VALUE CHAIN ANALYSIS OF SHEEP IN TIYO DISTRICT OF ARSI ZONE, OROMIA NATIONAL REGIONAL STATE, ETHIOPIA

Sheep production is an integral part of the subsistence crop-livestock systems of Ethiopian highlands and plays crucial role in economic development and poverty reduction. In Ethiopia, there is a general increase in demand for sheep and goat meat both in the domestic and export markets. However, the supply of small ruminant markets is not well strategized as production is not market-oriented. Moreover, there is no livestock market information system that informs farmers about which animals are needed, who are the potential buyers, and prices for the different class of animals. This study was aimed at evaluating value chain of sheep in Tiyo District of Oromiya national Regional State. For the study data were collected from both primary and secondary sources. Primary data were collected from a randomly selected 120 sample households, 16 traders, 5 butchers, 7 hotels/restaurants and11 consumers interviewed through a semi-structured questionnaire and from key informant interview. Double hurdle model was used to identify factors affecting farmers’ participation decision in sheep marketing and values of sheep marketed in the study area. The value chain analysis revealed that the major actors in the district being input suppliers, sheep producers, collectors, small traders, large traders, hotels/restaurants, butchers, and consumers. The result indicated that sheep market participation decision significantly and positively affected by education level of household head, livestock ownership other than sheep, and sheep production experience while it is negatively affected by family size. Values of sheep supplied to market is significantly and positively affected by sex of household head and negatively affected by family size and distance from nearest market. Therefore, policy aiming at developing the skills what farmers have through increasing education level of household headed, increasing female participation, strengthening the existing livestock providing improved health services, improving rural family planning. Inaddition developing and improving infrastructure are recommended to accelerate the value chain’s development in the study area.