1. Ethiopia has the largest livestock population in sub-Saharan Africa constituting about 31% of the ruminant livestock (camels, cattle, sheep and goats) of East Africa (FAO Production Yearbook, 1988). Needless to say, livestock play significant roles in the national economy of Ethiopia. In aggregate, the livestock sector accounts for about 15% of the total GDP and 33% of the agricultural GDP without taking account of the value of draft power and manure (Jahnke, 1982). In contrast, only about 5% of the total GDP and 18% of the agricultural GDP in sub-Saharan Africa is accounted for by this sector (Anteneh et al, 1988).
2. In Ethiopia, next to coffee, livestock exports (live animals and livestock products) constitute a major source of foreign exchange. In 1986, exports of livestock accounted for 17% and 18% of the gross value of the total merchandise (US$ 399 million, 1981-1986 average) and agricultural exports (US$ 368 million, 1981-1986 average) respectively. Excluding coffee, livestock exports alone represent 68% of the value of agricultural exports, 87% of this being accounted for by exports of hides and skins (FAO Trade Yearbook, 1987). In comparison, livestock exports accounted for 2% of all sub-Saharan Africa's merchandise exports in the mid-1980s (Anteneh et al, 1988).
3. In the highlands, livestock provide about 53% of the value of the total farm output (again excluding the value of draft power) and more than 80% of farmer's cash income (Gryseels and Getachew A., 1985). In the lowlands, pastoralists derive well over 90% of their cash income from livestock (Anteneh, 1989). Draft power, notably in the central highlands, is a critical input, worth a great deal of value and playing a pivotal role in the prevailing traditional mixed farming system.
4. Following the radical Rural Land Reform Decree of 1975, the Ethiopian Government has made vigorous attempts to organize the rural population into peasant associations (PAs), service cooperatives (SCs) and producers' cooperatives (PCs). The wide spectrum of related objectives and goals include the transformation of the subsistence farming into a well developed commercial agriculture which can take full advantage of improved technology and economies of scale.
5. As regards livestock development, particularly dairying, the government's intention has been to promote medium- and large-scale operations through the producers cooperatives and parastatals. To this end, most of the private commercial dairy farms on the outskirts of Addis Ababa and other big cities were nationalized. However, the nationalization effort has not generally resulted in great economic advantage. Livestock enterprises taken over by the parastatals or managed by cooperatives have shown no visible success over the last 15 years or so.
6. The paper generally discusses policy and institutional issues related to the topic in post-revolution Ethiopia. In this connection, there seem to be at least two specific questions to be addressed: (1) whether cooperative organizations present a threat to or an opportunity for fostering livestock development in the peasant sector; (2) whether livestock investment provided to the peasant sector is adequate or in conformity with the interests and objectives of the participating farmers. Within this context, the paper attempts to present a brief firsthand account (based largely on personal observations and field visits by the author) of the prevailing situation, with a particular focus on the central highlands. It also considers alternative development options in an effort to stimulate discussion and induce a more in-depth research on the subject.
7. The first part of the paper summarizes the physical resource base and the farming systems of the central highlands. Part two highlights the performance of the livestock sector and provides a very brief picture of the institutions involved in livestock development. Also this part examines the situation of livestock development in these institutions with particular reference to the dairy sector. The third part surveys livestock investments made available by government, non-government organizations and formal credit institutions. The strategic policy issues in livestock development in the peasant sector are discussed in the fourth part. Part five explores the future prospects and the options available for developing the sector. Finally, the paper presents the conclusions and policy implications.
