Topics: Milk, Dairy, Cattle Pages: 359 (84057 words) Published: January 30, 2013


AN N E X 12


December 2004
Bahir Dar

ANRS – Agricultural Marketing Systems Study Project

Small-scale dairy production is an important avenue for income generation for mainly subsistence farmers in the Ethiopian highlands. Dairy products are a traditional urban consumption item, ensuring continued and growing demand. The temperate highland climate allows the use of crossbred dairy cows, raising farmer productivity (Halloway, et al., 2000). Smallholders who are estimated to contribute approximately 98% and 97% of total and marketed milk production dominate dairy production in Amhara Region, Similar to other parts of Ethiopia, (CSA, 2003). These are farmers who, besides growing crops for subsistence and for sale, mostly keep 1 to 3 cows with their followers on land sizes typically of about 1 ha in the intensively farmed Dega and Woinadega AEZs and about 1.5 ha in the extensively farmed Kolla areas (Biomass, 2002). In 2002 milk production was estimated at 493 million litres of which below 1% was marketed, 41% was consumed at home and the rest 58% processed into butter and other derivative dairy products (CSA, 2003). Considering Milk has no close substitute, the estimated total population of 3.5 million of dairy cows in approximately 3 million smallholdings (BOA, 2003; CSA, 2003) suggests that this sub-sector employs many poor farmers in the Region who derive a regular source of cash income and balanced nutrition. In like manner, some areas of the Region have traditionally been known as the land of “milk and honey”, showing how dairying was an important contributor to the village economy in ancient times.

Although smallholder dairy production accounts for most of the total milk production in the Region, individual cow productivity is low (BOA, 2003; CSA, 2003), while the potential for increased productivity per animal is considered to be high. Moreover, given most of rural farmers live in smallholdings and are resource-poor with 45% of rural households in the Region living below the poverty line (BOFED, 2003), there is a consensus that targeting smallholder dairy development efforts within the agricultural sector will have a good impact on poverty reduction.

In line with the above, the Regional government, in its recent comprehensive plan for agriculture (BOA, 2004), has given particular attention to the promotion of dairy development. The comprehensive development plan for crop and livestock is aimed at transforming the subsistence mode of agricultural production system into market oriented production system and its implementation has begun in 2004. The plan views improved livestock and products marketing as an important Regional development strategy to increase both rural incomes and foreign exchange. Dairy production and marketing has, therefore, been included as one of the intervention areas in the current commodity-based specialization and commercialization plan.

According to earlier reports (Debrah and Birhanu, 1991), however, market access poses a key bottleneck to the expansion of smallholder milk production and processing. Since the present dairy products marketing system in Ethiopia is young, not all market mechanisms are expected to be operational. Similarly, as Halloway, et. al. (2000) aptly put it, enhancing the ability of poor smallholder farmers to reach markets and actively engage in them, poses a pressing development challenge. Difficult market access restricts opportunities for income generation. Remoteness results in reduced farm-gate prices; increased input costs; and lower returns to labor and capital. The question of how to expand the market participation of...

