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Table of Contents

ACKNOWLEDGEMENT

ABSTRACT

Chapter One Introduction
1.1. Back ground
1.2. Statements of the problem
1.3. Research Questions
1.4. Objectives of the study
1.5. Significance of the Study
1.6. Scope of the study
1.7. Limitation of the study

CHAPTER TWO LITERATURE REVIEW
2.0. Introduction
2.1. Poultry production
2.2. Constraints of poultry industry
2.3. Prospects of poultry production
2.4. Poultry, marketing and profitable production
2.5. Management of Poultry Farms:

CHAPTER THREE METHODOLOGY
3.0. Introduction
3.1. Research Population
3.2. Description of the study area
3.3. Sample and Sampling techniques
3.4. Source of Data
3.5. Data Collection Instruments
3.6. Data Analysis

CHAPTER FOUR DATA PRESENTATION, ANALYSIS AND DISCUSSION
4.0. Introduction
4.1. Demographic Characteristics of Respondents
4.2. Profitability of Poultry industry
4.3. Market demand of poultry industry
4.4. Access of land for poultry industry
4.5. Accessibility of Electric power
4.6. Poultry Feed access, knowledge of feed preparation & feeding condition
4.7. Poultry professional, drug and medication access
4.8. Government policy on poultry industry in Bahir Dar city
4.9. Challenges of poultry industry in Bahir Dar City
4.10. Prospects of poultry industry in Bahir Dar City

CHAPTER FIVE FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1. Findings
5.2. Conclusion
5.3. Recommendation

References

ACKNOWLEDGEMENT

My greatest thanks and gratitude goes to the Almighty God, who by his mercies and grace made my schooling possible, his praise will forever be on my lips.

I register my profound gratitude and indebted to my advisor Assistant professor Gashaw Moges for his invaluable guidance and suggestions. I really owe him a debt of gratitude.

My sincere heartfelt thanks goes to all friends namely Abnet Bihonegn, Yeshiwas(Dr), Samuel, Abebe, Abyot and Haileyesus who saw the potential in me and encouraged me to go through this program.

Especially Atsu, My lovely wife, I say thanks a lot for your prayer, support and special words of motivation.

Finally, I am exceedingly grateful to God, I mean the great” I am” who makes impossibilities possible.

DEDICATION

This work is dedicated to my one and only daughter Herani Abere Dagne.

ABSTRACT

In Ethiopia poultry industry plays decisive role to improve income of peoples, especially who lives with low income. Different research on genetics, health, production, and marketing were conducted, though none have done in Bahir Dar City. Less attention has been given to identify challenges and prospects of poultry industry rather than taking one component and react on that, though poultry industry is diminishing through time without clear and research based identified problems. The purpose of this study was to identify the challenges and prospects of poultry industry in Bahir Dar city. What are the major constraints and prospects of poultry industry, what would help strengthen poultry industry, and how do poultry productions profitability look like? These were questions which the study attempts to answer with focus on Bahir Dar city poultry industry. The study was descriptive type of research and the data for the study were collected through sets of questionnaires administered to respondents, as well as interviews, with some selected producers and experts. Census sampling technique was used to select respondents and data collected was analyzed by the use of SPSS and Microsoft Excel. The study revealed that stakeholders involved in the poultry business of Bahir Dar poultry farm industry believe the industry is actually declining and they assign causes such as shortage of guaranteed land, absence of sufficient electric power, absence of genuine breed supply of chicken, lack of knowledge on poultry production, shortage of professionals in the area, government ’ s lack to amend land lease time policy based on the nature of poultry industry, absence of clear control mechanism of genuine breed poultry and absence of feed processer either private or/and government organization subsidies on agric inputs like feed, drugs, equipment and several other factors. On the other hand, major prospects of poultry industry in Bahir Dar city like presence of good government policy, presence of better market demand and conducive environment for poultry production were identified. It can be concluded that, if the government and producers are unable to overcome those major identified constraints and challenges of poultry industry, the existing loss of poultry industry will be aggravated and most probably poultry industry will be totally eliminated from Bahir Dar city. Finally I recommended the government to revise its land lease policy, to create access genuine breed poultry and to fulfill other facilities demanded for poultry industry as a pre requisite. And for producers I recommended to improve their knowledge related with poultry and consult experts for every process of poultry production starting from poultry housing construction.

