MARKET CHAIN ANALYSIS OF GOAT: THE CASE OF HUMBO WOREDA, WOLAYTA ZONE, SNNPR, ETHIOPIA

Ethiopia is has tenth largest livestock inventory in the world. Ethiopia is also richest African country interms of number and diversity of livestock population(EEA,2004). Most of goats are raised by smallholder farmers in Ethiopia for cash income and meat(Anwar,2010). In support of stimulating growth, economic development, food security and alleviating poverty among farm households and pastoralists, the performance of goat marketing plays an important role in any on-going or future goat production and development plan. However, the subsector has encountered with lack of information about what determines goat market supply. This study aims at examining the market chain of Goat in Humbo Woreda. Both primary and secondary data were used in this study. The primary data was generated from 196 sampled farmers, 30 traders and 20 consumers by using semi-structured questionnaires. Multi stages sampling procedure was used to select sample units. Descriptive and econometric data analyses tools were used for analyzing the data collected from farmers and traders in the study area. The survey result shows that quantity of Goat produced by farmers passed through different marketing agents until it reach to final consumers. Structure of Goat market indicates the four largest traders handled 41.17% of the total volume of purchased Goat. This suggested that the Goat market in Humbo Woreda shows a weak oligopolistic market. The major barriers to enter into the market were shortage of capital and information collusion. The multiple linear regression model result shows that Age of house hold head , credit use , distance to market, education level of house hold head, frequency of extension contact, cooperative membership and non farm income significantly affected the volume of Goat supplied to the market. Therefore, producers should focus on gaot production and marketing as bussiness, development agents, agricultural experts,marketing agents,research institution, the Ethiopian government and partner organizations in study area should give special attention for extension service to improve quality product,health status,reducing production cost through training in a way to serve grassroots level in all aspect as well as choose effective and efficient market channels is important.