DEMAND FOR BEEF IN ADDIS ABABA

A Thesis Submitted to Department of Agricultural

Economics, School of Graduate Studies
ALEMAYA UNIVERSITY

In Partial Fulfilment of the Requirements for the Degree

of
MASTER OF SCIENCE IN AGRICULTURAL ECONOMICS
(AGRICULTURAL AND FOOD MARKETING)

By
YONAS FANTAYE

January 2006

Alemaya University

SCHOOL OF GRADUATE STUDIES

ALEMAYA UNIVERSITY

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DEDICATION

I dedicate this thesis manuscript to my father FANTAYE MAMUYE and to all of

FAMILY for nursing me with affection and love and for their dedicated partnership in the
success of my life.

STATEMENT OF AUTHOR

First, I declare that this thesis is my bonafide work and that all sources of materials used for this
thesis have been duly acknowledged. This thesis has been submitted in partial fulfilllment of the
requirements for MSc degree at the Alemaya University and is deposited at the university
Library to be made available to borrowers under rules of the Library. I solemnly declare that this
thesis is not submitted to any other institution anywhere for the award of any academic degree,
diploma, or certificate.

Brief quotations from this thesis are allowable without special permission provided that accurate
acknowledgement of source is made. Requests for permission for extended quotation from or
reproduction of this manuscript in whole or in part may be granted by the head of the major
department or the Dean of the School of Graduate Studies when in his judgement the proposed
use of the material is in the interests of Scholarships. In all other instances, however, permission
must be obtained from the author.

Name:
Place: Alemaya University, Alemaya
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BIOGRAPHICAL SKECTH
The author was born in October 1979 in Addis Ababa. He attended elementary school at Gergi
elementary and junior school in Addis Ababa. He completed his senior secondary education at
Bole senior and secondary school in Addis Ababa. He joined the Alemaya University of
Agriculture in 1997 and graduated with B.Sc. degree in Agricultural Extension in 2000. He then
joined the school of graduate studies at Alemaya University in 2001 and has studied for M.Sc.
degree in Agricultural and Food Marketing.

1.1.1

ACKNOWLEDGEMENT

I am deeply indebted to my major advisor, Dr. Dawit Alamu, the Division of Socio-economics at
Melkasa Agricultural Research Centre, and my ex-major advisor, Professor V.P.S Arora, the
Department Agricultural Economics, Alemaya University for their timely and constructive
advise in the thesis and proposal writing up.

Moreover, I would like to thank Alemaya University for granting me financial support to
undertake my thesis research work as well as to the Addis Ababa abattoirs, for giving me the
required information.

Finally, I would like to carry my deepest gratitude to all of my families for covering all the
required costs of the M.Sc. program including tuition fee, research fund, computer and other
facilities. I sincerely appreciate all my friends who assisted me during data collection period so
that I was able to develop the thesis.

ABBREVATIONS AND ACRONYMS

AM=Anti Meridian
CSA= Central Statistical Authotity
DDP=Desirable Dietary Pattern
Ec=Ethiopian calendar
FAO=Food and Agriculture Organization
GDP=Gross Domestic Product
Hh=household
ILRI= International Livestock Research Institutes
Kg=kilogram
NGOS=Non governmental organizations
Pm=post meridian

Table of Content
Page

COVER PAGE .................................................................... I

APPROVAL SHEET..........................................................II
DEDICATION PAGE ...................................................... III
STATEMENT OF AUTHOR .......................................... IV
BIOGRAPHICAL SKETCH ............................................V
ACKNOWLEGEMENTS ............................................... VI
ABBREVATION AND ACRONYMS ...........................VII
TABLE OF CONTENTS ............................................. VIII
LIST OF TABLES ..............................................................X
ABSTRACT....................................................................... XI
1. INTRODUCTION ..........................................................1
1.1. Background and Justification.....................................................1
1.2. Statement of the Problem...........................................................3
1.3. Objectives of the Study..............................................................4
1.4. Significance of the Study ...........................................................4
1.5. Scope and Limitation of the Study.............................................5

1.6. Structure of the Thesis ...............................................................5

2. REVIEW OF LITERATURE.........................................6
2.1 Theoretical Background...................................................................6
2.1.1. The Concept of Meat Demand.6
2.1.2. Factors Related to Meat Consumption.....................................6
2.2. Review of Empirical Evidence .....................................................7
2.2.1. Related Studies in Africa..7
2.2.2. Related Studies in the Rest of the World ................................9

TABLE OF CONTENT CONTINUED

3. METHODOLOGY..............................................................14
3.1. Data Requirement and Method of Data Collection ........14
3.2. Data Analysis .............................................................................14

4. DESCRIPTION OF THE STUDY AREA........................17

4.1. The Study Site..........................................................................17
4.2. Beef Marketing in Addis Ababa ..............................................17
4.2.1. The System of Abattoirs ...................................................17
4.2.2. Time and Distribution Methods from Kera Abattoir ........18
4.2.3. Major Constraints at Kera Abattoir...................................19
4.2.4. The Information Meat Marketing .....................................19
4.3. Quality and Price Measurement by Butcheries19

5. RESULTS AND DISCUSSION ........................................21

5.1. Socio economic and Demographic Characteristics of
Sample Households....................................................................21
5.2. Beef Preference and Consumption Patterns in Addis Ababa..........24
5.2.1. Beef Preference by Cut and Kind of Meat..................................24
5.2.2. Beef Preference by Economic Status of the Household .............29

5.2.3. Beef Meat Price Variations ........................................................30

5.2.4. Other Source of Beef Meat ........................................................31
5.2.5. The Role of Religion in the Consumption Pattern of Beef .........31
5.2.6. Income and Beef Consumption....................................................31
5.3. Determinants of Demand for Beef......................................................32
5.4. Empirical Results of Demand Factors ...............................................33
5.5. Demand Projection .............................................................................35

6. CONCLUSIONS AND RECOMMENDATIONS ...........37

7. REFERENCES....................................................................40
LIST OF TABLES

Tables

Page

Table 1. Hypothesized Determinants of Demand for Beef, Addis Ababa

15

Table 2. Socio-economic and Demographic Characteristics of

Sampled Households

23

Table 3. Number and Percentage of Beef cuts Preferences

And Form of Usual Consumption by Households

25

Table 4. Preference for Meat from Different Source/Types

26

Table 5. Quality Consideration by Households with First Preferences

for Beef

27

Table 6. Quality Attributes to Evaluate Beef Cutlets

28

Table 7. Preferences for Beef by Income Category

29

Table 8. Frequency of Beef Consumption by Income Category

30

Table 9. Double-Log Regression Estimates of Factors Affecting Annual

10

Demand for Beef, Addis Ababa (2002/3)

