0
LIVES dairy value chain development: Distinguishing
between fluid milk and butter channels
Dirk Hoekstra, Azage Tegegne, B...
LIVES Zones/Districts selected for dairy value
chain development
Assessment dairy value chains
LIVES Dairy value chain system
Research Education
POLICY
Input
Producer/
Supplier
Output
Producer
Trader/
Processor
Value ...
Rapid assessment dairy value
chains
PA/Districts Zonal Regional/federal
Production X
Input/services X X X
Processing/marke...
Community (PA) baseline data
• Sample PA level data from potential dairy
Districts/PAs
– 8 Zones
– 25 Districts
– 368 pote...
Household level base line data
• Questionnaire developed
• Implementation scheduled for Sept to
Dec
Findings
Relative importance of fluid milk and butter
system in LIVES dairy sample PAs
Revenues
Milk Sales
19%
Revenues
Butter Sale...
Spatial distribution fluid milk and butter
system in LIVES sample PAs
-
200,000
400,000
600,000
800,000
1,000,000
1,200,00...
Key production findings/constraints
• Limited number of improved cows
• Poor fertility management - long calving
intervals...
Key input supply and services
findings/constraints
• Inefficient AI service system, concentrated
around major milk consump...
Key processing/marketing findings
constraints
• Price ratio butter/milk = 1 to 16
• Conversion rate milk/butter local bree...
Key knowledge and capacity
development findings/constraints
• Inadequate linkages between dairy value chain
partners
• Ina...
Key policy findings/constraints
• Government policies/strategies emphasize
market orientation
• Various government/NGO
ini...
Dairy value chain development
strategies
Three spatially different dairy
systems
• Farms within 1 hr walking distance from
major consumption centers (pop >5000)
• ...
Use of GIS to determine spatially
different dairy systems
• Travel time models to main consumption
centers (> 5000 populat...
Farms within 1 hr walking distance from
major consumption centers (pop >5000)
• The short term development strategy
would ...
Farms within 1 hr partly motorized travel distance
from major consumption centers
• The short and long term strategy for s...
Farms more than 1 hr partly motorized travel
distance from major consumption centers
• The short and long term project
dev...
Dairy value chain development
interventions
Key production value chain
interventions
• Appropriate on farm breeding and fertility
management depending on development ...
Key input/service supply
interventions
• Introduction of hormone assisted mobile
mass insemination system
• Strengthening/...
Key processing/marketing
interventions
• Promotion of dairy product consumption
• Fluid milk processing marketing
– Stimul...
Key knowledge and skills
development interventions
• Creation of linkage mechanisms between dairy
value chain actors at an...
Key policy development contribution
• Contribute to livestock strategy/policy
development
• Contribute to dairy program
ha...
Summary conclusion
• Avoid blanket approach to dairy value chain
development
• Pay attention to local butter value chain
•...
LIVES dairy value chain development: Distinguishing between fluid milk and butter channels
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LIVES dairy value chain development: Distinguishing between fluid milk and butter channels

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Presented by Dirk Hoekstra, Azage Tegegne, Berhanu Gebremedhin, Aklilu Bogale and Yasin Getahun at the 21st Annual Conference of Ethiopian Society of Animal Production (ESAP), Addis Ababa, 28-30 August 2013

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  1. 1. LIVES dairy value chain development: Distinguishing between fluid milk and butter channels Dirk Hoekstra, Azage Tegegne, Berhanu Gebremedhin, Aklilu Bogale and Yasin Getahun 21st Annual Conference of Ethiopian Society of Animal Production (ESAP), Addis Ababa, 28-30 August 2013
  2. 2. LIVES Zones/Districts selected for dairy value chain development
  3. 3. Assessment dairy value chains
  4. 4. LIVES Dairy value chain system Research Education POLICY Input Producer/ Supplier Output Producer Trader/ Processor Value chain actors Knowledge and capacity service providers Public and private service & input suppliers
  5. 5. Rapid assessment dairy value chains PA/Districts Zonal Regional/federal Production X Input/services X X X Processing/market ing X X X Knowledge & capacity X X X Policy X
  6. 6. Community (PA) baseline data • Sample PA level data from potential dairy Districts/PAs – 8 Zones – 25 Districts – 368 potential rural PAs – 93 sample PAs • Focus group discussions, • Key informant interviews, • Review of agricultural records of the district Office of Agriculture (OoA) and Kebele administration, • Records held by development agents (DAs), and other sources
  7. 7. Household level base line data • Questionnaire developed • Implementation scheduled for Sept to Dec
  8. 8. Findings
  9. 9. Relative importance of fluid milk and butter system in LIVES dairy sample PAs Revenues Milk Sales 19% Revenues Butter Sales 81% Sales Revenues No of HH selling dairy products Key role women in butter processing and sale
  10. 10. Spatial distribution fluid milk and butter system in LIVES sample PAs - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 < or = 1 hr > or = 1 hr Revenue of milk sold (Birr) Revenue of butter sold (Birr)
  11. 11. Key production findings/constraints • Limited number of improved cows • Poor fertility management - long calving intervals • On farm feed production/collection/storage and treatment inadequate • Limited use of supplementary feeding • High incidence of diseases leading to reduced production and food safety problems • Roles man and women in production based on traditional systems, but evolving
