poultry farm business plan pdf in ethiopia

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Mekelle Farms Poultry Entrepreneurship in Ethiopia

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Mekelle Farms: Poultry Entrepreneurship in Ethiopia

By: Hau Lee, Jonathan Elist, Michael Kennedy

After deciding to transform a former government-owned poultry farm in Ethiopia, two American business partners encounter challenges related to input costs, inventory management, delivery, government…

• Length: 14 page(s)
• Publication Date: Jan 10, 2014
• Discipline: General Management
• Product #: IDE05-PDF-ENG

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After deciding to transform a former government-owned poultry farm in Ethiopia, two American business partners encounter challenges related to input costs, inventory management, delivery, government relations, and other key challenges that are common to entrepreneurs operating in an emerging market context. The partners identify Ethiopia as a country in which to build their business because of its favorable investment climate, and they decide to pursue poultry because of significant latent demand and a lack of suppliers. The partners address many of the challenges they face by adjusting their business model to better control a more limited set of risks. In lieu of raising and slaughtering the chickens themselves, they develop a network of rural farmers to raise the day-old chicks to maturity, enabling the farmers to make a profit as well. The partners also develop a close relationship with the government, leaning on them for the areas where the government excels; namely, farmer mobilization, communication, and messaging. The government therefore helped identify rural farmers that could help raise the day-old chicks and identified customers for those rural farmers for the meat and eggs. The model has proven effective and impactful. Rural farmers who have chosen to work with Mekelle Farms and who have disproportionately been women now have a significant source of income. The community now also has access to poultry breeds that produce more meat and eggs in less time than local varieties, thus resulting in better income and nutritional outcomes. While setting up a business in Ethiopia has proven difficult, the case demonstrates how one company was able to mitigate many of those challenges and succeed in many ways.

Learning Objectives

The objective of this case is to expose students to the myriad challenges that can present themselves to entrepreneurs who hope to operate in an emerging market, particularly in the industry of agriculture. The purpose is to identify those challenges, which include supply chain issues, a lack of clarity on future input costs, a highly inflationary macroeconomic picture, and government relations challenges, and to analyze how one company attempted to mitigate those challenges.

Jan 10, 2014

Discipline:

General Management

Stanford Graduate School of Business

IDE05-PDF-ENG

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First National Poultry Development Strategy to enhance food and nutrition security in Ethiopia

• Shahida Hussien

Ethiopia has developed its first-ever poultry development strategy to guide the sustainable development of this large and economically important subsector in the country. The strategy is expected to be launched by the government soon.

Produced through a collaboration between the Ethiopian Ministry of Agriculture (MoA) and the International Livestock Research Institute (ILRI), the Ethiopian National Poultry Development Strategy is expected to enhance the productivity and competitiveness of the poultry subsector, contributing to food and nutrition security, income generation, and poverty reduction.

Poultry farming is deeply embedded in Ethiopian society and is seen in almost all households from the landless rural poor to the affluent urban population. It serves as a significant source of livelihood, food security, nutrition and contributes to the country's economic development. 

According to the Central Statistical Agency, at 54 million birds, indigenous chickens make up the majority of the country’s 59 million chickens. The rest are 2.6 million exotic chickens, and 2.8 million hybrid chickens.

However, the country’s poultry productivity is below the global average due to challenges such as high disease prevalence, inadequate veterinary services, limited access to quality and affordable feeds, and suboptimal genetic characteristics of indigenous chickens. There is a significant gap between the demand and supply of poultry products in the country.

Based on the government’s 10-Year perspective plan, the aim is to increase poultry meat production from 48 tons in 2020 to 106 tons in 2030 and boost egg production from 2,854 million to 5,546 million during the same period. The government’s ambitious plan also seeks to increase the share of chicken meat consumption in overall meat consumption from 5% to 30% by 2030.

To achieve these goals and objectives, ILRI collaborated with the Ethiopian MoA to design the Ethiopian National Poultry Development Strategy. This comprehensive strategy aims to enhance the productivity and competitiveness of the poultry sub-sector, contributing to food and nutrition security, income generation, and poverty reduction. Implementing the poultry development strategy is crucial for tapping into the economic opportunities poultry farming offers.

ILRI handed over the report to the MoA at an event held on 16 May 2023 in Addis Ababa. Speaking at the event, Namukolo Covic, ILRI director general's representative to Ethiopia, CGIAR Ethiopia Country Convenor, and CGIAR regional director for East and Southern Africa, emphasized the significance of increasing the availability and accessibility of animal-source foods, such as eggs, meat and dairy products, to address the different forms of malnutrition in Ethiopia. 

‘Better food quality is also crucial, especially considering that Ethiopia has one of the region's lowest animal-source food consumption levels,’ said Covic. She added that the poultry strategy will support the successful implementation of the Yelemat Tirufat initiative. 