35

Table 10. Projected Demand for Beef

37

Demand for Beef in Addis Ababa

By
Yonas Fantaye, B.Sc
Major advisor: Dawit Alemu, Ph.D
ABSTRACT

A study on Demand for beef was conducted to examine food ways for beef, to identify factors
influencing the demand for meat and to forcast demand for beef in Addis Ababa. Consumption
habit of the people of Addis Ababa is various. The habit of variation is on cut and kind of meat
eating preference. Eating preferences of cut of beef (shint or sirloin comprised a larger
percentage, followed by Tanash (Hind quarter), and Talak (top round), respectively). The
majority of Addis Ababians prefer raw beef, Steaks and Fried come next. The other variation
among households was observed in terms of the kind of meat preferred. About 62% opf
respondents ranked beef as their first preference as compared to other kind of meat. The quality
indicators for beef considered are color and fatness, with 55.3% and 22.8% responses,
respectively. Another variation on beef consumption pattern is due to communalism and

11

Religious motivation. About 56% of the households utilized sharing the body part of the animals
(kircha) as a means of acquiring beef. On the other hand, religious affiliation also creates
variation on demand for beef, as there are days and periods of fasting time when livestock and
livestock products are not consumed.

A double- log functional form of regression model was fitted to the data so as to readily interpret
the coefficients as elasticity since, the value of R2 is higher than the linear regression model. The
analysis of demand beef reveals that income, own price, and price of sheep are important
determinants of household beef consumption patterns in Addis Ababa. While, price of chicken
and family size were not found to influence the demand for beef Projected demand for beef using
growth rate of population and real per capital income reveal that 5.10 million kg beef would be
consumed by the year 2009.

12

1. INTRODUCTION
1.1. Background and Justification

Ethiopia has the largest livestock population in Africa and has the highest
draught animal population in the continent (EARO, 2000; Zerbini and Alemu,
1996). According to FAO, there are approximately 35 million Cattle, 39
million Sheep, and Goats, 8.6 million Equine, 1 million Camels, and 55.4
million Chickens in the country (FAO, 1999). Mengesha (1998) states that
livestock production is a major contributor to economic growth. it provides
increased income, employment, food and foreign exchange earning, as well as
better nutrition.

The livestock sub-sector contributes 12 percent of the total Gross Domestic

Product (GDP), (AAPBMDA, 1999) and 30-35 percent of the total agricultural
GDP, (MEDaC, 1998). Livestock production constitutes the most important
component of the systems and rangelands are the major sources of feed.
Lowlands breeds (focused on the Borena plateau of southern Ethiopia and the
Jijiga area in eastern Ethiopia) of livestock play an important role in the
national economy of Ethiopia. For example, by the mid 1980s, 90% of the total
export of live animals were comprised of lowland breeds of beef cattle and
sheep. Lowland beef cattle also contributed about 20% of the draft animals in
the highlands (Berhe and G/Medhin, 1999).

The livelihood of smallholders is highly dependent on the cash income from

livestock and livestock products (Tsegahun, 2000). However, the sector is
characterized by low productivity resulting from low nutritional standards,
prevalence of diseases, poor genetic potential, and lack of marketing systems
(Bekele et al., 1995).

13

Soedjana (1998) showed that the formulated desirable dietary pattern (DDP)
with 20% animal products may not always be applicable to every country and
that adjustment therein according to geographic condition, genetic, social,
economic, cultural, and lifestyle of the people is considered important. Beef is
not only of good nutrition value; it is very much liked by Ethiopians. However,
changes in the beef form to improve its competitive position have been slow
and relatively unsuccessful. Price sensitive, health conscious and frequent beef
consumers were willing to pay a lower premium for such a product than other
consumers. Socioeconomic characteristics of consumers were important
indicators of the premium they were willing to pay for a fresh beef product
(Dumler, 2000).

The Ethiopia population is estimated to be 71 million (CSA, 2004). As a result,

the demand for animal products, both in terms of quantity and quality, is
estimated to increase substantially (Tegene and G/wold, 1998).

The country has been able to supply most of its meat demand presently.
However, the ability of the nation to meet demand in future is uncertain. The
demand for products from animal origin in general and for beef in particular is
rising very fast in view of growing population and growing economic status.
Further, with in the meat industry, there is a need for long-term forecasts of
demand for beef for planning purposes.

In order to achieve this, demand analysis will pinpoint the comparisons of

future production and consumption levels, as it will also allow market analysts
to address such issue as what proportion of consumption can be supplied from
domestic resources and whether the country is producing the right quality of
meat to satisfy consumers, demand. This study focuses on the likely changes in
the consumption pattern resulting from various aspects of demand for specific
meat-product, namely beef.

14

1.2. Statement of the Problem

Government policy of most countries in the world gives high priority to food
and nutrition programs for the society by way of establishing food security and
diversification in food consumption concepts to provide enough food with
affordable price to the society. But, except on a few state and private
commercial beef farms, production of meat has been carried out for
subsistence rather than as a commercial activity. Along with this, there is
attribution of increased population growth, urbanization and income in the
major urban centers of the country.

The importance of urban population in Ethiopia has dramatically increased in

the recent years. The Ethiopian capital city is, facing problem in managing the
urban environment, largely because of the very high competition for land
resources and also a serious problem of very low especially resource poor
families living both in towns and rural areas (Pyl, 1997). The contribution of
livestock to the live of the poorest households in urban cities has not been fully
understood yet. Therefore, from an environmental point of view, there is a
need for assessing the role of urban livestock in the overall management of the
urban ecosystem.

The production of meat has fallen drastically; this is probably the most
proximate factor that explains the fall in per capita production of livestock in
Ethiopia. Because of decreased per capita production, the real retail price of
meat may have increased. The prices varied also according to the health and
weight of the animals ranging from birr 1 to 2.82 per kg. And weight loss due
to trekking to Addis Ababa was high, by 69%, during the dry season compared
to the rainy season (CSA, 1999).

15

According to FAO annual trade yearbook (1999), between 1974 and 1998,
human population increased by 78% while cattle, sheep and goat population
have increased by 31 and -5.6%, respectively. As income increases with
economic development, the share of animal products (like, beef) in the total
food budget increases faster than that of cereals. This occurs because of the
relatively high-income elasticity of demand for animals products (Mengesha,
1998). Therefore, increased population coupled with increased urbanization
and higher income will increase demand for meat. This situation calls for the
management of demand for beef besides supply management thereof. Demand
management requires the analysis of beef consumption pattern as well as
demand influencers.