Keywords: Poultry, Problem, Prospect

ACRONYMS

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LIST OF TABLES

Table 2.1 Major characteristics of the chicken production system in Africa

Table 3.1: Classification of Respondents and Sample Size

Table 4.1: Age of Respondents

Table 4.2. Profitability of poultry industry

Table 4.3 Availability of land for poultry industry

Table 4.4. Number of building per poultry industry

Table 4.5. Challenges of poultry industry outlined by producers

Table 4.6 Challenges of poultry industry outlined by Expert

Table 4.7. Prospects of poultry industry outlined by producers

LIST OF FIGURES

Figure 4.1: Gender of Respondents

Figure 4.2: Educational Background of Respondents

Figure 4.3 Initial and Current capital of poultry industry

Figure 4.4 Likelihood of poultry industry profitably-

Figure 4.5 Marketing demand of poultry product-

Figure 4.5 Accessibility of Electric power for poultry industry-

Figure 4.5 Access of a day chicken

Figure 4.6 poultry feed

Figure 4.7 professionals and service delivery

Figure 4.8, government policy on poultry industry

Chapter One Introduction

1.1. Back ground

Ethiopia has the largest livestock population in Africa (CSA 2009) with 49.3 million heads of genetically diverse cattle, even though its productivity as well as marketing system is poor.

Livestock population in Ethiopia was estimated about 78.4 million in 1988 and was believed to be Africa’s largest. Of which 31 million were cattle, 23.4 million were sheep, 17.5 million were goats, and 5.5 million were horses and mules, and 57 million were poultry. The role of livestock production in Ethiopia is great and contributes for the overall economy of the country. Estimates for l987 indicated that livestock production contributed one-third of agriculture's share of GDP, or nearly l5 percent of total GDP. Hides and skins constituted the second largest export earner, averaging about l5 percent of the total export value during the period l984/85 to l988/89; live animals averaged around 3 percent of the total value of exports during the same period (U.S. Library of Congress, 1990).

The price of livestock is dramatically increased from agricultural products throughout the world. The main reasons of escalating the price of live stock product is due to rising income in newly emerging developing nations and high population growth. The demand of livestock product is income based elastic and livestock revolution is emerged in most developing countries following their economic development (Awol Zeberga, 2010, Analysis of poultry marketing chain, Delgado et al.1999). Currently, semi-processed livestock products are exported so that its demand market is significantly increased.

Poultry is also one of the livestock agricultural products that are highly demanded throughout the world and in Ethiopia too. Unlike the other types of livestock product, poultry product is easy to enter in the market because it demands low capital in both financial and land resources.

Poultry production in Ethiopia has been held by poor farmers. Meanwhile poultry industry gets attention of governments and petty trade enterprises so that the business may not be owned by poor farmers only.

Poultry farming is widely practiced in Ethiopia; almost every farmstead keeps some poultry for consumption and for cash sale. The highest concentration of poultry is in Shewa, in central Welo, and in northwestern Tigray. Individual poultry farms supply eggs and meat to urban dwellers. By 1990 the state had begun to develop large poultry farms, mostly around Addis Ababa, to supply hotels and government institutions (U.S. Library of Congress, 2011).

Recent estimates in 2007 put the poultry population in Ethiopia at around 34.2 million with native chicken representing 94.4%, hybrid chicken 3.92% and exotic breeds 0.64% (Central Statistical Agency 2007). The households depending heavily on agriculture and livestock can depend on poultry as a low cost option to diversify and mitigate risks.

Modern poultry industry firms like ELFORA, Genesis and Alema farms have come up over time especially in Debre Zeit region. However their share remains small compared with the existing potential of poultry industry in Ethiopia.

Africa/Indonesia Region Research Report 2, 2011, there are about 7 regional poultry multiplication and distribution centers with a total annual capacity of producing about 1,236,000 a day old chicks and about 486,000 pullets and cocks. There are also about 10 commercial poultry farms with estimated annual production capacity of 1,500,000 chicks. Most farms import day old chicks from abroad (MoARD and FAO, 2006)”. Ethiopia has almost zero poultry exports and the little it exports at times come from firms like ELFORA.

It is obvious that, the poultry production is practiced traditionally and is held by small holder marketers and farmers breeding for their own consumption in most regions of Ethiopia. However, it has profitable and attractive business areas for producers such as, availability of restaurants (presence of high market demand), absence of modern producers (low competitors) and presence suitable government policy (subsidizing sector).

