuss various issues of mutual interest. Similarly, a weeklong tour was organized for the abattoir owners to the pastoral areas of Borena and Negele to meet and discuss with pastoralists and individual traders. This tour was facilitated by the then Livestock Marketing Authority (LMA), ADF and GL-CRSP. This led to the operationalization of the PLMGs and the exporters in the project area. Main lessons learned from pastoral livestock marketing groups and their linkages with livestock exporters and abattoirs

a) Increase in the selling price of the PLMGs and Traders: Following the introductory visit competition between the exporters raised the exporters buying price from Birr 3.50 to Birr 5. 25 per Kg live weight for a duration of about one month. This in turn stabilized at Birr 4.50 for approximately five months.

b) Increase in the selling price of producers: Following the formation of the PLMGs, a significant increase in the price obtained at the producer level was also observed, which led to fierce competition between the groups and the private traders. As a result, the producer price rose from the pre-project level of Birr 2.75 per kg live weight to Birr 4.00.

c) An increase in the number of private traders: Following the meeting held between the exporters and private small-scale traders, the number of small-scale traders increased in the project area. Apparently, this increase has created a competitive environment among traders, and between traders and the PLMGs. This competition, in turn, kept the price paid to the producer at constant level despite the variations in the exporters buying price.

d) Increased off-take: The increase in the number of private traders and exporters operating in the area combined with the involvement of the PLMGs in livestock marketing resulted in the producer receiving a fair percentage of the retail price. This, in turn, significantly increased the supply volume from the project area. As a result, supply volume increased six-fold compared to an average monthly supply of 4,000 shoats (sheep and goats) prior to the launching of the project.

e) Increase in the number of exporters operating in the project area: Shortly after the exporters’ introductory visit at the launching of the project, two additional exporters namely Luna and Mojo began operating in the area. As a result, the total number of exporters operating in the area increased.


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f) Market information and price awareness among producers: Almost all producers, especially those within a radius of about 100 Kms from the purchasing centers, are well aware of the market price for shoats through word of mouth without the need to use conventional media (e.g. Radio). This proves that market information works best when there is a demand for a product rather than the vice versa.

g) Cash advance from exporters: Possibilities of cash advancement to the PLMGs has started because of the newly created market network. To this respect, there is a case where an export abattoir has agreed to advance 10,000 Birr for one group in Moyale to alleviate their cash flow problem and boost their operational capacity. This gesture from the exporter indicates that a new level of relationship with the marketing group is being developing.

There are also some issues of concern that might affect the performance of the pastoral livestock marketing groups of Borena.

h) Collection of shoats without delivery notes: It appears that exporters do not issue delivery notes to the PLMGs when collecting shoats. This practice puts the PLMGs at risk, as they are unable to make legal claims in case of breaches due to various reasons.

I) Delays in effecting payments: While some exporters have shown substantial improvement in effecting payments within a week time after collecting the shoats (and even in providing advance working capital at least for one group in Moyale), others take an average of a month. Such delayed payments severely constrain the group’s capacity to purchase shoats.

J) Delays in the collection of shoats: Exporters did not collect shoats from the PLMGs on time. The resultant inventory costs and losses due to mortality suffered by some of the PLMGs at the early stage of the operation forced some of them to switch to cattle trading instead of shoats.

4.2. Pastoralist Community-Led Livestock Marketing Groups

In order to grow pastoralists’ livestock marketing and support the very poor ex-pastoralists by generating an alternative income, Save the Children has given adequate thoughts to the purpose of livestock marketing support activities. To this respect, consideration is given to membership criteria and that customary institutions (and elders) are fully engaged in the discussions with local government representatives in issues such as selection of the members to the group. This has resulted to the establishment of ten livestock marketing groups (LMGs) by Save the Children (US) between 2006 and 2008 in various districts of Oromia and Somali regional states. The establishment of the groups included the provision of a cash grant, business-skills training and, literacy and numeracy training for some group members.


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Lessons learned in supporting community-led livestock marketing groups in pastoral areas

• Train at least one member of the LMGs as a Community Animal Health Worker (CAHW) in order to ensure animals are healthy and attract good prices in the market

• Support LMGs to introduce more transparent buying and selling arrangements including the use of scales.

