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Viewing cable 09ADDISABABA1861, USAID/ETHIOPIA'S GLOBAL FOOD SECURITY RESPONSE (GFSR):

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Reference ID Created Released Classification Origin
09ADDISABABA1861 2009-08-04 06:07 2011-08-25 00:00 UNCLASSIFIED Embassy Addis Ababa
VZCZCXYZ0006
RR RUEHWEB

DE RUEHDS #1861/01 2160607
ZNR UUUUU ZZH
R 040607Z AUG 09
FM AMEMBASSY ADDIS ABABA
TO RUEHC/SECSTATE WASHDC 5742
INFO RUEHNR/AMEMBASSY NAIROBI 4012
UNCLAS ADDIS ABABA 001861 
 
SIPDIS 
 
USAID FOR AFR CTHOMPSON, GANDERS, TDALTON 
EGAT FOR JTURK, JYAZMAN 
SD FOR JHILL, THOBGOOD 
DCHA/OFDA PMORRIS, KCHANNELL 
DCHA/FFP JDWORKEN, PMOHAN, PBERTOLIN 
NAIROBI FOR CBUZZARD, PEWELL, SERVES, KSUNDSMO, WKNAUSENBERGER 
 
E.O. 12958: N/A 
TAGS: EAID PHUM SENV EAGR PGOV ET
SUBJECT:  USAID/ETHIOPIA'S GLOBAL FOOD SECURITY RESPONSE (GFSR): 
LIVESTOCK SECTOR IN ETHIOPIA 
 
------- 
Summary 
------- 
 
1. USAID/Ethiopia inaugurates a series of background pieces 
profiling livestock, food security, Comprehensive Agriculture Africa 
Agriculture Development Program (CAADP) status, private sector and 
other topics related to GFSR. We hope these information sharing 
cables will be useful in keeping the GFSR Washington, Nairobi and 
other teams abreast of USAID/Ethiopia's progress on GFSR and be an 
opportunity for the teams to raise questions on our strategy 
development process. 
 
2.  This cable focuses on the livestock sector in Ethiopia and makes 
initial recommendations on its role in USAID/Ethiopia's GFSR 
strategy. The Global Food Security Response (GFSR), includes 
livestock and livestock products as staple foods. Ethiopia has the 
largest livestock population in Africa.  In Ethiopia, livestock 
products for consumption and sale form a significant part of the 
household nutrition intake, and their sale constitutes a major 
proportion of the household income. 
 
3.  USAID/Ethiopia supports a combination of livestock programs 
aimed at improving productivity, processing, marketing, and private 
sector involvement in the livestock sector.  GFSR will provide 
USAID/Ethiopia with the opportunity to build upon successes by 
scaling up and implementing new and innovative livestock programs to 
address ongoing constraints in the sector. 
 
--------------------------------------------- ------- 
Role of Livestock in Ethiopia's Economic Development 
--------------------------------------------- ------- 
 
4.  Ethiopia has the largest livestock population in Africa. 
According to the Government of Ethiopia's (GoE) Central Statistical 
Agency (CSA), there are approximately 40.4 million cattle, 20.7 
million sheep, 16.3 million goats, 2.5 million camels, and 32.2 
million poultry.  They are a major part of the country's 
agricultural production and consumption systems.  Livestock play a 
significant role in food security by providing milk, meat, butter, 
eggs, blood, draught power, manure (fertilizer), and transport. 
Livestock also play a vital social and cultural role and act as a 
form of 'savings' since animals are seen as a moving capital base 
and the returns on livestock production are far greater than saving 
cash in a bank. 
 
5.  Livestock and livestock products contribute at least 40 percent 
of Ethiopia's agricultural Gross Domestic Product (GDP) and 20 
percent of the total GDP.  The value of livestock is estimated to 
constitute 9 - 12 percent of formal export revenue, but much higher 
with non-formal trade included. 
 
6.  Pastoral areas, which predominate in eastern and southern 
Ethiopia, account for almost 40 percent of the total livestock 
population and there is significant cross-border livestock trade 
between Kenya, Ethiopia, Djibouti, Sudan, Somalia and the Middle 
East.  Most of the inter-regional trade is informal but research 
conducted by the Common Market of Eastern and Southern Africa 
(COMESA) estimates that the value of this livestock trade exceeds 
$60 million per annum. 
 