The poor farmers produce chickens for sell to get additional income and used for household expenses. Due to the price of beef and mutton is increased substantially; demand of chicken meat and egg is increased through time. Hence, chicken product is contributing to enhance supply of animal protein for consumption and can substitute mutton as well as beef. Meanwhile, chicken meat is cheaper than other animal products relatively (Mohammad khairul Islam et al. 2014).

However, in Bahir Dar there are a few private enterprises engaged on modern poultry industries and only one governmental organization is producing in a modern way. The rest of producers are farmers breeding traditionally and they used as an extra income generating activities rather than used as profitable business organization.

1.2. Statements of the problem

Livestock industry in Ethiopia is very narrow; though the environment is most convenient as well as huge number of livestock productions is held by farmers being bred traditionally. The abundant resource of livestock in turn, helps the industry to have more comparative advantage on the cost of inputs relative with other countries.

Ethiopia is rich in livestock rank first in Africa and tenth in the world, despite the fact that the country uses the least livestock production using modern industries as expected. Especially poultry industry has left to poor of poorest farmers in most region of the country (CSA 2009).

Poultry industry is one of livestock production having convenient environment and access but narrow participation and usually held by back yard village farmers on traditional base. Poultry farming-status and prospects in Ethiopia report, 2014, also reported that, Ethiopia has many favorable and conducive factors for rapid development of industries, and thus, poultry promises high opportunities.

Poultry production practice in the Amhara Region is a traditional type; just as a backyard business in which producer's rear small number of domestic birds. Production is, basically for home consumption, with a small percentage and seasonal marketable surplus. According to the livestock sample survey of 2005/06, the Amhara Region had 9.40 million poultry population which accounts for 29.2% of the national flock. The marketable surplus is only 20% of the region flock whereas mortality rate is over 60% and the balance is consumed at home.

In Bahir Dar there are almost few producers of modern poultry production even to be counted. Most producers of poultry in the town leading their business called poultry production in a traditional way taking the business as an extra income generating activities so that they are unable to get the optimum revenue/profit comparing with existing opportunities of market demand. Furthermore, Producers in the region raise local birds which are low productive and will never catch up

with the growing demand of urban population. The urban population growth rate will also create additional demand which will justify the development of commercial poultry production at Bahir Dar and other major zonal capital cities (Poultry production poultry site dot com, 2004).

As to Bahir Dar city administration trade office annual report, number of traders who are based on poultry products get themselves rid off on the business exercising the business let them bankrupt.

Marketing system also plays great role for a given nation for its economic growth as it brings sustainable economy by balancing demand and supplies to the market, proper coordination of the exchange, and creating an opportunity to take an advantage through specialization of products based on their abundant resources which later leads to low cost production and timely delivery of products if it led by proper supply chains linking producers to consumers (Andrew et al., 2008).

Ethiopia is lacking information towards marketing system of livestock specifically chicken marketing linkage. Demand of poultry product is high but producers who are engaged in the area are not well market oriented and poultry production volume is limited as it is used for house hold consumption. This, of course, leads to low supply of poultry production to market as compared to the existing high potential of the country. And even there is no research conducted to alleviate above mentioned problems so far. Though, there are researches that are conducted on the area, the intention of the research focused on biological aspects of poultry production such as supplementary feeding and breeding (Alemu and Tadele, 1997).

Increased production, however, needs to be accompanied by efficient marketing system that adds place, form, time, and possession utility to the product along the supply chain. The marketing system for local poultry in Ethiopia, particularly in the Bahir Dar is poorly developed.

1.3. Research Questions

The following are the questions the study seeks to answer in order to achieve the research objectives;

1. What are the major constraints of Poultry industry in Bahir Dar city?
2. What would help strengthen poultry industry?
3. What are the major prospects of poultry industry?
4. How does poultry productions profitability look like?

1.4. Objectives of the study

The primary objective of the study was to identify the various aspects relating to the growth and sustainability of poultry industry. Besides theses primary objectives, there are some specific objectives of the study as follows:

1. Identifying the main challenges that poultry industry faces in its attempt to improve its production.
2. Finding out how poultry industry can address the challenges it faces
3. Proposing prospects of poultry industry
4. Investigating profitability of poultry industry.