1.3. Objectives of the Study

The general purpose of this study was to examine the demand for beef in Addis
Ababa. The specific objectives were:

To examine food ways for beef;

To identify determinants of the demand for beef; and

To forecast demand for beef.

1.4. Significance of the Study

In Ethiopia, rather than the production, demand for beef is rising. Policy makers and
producers should get current information on beef consumption, demand pattern and
demand influencers so that they look for ways of improving the quality and quantity
of beef supply. This study, therefore, intends to fill the information gap. Since, beef
being an important constituent of Ethiopian diet, its demand analysis and forecasting
is expected to result in valuable information for concerned people.

16

1.5 Scope and Limitation of the Study

Due to time and resource constraints, the researcher could not conduct
comprehensive survey of household consumption and market survey in all the
zones of the city. The study had to be restricted to only manageable samples.
Moreover, the scope of this study is confine to beef and its major demand
determinants and not of all animal products.

1.6. Structure of the Thesis

The thesis is structured as follow: chapter two presents review of literature on

the theoretical background and empirical evidence. The research methodology
which includes method of data collection and data analysis as well as,
hypothesized determinants of demand for beef are presented in chapter three.
Chapter four describes the study site, beef marketing practices in Addis Ababa.
The results and discussion are treated in chapter five. Finally, Chapter six
offers a brief conclusions and recommendations.

17

2. REVIEW OF LITERATURE
2.1. Theoretical Background
2.1.1. The Concept of Meat Demand

The theory of demand states that demand is the functional relationship between
prices and quantities of a product that buyers will purchase in a specified
market, ceteris paribus. When consumers are willing to buy a larger quantity at
the same price, or are willing to buy the same quantity, as before at a higher
price, it could be said that there has been a real increase in demand. On the
other hand, if consumers take the same quantity of goods only if the price is
reduced, or take smaller quantity if the price remains the same, demand may be
said to have decreased. Thus, demand refers to a quantity removed from a
market in response to a variety of condition that includes: the price of the
commodity, the consumers' income, prices' of the substitutes, family size,
preferences, age, etc (Lesser, 1993).

2.1.2. Factors Related to Meat Consumption

Many factors are related to the quantity of meat consumed and to the amount
of money spent on meat. These differences are largely reflections of more
basic factors, of which the more important are price of product, level of family
income, and prices of competing products. Other factors are type of
occupation, religious beliefs, personal tastes and preferences and the like.

The relationship between consumption and price of a product is explained

by theories of demand. It is quite obvious to consumers with a limited budget
that they can, and will, buy more meat at lower prices than at higher prices,

18

and vice versa.

The quantity of a product consumed during a given time is also affected by

prices of competing products. Competing products are defined as goods that
can be used as substitutes for the product in question. Mc John and Sarhan,
(1988) provided a report that most people prefer some change in the meat dish
from day to day simply for the sake of variety and enjoyment.

The size and composition of the individual family also influence the family's
demand for meat. Total household consumption of food increases with increase
in the number of persons in the household but that consumption per person
declines as household size increases. Children use less meat and fats than
adults. Thus, the actual composition of the family contributes to the total
demand.

2.2. Review of Empirical Evidence

2.2.1. Related Studies in Africa

Economists have devised empirical means of estimating the short- and longrun demands for meat. This is done by using alternate approaches: one is based
on replicated family expenditure records across a wide area with different
prices, tastes, and incomes. According to the arguments, these data provide a
view of long- term consumption adjustments. And in the other approach data
are taken from price, consumption and income records for these factors over a
period of weeks, months, or years.

Emmanuel (1995) examined the dynamics of household beef consumption in

Cameroon. The findings of his study revealed that recent changes in economic
conditions have introduced notable changes in household beef consumption
patterns in the country. While consumers are concerned about the short- and

19

long- term effects of these factors on beef consumption habits, policy makers
are more worried about the appropriate period necessary for households to
make complete adjustments in consumption since this information is vital for
planning production. The results of this study show that although growth in per
capita beef consumption appeared moderate, the trend in demand seemed to be
dictated by income and price changes. The same study reported that, beef is
classified as a normal good with substantial substitutes between beef, pork and
fish.

Ma Poon (1988) discusses the need of livestock development for self

sufficiency in Mauritius. As a result, he indicated the required situation, viz.
feed resources, cattle number, milk and beef production and consumption,
production level and their future demand, identifies constraints to production
and proposals to increase productivity.

Gebre Hiwot (2000) presents the highlights on the livestock industry of

Ethiopia with special remark on the demand for livestock meat in Dire Dawa.
He discussed the status and the future prospects of meat production and
consumption in Dire Dawa administration, Ethiopia. He further indicates some
of the existing opportunities for improvement and progress and constraints
contributing to the low quality and productivity.

Mengistu (1998) examined a rangeland and livestock resource in Ethiopia. He

identifies livestock population, holding per household and trends in livestock
ownership, management practices, animal health, disease situation, and
livestock marketing and consumption pattern. He also discussed problems
related to livestock production in general and update the data- base on Borena
rangeland and livestock resource which is the mainstay of the Borena people, s
pastoral economic and social system; provide a data base on the Borena
rangeland and livestock resource for the ongoing and future rangeland

20

development project and programme activities so as to ensure an effective and

sustainable rangeland production system.

Nieuwoudt (1998) presents the demand for protein feed in South Africa.
Protein feed consumption is projected for future years (2010, & 2020), derived
from the projected consumption of animal products (beef poultry meat, pig
meat, eggs, milk, dried milk &cheese). Results show significant increases in
the demand for protein feed.

2.2.2. Related Studies in the Rest of the World

Armstrong,s (1988) study, on Indiana,s cattle, beef buying, selling and pricing,
concentrated on demand factors. He mentioned income, population growth,
and taste and preferences determine meat consumption. For example, in U.S.
real income increment and growth in population number increased both percapita and total meat consumption
Discrepancies on Mexicos demand increment recorded in Peel,s study (2001).
The study recorded government officials, analysts, and the countrys livestock
industrialists reflection. These groups of people agreed beef demand is on its
increase while official data sources revealed the opposite. According to the
aggregate consumer surveys, income and meat consumption is growing. The
overall beef consumption per capita is 15.3 kilograms. This fact reveals
consumption is less compared to what the government officials put. Rather the
data reconciles with consumer surveys on expenditures and meat consumption.

