Dr Poultry Production and Consumption True-Price Accounting in Ethiopia

Abstract

In Ethiopian agriculture, poultry farming plays a significant role in balancing nutrition and creating jobs. The structure, production methods, economic performance, and externality costs of poultry farming in Ethiopia are analyzed in this study, with a particular emphasis on broiler and layer production in four urban and peri-urban areas surrounding Addis Ababa. Almost half of the poultry farms are located in Addis Ababa, while the rest are found around Bishoftu and Adama. Large-scale operations are uncommon in broiler production, which is dominated by medium-sized farms (58%) that use deep litter systems (96%). Ethiopian egg production is comparatively animal welfare-friendly when compared to caged systems that are prevalent elsewhere, since layer production is primarily small-scale (67%), with less than 1,000 birds per farm and a similar predilection for deep litter housing. The result further shows that both broiler and layer (table-egg) production farms are financially viable. Emissions of greenhouse gases (GHGs), mostly from the production of feed and the handling of manure, are the main source of external costs. GHGs are responsible for 71% of environmental costs in egg production, while manure management alone is responsible for 59% in broiler farming. The second biggest environmental burden is air pollution. Despite being lower, social costs are nevertheless substantial and are mostly caused by health hazards and underpayment. The cost shares of gender discrimination and child labour are negligible. Current prices understate the full social cost of poultry products when market and external costs are taken into account. Market pricing only makes up a portion of the true price, which is $0.199 per egg and $4.99 per kilogram of chicken meat. Though it has high hidden environmental and social costs, Ethiopian poultry production is often characterised by small- and medium-scale, welfare-friendly systems. Sustainable sector development requires reducing these externalities through better management of feed and manure, energy efficiency, labour standards, and market openness.