Background
The situation in Ethiopia, the meat sector, and what makes a strong supply chain.
Background: the situation in Ethiopia
Ethiopian society in general
Ethiopia is located in the Horn of Africa and has no direct connection to the sea; import and export go through the harbours of Djibouti or Somaliland. It is a federal state — the Federal Democratic Republic of Ethiopia — consisting of regions with a certain level of autonomy. The Oromo and Amhara regions are the biggest; more than half of the population lives in these two. Each region has its own culture and language, and Amharic is the official language.
Ethiopia has a very old history with many cultures, tribes and languages. The Queen of Sheba is a well-known figure from the Bible; in the past the name of Ethiopia was Abyssinia. It is the only African country never to have been colonised — the Italians occupied it militarily from 1936 to 1941 but were driven out by the allied forces.
Ethiopians are very religious. Roughly 45% are Ethiopian Orthodox Christians, about 35% are Muslim and around 10% are Protestant, with a small minority holding traditional beliefs. Until now the different religions have lived together without major problems, and all children attend the same primary and secondary schools.
The educational system is well organised: more than 90% of children attend primary school. Vocational education — Technical and Vocational Education and Training (TVET) — is relatively weak, with poor infrastructure and equipment. The number of universities is growing very fast, so more and more young Ethiopians become highly educated, gradually adopting a more modern lifestyle and different demands for what they eat. Processed meat is becoming more and more common.
The Ethiopian meat sector
Ethiopia has one of the largest livestock populations in Africa — roughly 50 million cattle and around 50 million goats and sheep, plus many horses, donkeys and camels. The cattle and meat sector is very important for national income; the export of beef is the most important, while poultry meat is hardly exported.
The government stimulates meat export to earn foreign currency. A quality-care system for the international market exists but is rather weak and needs to be improved; for the national meat market the quality-care system is poor. The governmental Livestock Master Plan sets out roadmaps for growth and transformation of the sector, calling for increases in dairy, chicken and egg production to satisfy growing demand for affordable livestock protein.
The chicken business shows promising opportunities. The government is focusing on expanding chicken-meat production to reduce dependence on the livestock sector, minimise the environmental footprint, and provide more affordable protein. Even so, demand is expected to outstrip supply — Ethiopia recently started importing chicken meat from Ukraine and Brazil.
SME has analysed the situation for beef and poultry, with research carried out by Fair & Sustainable. The results are published in two Rapid Market Analysis (RMA) reports:
The meat supply chain
Conditions for a well-developed meat supply chain
Stakeholders in a supply chain are connected to each other by agreements and contracts. In a supply chain, one company or association should be leading — an association of retailers or butchers, or a meat-processing company. The present situation in Ethiopia makes a company that carries out slaughter and meat processing the most effective choice.
Other conditions for a strong supply chain are:
- A good quality-care system for the whole chain, from fodder production to the consumer. SME helps to build an integrated quality-care system, including a laboratory for monitoring and analysis.
- A good hygienic system, such as HACCP (Hazard Analysis and Critical Control Points). The retailer and customer must be assured of safe food. This also concerns limiting the use of medicine and antibiotics.
- Knowledge and skills at a good level in all areas of the chain. SME helps with instruction and training linked directly to the needs of stakeholders, giving young women and men a chance at a better position in the labour market.
- Good entrepreneurs as participants. A well-developed supply chain has a strong market position, so farmers, entrepreneurs and retailers are eager to become members. It stimulates sound competition in delivering the required quality, and offers the opportunity to develop a quality label with clear criteria.
Web links and sources
More information about the livestock situation in Ethiopia can be found via: