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

4 5 6Straw treatment for animal feed

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

Breed type

No of Cows Born Calves

Serviced Conceived Male Female TotalLocal cows

173 79 33 29 62Cross-breds

77 66 32 23 55Total

250 145 65 52 117

Bull Service Delivery In Fogera PLW

2006 2007 2008 2009 20100

100

200

300

400

500

600

700

800

AI Service providers in Ada

Public sector Private AIAda 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

2006 2007 2008 2009 20100

200

400

600

800

1000

1200

1400

1600

1800

2000

Impact of dairy intervention in the project sites

Male Household producing Milk Feamle Household producing Milk

No of improved Dairy cows

2006 2007 2008 2009 20100

1

2

3

4

5

6

7

Milk price and Milk yield

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!!!!