1.5. Significance of the Study

The poultry industry is plagued with several challenges which should be seriously looked at. This study has tried to look at the challenges and prospects of poultry industry so as to provide some ways of overcoming them. The study is intended primarily, to add to existing knowledge on the poultry industry and to serve as a secondary source of data for further studies.

Indeed, those poultry producers of Bahir Dar City stand to benefit immensely from this study since it is bringing out the numerous challenges that confront it as an industrial player, and also suggest ways of overcoming these identified challenges.

Up and coming poultry farmers can also use the results of the study as a guide to avoid likely pitfalls in the poultry business.

To the country as a whole, as the challenges are overcome and poultry production and industry are enhanced, the industry has the potential of employing more people and thereby helping to reduce the problem of unemployment in the country.

Poultry industry is sensitive area and needs special attention as well as knowledge to produce properly. Most industries of Poultry need professional support to protect from bankruptcy and to expand the industry. So, researches like this are very important and contributing for development of poultry industry. Particularly in Bahir Dar most poultry industries are working without well organized and scientific way. Hence, conducting research in poultry industry in Bahir Dar is very important and can play great role on the development of the industry.

1.6. Scope of the study

The research does not cover everything about the poultry industry. It focuses mainly on poultry products especially the challenges & prospects associated with poultry industry.

Since the emphasis is on the challenges and prospects of poultry industry, the study examined challenges and prospects in the poultry industry and its profit.. It also identified challenges and constraints which might lead the industry not to be profitable.

The study was conducted in Bahir Dar town after having gathered necessary information from concerned bodies namely Bahir Dar city administration agricultural and rural development office, and participants on poultry industry in the city.

1.7. Limitation of the study

The major problem that the researcher encountered was time constraint due to other assignments and the researcher is full time worker of nongovernmental organization. Absence of related research in the area was also another challenge of the study that hinders to compare and refer some relevant information. The study was limited to identify issues related with consumer of poultry industry and it may lack to know other challenges and opportunities of poultry industry from customer perspective.

CHAPTER TWO LITERATURE REVIEW

2.0. Introduction

The history of poultry species has intrigued scholars for years. They have been interested in identifying the wild ancestor of the domestic fowl in the diffusion of a species from one civilization to another and from one territory to another as well as the evolution of poultry species under domestication.

The word "poultry" comes from the Middle English "pultrie", from Old French pouletrie, from pouletier, poultry dealer, from poulet, pullet. The word "pullet" itself comes from Middle English pulet, from Old French polet, both from Latin pullus, a young fowl, young animal or chicken. The word "fowl" is of Germanic origin (cf. Old English Fugol, German Vogel, Danish Fugl).

"Poultry" is a term used for any kind of domesticated bird, captive-raised for its utility, and traditionally the word has been used to refer to wildfowl (Galliformes) and waterfowl (Anseriformes). "Poultry" can be defined as domestic fowls, including chickens, turkeys, geese and ducks, raised for the production of meat or eggs and the word is also used for the flesh of these birds used as food. The Encyclopædia Britannica lists the same bird groups but also includes guinea fowl and squabs (young pigeons). In R. D. Crawford's Poultry breeding and genetics, squabs are omitted but Japanese quail and common pheasant are added to the list, the latter frequently being bred in captivity and released into the wild. In his 1848 classic book on poultry, Ornamental and Domestic Poultry: Their History, and Management, Edmund Dixon included chapters on the pea fowl, guinea fowl, mute swan, turkey, various types of geese, the muscovy duck, other ducks and all types of chickens including bantams. In colloquial speech, the term "fowl" is often used near-synonymously with "domesticated chicken" (Gallus gallus), or with "poultry" or even just "bird", and many languages do not distinguish between "poultry" and "fowl". Both words are also used for the flesh of these birds. Poultry can be distinguished from "game", defined as wild birds or mammals hunted for food or sport, a word also used to describe the flesh of these when eaten.

2.1. Poultry production

Poultry production in tropical countries is based on the traditional scavenging system and chickens are the most important poultry species. The share of family poultry to total poultry population in developing countries in general and in Africa in particular is not well documented but estimated to reach 70 to 80% (Sonaiya 1990; Gueye 1998; Sonaiya et al 1999; Gueye 1998). A critical review of available literature from eight Sub-Saharan African countries showed that village poultry on average accounts for 78%, ranging from 30 to 99%, of the total poultry population. The largest proportion of eggs and poultry meat in Ethiopia is produced by the village system (Tadelle 1996). Despite the fact that village poultry are more numerous than commercial ones, and provide the largest proportion of products in developing countries, little research and development work has been carried out to characterize, understand and develop the system (Cumming 1992).