• Organize small business skills training, exchange visits to other LMGs and abattoirs and terminal markets ahead of making any cash grant to the group.

• Assign extension workers or livestock services officers from the development agency to work with the LMGs and ensure monthly visits for the first two years of operation until the group can graduate to handle matters by itself.

• Organize meetings between LMGs and private traders in order to develop and maintain good working relations.

• Provide continued support to LMGs to diversify their sales activities including opportunities to supply to hotels and small-scale fattening operations. Also support is provided to the LMGs in order to diversify their business activities in areas such as hides and skins, and petty trade.

• Provide LMGs with additional credit to help them exercise commercial and slaughter destocking operations and contracts for restocking drought affected pastoralists.

4.3. Establishment of livestock marketing Share Company

Ethiopian Sanitary and Phytosanitary Standards, and Livestock and Meat Marketing Program (SPS-LMM) supported the creation of the Utuba Gumi International Trade Share Company (UGITSC) in 2008. As one of its efforts to improve the effectiveness of the livestock marketing chain, UGITSC’s 68 members include pastoralists, livestock traders and community members from Borena—all shareholders in the locally based marketing company. SPS-LMM staff and consultants assisted in the development of a management and governance plan and a five-year business plan, provided strategic business advice, and assisted the company with business linkages. In addition, SPS-LMM facilitated the recovery of ETB 8.8 million owed by a trader to Borena, Gabra and Guji pastoralists, channeling the return of funds through UGITSC—an activity that built awareness and created goodwill and trust for UGITSC among Borena pastoral communities. UGITSC sells shoats and Borena bulls to export abattoirs for a consignment fee, supplies heifers to highland farmers, and supplies hay from highland areas to pastoralists facing feed shortages.

The company’s long-term plans included engaging in the supply of feed and veterinary drugs to pastoralists as well as the modernization of livestock marketing in Borena through the establishment of holding grounds and abattoirs, the introduction of modern livestock trucks, and other marketing-related investments. NGOs working to support Borena pastoralist livelihoods


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had expressed interest in linking livestock marketing cooperatives to the trade share company as well as replicating the model in other regions. Although at the beginning it seems viable pastoralists’ business model, however, UGITSC has vanished without realizing its long-term plans.

Lessons learned from the establishment of Utuba Gumi International Trade Share Company (UGITSC)

• Promoting the establishment of real pastoralists’ owned share company: Although UGITSC include some Borena pastoralists as shareholders, many of its members were not pastoralists, but people with their business interests in towns.

• The need for professional development: The strength of a share company can be measured by the professional competence of the board members, managers, accountants and controllers. It is strongly believed that professional managers who are not members of a share company should manage the business. This particularly was not the reality at the Utuba Gumi; there were no hired professional company managers, accountants, and controllers. And hence share holders were involved in financial matters of the company which made the division of labor and responsibility unclear. This might have also facilitated the demise of UGITSC from its operation.

• Implementation strategies to foster sustainability: The systematic linking of training, capacity-building and market linkages are cost effective and geared toward assuring the long-term sustainability of any business model, extended additional training to board members, managers, accountants, internal controllers and pastoralist members are also useful in assuring continuing sustainability of a company.

• Adoption of bylaws: Adoption of the comprehensive bylaws and continuous follow up for its proper implementation and preparation of annual business plans and financial viability assessments at the enterprise level have all to improve the standing of any form of pastoralists’ company/cooperatives as private business organizations.

4.4. Establishment of pastoralist camel milk marketing cooperatives in Kereyu

Since 2010 community level initiatives of pastoralists with the support of woreda cooperative promotion on milk cooperatives has been functioning in Kereyu Fentale district, Oromia region. Pastoralists Forum Ethiopia (PFE) has a big initiative in this successful project. The initiative started in 2010 when pastoralists established a camel milk collecting and marketing cooperative to overcome the problem of low price that they receive from their milk sales. Trades were forced to negotiate the prices. Currently there are 320 households who supply camel milk to the cooperatives on daily bases. Producers supply their milk to 7 milk collection centers. Each producer supply 5 liter per day on average. The total amount of milk supplied on daily bases is about 1,620 litters. The producers supply the camel milk to the collection center using small


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plastic cans with 3 to 5 liter holding capacity. The milk collection and marketing cooperative provides clean water and traditional smoking woods for selected households which got the chance to supply their milk to the cooperative with the purpose of improving the quality of the milk. The cooperatives collect the milk using Jerry can with 25 liter holding capacity. The cooperative made quality control through smelling, test, and visual observation.

