Dairy Value Chain DevelopmentNational dairy forum, Addis Ababa, Ethiopia, 23-24 November 2010

A Five years project,Funded by USAID/PEPFAR,Implemented by Land O’Lakes,Year 4 Dairy Income Generating

Activity for PLWA,

Ethiopia Dairy Development Project

Project Goal

To have a competitive Dairy Industry built on private investment that generates

employment and income for smallholder families and provides affordable, quality dairy

products for consumers.

Project Components

1. Milk Shed Development 2. Growing Markets for Milk and Dairy

Products,3. Support for Continued Development of the

Dairy Sector

Implementing Strategies

1. Improve Efficiency and Quality2. Stimulate Business Development3. Strengthen Market Linkages 4. Advance Industry Organization

1. Activities Under Improve Efficiency & Quality

Selection of Contact Farmers, training and using them as an extension agent,

Improving dairy farm management, Promoting forage production, Working on pasture improvement, Promoting feed conservation, Promoting straw treatment, Introducing supplementary feed production, Promoting forage seed production, Promoting & strengthening feed retailing,

1. Activities Under Improve Efficiency & Quality…

Training smallholders, commercial dairy farmers Preparing manuals, fact sheet, flyers, postersTraining public and private AI techniciansProducing heat chart for dairy farm ownersForming and supported dairy associationSpecial attention given to clean milk productionPrepared standard milking procedureAnimal health

2. Activitis under Business Development

Building capacity of dairy clients to improve their business skills,

Support given on producing bankable and better business plans,

Linking clients to banks and microfinance institutions to improve lending possibilities for dairy industry development,

Stimulate business opportunities by organizing investment workshops,

Business related to the dairyFeed production,Feed retailing,Dairy processing,Milk & milk products retailing & distributing,Dairy equipment import & production,Dairy animals trade,AI service provision,Animal health service,Dairy farming,Forage planting materials & seeds production,

3. Activities under growing markets

Conduct consumers research,Improve quality of milk and milk products, Facilitate new product development,Improve operational efficiency,Raise consumers awareness on nutrition,Creating brand/logo, Dairy Promotion Campaign undertakenDairy Business Directory progressing

Major Findings of the Research:

Milk and butter are highly used dairy products,People prefer raw milk because they consider it

to be of more quality and rich in nutrients than pasteurized milk

Low understanding of pasteurizationPeople assume something will be taken out of it

during processing and there is too much water in it.

4. Activities under Support for Continued Development

Primary Dairy Cooperatives & Dairy unionsstrengthening & forming

Formation of forage producer groups,Improve leadership & governance,Promoting membership loyalty,Making business oriented & profitable producers

groups,

4. Support for Continued Development …

Forming Dairy Associations Ethiopia Animal Feed Industry Association,Ethiopia Dairy Cattle Breeders Association,

Strengthening relation with Cooperative activity stakeholders,

DIGAs

In 2008, EDDP received PEPFAR funding to support a DIGA program

Used value chain analyses to identify nine profitable DIGAs

The activities were identified and implemented based on the area, market and interest of the beneficiaries

DIGAs

DIGA Toolkit was developed which includes:market analysis and finance assessment tools, pro forma business plans, training modules, performance monitoring tools,

It is to help implementation of DIGAs, The implementation of the DIGAs began in

2009

Selected DIGAssmall scale milk processingmilk collection and supply,milk and milk products retailingdairy farmmale calves fatteningfeed retailingurea molasses mineral block productionforage production and forage seeds production

Lesson learnedIntensive training can promote a farmer

(smallholder to commercial and commercial to expansion and quality),

Forage seed/planting materials entered business,Contact Farmers and Follower Farmers Extension

outreach shows positive results,Participation of women important along the dairy

value chain, PLWHAs can generate their own income

Recommendations/Next Steps

Develop strong collaboration among all stakeholders,

Promote participation of women in training, cooperatives leadership and businesses,

Encourage cooperatives to play key role in dairy inputs business,

Promote private dairy input service provision,Support PLWHA start business,

Thank you all