Value Chain Analisis of Hide and Skin in Debrebrehan Town Northern Shewa

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Addis Abeba Universty


This research attempted to analyze value chain of hides and skins in DebreBrehan town, Amahara Region of Ethiopia. Hides and skins play irreplaceable role in the production of leather and leather industry. Data for the study were collected from both primary and secondary sources. The primary data were generated by household survey using a pre-tested structured questionnaire and key informant interview using checklists. The data were collected from 399 farmers (animal husbandries, and homestead slaughters), 18 traders and 2 tanneries and analyzed using STATA software. Hides and skins value chain actors and major defects were identified, on the actors include input suppliers,(animal husbandries and live animal traders) producers, (homestead slaughters, restaurants, butchers, abattoirs) traders (home to home collectors, middlemen’s, wholesalers)and final receivers (Tanneries). And the major defects that will be occurred on hides and skins have been classified in pre-slaughtering defects(of animal during rearing are horn rake, rope mark, branding, ectoparsites, wounds,on live animal trading the major defects occurs on hides and skins are beating on transporting animals, rope mark, wound, horn rake,) peri-slaughtering defects( hole, fly cut, poor pattern) and post-slaughtering defects(Delay on selling, Poor preservation, petrification).Value chain mapped and the role of the actors described, The chain is governed mainly by Tanneries, five marketing channels were identified. The smallest channel is channel I and channel V. which is producers directly sells to consumers, (tanneries). The longest chain that involved many actors is channel III. The highest total gross margins are 92 % in channel V. The highest gross marketing margin of producers in potato and onion markets channels are 66.7 % and 22.2 % in channel II and IV, respectively and lowest on channel III (11.4%). The result shows that with the number of marketing agents increases the producers share decreases.



Value chain analysis; hides and skins; Value chain map; marketing channel; Marketing margin; Debrebrehan.