Yelemat Tirufat is a four-year development program that aims to boost productivity and production of dairy, eggs, chicken meat, honey, and related hive products. Its main objectives are to accelerate efforts to achieve food self-sufficiency and ensure nutritional opulence at the family and national levels.

Appolinaire Djikeng, ILRI director general and CGIAR senior director of Livestock-Based Systems, praised the strategy and said that it can contribute to the attainment of the aspirations of the Yelemat Tirufat initiative. He said ILRI would continue to conduct poultry research to contribute to realizing the national objectives of the Ethiopian poultry sector.

Fikru Regasa, state minister in the MoA, highlighted the ambitious targets of the Yelemat Tirufat initiative, which aims for a 188% increase in egg production and a 167% increase in meat production. 

‘The National Poultry Development Strategy identifies the critical challenges affecting the rapid transformation of the poultry subsector and ways to expedite poultry development in the country. This strategy will be instrumental to address the nutrition objectives of the country in the next decade,' he said.

‘The strategy focuses on improving farming, processing and marketing systems to enhance competitiveness. It emphasizes the need for inputs, including improved genetics and quality, affordable poultry feed, as well as coordinated disease control services, surveillance and diagnostic capacity,’ said Tadelle Dessie, the ILRI scientist who led the project. 

Ensuring access to quality drugs and vaccines, enabling private sector participation, market development efficiency, and addressing cross-cutting issues within the poultry sector are additional focus areas of the 10-year strategy.

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Related Papers

Takele Geta

Survey on rural chicken production system was conducted in three peasant associations of Haramaya Woreda of Oromia regional state to generate information on the problems and constraints emending the developments of their community with particular emphasis on poultry production and to list the possible opportunities and strategies that could solve these problems. A total of 120 households were used for the survey work. Finally, all the data collected were analyzed using descriptive statistics. About 77.5% of all the respondents share family dwellings with poultry, attributed to the small flock size, low priority given to chicken and relatively high cost of poultry house construction. The results obtained clearly showed that poultry diseases are widely spread in the Woreda and farmers pointed out that, Newcastle Disease, fowl cholera; respiratory diseases and predators are responsible for the major losses of birds in the study sites. Almost all the respondents reported poultry and poultry product market price fluctuation attributed to limitation in land holding, disease occurrence and low purchasing power of the consumers. About 100% of the respondents reported to keep different classes of chicken together, the practice of which facilitates transmission of diseases. In summary the results of this study tends to indicate that production performance of indigenous chicken is low under traditional production practice and need to be improved.

African journal of agricultural research

Tadelle Dessie

A cross sectional study was conducted with the objectives of assessing management practices and marketing systems of village chicken production from November 2011 to May 2012 in Ada’a and Lume districts of East Shewa, Ethiopia. Totally, 180 randomly selected respondents were included in the study from six purposively selected Peasant Associations (PA’s) from two districts. In both districts, 97.8% of the respondents provided additional feed supplements. Over 95% of the respondents used maize and wheat as additional supplements, provided mostly three times per day. About 96% of respondents in both districts provided water with free access. Extension services were used by 41.2% in Ada’a and 53.4% respondents in Lume districts. Of the total respondents, 78.8% did not vaccinate their chicken in Ada’a, whereas 80% of the respondents vaccinate their chicken in Lume districts. Collectively, about 56% of the respondents provided Oxy-tetracycline 20% as prophylactic measures against various ...

wubishet mekonin

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… paper for the Pro- …

Takele Desta

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Journal of World's Poultry Research JWPR

This experiment is designed to study the characteristics of village chicken husbandry practice, marketing and constraints in eastern Ethiopia. The study was conducted from July in four selected districts in the highlands of eastern Ethiopia (Haramaya, Kersa, Jarso and Meta). A total of 80 chicken owner households were randomly selected and interviewed using a structured questionnaire. Data on characteristics of village chicken production, feeds and feeding practices, housing, management of chicken and eggs, Marketing, diseases and constraints of village chicken production system were collected. Scavenging chicken production system is observed in all households of the districts. Average flock size of chickens in the study area was 9.4 birds and varied between 4 and 17 birds. In the present study, 82% of the households provide overnight housing within the family house for their chicken. Scavenging is the only feeding system encountered in all study districts with little grain supplementation. Most of the chicken are owned and managed by women (36.75%). Selling of unprocessed eggs and live chickens is mainly practiced. External parasites (mites), Coccidiosis and Newcastle disease were the most important and prevailing diseases in the study area with 39%, 38% and 34% incidence rates, respectively. The magnitude of occurrence of the parasites and diseases were higher in the wet season. Poor genetic quality, lack of extension service, inadequate veterinary service and poor management were the main constraints of village poultry production in the study area.

Tropical Animal Health and Production

Clemens Wollny

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