Capacity building for livestock market information services in Ethiopia

Kebebe Ergano1, Robert Kaitho2 and Laban MacOpiyo1

1Livestock information Network and Knowledge System, International Livestock Research Institute, P.O.Box 5689, Addis Ababa

2Texas A&M University 1500 Research Parkway Suite 253, Centeq Building 2129 TAMU College Station, TX 77843-2129

Abstract

The lack of systematic procedures for information collection, analysis, storage and dissemination of market information has been one of the major constraints in market orientation of agricultural sector. Equipping government officers with simple, workable, evidence-based systems for data collection and analysis, coupled with user friendly information delivery mechanisms is believed to mitigate market information crunch. Establishing a viable National Livestock Market Information System (NLMIS) would facilitate interaction amongst producers, traders, development workers and policy makers.   Ethiopia’s federal Ministry of Agriculture and Rural Development (MOARD) has adopted LMIS technology developed by Livestock Information Network and Knowledge System (LINKS) Project and implementing the system and coordinating the implementation activities at regional level. LINKS has been providing the technical support in designing an acceptable national livestock market information system and training market monitor, regional supervisors and Ministry personnel in implementing the system.  Market monitors from 30 strategic markets are collecting and delivering livestock price and sales volume data on Weekly basis to the national server. The quality of data and consistency is a proof that the market monitors are well acquainted to the field market information collection and processing protocol developed by LINKS. The Ministry personnel are successfully processing the price and sales volume data from the database and disseminating market information through national radio broadcasts to users.

Key words: livestock, market information service

*Corresponding author: kebebeerg@yahoo.com

1. Background

The livestock sector accounts for about 40% of agricultural GDP and 18% of overall GDP in Ethiopia. Livestock production in the country is, however, subsistence-oriented and based on traditional technologies (FAOSTAT, 2004). The economic contribution of the livestock sector can be improved substantially if the sector is better integrated into the market economy and improved technologies and practices are adopted. Formulation of strategies and policies aimed at facilitating such transformation of the subsistence nature of livestock production into market orientation requires a good understanding of livestock market in Ethiopia. Access to market information enables producers to seek out and compare the information available for different market outlets to realize the full potential profit by getting the best prices. Research findings on livestock marketing in Ethiopia indicated how poor price information at the producer level can lead to poorly timed sales, which can give traders leverage during market negotiations (Solomon et al., 2003). Indeed the absence of livestock market information is one of the constraints hindering livestock producers from earning a fair return from the sale of their livestock in Ethiopia. The lack of systematic procedures for information collection, analysis, storage and dissemination of market information has been one of the major constraints in market orientation of agricultural sector.

Extensive review of literature indicates few recent systematic nationwide livestock market information systems to have been implemented in the country.  Intermittent market data collection, however, has been carried out as components of national projects. In the past, a number of livestock sector development schemes aimed at smallholder farmers and pastoralists have been attempted throughout Ethiopia. Support for livestock development efforts in Ethiopia dates back to the 1960s through a series of donor-funded projects and programs (FAO, 1995). Some of these projects included the Dairy Development Enterprise (DDE) for the Addis Ababa market (1960) and the Livestock and Meat Board (LMB) (1964) with the objective of improving marketing infrastructure.  The LMB program was later followed by four successive Livestock Development Projects that were initiated in 1971, 1973, 1976 and 1988, that focused on commercialization of dairy enterprises around Addis Ababa, establishing slaughter facilities for provincial towns and cities, improvement of stock routes and market places for livestock, development of rangelands (including water and roads), and increased coverage of veterinary services in the pastoral areas (Geremew, 1975; Getachew, 1977; Negussie, 1983; AACMC, 1984; Dyce, 1987). 

The ventures that were pursued in livestock projects in the country generated a diffused information network that existed only during the lifetime of a project or program. Different ventures used various price collection formats and different dissemination mechanisms, depending on the services they could afford with their funding, the size of their targeted audience, and their specific project objectives.  Thus, the few programs that had price information components were characterized by poor performance due to inflexible system designs which failed to adjust to the changing demands of its beneficiaries. For instance, before the late 1990s the few projects on livestock price information systems that existed could only depend on analog telephone and fax facilities.  This infrastructure entailed prolonged delays of connectivity at every level of intervention, and was further exacerbated by some government restrictions on public information dissemination.  In general, the entire information system on livestock prices in Ethiopia has been hampered due to low communication infrastructure coverage, high running costs, minimal public sector participation, and lack of public confidence in the information (Kebede et al., 1988). For livestock market agents to confirm the accuracy of available price information, they have to spend considerable time and money before they decide to take the risk of either losing or gaining from the transaction.