2.1.1.Poultry production system

Generally, there are four poultry production systems in developing countries and in Africa. These include the free-range system or traditional village system; the backyard or subsistence system; the semi intensive system and the small-scale intensive system (Bessei, 1987; Sonaiya, 1990a; Kitalyi, 1998; Branckaert and Gueye, 2000 and Gueye, 2000a). The most common production system found in Africa are the free-range and backyard production systems (Sonaiya, 1990a; Gueye, 2003) and approximately 80% of chicken populations in Africa are reared in these systems (Gueye, 1998). The chicken in this system are a function of natural selection. As a result the performance of chickens under rural conditions remain generally poor as evidenced by highly pronounced broodiness, slow growth rates, small body size and low production of meat and eggs (Kitalyi, 1998; Sonaiya, 2000).

Table 2.1 Major characteristics of the chicken production system in Africa

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Source: Sonaiya, E.B. 1990; Kitalyi, 1998; Sonaiya et al., 1999; Gueye, 2003 and Riise et al., 2004.

2.1.2.Poultry production system in Ethiopia

Poultry production systems in Ethiopia show a clear distinction between traditional low input systems and modern production system using relatively advanced technology. There is also a third emerging small-scale intensive system as an urban and pier urban small-scale commercial system (Alemu and Tadelle, 1997). However, the smallholder rural poultry production that predominately exist in the country is characterized as including small flocks,nil or minimal inputs, with low output and periodic devastation of the flock by disease (Tadelle and Ogle, 1996a).

The present situation in many villages is that poultry left with little or no care. This causes severe fall in productivity. The birds find their feed by scavenging around the houses in the village, and in addition, they might get leftovers from the harvest. As a result, feed is rarely adjusted to the needs of the birds. Young chicks are left scavenging together with adult birds having to compete for feed and becoming an easy prey for predators and spread of diseases. Very often birds do not get enough water, or they get dirty water, which may transfer diseases. Birds are also rarely put in an enclosure or shelter. Nests for hens are rarely provided causing the birds to lay their eggs on the ground even some times in the nearby bush. Furthermore, the system is usually based on hens with the ability to go broody and rear their own chicks. This has many advantages, but the long broody periods reduce egg 8 production (Hoyle, 1992; Alemu 1995; Alemu and Tadelle, 1997; Fikre. A., 2000; Tadelle and Ogle, 2001).

2.2. Constraints of poultry industry

2.2.1.socio-cultural constraints to development

A sociological appraisal is essential in determining strategies for development. Technical and economic appraisals are also necessary, but are insufficient on their own. Socio-cultural factors contribute to the wide variety of response of livestock keepers even under identical economic conditions. Many socio-cultural factors affect livestock production. For example, some communities ban ducks, as they are presumed dirty and destructive to drinking water supplies. Some communities regard pigeons as a sign of peace and concord. In such communities, the presence of pigeons is regarded as a good omen, and their departure would presage disaster. In other communities, pigeons are regarded as an evil omen, since they are used by native doctors in sinister rituals.

Another socio-cultural constraint to poultry development is the value placed upon poultry for use at ceremonies and festivals or even as a source of income in times of need but not as a source of daily food or as a regular source of income. Some regard chickens as their pets or part of the family, thus it is only the arrival of an important unexpected visitor that could allow their use as food, although they can be sold without regret and the money utilized.

Another major constraint to poultry production is the high value placed upon crop production rather than livestock production. This affects the willingness to put much time, expense and effort into livestock production. Theft is also a great constraint. Villagers who have lost all their poultry to theft may be reluctant to face the expense of starting again.

Another constraint is the social norm that determines ownership of livestock. Typically, where crop farming is the men’s main activity, keeping livestock is perceived as a peripheral activity relegated to women and children. However, when the number of livestock increases, men usually take over the activity.

It should not be assumed that socio-cultural factors can be changed. However, by incorporating socio-cultural factors into development strategies, the programmes and technologies may encounter less resistance. Development programmes, which combine local knowledge with western science, yield strategies which are culturally more acceptable. Socio-cultural factors are thus not seen as a problem, but rather as a factor to be considered or used in finding a solution (Olawoye and di Domenico, 1990) ( Source: Small-scale poultry production... FAO 2004, E.B. Sonaiya .. et al).