Freeman (1997) conducted a study of ASEAN livestock and feed markets, and
reported that the significant income growth in the ASEAN region has led to an
increase in meat consumption. The region has been able to supply most of its
meat product demand as well as the majority of associated feed inputs. Against

21

this background, the paper discusses ASEAN meat consumption trends, meat
production and trade; feed markets, government policies impacting on the
livestock and feed sectors, and external and internal pressures for policy
change.

Maradols, et al., (2002) studied the demand for beef in Indonesia and its
implications for Australian Agribusiness. The results suggest that the focus of
the Indonesian government on strengthening the domestic poultry industry is
well placed, as the demand for chicken is likely to respond more quickly to
income growth than the demand for beef. Further, consumers seem more likely
to adapt their consumption patterns to chicken price changes than they will for
beef price changes. However, these differences are relatively minor and there
is still a major opportunity for Australian agribusiness firms in the cattle and
beef sectors to take advantage of the projected rapid growth in Indonesian beef
demand.

Marsh (2003) focused on the impact of beef demand decline in U.S.

consumption of beef especially of red meat and poultry (beef, pork, lamb and
poultry) declined from 44%to 32% over the 1970 to 2001 period while that of
poultry increased from 25%to44% during the same period .The decline in the
consumers, demand forced, beef industrialist to design ways to advantage of
the increasing poultry demand. i.e., the beef firm owners started to promote
and improve the quality of their product. This interest resulted in new practice
like genetic breeding, (i.e., breeding with animals that gives high output),
provision of safety packed food products and strategic allowance for
employees.

John (1997) provides a simulation model of livestock sector in Turkey. In the

beef and sheep meat components, the domestic market price is determined as a
function of international prices (beef) or the price of the major competing

22

product and domestic supply (sheep meat). Specifically, the beef producer
price in Turkey is derived using a price transmission equation that depends on
the world price for beef. The domestic producer price of sheep meat is
determined by the quantity of sheep meat supplied and the beef price.

In a report prepared for UK Agricultural Department, (1998) to assess the

economic impact of Bovine Spongiform Encephalopathy (BSE) on the beef
industry in UK, the demand for beef was reported to have fallen by 36%, but
was offset partly by increasing demand for pork and poultry meat.

Mintert (2003) discusses the long-run effects of BSE on beef demand in

Kansas. Separating the effects of consumer concerns about food safety from
other factors that can affect demand for beef, pork, and poultry required that
the researchers develop a detailed meat demand model. Importantly, the
researcher conclude that even though the quarterly effects associated with
jumps in food safety indices are much bigger than the average impact, the
effects are still small compared to the effect of traditional price and income
variables. And the fact that, when the food safety index drops back from its
peak, the effect on consumer behavior seems to decline as well .In other words,
there is not significant lagged effect on meat demand.

The analysis of the status and forecast for development of the meat market by
Tyurina and Dem' Yanou (2000) for 1999 indicate a continuing decline in
Russia's livestock sector following fodder and feed grain shortfalls, reduction
in stock number, and serious economic problems in the pedigree breeding
sector. Meat production was reported to have dropped twofold in the preceding
8 years as a result of low profitability and high import competition, while
consumer demand had declined because of falling incomes. The first quarter of
2000 saw a reduction in meat prices, influenced by lower seasonal demand,

23

availability of imports, and increased sales of stock to meet spring cultivation

costs.

Peel (2002) presents the major factors Affecting the Mexican beef and cattle
Industry. Apparent economic and income growth is resulting in increased beef
demand in Mexico and changes in beef consumption preferences. Beef demand
growth is the major driver of a sweeping set of changes affecting domestic
Mexican cattle and beef production and international trade patterns.

Faminow (1997) described the spatial economics of local demand for cattle
products in Amazon development. He concluded that the rapid growth in the
urban population and overall urban purchasing power in the region created a
huge local demand deficit for cattle products such as beef and milk, thereby
stimulating investment in cattle.

The work of Waren, (1999) on the consumer requirements of future Swedish

beef production revealed that, in Sweden there is a strong demand for home
produced meat because of its quality and the high standards of animal welfare.
However, the price of Swedish meat is higher than that of imported meat, and it
is suggested that its marketing could be made more effective.

Priyanti (1998) provided an estimate of demand and supply relationships for

beef cattle in Lampung as a strategic beef industry area in Indonesia. The
results indicate that the retail price of beef is determined simultaneously by
demand and supply linkages. In addition, people in Lampung were responsive
enough to anticipate changes in per capita income.

Petrowitsch (1996) presents results of a survey of restructuring the meat

industry in Belarus. Demand for meat was reported falling from 1990 to 1994
and the recommendations included the adjustment of the size of the livestock

24

sector to the possibilities of domestic feed production; stabilization of the beef

cattle herd at a higher level and a cut in dairy cattle, target levels for pig and
poultry production, all depending on increasing the area and improving quality
of feed production and feeding the concentrates adequately.

Many studies have shown that, the result of structural change in consumption
patterns and develop an empirical model of meat demand and try to determine
whether events have impacted demand. Finally, the results presented above
give us a highlight and the need for additional data and analysis on Ethiopia
especially the capital city beef demand

25

3. METHODOLOGY
3.1. Data Requirement and Method of Data Collection

The study was conduct in Addis Ababa, the capital city. Both primary and
secondary sources of data were used in the study. Due to the nature of the
required data, multistage sampling method was used to collect the primary
data. Three zones out of the 6 zones in the city were selected randomly. From
each of the selected zones 2 woredas were randomly sampled. Again, from
each of the selected woredas, 2 Kebeles were chosen randomly. Finally,
households were selected using systematic random sampling however, due to
the unwillingness of most of the selected households, the researcher was forced
to interview those willing placed next to the selected household. This may bias
the selection.

The data was then collected using questionnaire (with open and close-ended
questions). In addition, secondary data were collected from CSA, ILRI, and
other concerned institutions to supplement the primary data.