Given recent advances in communication technology and a renewed interest by policy makers in livestock marketing, and taking lessons from previous project the implementation of a National Livestock Market Information System can succeed and be sustainable where others have failed. To ensure viability of information exchange, the challenge is to establish simple, workable, evidence-based systems for data collection and analysis, coupled with user friendly information delivery mechanisms. A capacity building effort to establishing a National Livestock Market Information System (NLMIS) in Ethiopia  was taken by Livestock Information Network and Knowledge System (LINKS) led by Texas Agricultural Experiment Station of Texas A&M University.   LINKS project initiated in 2003 has responded to the livestock marketing information needs by designing an information communication technology for reporting and requesting information on livestock prices and sales volume from a network of markets in Ethiopia. Primary activities were focused on refining the design and field testing of a unified approach to developing and deploying a livestock marketing information system (LMIS) within the framework of markets in Ethiopia during the last few years. LINKS is working in collaboration with the Agricultural Market Information Unit of Ethiopia’s Ministry of Agriculture and Rural Development to enhance the Ministry’s capacity on systematic procedures for data collection, analysis, storage and dissemination of market information. The system thus developed is anticipated to provide a national forum for the adoption of a common livestock market information system. The specific objective was to design and deploy new communication and information technology to create a livestock information system (LINKS) to support decision making at multiple scales from policy makers to pastoral communities within livestock market chains of eastern Africa.

 

2. Methodology

The core program involved a series of simultaneous activities focused on information technology development, establishing communications infrastructure and technology, identifying and developing working relationships and skills with key livestock marketing units/divisions in Ethiopia, acquiring livestock market information to support need for market information and modeling analysis as well as design of potential output products and delivery systems. In Ethiopia the LINKS market information system has been adopted as a basis for the implementation of a unified national market information system and a memorandum of understanding has been signed to that effect in September 2005.

 

Over 30 strategic markets were selected in six regions and two administrative councils based on set criteria. LINKS has trained and re-trained 60 market monitors drawn from 30 strategic markets in Tigray, Oromia, Amhara, SNNPR, Somali and Afar regions and Addis Ababa and Dire Dawa administrative council on the adopted market data collection format. Market codes, sampling standards, livestock kinds, breeds, classes and grade coding system have been developed with all stakeholders in the country. The coding system was implemented in centralized and regional satellite or internet-linked database and analysis systems. A new high speed server is also deployed by LINKS at the Ministry’s headquarter to accommodate data handling. The Livestock Market Information System web portal/gateway for Ethiopia is currently hosted by MOARD. The Web portal is used for data handling both for entry and dissemination. The site now reports up-to-date weekly market transactions (prices and volumes) and provides basic and intermediate level analysis of market transaction trends for the markets being monitored.

 

Software (LINKS III) that improves management of the SMS text messaging system and provides greater market analysis for the user of the data was successfully rewritten. Livestock market monitors from collaborating institutions were trained to implement the concept of receiving and transmitting price/volume information by animal type, breed, class and grade of livestock using SMS. A SMS text coding system (shorthand) was devised and revised based on monitor feedback for effective transmission given the limitations in the number of characters allowed in a single SMS text which is only 160. Email and Internet interfaces were also developed to enable web-based data entry and query. The market monitors were trained on how to construct and type in SMS messages in their cell phones. A complete SMS message needs to have the codes in a definite sequence for the SMS server to parse the SMS message and automatically put the data in the data base. The monitors are trained on various aspects of data collection and reporting including sampling at the market, grading, data recording and coding, sending and querying data through short message service and the internet.

 

Moreover, 40 regional supervisors were given two days of intensive training on field market information collection and processing protocol. Ministry personnel are given hands-on training on the administration of the system. The expected result will be establishment of an effective and sustainable livestock market information system designed to serve the needs of producers, consumers, traders, processors and policymakers and elicit appropriate marketing behaviour.

3. Results

Through collaboration with stakeholders, LINKS technologies were adopted and integrated for developing national livestock marketing information systems for Ethiopia that facilitates collection of data and dissemination of information so as to reach end users in livestock producing areas.

