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 …

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. 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. LIVES Zones/Districts selected for dairy value chain development
  • 3. Assessment dairy value chains
  • 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. 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. 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. Household level base line data • Questionnaire developed • Implementation scheduled for Sept to Dec
  • 8. Findings
  • 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. 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. 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. 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. 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. 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. 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. Dairy value chain development strategies
  • 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. 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. 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. 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. 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. Dairy value chain development interventions
  • 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. 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. 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. 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. 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. 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