Addis Ababa and Adama markets are the two camel milk markets in the area. The only sources of camel milk to this market are from Kereyu and surrounding areas. On average, a total of 1,420 liters of milk enters to the Addis Ababa market and 200 liters to Adama market per day from Kereyu areas. In Addis Ababa market, there are three wholesalers, one at Bole Michael, one at Saries and the other around Kebele 24. The major consumers in Addis Ababa market are Somalia refugees, Ethiopian Somali and Afar communities living in Addis Ababa and some other Muslim communities.

Lessons learned from the camel milk marketing by Kereyu pastoralists

• Train producer pastoralists on the issue of milk quality management through incorporating in the existing extension services of the government.

• The camel milk marketing chain of the Kereyu pastoralists may signal that given appropriate linkages with the buyers in the cities, pastoralists can establish a sustainable marketing chain for their products.Support mechanisms are required for setting of appropriate quality standards in milk and milk products; and their enforcement by all marketing chain actors.

• Establish quality payment systems for milk at the processing level. • Facilitate credit to the pastoralist groups to purchase aluminum container to avoid plastic

can. • Control the use and distribution of veterinary products by pastoralists. • Strengthen the current efforts done by the government and development organizations to

improve animal health by pastoralists.

4.5. Commercial destocking programs by the International Rescue Committee (IRC) and Mercy Corps

Following the failure of rains in 2010/11, the International Rescue Committee (IRC) and Mercy Corps began commercial destocking operations in the Somali Region. By early July 2011, both agencies had provided loans to livestock traders, but had used different approaches where: (a) The IRC loans were channeled to livestock marketing cooperatives, who were expected to repay the loan in 10 quarterly payments (over two and half years), and (b) Mercy Corps provided loans to individual traders and the repayment period was limited to four months.


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A. The IRC commercial destocking program with cooperatives

In January of 2011 IRC decided to undertake commercial destocking programs in Kebribeyah and Deghabur woredas of Somali Regional State. Livestock marketing cooperatives were chosen as the vehicle for implementing the commercial destocking process through the provision of loans from IRC for transport subsidy. Nine cooperatives were chosen from Kebribeyah and Deghabur woredas as implementing partners. These cooperatives were selected on the grounds of being licensed livestock marketing cooperatives, actively operating in the market, owning an office and operate using a bank account. Each cooperative was given a total of 80,000 Birr as a loan, in two phases to support them in meeting transport costs. A tripartite agreement was signed between each cooperative, IRC and the Regional Livestock Bureau. Repayment modalities were specified in the agreement as 10 quarterly payments at the rate of 10% of the total loan, thereby allowing complete repayment in two and half years. The cooperatives were generally engaged in trading sheep and goats. Most of the small ruminants were sold across the border at Tog Wuchale. The coops rented pasture on which purchased livestock were fed for few days before they were resold. The cooperatives also purchased water at the rate of 200 Birr per barrel (for 20-25 small ruminants or 3 cattle) during the dry season. Transactions were usually carried out in cash although livestock were also purchased and sold on a credit basis by all cooperatives. The IRC loan was intended to be used to partially cover transport costs of purchased animals to Hargeisa (Somaliland), at the rate of 40-45 Birr/small ruminant and 100-120 Birr per cattle.

Through the IRC intervention program, about 11,000 sheep and goats were purchased and sold since the program started (see Table 1). Most of the purchases took place in June, due to some improvements in the body condition of the animals and an increase in supply levels by pastoralists who needed the money to purchase farm inputs. Table 1. Number of sheep and goats purchased by the cooperatives (April to June, 2011)

Cooperative

Sheep and goat purchases April May June Total

Idil 370 321 730 1,421 Hilac 380 314 1,806 2,500 Baxnanno 1,000 428 3,090 4,518 Federation 750 154 1,386 2,290 Total 2,500 1,217 7,012 10,729

Source: Yacob, 2011


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B. Mercy Corps commercial destocking program with individual traders

Mercy Corps also carried out its interventions in a commercial destocking in Somali Region through individual traders. Out of a total of 64 livestock traders listed in the Income Generating Groups (IGGs) scheme, 17 from Jijiga, Degahbur, Fik and Warder zones were selected to participate in the commercial destocking operation. These traders were then organized into two umbrella groups under two leaders: 1) One group was tasked to purchase drought stricken cattle, targeting 1,008 head. 2) The other group was assigned to purchasing sheep and goats, targeting 16,500 heads.