References: Achuonjei, P, N. and Debrah, S. 1992. Efficiency of fresh milk marketing in the Bamako area of Mali:
Some preliminary results
Ahmed, Mohamed, A.M., Ehui, S. and Assefa, Y. 2003. Dairy Development in Ethiopia. Conference Paper
Asfaw Negassa and T.S. Jayne. 1997. Vertical and Spatial Integration of Grain Markets In Ethiopia
Bain, J.S. 1968. Industrial organization. 2nd Edition, John Wiley and Sons, New York.
Barret, B. 1996. Market analysis methods: Are our enriched toolkits well suited to enlivened markets?
American Journal of Agricultural Economics 78 (3): 825-829.
Barret, C.B. 1997. Food marketing liberalization and trade entry: evidence from Madagascar. World
Development, Vol
Befekadu Degefe and Berhanu Nega. 2000. Annual report on the Ethiopian economy: Volume I,
Benin. S, Ehui S. and Pender J, 2002. Policies for Livestock Development in the Ethiopian Highlands.
Bennett, A. 2001. The Lactoperoxidase System (LP-s) of milk preservation. In FAO E-mail Conference on
Small-scale Milk Collection and Processing in Developing Countries
Birthal, P. and Rao, P. (Eds). 2002. Technology options for sustainable livestock production in India:
Proceedings of a workshop
BOA (Bureau of Agriculture). 2004. Annual action plan for the year 2003/4. Bahirdar, Ethiopia.
BoFED (Bureau of Finance and Economic Development). 2003. Development indicators of Amhara
BoARD (Bureau of Rural Development). 2003. Rural household socio-economic baseline survey of 56
woredas in the Amhara Region
Coppock D Layne (ed.). 1994. The Borana Plateau of Southern Ethiopia: Synthesis of pastoral research,
development and change, 1980-91
Crawford I.M. 1997. Agricultural and food marketing management. FAO, Rome, Italy.
Creightney, Cavelle D. 1993. Transport and Economic performance: A Survey of Developing Countries.
CSA (Central Statistics Authorithy). 1996. Central Statistics Authority, 1995/96 Agricultural sample
CSA (Central Statistics Authorithy). 2003. Ethiopian Agricultural Sample Enumeration, 2001/02 1994
Debrah S H and Berhanu Anteneh. 1991. Dairy marketing in Ethiopia: Markets of first sale and
producers’ marketing patterns
Delgado C., Rosegrant M., Steinfeld H., Ehui S. and Courbois C. 1999. Livestock to 2020: The next food
Elleni, Gabre-Madhin. 2001. Market institutions, transaction costs, and social capital in the Ethiopian
grain markets
Elleni, Gabre-Madhin, and Wolday Amha. 2003. Micro Economic Behavior and Constraints of Grain
Traders in Ethiopia
Agricultural Growth in Ethiopia; Bridging the Opportunities and Challenges (July 17-18,2003).
FAO. 2003. Ethiopia: Livestock sector brief.
FAO. 2003b. Milk and Dairy Products, Post-Harvest Losses and Food Safety in sub-Saharan Africa and the
Near East - regional approaches to national challenges
FAO/ILRI. 2001. Employment generation through small-scale dairy marketing and processing:
Experiences from Kenya, Bangladesh and Ghana
FAOSTAT (2004)
FDRE, (Federal Democratic Republic Of Ethiopia). 2002. Rural Development Policies, Strategies, and
Modalities for Ethiopia.
Gebremeskel D., Jayne, T.S., and Shaffer J.D. 1998. Market Structure, Conduct, And Performance:
Constraints On Performance Of Ethiopian Grain Markets
Gebre Wold, A., Alemayehu, M., Demeke, S., Dediye,S.,Tadesse,A. 2000. Status of Dairy Research in
Getachew, F. (1995). Small-holder dairy development and Rehabilitation in Ethiopia. In Margaret Matanda
(ed.) Proceedings of the Workshop on the Regional Exchange Network for Market Oriented Dairy
Development. FAO, Rome. 1995.
Goletti, F., Ahmed, R., and Farid, N. 1995. Structural determinants of market integration: The case of rice
markets in Bangladesh
Goletti, F., Farid, N., Ahmed, I., and Khandaker, A.I. 1993. Price monitoring training manual. IFPRI,
Washington, D.C.
Gryseels, G., and Anderson, F. M. 1983. Research on farm and livestock productivity in the central
Ethiopian highlands: Initial results, 1977-1980
Harris, B. (1995). Efficiency and complexity: Distributive margins and the profits of market enterprises. In
Scot, G.J
Henriksen, J. 1995. Market orientation of small scale milk producers: Background and global issues. In
Margaret Matanda (ed.) Proceedings of the Workshop on the Regional Exchange Network for
Market Oriented Dairy Development. FAO, Rome. 1995.
Holloway G., Nicholson C., Delgado C., Staal S. and Ehui S. 2000. How to make a milk market: A case
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Trends and Drivers of Consumer Behavior in the Chinese Dairy Food Market Essay
  • The Environmental Impact of Eating Beef and Dairy Products Essay
  • China Dairy Industry Analysis & Forecast to 2018 Essay
  • Dairy Cattle Production Essay
  • Dairy Production Consumption and Marketing Pdf Research Paper
  • Essay about Dairy Sector of Pakistan
  • Dairy Products Essay
  • Dairy Industry in Pakistan Essay

Become a StudyMode Member

Sign Up - It's Free