THE ECONOMICS OF VILLAGE CATTLE PRODUCTION IN A TSETSE-INFESTED AREA OF SOUTHWEST ETHIOPIA

Cattle raised in the Ghibe valley of southwest Ethiopia are exposed to medium to high levels of trypanosomiasis risk and are often given try panocidal drugs. A benefit-cost analysis was undertaken to evaluate th e financial and economic returns generated by cattle raised in the are a under a systematic regime of drug therapy. The results show that, de spite the high level of trypanosomosis risk and the prevalence of drug -resistant trypanosomes, cattle production can generate attractive eco nomic returns for herd owners and the overall Ethiopian economy. Sensi tivity analyses show that most herd owners would continue to obtain go od returns on their investments even if they paid higher prices for tr ypanocidal drugs and the full costs of veterinary services.