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

1. Dairy Value Chain Development In Ethiopia: The Experience of FAO, 2010National dairy forum, Addis Ababa, Ethiopia, 23-24 November 2010 Emmanuelle GuerneBleich Livestock Officer FAO/SFE, Addis Ababa, Ethiopia Emmanuelle.guernebleich@fao.org photo M.Bleich

2. SFE and biosecurity/HPAI SFE Sub-Regional Office

3. SFE-multidisciplinary team/Equipemultidiciplinaire - Farm Management and Agribusiness/ commercialisation - Land Tenure and Rural Development/ developpement rural - Livestock Sector Development/ production animale - Crop Sector Development/ production vegetale - Policy Assistance/ politiquesagricoles - Investment/ centre d’investissement-liens bailleurs - Fisheries/ peches - Forestry/ foresterie - Programme development/food security/ securitealimentaire - Administration/ administration Mandate to look at regional aspects in a multidisciplinary perspective

5. General intervention areas: food security and the agricultural sector

6. Active project: Crop diversification and marketing development project

7. Promoting economic growth in rural areas of the Arsi zone

8. Livestock development / intervention areas / dairy production with the major objective of raising subsistent smallholder production to commercial level

9. Major activities

10. Dairy Value chain actors support from production to consumption

11. Increase milk production through distribution of crossbred heifers, AI support and forage development

13. Two instances

14. Improving smallholder marketed supply and market access for dairy products in the Arsi zone and its surrounding areas. Focus:

15. Smallholder milk producers,

16. Dairy marketing coops and

17. Consumer purchase and consumption patterns

18. Innovations, actors and linkages in the dairy value chain. Focus - understand:

19. The major innovations in use in the dairy value chain

20. The actors involved in the dairy value chain

22. Low milk supply

23. Inefficient AI service delivery system and poor quality semen

24. Shortage of crossbred heifers/cows

25. Feed and water shortages

26. Shortage of skilled manpower

27. Lack of market information and outlet for milk and milk products

28. Limited access to market and market information ⇨ seasonal fluctuation of demand and price for milk ⇨ Economic loss

29. Limited animal health and AI services – high turnover of AI technicians due to inadequate incentives

31. Absence of well organized input supply system – business hub

32. Absence of coordination and a responsible party to create, develop and sustain linkages among the different actors

33. Other challenges

34. Limited involvement of professionals in the private sector

35. Limited access to the required resources – lack of capital; when capital is available, no access to the required facilities

36. Lack of a functional appropriate policy in place and

37. Inadequate dairy infrastructure

38. Development opportunity

40. Lack of market outlet for milk

41. Low milk prices/low quantity produced per hhs

42. High milk price variability

43. Low producer bargaining power

44. Comparative advantages of cooperatives

45. Reliable and regular outlet for milk

46. Better dairy farm input supply

47. Technical capacity building

48. Cooperative members keep more crossbred cows

49. Crossbred cows kept by cooperative members produce more milk

50. Cooperative members produced, consumed and sold more milk

53. Providing Input

54. Packaging

55. Record keeping

56. Financial management

57. Quality control

58. Marketing

59. 67% of the cooperatives are ready to pay for the services

60. Low per capita milk consumption at household level

61. Milk 4.44 l/m; Ayib 0.41 kg/m; edible butter 0.44 kg/m; cosmetic butter 0.11 kg/m

62. Low per capita expenditure for milk and milk products at household level

64. Smallholder producers

65. Ministry for Agriculture

66. Relevant regional, federal and international development partners

67. Higher learning and research institutions

68. The private sector

69. Coops and unions

70. Major innovations

71. Collective action

72. AI

73. Improved forage crops

74. CAHWs

75. MNB

76. Farmers are central to the innovation system

78. Forage development

79. Financial support for material and technical capacity building

81. 14 Results Training NGOs and Development partners Farmers Research Coops. ■ Linkages among the different actors Private sectors Extension Two way and fair linkage One way and moderate to weak linkage No or very weak linkage

83. Cooperative unions / vertically integrating producers and cooperatives to local and regional markets / creating market linkages - linking dairy cooperatives with existing milk processing plants and other significant outlets for milk and milk products.

84. Low consumption - milk and milk products - an opportunity for increased milk production and expand milk marketing / Dairy unions could also provide credit facilities for group action

86. Despite their strong human resource capacity base, higher learning and research institutions – limited impact in the rural communities. Results of field research works undertaken by PhD and MSc students should be communicated to partners

87. ‘Ethiopian Dairy Board’- very crucial step to assure a proper lead and coordination of the sector’s development as well as mobilizing funds from donor communities -much hoped amongst the majority of dairy stakeholders. The board - aforementioned recommendations into consideration - and functional policy in place.