The document discusses the development of agro-enterprises in Ethiopia's highlands through improved access to input supplies, enhanced livestock production, and better marketing strategies. It highlights significant increases in dairy and fattening production among households, especially female-headed ones, as well as the need for market-oriented extension services and community-based livestock insurance. Key findings include improved productivity, revenue growth, and the importance of market information and linkages for smallholder farmers.

1. Input supply and service
 Improved access to processed feed.
 Multiplication and supply of forage seeds,
seedlings and cuttings.
 Credit for fattening purposes.
 Community-based livestock insurance
schemes.
Production
 Shorter fattening periods and stall feeding.
 De-worming animals at the beginning of the
fattening period.
 Use of concentrates during the fattening period.
 Use of crop residues treatment.
Marketing/processing
 Nearby local markets through individual or
collective action.
 Export market value chains still developing for
smallholders.
 Virtual or physical market linkages.
 Supply of market information.
Unlocking livestock development potential through science, influence and capacity
development ILRI APM, Addis Ababa, 15-17 May 2013
Promoting agro-enterprises in the Highlands of Ethiopia through
improved institutional support services: Experiences of market-
oriented dairy and fattening development
This document is licensed for use under a Creative Commons Attribution-Noncommercial-Share Alike 3.0 Unported Licence May 2013
Berhanu Gebremedhin, Dirk Hoekstra and Azage Tegegne,
International Livestock Research Institute (ILRI)
 Smallholder-led commercial transformation of agriculture underlying strategy in Ethiopia.
 The Improving Productivity and Market Success (IPMS) project is a research for development (R4D) project aimed at demonstrating market-oriented transformation.
 IPMS follows value chain development framework.
Market oriented developmental changes in improved dairy
2005/06 2009/10 %∆
Number of households producing 682 2, 156 216
Number of female-headed households
producing
104 352 238
Number of improved dairy cows
producing milk
532 1879 253
Milk produced (liters) 726, 924 3, 320, 000 356
Milk yield (liter/day) 4.48 5.79 29
Real revenue (million Birr) 2.2 6.5 200
Proportion of milk sold (%) NA 62 ---
Proportion of households selling NA 52 ---
 In order to ensure financial viability of private input supply and services, the crowding out effect of the public input supply and service provision needs to be reconsidered.
 With the scale of the fattening businesses likely to increase, feed agro dealerships should be further developed to ensure a regular and quality supply of feeds.
 The traditional production and technology focused extension service approach is inadequate for market oriented agricultural development; market oriented extension service is
required.
 The use of a community based insurance scheme for small ruminants can be used to stimulate commercial fattening with credit, especially benefiting women.
 Provision of market information in various forms, facilitating virtual or physical linkages of producers with buyers, and formal and informal collective action for produce marketing
increase bargaining power of farmers.
Conclusions and implications
Input supply and service
 Private AI service.
 Community animal health workers (CAHW).
 Private multiplication and distribution of forage
seeds, seedlings and cuttings.
Production
 development of grazing land enclosures and
promotion of stall feeding through cut and carry
system.
 enrichment plantations of improved forage
species.
 development of irrigated and backyard fodder
 processing of crop residues to increase their
feed value.
 improved awareness of and access of farmers
to processed feed.
Marketing/processing
 Establishment of milk collection centers.
 Milk processing in small local cooperatives.
 Processing by some of the larger dairy
producers in some of the district towns.
Developmental changes in market oriented improved animal production
Small ruminant Cattle
2005/06 2009/10 %∆ 2005/06 2009/10 %∆
Number of households producing 27, 523 54, 554 98 6,157 24,391 296
Number of female-headed
households producing
4, 657 9, 519 104 308 2,121 587
Total number of animals fattened 164, 296 314, 077 91 9,902 47,524 380
Real revenue (million Birr) 46 120 159 44 207.5 867
Animals fattened per household NA 6 --- NA 2 ---
Proportion of animals sold (%) NA 50 – 95 --- NA 100 ---
Proportion of households selling NA 100 --- NA 100 ---
Fattening cycle/year NA 2 --- NA 1.5 ---