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Cost-Benefit Analysis Of Small Holders' Lambs And Goats Fattening Activity In Ethiopia


  • Glenn P. Jenkins

    () (Department of Economics, Queen's University, Canada, Eastern Mediterranean University, Mersin 10, Turkey)

  • Mikhail Miklyaev

    () (Eastern Mediterranean University, Famagusta, Mersin 10, Turkey)


The objective of this study is to identify if the subsidized interest rates’ loans from micro-finance institutions in Ethiopia used to purchase and fatten small ruminants (lambs and kids) allow the poor households to substantially increase their annual income. A deterministic cost-benefit analysis of the base line scenario indicates that the proposed fattening scheme would result a satisfactory net present value. The high prices of feed in the country, however, suggest that the fattening calendar is an important variable. The study assess financial and economic benefits arising to the stakeholders of the activity and identifies key risky variables. This analysis points out that in the context of pro-poor interventions the loan schedule should be tied to the nature of the activity financed by the loan. The study proposes the suitable loan structure for the examined activity. High prices of commercial feed products along with the low scale of the activity do not allow the feeding scheme based on the highly nutrition commercial feed products. The study therefore is based on the free grazing feeding scheme with a limited quantity of supplementary feed.

Suggested Citation

  • Glenn P. Jenkins & Mikhail Miklyaev, 2014. "Cost-Benefit Analysis Of Small Holders' Lambs And Goats Fattening Activity In Ethiopia," Development Discussion Papers 2013-11, JDI Executive Programs.
  • Handle: RePEc:qed:dpaper:235

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    References listed on IDEAS

    1. Glenn Jenkins & Chun-Yan Kuo & Arnold C. Harberger, 2011. "Cost-Benefit Analysis for Investment Decisions: Chapter 10 (Economic Prices for Tradable Goods and Services)," Development Discussion Papers 2011-10, JDI Executive Programs.
    2. Negassa, Asfaw & Rashid, Shahidur & Gebremedhin, Berhanu & Kennedy, Adam, 2012. "Livestock production and marketing," IFPRI book chapters, in: Dorosh, Paul A. & Rashid, Shahidur (ed.),Food and agriculture in Ethiopia: Progress and policy challenges, chapter 6, International Food Policy Research Institute (IFPRI).
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    More about this item


    cost-benefit analysis; investment appraisal; stakeholder analysis; small ruminants fattening; lamb and kids fattening; meat value chain; poverty reduction; sustainable development; access to finance; loan enabling intervention;

    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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