For implementation a tripartite agreement was signed between each trader, Mercy Corps and the Regional Livestock Bureau, and the agreements were then sanctioned by the Regional Justice Bureau. Collaterals were provided by the two lead traders acting as guarantors for member traders in each group. The total loan disbursed to the two groups amounted to 4,250,000 Birr, with each trader receiving 250,000 Birr. The loan was disbursed in the last week of May 2011. In early July 2011, the group which is organized to buy cattle had purchased 478 heads for a price range of 1,700 to 3,200 Birr from Moyale, Dolo Ado, Negele, Babile and Fik. The cattle were kept in a rented feedlot in Nazareth for 40 days. They were then moved to Lefe Issa, close to the Somaliland border. The group that is organized to buy Sheep and goat purchased animals from various locations in the region including Shekosh, Degahabur, Bukot, Degahmado, Raso, Afder, Salhat, Jigjiga, East Emi, Segeg, Gerbo and Fik areas. This group uses rented pasture land in Degahabur and Fafen, where they keep drought stricken sheep and goats for about a month or so to recover. This group had purchased 3,761 animals of which 3,383 were sold following recovery. This group has made a profit of 431,611 Birr from the sale of 3,383 sheep and goats, all being sold in Hartisheikh market for the cross-border trade to Somaliland.

Lessons learned from commercial destocking operations in Somali region

• Extended loan period: The loan repayment period of the IRC programme stretches for two and half years. This protracted loan period provides advantages for the beneficiary groups and the programme by allowing the purchase of more drought stricken animals from the region. With increased capital base, the cooperatives would also be in a position to operate on a relatively substantial scale in both normal and crisis times.

• Involvement of livestock marketing cooperatives: In areas where livestock marketing cooperatives operate, the disbursement of loans to such groups either on a short or long term basis, can boost their financial base to procure more animals. The conditions in which such loans can be disbursed and used should consider local norms and regulations under which such groups operate.

• Use of loan guarantees: The loans provided by Mercy Corps to the individual traders were guaranteed by collateral as provided by the leader of each group. This can be considered as


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a clever move by Mercy Corps in passing the risk to the two group leaders to whom the individual members in the groups owe allegiance.

• Livestock feed costs sharing: Mercy Corps made an agreement with the cattle trading group to cover 20% of the feed costs for concentrate feed. This prompted the cattle trading group to make use of concentrate feed for the first time, with good results. This experience would persuade the traders to be engaged in value adding through the provision of concentrated feed in the future.

• Legal cover for loan agreements: Mercy Corps has used a new and useful approach by working with the Regional Justice Department to sanction the loan agreements. This serves as a deterrent to the notion generally held by borrowers that NGOs are not serious about loan repayments. Where feasible, the ratification of such agreements by the relevant Justice Departments should be recommended for loans to be disbursed to livestock traders

4.6. Slaughter destocking to improve food security of Borena pastoralists during the drought

The Borena zone suffered from severe drought, followed by erratic and insufficient rains for several years. In October 1999, CARE Borena began destocking activities at three sites, Adegelechet in the Yabello woreda, Dubluk in the Dire woreda, and Dara in Teltele woreda. Destocking ended in August 2000 when most of the area in the Borena plateau received rain which improved the availability of pasture and water.

The pilot project comprised of two complementary components: livestock destocking and dry meat processing. It was designed, in the short term, to make use of severely weakened but otherwise healthy cattle in order to reduce human mortality risk and improve the nutritional status of malnourished and vulnerable community members. Through the exchange of grain for weak but otherwise healthy cattle, food income was generated. Dried meat (quanta), produced from these animals through the meat processing activity, and was distributed to children and the elderly. The project also aimed to: (1) reduce the loss of assets due to the scarcity of forage and water, (2) assist local communities to set up their own sustainable and replicable dried meat processing plants, and (3) assist in destocking so that the competition for rangeland resources would be reduced and improve future livestock productivity.

