Aloe Soap Value Chain Initiative and its Effect on Livelihood Diversification Strategy: The Case of Pastoralists and Agro-Pastoralists of Borana, Southern Ethiopia

Abstract

This study aimed at assessing the effect of ‘ Aloe soap value chain initiative’ on pastoralists and agro-pastoralists in supplementing their livelihood diversification strategy to overcome impacts of recurrent shocks in the Didayabello, Fulduwa and Dambala Badana Pastoral Associations (PA) in Yabello, Arero and Dire districts, respectively, of Borana Zone. Wild Aloe plant is one of the abundant plant species found in the area and most neglected/underutilized as means of livelihoods except for few traditional medicines and ritual purposes. The research employed qualitative and quantitative research methods using both primary and secondary data. Purposive sampling method was used by which three sample PA administrations with potential aloe soap processing sub-centers were selected for data collection. A total of 120 sample households (60 participants and 60 nonparticipants) were selected by using probability proportional to size for the survey. Data analysis was made by descriptive statistics and econometrics using propensity score matching method. The study, therefore, had evaluated the effect of aloe soap value chain initiatives interventions in the target PAs. It has used cross-sectional survey data of 2012-2013 to see the effect of the intervention in supplementing the participants livelihood diversification strategy. The intervention has resulted in an increased amount of income to participants earning an average total income of Birr 2688.70 per month from the aloe soap production. . Besides being a productive plant species with best economic value, the Aloe plant species are found to be environmental friendly, drought tolerant and best for soil and water conservation, in addition to its magnificent medicinal uses. Based on the results obtained, such innovative product of market development interventions has a paramount importance for the enhancement of alternative livelihood diversification strategies of the pastoralists and agro-pastoralists