FACTORS AFFECTING VALUE CHAIN ANALYSIS OF MEAT EXPORT ABATTOIRS: IN CASE OF LUNA AND ELFORA

Abstract

The study was conducted in Ethiopia to identify the determinant factors that influence the Value chain of meat Export Abattoirs In Case Of Elfora and Luna. The study indicated that, the two export Abattoirs were highly educated, the suppliers and producers not highly educated and most of them were male. The first export abattoirs that started exporting meat to the international market was during 1997, that was Elfora. Both Elfora and Luna exports abattoirs produced and exports fresh chilled shoat carcass, frozen shoat carcass and fresh chilled beef fore quarter. Due to high cost of production and low quality of the products can make competition at global level become difficult especially at MENA market. The two export abattoirs adopted a strategy for price fluctuations by increasing volume when the price decrease and decrease in volume when price increase. The study showed that most of the export abattoirs used their own source of money. The two export abattoirs improve their export performance since establishment. The main reasons for improving export performance were improved government policy and administrative support, increased volume and diversified export items, market diversification and enhanced promotion and improved quality. Most of the producers were male and their educational background was at primary school level. There was a significant and negative relationship between diseases of animals and animal producer’s performance because producers have no enough money to buy the vaccinations, poor support from the government and low expertise. There was also a significant and positive influence between distance and animal producer’s performance because the producers cannot move from place to place to sell their animals instead the suppliers and middleman can collect the animals from the farmer’s home. But the benefit where they can generate by selling their animals was not satisfactory, only the middle man or the agents can be beneficiary. In the last three years both Elfora and Luna export Abattoirs faced shortage of the animals. The main reason for the shortage of the animals was poor quality animals, prevalence of diseases and the illegal brokers. The main factors affecting animal’s suppliers performance was input availability and it has significantly and positively affects, the main reason for this was the existence of live animals throughout the year, but the only enough quantity of animals not guarantee the performance of animals suppliers instead quality of animals also necessary. Transportation and trade logistics also significantly and negatively affect the performance of animal suppliers; the main reason for this was the geographical location of Ethiopia which was difficult to transport the animals to slaughter houses