DETERMINANTS OF CATTLE SUPPLY AND THE ROLE OF ETHIO-SUDAN CROSS-BORDER TRADE: THE CASE OF NORTH GONDAR ZONE AMHARA NATIONAL REGIONAL STATE

Abstract

The study conducted in Metema woreda results reflected that several factors were responsible for supplying cattle to the market. Cash need for different purposes especially weed and restocking cattle has been underlined the basic deriving force for cattle supply. Engagement of off-farm, non-farm and fattening activities to diversify farmers’ sources of income initiates them to transfer from cattle (in kind) to cash through cattle supply to the market.Metema woreda is one of the low land woredas in the Zone, which have high cattle potential resources. Having ample cattle resources per household according to the respondents leads them to supply more cattle to the market. Both legal and illegal cattle marketing systems are operating at different magnitudes in the Amhara Region’s Ethio- Sudan cross-border cattle trade. Small farmer exporters and traders are the major actors in the illegal cattle marketing system while medium- to large scale licensed exporters and cooperatives are dominantly operating in the legal system. In the view of the respondents, be it legal or illegal system oxen and bulls were highly demand for export than other cattle types. The data obtained from Metem yohannes world food program data collection centre different sector offices, household interview and group discussions, prevailed that the market share of the illegal cattle export was reduced from 60% to 31% in the year 2011.In the study area, different actors participated in cattle supply market includes producers, local assemblers, wholesalers(collectors), cooperatives, Brokers, Butchers, consumers and large scale exporters and all have played independent role in the market. There are three types of exporters who sell cattle in the Ethio-Sudan cross-border export legal and illegal terminal points: Cooperatives, large-scale exporters and small scale illegal exporters. Supply of cattle to the primary, secondary and also the terminal markets is mostly done through trekking and trucking routes. The majority of cattle are trekked through villages and small towns. Mostly smallholder farmer exporters use the traditional trekking routes to reach the illegal terminal markets. Several factors that contribute to the development of the illegal marketing system have been identifiedThe presence of tariff rate charged by Sudan authorities for cattle that go through legal route and no tariff imposed on importers for cattle that go through the illegal route as they are sold inside Sudan. This practice may be encouraging importers to buy cattle from small farmer exporters operating in the illegal system. Lack of adequate modern market centres which consists of different components such as feed, water, shade, etc has positively contributed to the existence of illegal cattle trade. Recently one modern livestock market centre was constructed and functional as terminal market for the whole cattle go through Metema to Sudan. This situation enforces the cattle producers living within 40 kms radius between Gendewuha to Metema yohannes(the border) to take their cattle and sell Gendewuha market. According to sample respondents selling their cattle at this market lead them to waste time and incurs cost as well as unfortunately if the cattle cannot sold on time they obliged to bring back home. .