During the eleven months of CARE's intervention, 1,466 weak but healthy cattle were exchanged for 118 MT of grain. From this exchange, CARE produced 6,651 kg of dried meat that was distributed to 18,069 malnourished children and elderly people in 27 Peasant Associations. Any subsequent privatization of centers by service cooperatives or interested pastoralist/agro-pastoralist families to produce dried meat for sale could promote sustainable off-take of animals from grazing lands.


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Destocking centre operations: Only cattle were accepted in the destocking centers since, unlike other livestock species such as shoats and camels, cattle solely graze and depend mainly on grasses for survival. A bartering system, exchanging grain for weak but otherwise healthy cattle, was introduced as a mechanism to facilitate the exchange. All three centers used the same barter rate of 100 kg of grain per animal. This rate did not vary by season unless the animal was extremely emaciated, in which case only 50 kg of grain was paid. All interested pastoralists and agro-pastoralists had the right to use the service rendered by the destocking centers, as long as they brought weak, healthy cattle. Priority in bartering was given to Peasant Associations from distant areas and to weakened cattle. All animals were inspected by the vet technicians and had to be declared disease free in order to enter into the barter system. After processing the meat from the bartered cattle, the dried meat was distributed to malnourished children and the elderly to supplement their protein intake.

Lessons learned from slaughter destocking of Borena pastoralists

• Destocking program should incorporate a support system (extension) to monitor livestock conditions and to encourage pastoralists to begin bartering their cattle before they become desperately emaciated.

• Mobile destocking units could be useful so that already weakened cattle would not experience further stress by being trekked to the destocking centers.

• Food insecurity can be ameliorated through coordination of the communities, government entities, and non-governmental organizations and interventions such as the slaughter destocking project could be applied to other drought related situations.

4.7. Strengthening the livestock value chains of pastoralist communities

The USAID-funded Pastoralist Livelihoods Initiative-Livestock Marketing (PLI-LM) project’s

key interventions focused on strengthening the commercial orientation and capacity to respond to

market demand of pastoralists and other actors in the value chain and on constructing the

infrastructure needed to enable market players to conduct efficient, fair, and secure transactions.

The project, implemented by Agricultural Cooperative Development International and

Volunteers in Overseas Cooperative Assistance (ACDI/VOCA) in Afar, Somali, and the lowland

pastoralist areas of Oromia, began in October 2005 and lasted until 2008. In relation to the

market development, the PLI-LM project was implemented, among others, through two main

program components; 1) Export market development and value chain integration, and 2) Market

infrastructure construction and operation.

Export market development and value chain integration: This was aimed at increasing pastoralists’ profits from livestock sales; stimulate a more supportive and enabling environment


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for livestock industry development. ACDI/VOCA developed the business skills of pastoralists, livestock traders, exporters and abattoir owners through workshops and trainings. This has resulted in an increase in pastoralists’ profits from livestock sales and has stimulated a more supportive enabling environment for the livestock industry. To this respect, ACDI/VOCA trained 1,371 pastoralists, livestock traders, cooperative members and government experts in business skills development. Over the life of the project, a total of 2,442 beneficiaries took part in different in-country trainings, technical supports and workshops organized and given by ACDI/VOCA.

In its effort of enhancing market development and value chain integration, ACDI/VOCA has conducted exchange visits and market information collection and dissemination works including pastoralists, traders and exporters.

Local exchange visits and foreign study tour: ACDI/VOCA has also conducted local exchange visits and a foreign study tour to create direct market linkages; expand contract sales among abattoirs, exporters, pastoralists and cooperative members; and learn how livestock marketing systems are being managed in other countries. The objective of the study tour was to allow participants to visit livestock (live-animal and meat) marketing organizations; observe enhanced marketing systems and strategies; and create market linkages between the counterparts. Five live-animal and meat exporters participated in a trip to Israel, and 92 pastoralists and livestock marketing cooperative members took part in local exchange visits.