  12. 12. Key input supply and services findings/constraints • Inefficient AI service system, concentrated around major milk consumption centers • Inadequate supply of supplementary feed and sales outlets • Poor grazing system land management structures • Access to services and inputs by man and women still based on traditional systems, but evolving
  13. 13. Key processing/marketing findings constraints • Price ratio butter/milk = 1 to 16 • Conversion rate milk/butter local breeds 16/1 • Local butter processing farm based (women), private sector involvement in purchase and sales • Insufficient collective and private action to purchase and process fluid milk • Access to and role man and women in processing and marketing based on traditional systems, but evolving
  14. 14. Key knowledge and capacity development findings/constraints • Inadequate linkages between dairy value chain partners • Inadequate market oriented extension services • Inadequate research system for action research • Insufficient involvement educational system in development activities • Access man and women to knowledge and skills based on traditional systems, but evolving
  15. 15. Key policy findings/constraints • Government policies/strategies emphasize market orientation • Various government/NGO initiatives/programs to address constraints • Lack of overall livestock dairy development strategy • Inadequate harmonization of dairy development activities
  16. 16. Dairy value chain development strategies
  17. 17. Three spatially different dairy systems • Farms within 1 hr walking distance from major consumption centers (pop >5000) • Farms within 1 hr partly motorized travel distance from major consumption centers • Farms more than 1 hr partly motorized travel distance from major consumption centers
  18. 18. Use of GIS to determine spatially different dairy systems • Travel time models to main consumption centers (> 5000 population) • Walking speed humans 5km/hr • Speed modifiers – Slope – fixed – Land use - fixed – Road network – variable for different scenarios • Walking only scenario: all roads 5 km/hr • Partly motorized scenario: primary roads 40 km/hr, other roads 5km/hr.
  19. 19. Farms within 1 hr walking distance from major consumption centers (pop >5000) • The short term development strategy would be to assist producers and other value chain actors in improving their fluid milk and local butter production/marketing system. The longer term strategy will be to focus on fluid milk value chain specialization.
  20. 20. Farms within 1 hr partly motorized travel distance from major consumption centers • The short and long term strategy for such areas is to build up the fluid milk marketing system while maintaining/improving the butter marketing system. A critical factor for the implementation of this strategy will be collective action (bulking, cooling) of milk and transportation interventions.
  21. 21. Farms more than 1 hr partly motorized travel distance from major consumption centers • The short and long term project development strategy for these areas is focusing on commercial sale of butter, while fluid milk can be used for domestic consumption to improve the livelihood of farmers.
  22. 22. Dairy value chain development interventions
  23. 23. Key production value chain interventions • Appropriate on farm breeding and fertility management depending on development direction (breeds, nutrition, heat detection) • Improved on farm production of forages – Grazing areas – Crop residues – Planted fodder • Improved use of produced fodder – Conservation (hay/silage) – Treatment (chopping, urea/molasses) • Improved production methods – feeding, housing, milking hygiene, health
  24. 24. Key input/service supply interventions • Introduction of hormone assisted mobile mass insemination system • Strengthening/establishing of agro business dealerships for supply of feeds/veterinary drugs thru coops and private businesses • Creating linkages between producers and agro businesses • Development of public (FTCs) and private forage seed multiplication system • Establishing improved management systems for communal grazing areas
  25. 25. Key processing/marketing interventions • Promotion of dairy product consumption • Fluid milk processing marketing – Stimulate collective and private action to purchase and process milk within the 1 hr travel distance – Improve milk quality – milk collection cans, cooling, quality testing, certification of vendors • Butter processing marketing – Stimulate collective and private action for butter processing by women – Explore collective action for sale of butter
  26. 26. Key knowledge and skills development interventions • Creation of linkage mechanisms between dairy value chain actors at and between different levels • Use of ICT based information systems, technologies • Contribute dairy value chain development info thru EAP and promotional activities • Use of market oriented extension system, based on gender equity, sustainable environment and entrepreneurial small holders • Use of skills and knowledge on improved production and processing technologies
  27. 27. Key policy development contribution • Contribute to livestock strategy/policy development • Contribute to dairy program harmonization • Participate in dairy value chain for a, including Dairy Board
  28. 28. Summary conclusion • Avoid blanket approach to dairy value chain development • Pay attention to local butter value chain • While the use of genetically improved animals is key to the development of dairy value chains, additional production, input/service and processing/marketing , capacity/knowledge interventions and policy contribution are required to reap the full benefits
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