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Dairy Value Chain Development

Dairy Value Chain Development



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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    Dairy Value Chain Development Dairy Value Chain Development Presentation Transcript

    • Dairy Value Chain Development National dairy forum, Addis Ababa, Ethiopia, 23-24 November 2010
      • 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
    • 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.
    • Project Components
      • Milk Shed Development
      • Growing Markets for Milk and Dairy Products,
      • Support for Continued Development of the Dairy Sector
    • Implementing Strategies
      • Improve Efficiency and Quality
      • Stimulate Business Development
      • Strengthen Market Linkages
      • Advance Industry Organization
    • 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,
    • 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
    • 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,
    • 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,
    • 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
    • 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.
    • 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,
    • 4. Support for Continued Development …
      • Forming Dairy Associations
        • Ethiopia Animal Feed Industry Association,
        • Ethiopia Dairy Cattle Breeders Association,
      • Strengthening relation with Cooperative activity stakeholders,
    • 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 
    • 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
    • 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
    • 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
    • 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,
    • Thank you all