Cost-Benefit Analysis Of Small Ruminants Fattening With Feed Concentrates In The Highlands Of Ethiopia
AbstractEthiopia 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.
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Bibliographic InfoPaper provided by JDI Executive Programs in its series Development Discussion Papers with number 2013-12.
Length: 25 pages
Date of creation: Jan 2014
Date of revision:
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;
Find related papers by JEL classification:
- D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
- D62 - Microeconomics - - Welfare Economics - - - Externalities
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- Negassa, Asfaw & Rashid, Shahidur & Gebremedhin, Berhanu, 2011. "Livestock production and marketing:," ESSP working papers 26, International Food Policy Research Institute (IFPRI).
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