Generally, in Ethiopia DOC multiplication centers import parent stock from abroad, typically the Netherlands. The centers raise DOCs for sale to backyard producers, small-scale commercial producers, or in-house use.
There are six to seven fully functioning leading multiplication centers nationwide i.e., one private operator (EthioChicken), one to four vertically integrated producers (such as, Alema, Elfora, Friendship Agro-Industry), and two quasi-governmental centers (public/private model) in Hawassa and Combolcha.
Thus, despite the growing production of broiler and layer DOCs, the total output of the Ethiopian hatcheries is still limited, and currently there is a severe shortage of DOCs in the country. Some of the reported causes for the DOCs shortage are opaque parent stock import regulations, government protection of indigenous breed stock slowing the flow of improved breeds allowed to be imported, and weak production capacity of existing multiplication centers.
On the other hand, the limitations of domestic hatcheries are reported to be their operations with higher mortality, lack of candling equipment to test egg fertility, and inappropriate feeding schedules for parent stock.
However, because of the Covid-19 pandemic, the Ethiopian poultry sector was highly affected due to the disruptions of supply chains. Consequently, the COVID 19 impact is still disrupting the poultry sector, particularly creating shortage of DOCs. Moreover, as DOCs are primary inputs that sustain the poultry production cycle, this shortage is a highly flagged and timely priority of poultry producers.
The Situation: CME Out-growers & Access to DOCs
As part of a short-term solution, through strong personal relation and contacts, CME has been providing DoCs to out-growers mainly by accessing from two sources i.e., Elfora and Alema. Yet, with the serious DOCs supply shortage, this system has been challenging CME from consistently sourcing and providing DoCs to its out-growers.
Since August 2021, CME managed to provide 16,760 DOCs to its out-growers mainly by sourcing from Elfora and Alema.
On the other hand, under CME-2SCALE partnership a youth-led hatchery company named Yo Farm is included as a main actor. As sustainable solution to the serious challenge that out-growers face in accessing DOCs, the linkage with Yo Farm is established to supply all CME out-growers with DOCs.
Accordingly, CME takes the lead in formalizing this DOCs sourcing system through its out-growers contractual agreement. Through Yo Farm DOCs sourcing linkage, CME out-growers can access DOCs on credit basis. The amount of given credit will be deducted from the out-growers final payment upon delivery of the chickens to CME.
Yet, since March 2020, Yo Farm didn’t hatch broiler DOCs due to the lack of fertile eggs in the market following COVID 19 impacts. Besides, due to COVID consequences, Yo Farm was forced to destroy around 70,000 DOCs during March – April 2020 as poultry producers stopped receiving DOCs because of uncertain situations of that time.
Under CME partnership, beyond establishing a mere DOCs linkage system, CME is determined to strengthen and ensure Yo Farm hatchery operations. Consequently, through strong personal relation and contacts, CME managed to trace locally available fertile eggs. Accordingly, through CME communications, on November 11, 2021, Yo Farm received a total of 6,000 fertile eggs. After 21 days for these fertile eggs hatched to broiler DOCs, which were then shared to out growers.
This interesting progress is highly appreciated by all CME value chain actors. After 21 days, Yo Farm will be able to provide DOCs to out-growers. This process is expected to further promote efficient value chain coordination systems, build trust, and thereby ensure sustainable business.
Upon receiving the fertile eggs, he said,