3.2. Data Analysis

The consumption pattern of sample households for beef was examined using
descriptive statistics. The double log multiple regression function was used to
identify factors affecting the demand. The double log demand function is
presented as follows:

Log Q= B1 + B2 log PP + B3 log Y + B4 log PS+ B5 log PH + B6 log FS +

Where: Q = Quantity of beef demanded in Kg (annual);
Pp= Price of product demanded (in birr per kg);

26

Y = Income (in birr per annual);

PS= Price of sheep (in Birr per Kg);
PH= Price of hen (in Birr per Kg);
FS= Family size (in adult units i.e., households under 15
years age is not included);
= error term

Table 1. Hypothesized determinants of beef demand, Addis Ababa

Ho:

Variable

Measure

Family size

No of family +

As the number of family members

members

increase the demand also increases

Household annual income

Birr /year

Sign

Rationale

As income increases the demand also

increase (beef a normal good)

Price of sheep meat

Birr /kg

As price for sheep meat increases the

demand for it decreases resulting in the
increased demand for beef

Price of chicken meat

Birr/kg

As price for chicken meat increases the

demand for it decreases resulting in the
increased demand for beef

Price of beef

Birr/kg

As the price for beef increases its

demand decreases (Law of demand)

27

The function was estimated by using the Ordinary Least Squares Method. The forecast
was done for the year 2009. Using this forecasting technique, consumers were asked
directly about their buying intentions with regard to beef. Their answers were pooled to
arrive at a forecast. Typically, surveys of intentions to purchase consumers' goods are
used as general indicators of the direction of demand. The method described by
Holtzman (1988) was used to make projections i.e., Dbc=pop+ (Ei * Yi), where Dbc,
pop and Yi are percent changes in beef consumption, population and real per capita
income, respectively, and Ei is income elasticity of demand for beef.

28

4. DESCRIPTION OF THE STUDY AREA

4.1. The Study site

Addis Ababa is located at 090 02 latitude and 38045 longitude. It is situated

2408 meters above sea level. In general Addis Ababa is considered as a
terminal market for animal and animal products in particular and for
agricultural products in general. In Addis Ababa, there are 10 Kifle
Ketemas, and 9-11Kebeles are found within each of it. According to CSA,
area kilometer per square is 530.14 and the population density is 5291.1
persons per square kilometer in Addis Ababa (CSA, 2004).
4.2. Beef Marketing in Addis Ababa

The beef marketing system can be broadly divided into formal and
informal. The formal one is dominated by the kera abattoir. The abattoir
cater services such as a medical check up for the animals to be slaughtering,
and distributing meat to the butcheries, supermarkets and other institutions
that supply meat to consumers in different forms and quantity. The informal
meat marketing system involves cattle directly sold to individuals or group
of individuals i.e., for purpose of kircha and for slaughtering at home.

4.2.1. The System of Abattoirs

The kera abattoir is the main branch in the city and it has a branch around
Akaki area. There are also other licensed abattoirs in the city, which cover
peripheral areas of the city such as, Burayu, Gurdsholla, kara, kolfe, and
semen-mazegaja. The reason for giving license to these areas is due to a
long-distance from the main abattoir in the city.

29

There were 979 butcheries in the city that take from kera abattoir in October
2002 that directly sell to consumers. Among these 116 butcheries are
Muslim and the rest 863 butcheries are for Christian. The number of
butcheries is still increasing from time to time. For instance, there were: on
average, 800 butcheries in 1997/98 and 824 in 1998/99, 836 in 1999/00, 887
in 2000/01, and 921 butcheries in the year 2001/02.

Although, 12 birr and 25 cents per cattle is considered to be paid by traders

in order to use the Kera stockyard, there is no basis for fixing the tariff rates
to different types of cattle origin, preference, weight & other aspects of
overall cattle conditions by kera terminal stockyard. So that, all types of
cattle traders pay equal amount of Birr per cattle with out any discriminated
tariff rates.

4.2.2. Time and Distribution Methods from Kera Abattoir

The time of slaughtering is different for both the general categories of

religion types. During fasting period for Muslims, the time of the
slaughtering ceremony is accomplished at 3 pm in order to reach butcheries
catering services for Muslim before 6 pm when the fasting ends. In the case
of butcheries catering services to Christians, the time of slaughtering is
usually after 5.30 AM.

The distribution method of beef meat from the kera Abattoir is using
specially modified lorries. The slaughtering and distribution service of the
Abattoir are made not only to butcheries but also to educational institutes,
hospitals, to individuals who have a ceremony like wedding, Teskar, or
holiday.

30

4.2.3. Major Constraints at Kera Abattoir

The biggest problem that was facing kera stockyard is the lack of follow up
by heath officers in the city. This situation has lead to the death of cattle in
the stockyard and the problem become serious if the disease is
transmittable. The other problem observed was illegal slaughter of animals
locally or at home mainly to avoid service charges required (70 birr / ox
and 10 birr / goat or sheep).
4.2.4.

The Informal Meat Marketing

Informal marketing system involves direct delivery of meat or live animals

by traders and / or producer to consumers and other unofficial markets. It
covers direct sales by producers and / or traders to final consumers or
institutions like restaurants, hotels and offices. These sales follow informal
contractual arrangement of the same nature as individual sales. Other
informal outlets include sales to retailers and locally slaughters, then sales
to final consumers.

4.3. Quality and Price Measurement by Butcheries

Butcheries usually consider prices and qualities of beef in the city when
they buy cattle from kera stockyard as well as, from any market that
satisfies their customers. The criteria used for choosing the animals include:
build, shape, out line or contour of the animals, and different primary parts
related to the quoted prices.

The prices of live animals depend on supply and demand, which is heavily
influenced by the season of the year and the occurrence of religious and
cultural festivals. There is a variation of price with in the year and among
the years and also depending on the origins of the animals. For example,

31

Hararge cattle are most preferable and are widely available between
September and lent (i.e., Hudade fasting times).

There is also a great prices difference among butcheries located in different

woredas or kebeles of the city. For instance, around Arat killo and Piassa
the price of beef ranges from 22-24 Birr per Kg. In these areas the
consumption is within the butcheries in the form of fried or raw meat.
Home-take beef from butcheries is usually of low quality and relatively
cheaper and the price ranges on average from 11 - 16 birr/kg.

32

5. RESULTS AND DISCUSSION

5.1. Soio economic and Demographic Characteristics of the sample
Households

Information on age, education, and occupational characteristics of the

household heads as well as size and composition, annual income, and
religion type of households are useful to understand the basic population as
factors affecting beef demand. Table 2 presents the socio economic and
demographic characteristics of the sample households.

The average age of the sampled household heads was about 52 years with
average family size of 5.56 members. A household often consists of the
head, the spouse, their children and some other persons residing in the
household. A person is considered to be a member of a household if he has
the same cooking arrangement with the other members (CSA, 1994). On
average, there were 2.35 adult males, 2.46 adult females and 0.76 children
per household (Table 2).

Among the total sample, almost half of the respondents, 48.5percent,

completed secondary school. Household heads with elementary and
university education accounted for 20.5 and 29.5 percent, respectively.
Respondents with no formal education accounted for 1.5 percent.
The distribution of the sample household heads, employment status shows
that about 44 percent of the respondents (family heads) were government
employees (civil servants). The remaining respondents 18 percent are
private enterprises, 18.5 percent of the respondents work in NGOs, business
persons 9.5 percent, 7 percent pensioned and others (including priest, sheik,

33

and assisted by their children or remittance) accounted for 3 percent of the

sample household.

