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Published On  Jan 22,  2012
   
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City Trade Bureau to Cut out Cattle Market Fat

The directives target price surges middlemen, by requiring permits for cattle trading

 

 

Breeders and traders of cattle in Addis Abeba will soon be restricted from trading without licenses issued from the Addis Abeba Trade & Industry Bureau, sources disclosed to Fortune. Neither will butcheries across the city continue to receive supplies from those distributing meat without first securing permits from city authorities.

City officials are writing directives that they argue will put a check on sudden surges in the prices of meat, putting middlemen out of business and helping to enforce a proclamation issued by the Ministry of Trade (MoT) last year.

The cattle trade has remained traditional and unregulated for several centuries, despite local authorities and officials from the tax authority imposing their respective levees.

The market has a four-tier system, a study commissioned by the Food & Agricultural Organisation (FAO) a few years ago discovered. There are local famers or rural traders who supply cattle to small traders. The latter take cattle bought from farmlands to terminals where large traders and butchers buy, who then provide consumers from slaughterhouses and slabs.

Nonetheless, the price of cattle in the capital has been increasing in the past few years, where an ox is now sold for as high as 20,000 Br, save holiday price increments. While a kilogramme of meat may reach anywhere from 90 Br to 100 Br, the lowest priced market may offer it for 47 Br. City officials blame the large traders and butchers for the surges in prices.

“The public knows where to buy, so brokers should be excluded from the supply chain,” said Mekonnen Seifu, head of trading activities and expansion at the Bureau.

The capital has four major places where cattle trading takes place: Shegole, Akaki, Kera, and Kara, of which the latter, on Asmara Road, is the largest. There are about six gates where cattle come in from different parts of the country: Kolfe Keranio (New Ambo Road), Gefersa (Ambo Road), Entoto and Gulele (Bahir Dar Road), Kotebe (Asmera Road), Akaki (Debre Zeit Road), and Alem Gena (Jimma and Butajira roads). 

Assefa Ababo, a butcher from Kotebe area in the business of qercha, a traditional system of sharing bovine meat bought collectively, agrees with the Bureau.

Brokers speculate on prices, thus, compelling many of his peers to travel as far as Sendafa, 34km northeast of the capital, hoping to get cheaper prices from farmers and small traders, Assefa claimed.

“Licensing will regulate the market, and prices will, rather, be determined by the traders who can only put up the margins on their costs,” said Assefa.

Traders in this business for many years, without being required licenses, are furious over the prospect of the government’s hand in their business.

“I do not really know what having a license would add for me, but I think it will manage the market and adjust prices,” Bekele Weyesa, 38, a cattle trader for the past 10 years, told Fortune. “I hope it will be a directive that takes our hustle and bustle into consideration while travelling.”

Traders like him bring cattle from Hararghe (the greater Harar area), Wolayta and Borena, to supply meat to the capital. Last year alone, 2.56 million cattle were bought from Hararghe, while 1.13 million were brought from Borena and 767,153 from Wolayta, according to data from the Central Statistical Agency (CSA).

These traders are subjected to seven Birr fees per head to pass checkpoints, while paying an additional 20 Br per day for handlers.

Nonetheless, the directive applies for all traders, including those who bring their cattle from distant regions to the capital.

“We will issue licences to them and report back to the regions they come from,” Mekonnen told Fortune.

The initiative by city authorities may be difficult to enforce, given the traditional nature of the cattle market in the city and the fact that most people buy on the street as well as in places close to their homes, according to Daniel Alemu, coordinator of a breeders association established in 2007.   

The directive is at an early stage of drafting by experts within the Bureau’s Trade Linkage Department. Once finalised, it will be tabled to the Head of the Trade & Industry Bureau, Shisema Gebresellassie, for signing.

Although experts in the department were hoping that the directive would be signed off in the next one or two weeks, it could be extended until next month, for the Bureau chief is in training unrelated to the case, according to sources within the Bureau.

 

By HADRA AHMED
FORTUNE STAFF WRITER

 
 
 

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