Market information collection and dissemination: Through its Weekly Livestock Market Monitoring Bulletin, ACDI/VOCA made significant efforts to analyze, interpret, and disseminate updated and reliable livestock market information to livestock traders, pastoralists, livestock-marketing cooperatives/unions, NGOs, and concerned government organizations. The bulletin was disseminated in electronic and hard copies and is translated into four local languages (Amharic, Afan Oromo, Somali and Afar) wherever appropriate in the specific pastoralist areas.

Market infrastructure construction and operation: The construction of the livestock markets was completed in 2007 and the markets were handed over to the respective governmental entities. To this respect, ACDI/VOCA made 25 modern livestock markets under the PLI-LM project.

Main lessons learned from Pastoralist Livelihoods Initiative-Livestock Marketing (PLI-LM) project

• ACDI/VOCA provided trainings to all those who are responsible for operating and managing the market centers before officially handing over the ownership and management of the markets to woreda administrations and municipalities.

• Many of the market centers constructed by ACDI/VOCA have increased business activity, both in terms of livestock trade and in terms of supporting markets in the adjacent areas. However, the impact assessment study made in 2012 by Feinstein International center, Tufts University indicates that only 20% of the new market facilities are being used by


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pastoralists. This is partly because high level of livestock trading takes place outside the markets in the 70% of the market locations.

• Market information collection and dissemination through its Weekly Livestock Market Monitoring Bulletin, helped the livestock market participants because the information contained in the bulletin included among others; weather forecasts; pasture and water conditions; livestock market information; livestock conditions; news and information updates; types and breeds of animals; numbers of animals supplied to the market and sold; and price ranges and average price per animal.

• Through workshops and trainings, ACDI/VOCA developed the business skills of pastoralists, livestock traders, exporters and abattoir owners. This has resulted in an increase in pastoralists’ profits from livestock sales and has stimulated a more supportive enabling environment for the livestock industry.

5. BEST PRACTICES AND LESSONS LEARNED ON SUPPORT METHODOLOGIES TO GOVERNMENT

This part of the report highlights the best practices and lessons learned on the support methodologies to government on pro-poor growth interventions.

5.1. Rangeland enclosures in pastoralist areas

In Borena and Somali pastoralists, the number and size of private and semi-private range enclosures have steadily increased with time, often supported by NGOs partnering with government and traditional stakeholders with the objectives of rehabilitating degraded or bussh invaded rangeland, and providing a pasture reserve for animals during extended dry season. As we briefed by regional agricultural officers, the enclosures have been done by reclaiming bush encroached land and securing it as a dry season pasture reserve. It helps to manage risk in pastoral areas by improving pasture availability for calves, milking animals and sick animals during extended dry periods.

CARE Ethiopia natural resource management (NRM) interventions in Borena started with bush thinning programs around 15 years ago. In those days, all woody species (including species with forage value) in project sites were cleared using cash for work and food for work CFW/FFW and the area was then left unfenced, without any community management system in place. As a result, many areas became re-invaded. Furthermore, Save the Children (US) is rolling out a Participatory Natural Resources Management approach (PNRM) which aims to strengthen the indigenous pastoral rangeland and natural resources management system. The approach follows a number of well defined steps including resource use mapping with communities, activity planning and implementation and development of a participatory monitoring and evaluation framework. The process involves the community elders from grazing catchments and kebele leaders and government line departments. Government bush clearing interventions initially


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focused in areas that were completely invaded and no longer useable. The areas were cleared using CFW programs but were not fenced and over time they became re-invaded.

Lessons learned from the rangeland enclosures in pastoralist areas

• Management of new Government/NGO initiated enclosures should be done through indigenous systems/customary institutions and development of any new enclosures should also be based on strong community participation and agreement, and equitable benefits‐sharing mechanisms.

• Customary institutions should play a role in determining the size and location of communal grazing enclosures.

• Many of the cooperatives, associations and union members involved are not pastoralists, but people with business interests in towns such as livestock traders. Thus, actual members of cooperatives and associations must be carefully scrutinized with respect to the members in promoting cooperative-owned and managed enclosures. This ensures the main purpose of these cooperative is to generate income for the member pastoralists through the production and sale of hay, or livestock fattening.