The average monthly income per household is 971.14 birr. However, there
is high variation as the standard deviation is about 824.57. The income
estimation is done considering the earnings of all household members.
Furthermore, the data bases were stratified into three groups on the basis of
the households total annual expenditure capacity. This is because income
or expenditures elasticity shows variation in different income groups.
Accordingly, 41 households with annual income <4200 Birr were
categorized as low-income earners. The other 83 households with annual
income between 4200 and 9000 birr were grouped as medium income
groups. The remaining 76 households (with annual income 9000 Birr)
constituted the high-income earner group. According to the household
income, consumption and expenditure survey by CSA (1999-2000), were
the basis for the income categorization.

With regard to religion, Orthodox Christians account for the greater

majority of the households (82.5 Percent), Muslim households are about 13
percent and the others like catholic and protestant include 4.5 percent of the
total respondents of the households living in Addis Ababa.

34

Table 2 Socio-economic and Demographic characteristic of the sampled households

Socioeconomic
characteristics

Educational
status

Occupational
status

Religion

Category

No

Illiterate
Elementary
Secondary
University
Employee of
private
enterprise
NGO employee
Business
person
Civil servant
Pensioned
Others
Orthodox
Muslim
Others(Catholic
& Protestant)

3
41
97
59

37
19
88
14
6
165
26
9

51.65
5.56
2.35
2.46
0.76

Standard
deviation
10.06
1.96
1.14
1.37
0.82

971.14

824.57

Average
Age
Household size
Adult males
Adult females
Children
Household
monthly
income (birr)

36

Source: Sample Survey Results

35

5.2. Beef Preference and Consumption Patterns in Addis Ababa

There have been variations in consumption habits of the respondents of

Addis Ababa. Considerable differences existed in the beef consuming habits
of the various groups of the households. Differences were observed to a
large extent by cut and kind of meat, by economic status of the households,
by communalism and religious motives of the consumers.
5.2.1 Beef Preference by Cut and Kind of Meat

I) Types of Beef Cuts

Consumption of different cuts varied household form of eating. 30 percent

of the sampled households preferred shint (sirloin), 24 percent Tanash
(Hind Quarter) and 18.5 percent Talak (Top Round). The least preferred
cut of beef was Bete Salign (Chunk-Steaks) 1% percent of the households.
Table 3, shows the above explained percentage of beef cuts preferred by
households and pattern of beef consumption.

36

Table 3 Number and Percentage of Beef Cuts Preferences and

Form of Usual

consumption by households

Households
Type of cuts

Usual

Form

Consumption

of
Total

Percentage

Raw

Fried

Steaks

Tanash (Hind quarter)

17

19

12

48

24

Worch (fore quarter)

13

15

7.5

Bete saligene (chunk steak)

Goden Tedabit (chunk roast)

Shint (sirloin)

32

17

11

60

30

Talak (top round)

16

13

37

18.5

Firemba & Gibita (Briskel)

12

10

22

11

Tuncha & Nebero (shank)

10

Total

77

58

65

200

100

Percentage

38.5

29

32.5

100

Source: sample survey

According to the data in the table above, Addis Ababians prefer Tanash.
Most of them, 38.5 percent, of the household prefer raw beef. Next to raw
meat 32.5 percent and 29 percent of the sample households prefer Steaks
and Fried beef, respectively..

II) Meat preferences

Meat preferences and meat used by the sample households in the city also
varies among the kind of meat. Table 4 presents the type of meat used and
their preferences at first rank by the sample households.

37

In the table below, all the sample households consume beef and chicken.
Where as, only 3 households consume goat meat and from these families,
their preferences at the first rank were only one household as a percentage
of 0.5 percent of the total sampled. 197 households consumed sheep meat,
among this number of households; only 9 percent are ranked at first
position. On the other hand, beef was preferred by 61.5 percent followed by
chicken meat as a percentage of 29 percent of the households put at a first
position.

Table 4 Preference for Meat from Different Source/Types

No.
Types of meat

of

households used
the

types

of

meats

No.

of

% of households

households with

with

first

first preference

preference

Beef

200

123

61.5

Sheep

197

18

Chicken

200

58

29

Goat

0.5

Source: Survey data

A) Beef Preferences and quality attributes

In the city, beef seem easily available and affordable for all income groups.
This is because at least three times a year even the lowest income group
households can buy a kilogram or half a kilogram of beef from butcheries.
Taking this into consideration, households that rank first quality attribute
such as color and fattiness followed by body part (Table 5).

38

Table 5 Quality consideration by households with first preference for

Beef
Beef quality

No.

Of

households

%age
households

Tenderness

10

8.1

Flavor

4.9

Color

68

55.3

Fattiness

28

22.8

Body part of the

beef

11

8.9

Total

123

100

Table 5 presents quality attributes that are considered by the sampled

households to evaluate different types of beef cutlets. Color and fattiness
were the important quality attributes for shint and Tanash..

39

of

Table 6 Quality attributes to evaluate beef cutlets (No of households)

Quality attributes
Type of cutlets

Body part Total

Tenderness

Flavor Juiciness Color Fattiness

10

23

14

60

Tanash (hind quarter) 3

30

48

Talak (top round)

18

37

22

10

15

10

10

20

99

34

21

200

Shint (sirlion)

Firmba

and

Gibita

(Briskel)
Worch (fore quarter)
Tuncha

and

Nebro

(shank)
Godin tedabit (chunk
roast)
Bete saligene (chunk
steak)

Total no of households 25

of the beef

Source: Sample Survey result

B) Other Meat Type Preferences

Households in every groups of income prefer chicken, Sheep, and Goat

alone or along with beef especially on holidays, occasionally and on other
ceremonies. Lamb consumption is not as popular as the above mentioned
meat types in Addis Ababa. This, may be, due to regional and cultural
differences of household traditions.

Generally, households widely consume chicken and sheep as a

complimentary and/ or substitute of beef.

40

5.2.2 Beef Preference by Economic Status of the Households

Household beef consumption varies by economic status in Addis Ababa.

Similarly, the preference for beef varied significantly by income category,
of which the highest preference for beef was by medium income category
(Table 7). And, the figure in parenthesis shows that number of households.