 
 
7.  In most parts of the rural highlands in Ethiopia which practice 
mixed crop-livestock farming, the relationship between livestock and 
crop production is immense with the oxen plow driving crop 
production.  Data from the GoE's CSA and the International Food 
Policy and Research Institute indicate that 44 percent of small 
scale agricultural holders use oxen plow.  Additionally, livestock 
manure is most commonly used as fertilizer and fuel energy. 
 
8.  Due to its importance in agricultural production, food security, 
and the national economy, livestock, if given the appropriate policy 
and financial support, can contribute significantly towards the 
attainment of Millennium Development Goal One that strives to halve 
hunger and poverty. 
 
--------------------------------------------- --- 
USAID/Ethiopia's Support to the Livestock Sector 
--------------------------------------------- --- 
 
9.  USAID-Ethiopia supports livestock programs and activities that 
increase livestock productivity, marketing and processing of 
livestock products.  Some examples follow: 
 
 
- Through the sheep and goat productivity program, 
USAID supports the introduction of better producing exotic breeds of 
sheep (dorper) and goat (boer) from South Africa.  The project is 
cross-breeding the exotic breeds with local breeds, which will 
benefit over 40,000 households.  A best-practice breeding and 
nutrition handbook has been developed and is widely used by 
producers and government officials. 
 
-   USAID supports a private sector-led dairy 
industry built on private investment that generates employment and 
income for smallholder families. It uses a value chain approach that 
includes milkshed development, supporting business development 
services, strengthening market linkages and supporting co-operatives 
and dairy processing plans.  Dairy sales by assisted producer groups 
are over $4 million, double the target. 
 
-   In order to increase meat and livestock exports   USAID supports 
strengthening sanitary and phyto-sanitary standards (SPS).  SPS 
certification and 
 
 
quality management systems have been developed with training 
provided to veterinarians, government officials, and exporters, and 
trade delegations have been supported. 
 
-   Leather and leather products constitute 
Ethiopia's fourth largest export revenue stream of the country. 
USAID/Ethiopia, through the Agribusiness and Trade Enterprise 
Program (ATEP), supports tanneries to compete more effectively in 
the global marketplace, and in turn expand more purchases of raw 
materials from rural producers and increase rural household incomes 
from the sale of hides and skins.  The project has attracted huge 
attention from the GOE and been successful in securing orders of 
leather products to the U.S. 
 
-  In the pastoral areas, through the Pastoralist 
Livelihood Initiative (PLI) project, USAID supports the expansion of 
community-based animal health services, improvement in 
rangeland/water resource management techniques and establishment of 
livestock market infrastructure to improve access to fair markets 
and improve benefits accrued for producers. 
 
--------------- 
Lessons Learned 
--------------- 
 
10.  The program outcomes and deliverables show that by adding value 
to animal products sold by smallholder farmers, they receive better 
prices and thus have a higher income.  The estimated economic 
benefits far outweigh the USAID annual investments. 
 
11.   Striking a balance between household livestock numbers and the 
available land spaces is important. For example, in the highland 
areas of Ethiopia, farmers have small land holding size and 
livestock mobility is not feasible therefore increased livestock 
numbers are not appropriate. Instead, farmers should focus on 
increasing livestock productivity to achieve higher milk yields and 
faster weight gain.  This can be achieved through forage production, 
use of improved genetics and farmer training. 
 
12.  USAID supported diversification of markets for pastoralists' 
livestock has helped to re-establish strong livelihoods in program 
areas.  Traditional markets for sheep and goats through Somalia and 
cattle through Kenya have been supplemented by access to formerly 
remote domestic livestock markets in Ethiopia as well as chilled 
meat and live animal exports.  This has improved the bargaining 
power of pastoralists, and therefore increased prices and improved 
livestock based livelihoods. 
 
13.  Supporting the livestock economy in pastoral areas reduces 
vulnerability and also spurs economic growth.  Through a combination 
of early de-stocking and maintenance of breeding herds in program 
areas, 
pastoralists have been able to better feed themselves during 
droughts and more quickly recover viable herd sizes for economic 
growth.  These activities have now been adopted as best practices by 
the GOE and can be expanded to all pastoral areas.  Impact 
assessments of USAID supported activities have already demonstrated 
the effectiveness of early emergency response in maintaining 
pastoralist livelihoods and reducing dependency on food assistance 
(with cost benefit as high as 1:44).  (Further details will be 
provided in a subsequent cable on pastoralism and the GFSR.) 
 