2.2.2.TECHNICAL CONSTRAINTS TO DEVELOPMENT

The most common FP flock size of between 5 to 20 birds seems to be the limit that can be kept by a family without special inputs in terms of feeding, housing and labor. These small flocks scavenge sufficient feed in the surroundings of the homestead to survive and to reproduce. Any significant increase in flock size often leads to malnutrition if no feed supplement is provided. In addition, larger flock sizes must forage at greater distances, which may involve damage to neighbors’ vegetable gardens. Any move to fence in or enclose the poultry then involves the need to provide a balanced ration. Larger flock sizes can easily arise once mortality is reduced through vaccination and improved hygiene. Flock size can rapidly increase to the point where the feed requirement exceeds the available Scavengable. Feed Resource Base (SFRB) in the area around the dwelling. At this stage, either supplementary feeding or a semi-intensive system of management is required. If balanced feed, day-old hybrid chick and vaccine input supplies (and markets) are available and well organized, and then intensive poultry management systems may be a viable option. There have been many attempts to take short cuts to development and to start immediately with the semi-intensive system. Source: Small-scale poultry production... FAO 2004, E.B. Sonaiya .. et al).

2.2.3. Challenges Facing the Global Poultry Industry to 2020.

Consequences of animal welfare regulations, food safety, house environment and a number of issues relating to nutrition and feeding were identified as future challenges to the poultry industry by A.M. Penz Jr and D.G. Bruno of Provimi America Latina in Brazil in a presentation at this year's Australian Poultry Science Symposium.

Among the challenges for the next decade are to create standardized parameters for poultry welfare assessment and robust systems to monitor those parameters. This is the aim of the Welfare Quality project developed in the European Union, which proposes to assess animal welfare focusing on animals, and not on environmental or management factors, and using objective indicators that can be easily measured in the field, according to four principles: good feeding, good housing, good health status and adequate behavior (Arnould and Butterworth, 2010).

The poultry site identifies some major challenges of Global poultry industry. Such as;

Animal Welfare and its Consequences;

The welfare of animal production can be accessed from two perspectives: through anthropomorphism, where consumers put themselves in the place of livestock and make conclusions about their welfare often based in subjective ideas, or through animal performance. Animals that are reared in poor welfare conditions are not able to express their maximum genetic potential. Consumer concerns relative to poultry welfare are becoming increasingly relevant in the meat market.

There is a positive correlation between the strictness of welfare legislation and income of the citizens of a country and consequently their purchasing power (van Horne and Achterbosch, 2008). These concerns are evident, particularly in the European Union, and examples are Directives 1999/74/EC and 2007/43/EG, which established the ban on conventional cages for commercial egg production after 2012, and maximum broiler density, respectively.

Among the challenges for the next decade are to create standardised parameters for poultry welfare assessment and robust systems to monitor those parameters. This is the aim of the Welfare Quality project developed in the European Union, which proposes to assess animal welfare focusing on animals, and not on environmental or management factors, and using objective indicators that can be easily measured in the field, according to four principles: good feeding, good housing, good health status and adequate behaviour (Arnould and Butterworth, 2010).

Food Safety;

Food contamination by pathogens is the main concern of consumers (IFC, 2010). Supplying this demand for safer food requires transparency and commitment by all the parties involved in the process of food production, including governments. Each step of the food supply chain will be increasingly controlled, with emphasis on risk monitoring through preventive and corrective actions (analysis and monitoring critical control points). This requires careful selection of input suppliers, focusing on product quality and not price, which requires evaluation and maintenance plans, understanding the process and the materials used by suppliers, and technical knowledge on physical, chemical, and microbiological risks.

In the feed mills during the next decades, automation will increase, with lower exposure of workers to operational risks, and more emphasis will be placed on critical control points, which will be monitored just in time, and on real-time traceability. Andree and Schwaegele (2010), who participated in the development of a project to analyze existing or potential vulnerable points in food production chains, said the loss of information or of traceability is the main risk factor for the entrance of contaminants into the process of animal feed production. Giving proper attention to these new requirements is of great importance for the poultry industry, particularly considering the exporting countries, which must comply with the increasing demands of the importers.