• The range land enclosure intervention is built on pastoralists own resources and capacities. And hence, there is a greater potential for private enterprises. It also helps poor households to engage in fodder production and fatting business as an income generating activities.

• NGOs/GoE initiated enclosures has limitations with regard to unclear ownerships, lack of community ownership, traditional system of Natural Resource Management (NRM) may be weakened, constraints on mobility and associated risk of conflict.

5.2. Organized high-level trade missions to importing countries

When countries including Saudi Arabia, United Arab Emirates, Bahrain, Kuwait, Qatar and Oman began, in 2007-2008, developing common model certificates for livestock and livestock products from the Horn of Africa, SPS-LMM worked with Animal and Plant Health Regulatory Directorate (APHRD) to review and critically comment on the model certificates. The SPS-LMM program organized high-level missions to importing countries to discuss SPS issues and open or re-open markets following trade bans. Missions to three major importers who imposed or had ongoing trade bans during the life of the SPS-LMM program, Saudi Arabia, UAE and Egypt, were particularly critical. Main lessons learned from the SPS-LMM program trade missions

• Involving exporters in foreign trade missions: Livestock and livestock product exporters could learn from the experiences in export market development and promotion and support


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provided to exporters; identify opportunities for collaboration; and observe livestock procurement and pricing modalities, production and processing technologies and marketing practices.

• High-level trade SPS focused trade missions can help Ethiopia for lifting import bans: A mission to Saudi Arabia in August 2006, led by State Minister, Ministry of Trade addressed the Rinderpest ban on Ethiopian livestock. Following the visit, informal approval was given for large numbers of Ethiopian animals imported into Saudi Arabia in the following year (2007/08). Also a mission was sent to the United Arab Emirates (UAE) led by State Minister, Ministry of Agricultural and Rural Developmet following the ban imposed by the UAE on Ethiopian meat imports because of the outbreak of Rift Valley Fever (RVF) in northeastern Kenya in late 2006. As a result, the UAE reopened its markets for Ethiopian meat products in September 2007.

• The need to maintain regular contact with importing countries: The importance of developing regular contacts can easily be explained by the fact that it was through one of the SPS-LMM sponsored visits that Ethiopia’s provisional Rinderpest-free status was brought to the attention of the Saudi authorities. Trade fair participation can lead to opening of new markets: Bahraini importers met Ethiopian exporters and SPS-LMM staff at the Gulf Food Fair in Dubai and became interested in importing livestock from Ethiopia. At the time, Bahrain’s Animal Health Directorate did not permit livestock imports from Ethiopia, so the importer requested that Bahraini veterinary inspectors to conduct an inspection in Ethiopia. SPS-LMM worked with the Ministry of Agriculture to coordinate their visits, where inspectors were pleased with what they found. This has brought a result where Bahrain Ministry of Agriculture issued the permit for the direct import of meat and live animal from Ethiopia, and a new market was opened.

5.3. Group based small-scale pump irrigation in the Somali Region of Ethiopia

In early 2008, Cooperative Housing Foundation (CHF) and the Water and Agriculture Bureaus

of Gode zone selected six potential project sites each in Gode, Kelafo and Mustahil woredas for

the establishment of 18 ‘Asset‐Building Groups’ (ABGs) (six per woreda), which would

establish an irrigation scheme in their communities. At the same time, CHF negotiated with local

clan leaders to allocate 25 hectares (ha) of land close to the river and suitable for irrigation, for

each ABG. Each community then selected 50 vulnerable households to be a member of the ABG,

with each household using a plot of around 0.5 ha. The project of CHF International was funded

by Office of Foreign Disaster Assistance (OFDA) for one year, in three woredas in Gode zone,

and ended in December 2008. The project aimed to improve the household income and assets of

targeted poor households through establishing group‐based small scale irrigation schemes along


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the Wabe Shabelle River for the production of food and cash crops. The project established 18

‘Asset‐building Groups’ (ABGs), each comprised at least 50 households. The ABGs were

provided with water pumps, fuel, seeds and tools, and training.

Main lessons learned from group based small-scale pump irrigation

• The pump‐based irrigation supported by the project produced substantial gains in terms of the volume of agricultural production, and income from the sales of produce in all three woredas. These trends corresponded with increases in household consumption of produce, and more expenditure on health and education.

