Sebeta Agro Industry was established in 1998 as the first private dairy processing firm in Ethiopia, located near Addis Ababa. Its objectives were to process and market dairy products domestically and for export, as well as produce animal feed and other food items. Initial opportunities included being an early entrant into the market and available raw milk supply. However, challenges included gaining the trust of raw milk producers and retailers unfamiliar with private sector products, low traditional dairy prices, and lack of skilled labor. While opportunities for dairy processors remain due to population and economic growth, ongoing challenges include managing seasonal milk supply and demand fluctuations, high production costs, and competition from the informal sector and imports.

1. Sebeta Agro Industry National Dairy Forum Addis Ababa, Ethiopia, 23-24 November 2010