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Cost-Benefit Analysis Of Small Ruminants Fattening With Feed Concentrates In The Highlands Of Ethiopia

Author

Listed:
  • 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)

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.

Suggested Citation

  • Glenn P. Jenkins & Mikhail Miklyaev, 2014. "Cost-Benefit Analysis Of Small Ruminants Fattening With Feed Concentrates In The Highlands Of Ethiopia," Development Discussion Papers 2013-12, JDI Executive Programs.
  • Handle: RePEc:qed:dpaper:236
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    References listed on IDEAS

    as
    1. Negassa, Asfaw & Rashid, Shahidur & Gebremedhin, Berhanu & Kennedy, Adam, 2012. "Livestock production and marketing," IFPRI book chapters,in: 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

    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;

    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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