International Livestock Research Institute

       Better lives through livestock



                               Intensification of milk production
                                 and quality of dairy marketing
                                     Nils Teufel, Alan Duncan, Vivek K. Singh, Kindu Mekonnen
                                         (ILRI) and Addisu Bitew (Amhara Reg Agr Res Inst)
                                           Introduction
                                           • Opportunity: Smallholders benefit from increasing
                                                          milk demand through intensification.
                                           • Assumpution: Milk market improvements drive
                                                          small-holder intensification.
                                           • Question:          How are small-holders intensifying?
Methods
• Regional sites in India (3) & Ethiopia (2)                • Selection of 6 districts /site (2 / marketing category)
• Expert classification of districts by marketing quality   • Selection of 3 villages /district
  (low - medium - high)                                     • 2 producer groups / village −> 174 group interviews
Results: Comparison of intensification characteristics by milk marketing quality and site
          Stall feeding [% feed]                                Concentrates [% stall feed]                                Milk yield, cows [kg/d]
100                                                     100                                                 12
         India                                                    India                                                                              India,
 80                                                      80                                                 10
         Ethiopia                                                                                                                                    crossbred
                                                                  Ethiopia                                   8
 60                                                      60                                                                                          Ethiopia,
                                                                                                             6                                       crossbred
 40                                                      40                                                                                          India,
                                                                                                             4
 20                                                      20                                                                                          local
                                                                                                             2                                       Ethiopia,
  0                                                       0                                                  0                                       local
         low         medium        high                           low        medium     high                         low         medium    high

       Milk processed in home [%]                             Increasing herd size, 10y [%hh]                               Crossbred [% cows ]
100                                                    100                                                  100
          India
 80                                                               India                                                     India
                                                        80                                                   80
          Ethiopia                                                Ethiopia                                                  Ethiopia
 60                                                     60                                                   60
 40                                                     40                                                   40
 20                                                     20                                                   20
   0                                                     0                                                       0
          low        medium        high                          low         medium     high                               low         medium        high

Discussion
• Smallholders are intensifying milk production where marketing quality improves.
• However, feeding intensity and milk yields hardly show any development.
• On the other hand, households reduce milk processing and increase herd sizes.
• The replacement of local cows with cross-breds appears to be the greatest change.
Conclusions
• Initally small-holders increase liquid milk production where milk markets improve.
• Milk yield increases through intensified feeding have not yet been widely implemented ,
  but will be required to maintain sustainable and profitable growth.
                                    References                                                              Support by OPEC Fund for International
                                    Baltenweck,I., Staal,S. et al. (2003). Crop-Livestock Intensification   Development (OFID) & CIM - Centre for
                                       and Interactions Across Three Continents. ILRI et al., Nairobi.      International Migration and Development
                                    Raghunathan,N., Joseph,A.K. et al. (2006). Towards accelerated          & Oromiya Agricultural Research Institute
                                       growth in dairying - an action research to improve the               is kindly acknowledged.
                                       traditional milk sector. CALPI - Intercoop., Hyderabad, India.
                                    Staal,S.J., Pratt,A.N. et al. (2008). Dairy Development for the         n.teufel@cgiar.org, .duncan@cgiar.org,
                                       Resource Poor, Parts 2 & 3, FAO, Rome.                               v.singh@cgiar.org, k.mekonnen@cgiar.org

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Intensification of milk production and quality of dairy marketing

  • 1. International Livestock Research Institute Better lives through livestock Intensification of milk production and quality of dairy marketing Nils Teufel, Alan Duncan, Vivek K. Singh, Kindu Mekonnen (ILRI) and Addisu Bitew (Amhara Reg Agr Res Inst) Introduction • Opportunity: Smallholders benefit from increasing milk demand through intensification. • Assumpution: Milk market improvements drive small-holder intensification. • Question: How are small-holders intensifying? Methods • Regional sites in India (3) & Ethiopia (2) • Selection of 6 districts /site (2 / marketing category) • Expert classification of districts by marketing quality • Selection of 3 villages /district (low - medium - high) • 2 producer groups / village −> 174 group interviews Results: Comparison of intensification characteristics by milk marketing quality and site Stall feeding [% feed] Concentrates [% stall feed] Milk yield, cows [kg/d] 100 100 12 India India India, 80 80 10 Ethiopia crossbred Ethiopia 8 60 60 Ethiopia, 6 crossbred 40 40 India, 4 20 20 local 2 Ethiopia, 0 0 0 local low medium high low medium high low medium high Milk processed in home [%] Increasing herd size, 10y [%hh] Crossbred [% cows ] 100 100 100 India 80 India India 80 80 Ethiopia Ethiopia Ethiopia 60 60 60 40 40 40 20 20 20 0 0 0 low medium high low medium high low medium high Discussion • Smallholders are intensifying milk production where marketing quality improves. • However, feeding intensity and milk yields hardly show any development. • On the other hand, households reduce milk processing and increase herd sizes. • The replacement of local cows with cross-breds appears to be the greatest change. Conclusions • Initally small-holders increase liquid milk production where milk markets improve. • Milk yield increases through intensified feeding have not yet been widely implemented , but will be required to maintain sustainable and profitable growth. References Support by OPEC Fund for International Baltenweck,I., Staal,S. et al. (2003). Crop-Livestock Intensification Development (OFID) & CIM - Centre for and Interactions Across Three Continents. ILRI et al., Nairobi. International Migration and Development Raghunathan,N., Joseph,A.K. et al. (2006). Towards accelerated & Oromiya Agricultural Research Institute growth in dairying - an action research to improve the is kindly acknowledged. traditional milk sector. CALPI - Intercoop., Hyderabad, India. Staal,S.J., Pratt,A.N. et al. (2008). Dairy Development for the n.teufel@cgiar.org, .duncan@cgiar.org, Resource Poor, Parts 2 & 3, FAO, Rome. v.singh@cgiar.org, k.mekonnen@cgiar.org