• Support to small‐scale irrigation to pastoralists is a development activity, requiring good initial analysis of the pre‐existing systems, and related constraints and opportunities. Constraints are not only technical, but relate to complex social, environmental, policy and institutional issues.

• Support and stimulate the private and governmental sectors as appropriate for the supply of and access to the other inputs necessary for the success of irrigated and rain‐fed farming, such as agricultural and health extension support, supply chains for farm inputs and credit, improved post‐harvest storage, and marketing options.

6. CONCLUSION AND RECOMMENDATION

This report has presented some of the interventions that can be considered as the best practices to support methodologies to business and trade associations (BTAs) and on the support methodologies to government on pro-poor growth interventions. Identifying the best practices and lessons learned could be important while intending to make further interventions to pastoralists. This is because past interventions that are considered successful might be replicated in any of the PRIME clusters. At the same time certain interventions that are related to the livestock marketing might need to take into consideration the location and the benefits that might accrue to pastoralists in the specific area. For example, while supporting the livestock marketing cooperatives, the lesson in Borena (around Yabello) has indicated that supporting many cooperatives by different NGOs in the same marketing catchment might not necessarily contribute in enhancing the income of pastoralists. This is because the newly established pastoralist livestock marketing cooperatives would start to compete each other; squeezing their profit margins. This may mean that interventions in livestock marketing may take into consideration issues related to time and space dimensions.


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7. REFERENCES

Alison, N., & Solomon, D. (2011). Review of Pastoral Rangeland Enclosures in Ethiopia. Tuffts

University.

Dereje A. (2001). Destocking to improve food security in drought - prone Ethiopia

http://fex.ennonline.net/19/destocking. Accessed October 15, 2013

Solomon, D., Getachew, G., Seyoum, T. & Coppock D. L. Linking Small-Ruminant Producers to Markets: A Case Study from the Southern Ethiopian Rangelands. Tezera, S., Solomon, D., & Coppock, D. (2008). Successful implementation of collective action

and human capacity building among pastoralists in southern Ethiopia: Lessons Learned.

Global Livestock Collaborative Research Support Program, University of California.

Yacob, A. (2004). Pastoral Livestock Marketing Groups in southern Ethiopia: Some Preliminary

Findings. Access to Markets Workshop, Adama Mekonen Hotel, Nazreth 2-3rd

November 2004. CORDAID, Institutional and Policy Support Team, AU-IBAR.

Yacob, A. (2011). Commercial Destocking Operations in Somali Region, Ethiopia: An

Assessment of Design Compliance with the Livestock Emergency Guidelines and

Standards (LEGS). Feinstein International Center, Tufts University, In collaboration with

Mercy Corps and the International Rescue Committee.

8. ANNEX

Annex 1. Check list for gathering best practices and lessons learned

a) Support methodologies to BTAs

Where To whom

By whom

If it worked reasons for success

If it failed reasons for failure

Opportunities/threats

What needs to be done to improve it in the future?

Could you mention any technical assistance (e.g. in HACCP) done for exporters and slaughterhouses in your area?

Is there a support to milk processing in your area?

Is there any training in milk quality preservation and sanitation for milk traders in your area?

Is there a linkage between milk traders and producers?

Is there a linkage between milk producers and


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distributors?

Any activity on the introduction of higher yielding local breeds in your area?

Is there any activity on the establishing milk collecting centers and quality testing in your area?

How about a link between milk collectors and processors?

Any work on awareness creation by GOS/NGOs for milk value chain actors in your area?

Is there any financial support for cooperatives and unions for expanding livestock trade (e.g. during destocking)?


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Any effort on business to business linkages and connections for livestock traders and abattoirs in your area?

What type of support is given for fattening operators in your area?

b) Support methodologies to GoE

Where To whom By whom

If it worked reasons for success

If it failed reasons for failure

Opportunities/threats

What needs to be done to improve it in the future?

What type of financial support is given at Woreda level to implement pro-poor private growth?

Any type of support provided in kind (e.g. farming tools) to pastoralists?

Is there any activity for household fattening expansion?

assessment report on best practices and lessons … to business and trade associations (btas) in...

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