Dairy value chain development:
based on experiences of IPMS and
partners
Nigatu Alemayehu
Presented at the 19th Ethiopian Society of
Animal production Annual Conference
Addis Ababa, Ethiopia, 15-17 December 2011

I n i t i a l diagnosis
Market potential of fluid milk production in (peri-)urban
and butter production in rural areas .
Huge fluctuation in demand as a result of fasting periods,
and in supply due to seasonal availability of feed.
Limited knowledge and skills of commercially oriented fluid
milk and butter production systems by value chain actors
and extension services
Women were predominantly in charge of butter making and
marketing in the rural areas. Both men and women
contributed to fluid milk production and marketing systems
in (peri-) urban areas,

Most development efforts in the past focus on promotion of
exotic breeds and cooperatives for processing and marketing
of milk.
Despite these efforts, the percentage of improved dairy type
animals in the (peri-) urban areas was still very low.
Seasonal fodder scarcity (including crop residues) during
both the dry and wet seasons.
Very weak and underdeveloped commercial fodder
production and marketing systems
Animal health and AI services were poorly developed,
especially in rural areas.
Many cooperatives suffered from lack of efficiency,
management and marketing skills.

Weak linkages between value chain actors.
Poor quality of milk and milk products and non-existence or
weak regulatory systems

Value chain Development
Agricultural extension
Building skills( public, private and farmers), introducing
knowledge, and linking value chain actors to improve the
development of the dairy value chain in the selected
Woredas.
Dairy technology
couples training
(08 – 09 Feb., 2007)

Knowledge Management
Organize Study tour, Field Days, IT based technology
promotion, Demonstrations, Platforms

Processing and Market Intervention
•Facilitating collective action for marketing and
processing ( Market link)
•Stimulating demand for Dairy products ( Milk
day,

Production interventions
Feed development ( Forage, UMB, Straw Treatment)
Animal improvement (genetic, health, recording, housing &
milk quality etc)
1 2 3
Straw treatment for
animal feed 4 5 6
Integrate
Napier
grass with
dairying

Input supply and service provision
interventions
Forage Seed Supply
Feed Supply (fodder & concentrate)
Private AI technicians and bull station
Drug shop and private Animal health service

Bull Service Delivery In Fogera PLW
No of Cows Born Calves
Breed type Serviced Conceived Male Female Total
Local cows
173 79 33 29 62
Cross-breds
77 66 32 23 55
Total
250 145 65 52 117

AI Service providers in Ada
800
700
600
500
400
300
200
100
0
2006 2007 2008 2009 2010
Public sector Private AI
Ada Dairy Coop Private Farmers Technicians

Results
Production, productivity and income-
Fodder production –bottom land and grazing area.
Backyard fodder integrated with livestock commodity
Supplementary feeding
Animal productivity
Household income
Input supply and marketing
Genetic improvement( private AI, estrus synchronization, )
Animal health service (CAHWS)
Forage seed multiplication and sells( private company,
farmers and FTCs)
Milk processing and marketing groups and coops
Gender
Environment

Impact of dairy intervention in the project sites
2000
1800
1600
1400
1200
1000
800
600
400
200
0
2006 2007 2008 2009 2010
Male Household producing Milk
Feamle Household producing Milk
No of improved Dairy cows

Milk price and Milk yield
7
6
5
4
3
2
1
0
2006 2007 2008 2009 2010
Aveage milk yield/cow/day Average Milk Price per lt

Lessons and Challenges
Knowledge sharing, training, follow up of interventions, and
partner linkages contribute to improving value chain actors
efficiency.
Integration of forage development with dairy farm benefit
farmers.
Development of forage seeds and vegetative planting material
production/ distribution systems on individual farms and
FTCs enhance forage development
Synergy between NRM and fodder development should be
stressed, not only for dairy development but also in an
integrated apiculture system.
District level alternatives to improve effectiveness and
efficiency of the AI system are emerging (private AI),

Appropriate institutional set up to combine AI and hormonal
estrus synchronization by mobile AI teams
Community animal health workers can function in rural
areas
Create linkages between feed companies and dairy
cooperatives and/or private traders
Linking district level cooperatives/ dairy groups to nearby
larger consumption areas

Scaling up of approach to increase the number of crossbreed
animal and improve calving interval
Development of butter system in rural areas
Milk products collection/processing/selling in and around
rural areas(collectively by co-operatives, small scale
enterprise, linkage to larger consumption milk sheds)
Quality based payment
Seasonal fluctuation in milk demand and pricing
Negative effects of urban dairy systems to the environment

THANK YOU!!!!