Health monitoring of the flocks is and will become increasingly important, not only to prevent food borne disease but also to avoid performance losses and to ensure bird welfare. Compliance with health programmers’ (cleaning and disinfection, vaccination, pest control, disease monitoring), immediate notification and record of abnormal situations, health monitoring programmes and measures for infection control and eradication must be put in place, particularly in a scenario where the use of antimicrobial compounds is increasingly restricted.

Environment;

Thermal comfort inside poultry facilities is essential, as unfavourable environmental conditions significantly affect production. Both excessive cold and heat may cause production losses and impair bird health and welfare and, in extreme situations, increase bird morbidity and/or mortality. The evolution of technology and of the knowledge on thermoregulation physiology and behaviour will reduce mistakes in poultry house design and in bird management that can cause thermal discomfort. The development of information technology allows new techniques in the study of broiler thermal comfort, such as the use of real-time image analysis using video cameras, image-acquisition hardware, and imageanalysing software programmes to acquire, process and evaluate information (Moura et al., 2010).

Interestingly, inside broiler houses, 80 per cent of the heat is not produced by lamps or brooding systems but by the birds themselves. Proper evaluation of this heat production may allow creating mechanisms for the utilisation of this energy, which could be translated in significant cost savings.

Feed Formulation;

Out of the trends currently observed and that will define how nutritionists are going to formulate diets in the next 10 years is the increasing cost of raw materials and the pressures to reduce feed costs and nutrient environmental excretion will be emphasized. These factors will cause diets to be formulated more accurately, avoiding large safety margins. The biofuel industry will compete for raw materials used for animal feeding, and will require the utilization of its byproducts. In this case, knowledge of the analysis of the nutritional content and digestibility of these materials, which are not yet standardised, as in the case of distillers dried grain solubles (DDGS), for example in the US, should be developed.

In this context, enzymes will be increasingly used, as they improve ingredient digestibility and nutrient absorption (Cowan et al., 1996), as well as reduce the detrimental effects of anti-nutritional factors, thereby allowing higher flexibility in the use of feedstuffs as well as reducing feed costs (Ferket, 2009) and pollutant excretion in animal waste (Penz-Jr and Bruno, 2010).

Higher emphasis will also be placed on anti-nutritional factors that change energy and nutrient availability for broilers, using particle size and diet processing to maximize nutrient supply. Better polluting, expansion and extrusion processes, among others, will be developed, in terms of physical aspects (temperature, moisture, and pressure, time) and their effects on nutrient utilization (Ferket, 2009).

Skinner-Noblet et al. (2005) observed that pelleting improves effective dietary energy value by changing the behaviour of broilers, which includes higher feed intake of birds fed pelleted feed. Methodologies to evaluate the impact of heat stress during corn (Métayer et al., 2009) and soybean meal drying (Helmbrecht et al., 2010) on their nutritional quality are currently available. Corn particle size and density may also result in different nutrient digestibility, and should be better evaluated. Hetland et al. (2002) observed higher starch digestibility in broilers fed whole wheat grain as compared to those fed ground wheat. Parsons et al. (2006) concluded that higher particle sizes promote a linear increase in the feed efficiency of broilers. Figueiredo et al. (2009) observed that corn density is directly related to its meta bolisable energy content.

As to protein nutrition, new synthetic amino acids, produced at competitive prices, will become commercially available. In addition to lowering feed costs, this will also reduce nitrogen excretion in the environment (Nahm, 2002). Research on the next limiting amino acids after threonine will be extremely important, and their requirements will have to be evaluated not only relative to lysine, but also as to minimum intake and impact of their use under practical broiler production conditions (Kidd, 2009). For instance, the use of valine for broilers, whose beneficial effects were demonstrated by Corzo et al. (2009), is becoming a reality.

Energy is usually the most expensive nutritional component of poultry diets. Therefore, a higher efficiency in its utilization will result in lower feed cost. One of the strategies to be considered is formulating diets not only takes into account a feedstuff’s metabolisable energy but also its net energy defined as metabolisable energy minus energy loss due to heat increment, that is, the energy that is effectively used for production. This strategy may allow reducing feed cost and nutrient excretion (Mohen et al., 2005) and it is currently being discussed in Australia by the Poultry Cooperative Research Centre (Clements, 2010).

The utilization of trace minerals will be determined by a better understanding of their interaction with the immune system, as well as on the quality of their sources, preventing final product contamination with residues. In addition, further research on the differences between organic and inorganic sources is also needed.

