Review of Dairy Value Chain in Ethiopia

Abstract

Ethiopia has a huge potential to be one of the key countries in dairy production for various reasons. It includes a large population of milk cows, a huge potential for production of high quality feeds under rain fed and irrigated conditions, existence of a relatively large human population with a long tradition of consumption of milk and milk products and hence a potentially large domestic market. Despite its potential for dairy development, productivity of indigenous livestock genetic resources in general is low, and the direct contribution it makes to the national economy is limited. the main source of milk production in Ethiopia is cattle but small quantities of milk are also obtained from goat and camel in pastoralist areas of the country. Based on the system of production, Milk production can be viewed at three different sources. These include: Pastoral milk Production, The highland smallholder milk production and Urban and peri-urban milk production. Milk and milk products are channeled to consumers through both formal and informal marketing systems. Ethiopia has a low level of milk consumption compared to other countries in the region (Kenya = 90 lt/cap; Uganda = 50 lt/cap). Challenges and problems for dairying vary from one production system to another and/or from one location to another. Underdevelopment and lack of market-oriented production, lack of adequate information on livestock resources, inadequate permanent trade routes and other facilities like feeds, water, holding grounds, lack or non-provision of transport, ineffectiveness and inadequate infrastructural and institutional set-ups, prevalence of diseases, illegal trade and inadequate market information (internal and external) are generally mentioned as some of the major reasons for the poor performance of this sector.

Keywords: Dairy, Value chain, Market channel, Ethiopia