Business Model: Sheep Fattening for Youth Cooperatives in Doyogena, Ethiopia

Abstract

Sheep fattening in Ethiopia has been recognized as a potentially profitable activity that increases the incomes of smallholders. It is practiced on various scales by small-scale farmers, suburban and urban and cooperative fattening farms. The International Center for Agricultural Research in Dry Areas (ICARDA), in close cooperation with regional agricultural research institutes and partners, implements improved sheep fattening methods and technologies with an entrepreneurial lens in Ethiopia. The project aims to improve the income of rural farmers from sheep fattening. Sheep farming is one of the lucrative commercial businesses in Ethiopia. The youth have been encouraged to undertake collective action to fatten rams for sale as well as participate in related entrepreneurial opportunities along the sheep value chain. The main products of sheep fattening are fattened rams. In Doyogena, the cooperative members fatten rams individually and sell them collectively through direct marketing on the local market. Financial forecasts by sheep fattening cooperatives in Doyogena have shown that an initial investment of ETB 65,000 ETB (USD 1360) is required to set up a profitable sheep fattening business. In one year, a fattening cooperative will make 121,800 (USD 2544) from the sale of sheep. This suggests that sheep fattening is a business venture with great potential to increase income and employment opportunities for youth and women.