2.2.4.constraints of poultry production in Ethiopia

Ethiopia has large population of chickens estimated about to be 48.89 Million with native chickens of non descriptive breed representing 96.6% hybrid of chickens 0.55% and exotic breed of chickens mainly kept in urban and peril -urban areas 2.8%. Village chicken production system in Ethiopia followed by primitive type with 5-20 birds per house hold simple rearing in backyard with inadequate: feeding and health care. However; the population number of chicken flock is small. Such production system may result in slow growing and poor layer of egg.

Modern poultry production stetted in Ethiopia some year ago mainly in colleges and research stations. The activities of these institutions mainly produced on the introduction of exotic breeds to the country and distribution of these breeds to the farmers including management, feeding housing and health care practices. (source: constraints and opportunities of poultry production in Ethiopia, ( Melkamu Bezabih .. et al, 2013).

2.3. Prospects of poultry production

Since the 1960s, the global production of poultry meat has been growing faster than that of any other meat in both developed and developing countries. This growth pattern can be expected to continue because of the inherent efficiency in feed conversion1 and the lower production costs associated with intensive poultry production. Such production efficiency is particularly beneficial to developing countries, which tend to have limited agricultural resources but burgeoning, and often poor, populations. Declining poultry prices and increasing incomes have been attributed to increases in per capita poultry consumption, which is sensitive to both price and income changes (Taha 2003). The significant growth in poultry (especially broiler chicken) production and consumption in the developing countries has important implications for the global trading of all meat products, as well as feeds and related inputs (Landes et al. 2004; Taha 2003).

In spite of its many advantages and the positive market outlook, the world broiler sector faces increasing challenges (Shane 2004). One of these is the increasing consumer concerns over food safety, animal welfare, product quality, and environmental issues associated with industrialized poultry production systems. In addition, there is global competition, intensified by increasing trade liberalization and growing consumer choices.

The increasing global competition is of particular concern for many small broiler producers in the developing countries, such as the Philippines, because their production and marketing systems are not yet developed or not as efficient. (Overview of the World Broiler Industry: Hui-Shung Chang, University of New England, U.S.A, 2015).

2.3.1. Poultry farming-status and prospects in Ethiopia

Poultry represents an important sub-sector in the Ethiopian agriculture. Poultry as industry is also of high economic value for the country. Poultry products including eggs and meat constitute a significant share in the global food industry. Enkulal Fir-Fir or crumbled eggs with bread is common eaten for breakfast in various parts of Ethiopia. Poultry products are also known for having high nutritional content. In Ethiopia, poultry is an integrated part of the smallholder production systems and plays a significant role in poverty alleviation.

Globally poultry is known to have a significant potential to generate income for households. For Ethiopia poultry can be both an income earner for households for household farmers and a source of foreign exchange.

Many developing and developed countries have integrated poultry in their economy. Evidences show that in 2007 nearly 145,615 farms were producing poultry and poultry products in United States of America. According to the United Nations estimation chicken population in world has reached sixteen billion. The figures from theGlobal Livestock Production and Health Atlas for 2004 show that China has the highest poultry population of 3,860,000,000, United States is second with 1,970,000,000, while Indonesia, Brazil and India have 1,200,000,000, 1,100,000,000, and 648,830,000 chickens respectively. Mexico, Russia and japan also follow the list. Poultry production has high socio-economic value and vital especially for those who are landless and who do not own cattle, sheep, or goats.

In Sub-Saharan African countries household level poultry constituted 78 per cent of the overall poultry production in 1996. In Ethiopia much of the eggs and chicken meat is produced by household farmers. The high increase in consumers’ demand for poultry products mainly in urban areas will have major implications on the prices of the products which obviously is important for those engaged in the sector Chicken can be raised in situations with limited feed and housing resources. Chickens are ‘waste converters’: they ‘convert’ a scavenged feed resource base into animal protein. They are therefore by far the most important species for generating income for rural families.

Poultry down and feathers have also found multiple household uses and importantly numerous trade opportunities, while poultry manure is used as soil and farm pond fertilizer, hence contributing to increased crop and fish yields, and commercialization. Poultry manure is especially important to small scale farmers who have difficulty of accessing and affording fertilizers, as well as those smallscale farmers who wish to make the best possible use of all the natural resources found and available on their farms.

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