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Dairy Value Chain Development


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Presentation by SNV at the National dairy forum, Addis Ababa, Ethiopia, 23-24 November 2010.

Presentation by SNV at the National dairy forum, Addis Ababa, Ethiopia, 23-24 November 2010.

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  • 1. Dairy Value Chain Development National dairy forum, Addis Ababa, Ethiopia, 23-24 November 2010
  • 2.
    • A Five years project,
    • Funded by USAID/PEPFAR,
    • Implemented by Land O’Lakes,
    • Year 4 Dairy Income Generating Activity for PLWA,
      • Ethiopia Dairy Development Project
  • 3. Project Goal
    • To have a competitive Dairy Industry built on private investment that generates employment and income for smallholder families and provides affordable , quality dairy products for consumers.
  • 4. Project Components
    • Milk Shed Development
    • Growing Markets for Milk and Dairy Products,
    • Support for Continued Development of the Dairy Sector
  • 5. Implementing Strategies
    • Improve Efficiency and Quality
    • Stimulate Business Development
    • Strengthen Market Linkages
    • Advance Industry Organization
  • 6. 1. Activities Under Improve Efficiency & Quality
    • Selection of Contact Farmers, training and using them as an extension agent,
    • Improving dairy farm management,
    • Promoting forage production,
    • Working on pasture improvement,
    • Promoting feed conservation,
    • Promoting straw treatment,
    • Introducing supplementary feed production,
    • Promoting forage seed production,
    • Promoting & strengthening feed retailing,
  • 7. 1. Activities Under Improve Efficiency & Quality…
    • Training smallholders, commercial dairy farmers
    • Preparing manuals, fact sheet, flyers, posters
    • Training public and private AI technicians
    • Producing heat chart for dairy farm owners
    • Forming and supported dairy association
    • Special attention given to clean milk production
    • Prepared standard milking procedure
    • Animal health
  • 8. 2. Activitis under Business Development
    • Building capacity of dairy clients to improve their business skills,
    • Support given on producing bankable and better business plans,
    • Linking clients to banks and microfinance institutions to improve lending possibilities for dairy industry development,
    • Stimulate business opportunities by organizing investment workshops,
  • 9. Business related to the dairy
    • Feed production,
    • Feed retailing,
    • Dairy processing,
    • Milk & milk products retailing & distributing,
    • Dairy equipment import & production,
    • Dairy animals trade,
    • AI service provision,
    • Animal health service,
    • Dairy farming,
    • Forage planting materials & seeds production,
  • 10. 3. Activities under growing markets
    • Conduct consumers research,
    • Improve quality of milk and milk products,
    • Facilitate new product development,
    • Improve operational efficiency,
    • Raise consumers awareness on nutrition,
    • Creating brand/logo,
    • Dairy Promotion Campaign undertaken
    • Dairy Business Directory progressing
  • 11. Major Findings of the Research:
    • Milk and butter are highly used dairy products,
    • People prefer raw milk because they consider it to be of more quality and rich in nutrients than pasteurized milk
    • Low understanding of pasteurization
    • People assume something will be taken out of it during processing and there is too much water in it.
  • 12. 4. Activities under Support for Continued Development
    • Primary Dairy Cooperatives & Dairy unions
      • strengthening & forming
    • Formation of forage producer groups,
    • Improve leadership & governance,
    • Promoting membership loyalty,
    • Making business oriented & profitable producers groups,
  • 13. 4. Support for Continued Development …
    • Forming Dairy Associations
      • Ethiopia Animal Feed Industry Association,
      • Ethiopia Dairy Cattle Breeders Association,
    • Strengthening relation with Cooperative activity stakeholders,
  • 14. DIGAs
    • In 2008, EDDP received PEPFAR funding to support a DIGA program
    • Used value chain analyses to identify nine profitable DIGAs
    • The activities were identified and implemented based on the area, market and interest of the beneficiaries 
  • 15. DIGAs
    • DIGA Toolkit was developed which includes:
      • market analysis and finance assessment tools,
      • pro forma business plans, training modules,
      • performance monitoring tools,
    • It is to help implementation of DIGAs,
    • The implementation of the DIGAs began in 2009
  • 16. Selected DIGAs
    • small scale milk processing
    • milk collection and supply,
    • milk and milk products retailing
    • dairy farm
    • male calves fattening
    • feed retailing
    • urea molasses mineral block production
    • forage production and forage seeds production
  • 17. Lesson learned
    • Intensive training can promote a farmer (smallholder to commercial and commercial to expansion and quality),
    • Forage seed/planting materials entered business,
    • Contact Farmers and Follower Farmers Extension outreach shows positive results,
    • Participation of women important along the dairy value chain,
    • PLWHAs can generate their own income
  • 18. Recommendations/Next Steps
    • Develop strong collaboration among all stakeholders,
    • Promote participation of women in training, cooperatives leadership and businesses,
    • Encourage cooperatives to play key role in dairy inputs business,
    • Promote private dairy input service provision,
    • Support PLWHA start business,
  • 19. Thank you all