Table 7 Preference for beef by income category

Beef

preference

Income category

Total

(rank)

Low

Medium

High

1st

11.5 (23)

28.5 (57)

21.5 (43)

61.5 (123)

2nd

6 (12)

5 (10)

11 (22)

22 (44)

3rd

3 (6)

8 (16)

5.5 (11)

16.5 (33)

Total

20.5 (41)

41.5 (83)

38 (76)

100 (200)

X2 test

8.24*

* Significant at 10%

The highest frequency of visits to butcheries as reported by sample

household was once in a month (50%) followed by twice per month with
about 18% of the sample. The highest frequency of visits was made by
high-income groups where 30.5 % of them visited once in a month (Table
8).

41

Table 8 Frequency of beef consumption by income category

Average frequency of

Income category

Total

visits to butcheries

Low income Medium income High income

Once in a month

0.5 (1)

19.5 (39)

30.5 (61)

50.5 (101)

Twice per a month

6 (12)

12.5 (25)

18.5 (37)

Once in three months

4.5 (9)

0.5 (1)

5 (10)

Twice a week

1 (2)

6.5 (13)

7.5 (15)

5.5 (11)

8 (16)

1(2)

14.5 (29)

Once in two months

4 (8)

4 (8)

Total

20.5 (41)

41.5 (83)

38 (76)

100 (200)

Once in one and half a

month

* Significant at =0.01 level

Source: Author's calculation

On average, households walk about 623.5 meters to reach a butchery. There

exists a significant (F-value =16.10 and =0.01) difference among income
groups. On average high income groups travel long than the others i.e.,
820.39 meters. The medium and low income group travel 574.70 meters
and 357.32 meters respectively.
5.2.3 Beef Price Variations

The average purchase price of beef as reported by the sample households, is

16.50 birr /kg. High-income group households purchased on average at
18.57 birr/Kg. However, there is statistically significant difference
(F-value =44.61 and =0.01) among income groups. Average price for
medium income is 15.63 birr/Kg and for the low income group is 14.50
birr/Kg.

42

X2 test

173.03*

5.2.4 Other Source of Beef

In addition to butcheries, people usually get beef from the so-called Kircha
(local name for buying live animal and sharing meat after slaughtering
animal) especially on holidays and festivals. All low-income groups did not
use kircha, whereas, medium income groups share on average 9.4 kg and
high income groups share about 14.84 kg beef per year from Kircha.
5.2.5 The Role of Religion in the Consumption Pattern of Beef

Religion creates difference in beef consumption patterns. This is relevant to

Orthodox Christians and Muslims. For Orthodox Christians there are
several fasting seasons and days (Wednesdays and Fridays) on which
people abstain from consuming animal products. On these occasions the
demand is usually low. Whereas, in the case of Muslim fasting season, the
demand for animal products including beef increases.

5.2.6 Income and Beef Consumption

The average consumption of beef from both sources (butchery and Kircha)
per household is estimated to be 22.53 kg per year. However, there was
significant statistical difference (F-value =134.88 and = 0.01) on the level
of beef consumption among income groups. High-income groups consume
41.35 kg, medium groups consume 14.77 kg, and low-income groups
consume 3.33 kg beef per year.

43

5.3. Determinants of demand for Beef

Factors that are hypothesized to determine the demand for beef are
presented below.

Family size: Family size is hypothesized to influence the demand for beef
positively. This is because as the number of household members increases
the demand for beef also increases.

Household income: household income is hypothesized to influence

positively the demand for beef.

Price of sheep and chicken meat: As price for sheep and chicken meat
increases the demand for them decreases resulting in the increased demand
for beef.

44

5.4. Empirical Results of Demand Factors

Many factors shape and/or related to the quantity of meat in several as well
as, beef in particular and also to the amount of money spent for beef in the
capital city (in Addis Ababa). These differences are largely reflections of
more basic factors, of which the more important are price of beef product,
level of family income, price of competing products, and family size of the
households. Other factors or things were assumed to be random in this part
of analysis. Since, our primary concern is with factors that affect the
quantity consumed per person; emphasis was placed on the above
mentioned only.

A double-log regression model was used allowing the estimated coefficients

to be readily interpreted as elasticities. The estimated coefficients were
statistically significant at the 1 percent level with only a few exceptions.
The exceptions were two coefficients. The prices of chicken and family size
coefficients are insignificant. All other coefficients were statistically
significant, indicating that temporal (periods) effect is important in
explaining beef consumption patterns in Addis Ababa.
The size of R2 in this study indicates that a strong relationship between
dependent variable & the independent variables. The large value coefficient
of determination (R2) suggests that, a large percent of variation in the
dependent variable can be explained by the concurrent variation of
independent variables.

To test the significance of the overall multiple regression, the F-test statistic
was used. The F ratio is a ratio of mean squares. The analysis of variance
(ANOVA) procedures must be applied to this particular multiple regression

45

problem using F-ratio for determining whether a test statistics is significant.

Thus, it may be concluded that the hypothesized relation ship between
dependent variable & the remained independent variables seems reasonable.
The large & significant F-values showed that the estimates of the OLS
regression are good fits in the overall model.

In like fashion, to test the significance of each of the regression coefficients,

the t-test is used and the estimated elasticties were computed at the sample
means. Generally, Table 9 suggests the estimated elasticities generated from
this study conformed with economic theory & there magnitude were in
plausible ranges. And, the value of Durbin-Watson statistic shows that first
order autocorrelation is not a problem for the specified model.

The estimated income elasticity is positive which implies that demand for
beef can be expected to increase as income increases. The estimated
expenditure elasticity was also less than unity i.e., income inelastic goods as
well as, it is highly significant. For example, the estimated value is (.800)
suggests that if total expenditure on beef increases by ten percent then the
quantity demanded for beef will increase by 8.00 percent, all other things
equal.

The estimated own-price elasticities are negative as expected. The demand

for beef is own-price inelastic. The estimated value for the sample (-.125)
suggest that if the price of beef increases by ten percent then the quantity
demanded of the beef will decrease by 1.25 percent, ceteris paribus.

The cross price elasticities estimated in this study suggests that sheep &
chicken price are positive and negative respectively. While, price elasticity
of chicken is insignificant in the sample case and therefore sheep is the only
substitute for beef significantly.

46

Results obtained from the study of Demand for Beef in Indonesia (Maradols
& et.al, 2002) indicated, that estimating price elasticities, particularly crossprice elasticities, is more difficult than income or expenditure elasticities,
partly because of correlated prices & partly because of the level of
aggregation. Thus, this problem is typically compounded with crosssectional data where price variation is generally small, & when some budget
shares are small in Addis Ababa.