In the last few years we were able to ensure a steady flow of timely, regular and reliable livestock market information to producers, traders and consumers in those markets we have set up. Market monitors from 30 strategic markets are collecting and delivering livestock price and sales volume data weekly to the national server using SMS. The quality of data and consistency is a proof that the market monitors are well acquainted to the field market information collection and processing protocol developed by LINKS. The Ministry personnel are successfully processing the price and sales volume data from the database and disseminating market information through national radio broadcasts to users. A few banks such as Development Bank of Ethiopia are using the price data from the website (www.lmiset.net) for project appraisal. Livestock and meat exporters are making use of the website for decision making.

We were able to reduce the amount of field and deskwork required to produce livestock market information through automation of data collection, processing and dissemination using state-of-the-art ICT technology. We have also secured consensus and systematic adoption of our products by key government and NGO’s institutions in the countries we have project activities. The site now reports up-to-date weekly market transactions (prices and volumes) and provides basic and intermediate level analysis of market transaction trends for the markets being monitored.

4. Practical Implications

The principal lesson from the previous projects was that the government institution ought to be involved (and take the lead) in implementation of such a programme from the initial phases to make sure the ownership of the project lies with the ministry itself and establish sustainability after the project phases. Enhancing the capacity of the Ministry ensures the sustainability of the programme. The successful administration of the programme and continued commitment of the ministry personnel are preliminary indications for successful establishment of a viable National Livestock Market Information Service (NLMIS). Existence of NLMIS would facilitate interaction amongst producers, traders, development workers and policy makers and enlightens information users on the use of equipment and procedures to gather, sort, analyze, evaluate, and disseminate relevant information on timely bases for market participants to make better decisions.  As such, livestock marketing information is needed to improve decision making at all levels in the livestock industry and to enhance the competitiveness of the Ethiopian livestock industry in international markets.  Relevant livestock market information affords producers, traders and policy makers with knowledge about prices of livestock, supply and other pertinent information they need to make rational production and marketing decisions to facilitate and to contribute to Ethiopia’s transition to a fully functioning market economy.


References

AACMC (Australian Agricultural Consulting and Management Company pty. LTD). (1984). ‘Project preparation report’, Ethiopia Livestock Marketing Project, main report. South Australia. pp. 38-30.

Dyce G. (1987). Features of livestock supply to markets in southern Ethiopia. MSc thesis, University of Reading, Reading, UK. 73pp.

FAOSTAT. 2004 Country time serious for Ethiopia. FAO: Rome.

FAO (Food and Agriculture Organization of the United Nations). (1995). Livestock Development Programmes. Livestock Resource and Programmes. Addis Ababa, Ethiopia. http://www.sas.upenn.edu/African_Studies/eue_web/eue_mnu.htm http://www.sas.upenn.edu/African_Studies/eue_web/fao_live.htm

Geremew D. (1975). A survey of livestock markets and prices in Hararge province. Hararge Quarantine and Meat Inspection Division, MOA, Dire Dawa, Ethiopia. 40 pp.

Getachew A. (1977). The organization of meat markets in Addis Ababa. ILCA (International Livestock Centre for Africa), Addis Ababa, Ethiopia. 101pp

Kebede, Z.; G. Mariam, S.; Airey, J. L.; Shildkamp, Ir. and Paul M.A. (1988). The Livestock Marketing Information Service: ITS structure, methods, goals, and the possibilities it offers to the end users. Institute of Agricultural Research (IAR) Proceedings, Second National Livestock Improvement Conference 24-26 February 1988, Addis Ababa, Ethiopia. 112 pp.

Negussie T. (1983). Livestock marketing in Northeastern Ethiopia. Research Report 8. Joint ILCA/RDP Ethiopian pastoral systems study program, Addis Ababa, Ethiopia. 5pp.

 

Solomon, A., Workalemahu, A., Jabar, M.A., Ahmed, M.M. and Hurissa, B. (2003). Livestock Marketing in Ethiopia: A review of structure, performance and development initiatives working paper 52. ILRI (International Livestock Research Institute), Addis Ababa, Ethiopia. 29pp.

 

Acknowledgement

The fund for implementation of Livestock Information Network & Knowledge System (LINKS), a project of Texas A&M University is obtained from United States Agency for International Development (USAID), through Global Livestock Collaborative Research Support Program (GL-CRSP).