--------------------------------------- 
Livestock and Climate Change Adaptation 
 
--------------------------------------- 
 
14.  Early indications of the impact of climate change on Ethiopia 
and the potential impact on agriculture are very worrying, arguing 
for strengthened livestock development.  FEWSNET forecasts that 
within 10 - 15 years, one of Ethiopia's two harvest seasons will 
drastically decline.  The seasonal rains for the second harvest have 
at least partially failed in eight of the last twelve years, and if 
the long term prospects are for the disappearance of these rains, it 
will have an enormous impact on Ethiopia's agricultural production. 
 
15.  Improved livestock production is one of the solutions to 
balancing livelihoods.  Livestock can help farmers in marginal areas 
to manage risks and protect savings.  Although vulnerable to long 
term rainfall reduction and droughts, pasture and water supply are 
more resilient to seasonal changes than crops.  As lowlands 
potentially become drier, pastoralist livelihoods will have to 
adapt, with fewer, or more drought resistant, livestock in some 
areas and the potential expansion of pastoralism to areas that can 
no longer support crop production.  For example, the Borena 
pastoralists that used to keep cattle are now trying to change to 
camels due to their ability to cope better in dry conditions. 
 
---------------------------------- 
Livestock and Pastoralism in CAADP 
---------------------------------- 
 
16.  USAID/East Africa, through the Regional Enhanced Livelihoods in 
the Pastoral Areas (RELPA) program, is supporting the Ethiopia 
Comprehensive Africa Agriculture Development Program (CAADP) process 
and USAID/Ethiopia has been an active participant in the CAADP 
roundtable meetings and discussions.  (Further details will be 
provided in a subsequent cable on Ethiopian CAADP process and 
content.) 
 
------------------------------------------  Conclusions:  Challenges 
and Opportunities 
------------------------------------------ 
 
17.  Despite the potential of Ethiopia's livestock sector as 
USAID/Ethiopia's programs demonstrate (see paras 9-10 above), a 
variety of constraints hinder livestock production, productivity and 
marketing.  These include, but are not limited to, inadequate and 
low quality of animal feed, inadequate animal health services, land 
degradation, unimproved animal breeds, policy and institutional 
challenges such as excessive regulation, marketing and processing 
constraints.  USAID/Ethiopia's programs address many of these 
constraints, but need to scale up its successes to begin to unblock 
the bottlenecks. 
 
18.  The livestock and pastoralist sectors in Ethiopia are poised 
for dramatic growth.  The market demand for livestock products is 
robust and growing, in Ethiopia, across the East Africa region and 
the Middle East, due to population growth, urbanization, and 
increased disposable incomes. Ethiopia's proximity to Middle East 
markets, with their preference for natural rangeland livestock, has 
potential to increase livestock exports and earnings. 
 
19. The GFSR provides an opportunity for USAID to link livestock to 
CAADP and Climate Change umbrella activities, both in the highland 
areas and in pastoralist and agro-pastoralist areas.  GFSR also 
provides an opportunity to link the experience already gained by 
USAID/Ethiopia in the fields of dairy development, meat and 
livestock exports, value chain analysis, and breed enhancement to 
multi-agency initiatives with the GOE on agricultural growth. 
 
20.  Under GFSR, USAID/Ethiopia plans to build on and scale up 
successful models such as the Ethiopian Dairy Development, the Sheep 
and Goat Productivity and Support to Livestock and Meat exports. The 
concept of value chain analysis, value addition and processing of 
the livestock and livestock products will form the basis of future 
programming. The involvement of the private sector will be given 
priority. 
 
21.  USAID/Ethiopia will also explore new opportunities that will 
improve and increase livestock feed production systems, animal 
health services delivery and coverage in the country. Opportunities 
for improving camel production and processing of camel milk and meat 
will be explored and scaled up. 
 
22.  USAID/Ethiopia will continue to support livestock meat exports 
through new and innovative approaches, such as commodity-based 
export systems that supply processed livestock products at 
internationally recognized standards to importing nations as being 
advocated by the Common Market for East and Southern Africa 
 
 
(COMESA). 
 
23. Specific livestock policy and institutional constraints will be 
addressed through the Livestock Policy Forum of the Ministry of 
Agriculture and Rural Development building upon pastoralist's 
livelihood initiatives lessons learned on policy and institutional 
changes that are supported by evidence base such as the 
participatory impact assessments and cost benefit analysis. 
 
GONZALES