Household Dairy Production System, Marketing and Constraints in Ethiopia

Abstract

This study reviews the household dairy production system, marketing and constraints with the aim of delivering summarized and synthesized information for the beneficiaries and users. Agricultural production dominates the Ethiopian economy and contributes 45% of gross domestic product and provides more than 80% of employment. Ethiopia holds large potential for dairy development due to its large livestock population, the favorable climate for improved, high-yielding animal breeds, emerging market opportunity, improved policy environment for involvement of private sectors, and the relatively disease-free environment for livestock. Ethiopia can contribute significantly to poverty alleviation and nutrition in the country. Though different classifications have been used to characterize the dairy production system in the country; based on their locations, dairy production system classified into three broad categories, namely, urban, per-urban and rural dairy production. Among the existing production systems, the traditional dairy production systems, is the one involving from smallholder dairy farms. The traditional (smallholder) milk production system, which is dominated by indigenous breeds, accounts for about 97-98% of the total annual milk production in the country. Over 85% of the milk produced by rural household is consumed within the producer households with the proportion marketed being less than 7%. Dairy  production  in  Ethiopia  is constrained by several factors classified as: technical or biological and socio-economic and institutional factors, some of the major environmental constraints such as low rainfall, high  temperature  and  low  forage  production,  common  plant  association,  livestock  and  human carrying capacity, incidence of important livestock diseases and parasites, mainly define in the lowlands of Ethiopia. There are a number of challenges and bottlenecks limiting the success and profitability of household dairy production systems in Ethiopia.

Keywords: Dairy production, Marketing, Constraints, Ethiopia