Ethiopia is a largely rural country with an agrarian economy. Livestock are of economic and social importance both at the household and national levels, and have in the past provided significant export earnings. Although estimates vary widely,1 livestock is thought to contribute 15-17% of Ethiopian gross domestic product (GDP), 35-40% of agricultural GDP and 37-87% of the household incomes; the large variations are due directly or indirectly to climatic variation. Livestock have multiple uses aside from income generation, including cash storage for those beyond the reach of the banking system, draught and pack services, and manure for fuel and fertilizer. In addition to these non-market values, a thriving informal export trade in live animals further emphasizes the significance, albeit unrecognized by official statistics, of livestock (and particularly cattle) in the Ethiopian economy.

The country is ecologically diverse, featuring 18 distinct agroclimatic zones, but it has two major recognized livestock production systems: highland with predominantly mixed farming; and lowland pastoral and agropastoral systems. Ethiopia borders half a dozen countries in the Horn of Africa, and in all cases cultural, linguistic, clan and family links span the boundaries. Such connections employ physical and organizational trading arrangements that predate modern frontiers, and serve Middle Eastern markets for imported cattle and beef.