Table 9: Double-log regression estimates of factors affecting annual

beef demand, Addis Ababa (2002/3)
Variables

Estimated Coefficients

t-value

Constant

-9.130*

-11.333

Ln(f-size)

.007

.203

Ln (Income)

.008*

14.185

Ln (Pr-Sheep)

.220*

4.127

Ln (Pr-chick)

-.028

-.708

Ln (Pr-beef)

-.125*

-3.138

Adjusted R-square

.831

Model test F

193.921*

Durbin-Watson statistic

2.140

Note: - * indicates that the coefficients are significant at 1% level of

significance. The others are insignificant.

5.5. Demand Projection

Demand projection gives information on the quantity of the consumption of

beef in Addis Ababa. Thus, the resulting projected demand population
figures can be used for drawing development plans for any beef production

47

enterprises as well as for equipping up the demand requirements of beef in

the capital city.

Households demand for beef in Addis Ababa is projected for the year 2009
using base year 2005 consumption figures. Growth in population and per
capita income and income elasticities are used to make projections
following the method described by Holtzman (1988) as follows: Dbc= Pop
+ (Ei * Yi), where Dbc, Pop and Yi are percent changes in beef
consumption, population and real per capita income, respectively, and Ei is
income elasticity of demand for beef. Population and real per capita income
are assumed to grow at rates of 5.5 % in Addis Ababa (CSA, 1996) and 0.9
% (CSA 1999/2000), respectively.

In addition, the projection in table 10 below presents in this section is made

under the assumption that, the average family size of 5.56 persons per
household. Accordingly, on the basis average consumption level of 7.95
Kg/ Hh/ annum and beef-consuming households was reported 100%.
Therefore, by assuming the population within the city is all consuming beef
and all other things remaining constant, the projected demand for beef is
given as follows:

Table 10: Projected Demand for Beef

Population

Households

Consumption

(million)

(million)

(million Kg)

2005

4.00

0.72

3.83

2006

4.22

0.76

4.35

2007

4.45

0.80

4.57

2008

4.69

0.84

Year

4.81

2009
4.95
0.89
5.10

Source: Author s calculation based on CSA 1996 population data in Addis Ababa.

48

6. CONCLUSSION AND RECOMMENDATION

The major objectives of the thesis are examine the demand for beef in Addis
Ababa, identify factors that can possibly affect the consumption of beef,
pinpoint the ways of eating for beef and also forecast the demand for beef.
The study is mainly based on data obtained from the household sample
survey response and supplementary information collected from concerned
institutions. This study also tried to give some background data on the
existing demand level for those individuals or institutions that are engaged
in beef production and marketing.

Consumption habit of the people of Addis Ababa is various. The habit of

variation is on cut and kind of meat eating preference. Eating preferences of
cut of beef (shint or sirloin comprised a larger percentage, followed by
Tanash (Hind quarter) and Talak (top round), respectively). The majority of
Addis Ababians prefer raw beef; Steaks and Fried come next. The other
variation among households was observed in terms of the kind of meat
preferred. About 62% of respondents ranked beef as their first preference as
compared to other kind of meat. The quality indicators for beef considered
are color and fatness, with 55.3% and 22.8% responses, respectively.
Another beef consumption pattern of variation is due to communalism and
religious motivation. About 56% of the households utilized sharing the
body part of the animals (kircha) as a means of acquiring beef. Religious
affiliation also creates variation on beef demand, as there are periods and
days of fasting time when livestock and livestock products are not
consumed.

Butcheries usually consider price and quality of beef in the city when they
buy live animals. In addition price depends on supply and demand, which is

49

heavily influenced by the season of the year and the occurrence of religion
and cultural festivals. So, there are price differences in the city woredas or
kebele butchery. The average purchase price of beef reported by the sample
households was 16.50 birr/kg along with average distance households walk
about 623.5 meters to butchery. There were significant differences in the
level of beef consumption among income groups. Households in every
groups of income wanted to consume chicken, Sheep, and goat meat as
supplementary or together with beef at the time of holiday, occasion, and
any other ceremonies.

Because of this, producers need to continue their investment in product

development. Research birr have developed consumer-oriented products
that emphasize convenience, taste and uniformity.

Double log functional form of the demand model was fitted to the data so as
to readily interpret the coefficients as elasticity. The demand analyses of
beef reveal that income, own price, and price of sheep are important
determinants of household beef consumption patterns in Addis Ababa.
While price of chicken and family were not found to influence the demand
for beef, the relatively richer section of the population was found to
consume more beef product than the less favored section of the population.

Projected demand for beef using growth rate of population and real per
capita income reveal that 5.10 million Kg would be consumed by the year
2009. Therefore, attempts to adjust prices to the normal would be necessary
to permit households achieve the desired optimal level. And, if this demand
level has to be met, the livestock development objective to increase the state
as well as national production of beef must be addressed more seriously.
This could happen through provision of the necessary credit facilities and
incentives in the production process. In addition a well organized research
activity should be undertaken to provide farmers the necessary information

50

on the methods of production and management of the cattle, in line with the
presence of the number of qualified human resources should increase so as
to tide care of the animal health, nutrition and feeding system.

Thus, the overall findings of this study shows that the existences of greater
beef demand by all dwellers in the city. Private investment in the beef
industry is expected to play a substantial role in satisfying the demand. In
addition, policies on marketing of beef cattle from countryside to the city
could be followed by facilitating infrastructure including roads and
transportation so that, it will advocate both farmers and private investors to
stay in the sector.

51

7. REFERENCE

(AAPBMDA)Animal, Animal Products and By-Products Market

Development Authority), 1999. Market Problems and Measures to be
taken. Addis Ababa, November 1999.
Armstrong, J.R., 1988. Cattle and Beef Buying, Selling and Pricing Hand
Book. Indiana Coop. Ext. Serv. May.
ART., 1990. Livestock Production and Development in Ethiopia. In third
conference of ministers responsible for animal resources. Nairobi, Kenya.
Bekele, Zewdu, Assefa, Getaneh, Alamirew, Desta, 1995. An efficient
Forage Harvesting Implement. Proceeding of the third national conference
of the Ethiopian society of animal production, Addis Ababa: ART.
Berhe, Kahsay, G/Medihin, Berhanu, 1999. Development Needs of Pastoral
and Agro Pastoral Production Systems in Ethiopia. Pp. 90-105. In
proceedings of the DHP-Ethiopia National Workshop, Teka, Tegene (ed.);
Azeze, Alemayehu (ed.), Mekele, ILRI.
Central Statistical Authority (CSA), 1999. Report on Average Retail Price
of Goods and Services by Urban Center. statistical bulletin No. 22.1. Addis
Ababa, January-April 1999.
Central Statistical Authority (CSA), 1999/2000. Household Income,
Consumption, and Expenditure Survey. Addis Ababa, April 2002.
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