Value chain analysis of dairy products in Wolaita zone, Ethiopia

Author(s)
Kuma, Berhanu
Baker, Derek
Getnet, Kindie
Belay, Kassa
Publication Date
2012
Abstract
Dairy value chain was analyzed combining, analytical and participatory tools to identify and prioritize constraints and to come up with strategic interventions in Wolayita zone, Ethiopia. Information at zone, woreda, and kebele and actors level was collected through discussions and individual expert contacts. In addition, group and focus group discussions were conducted with representatives of value chain actors. Rapid market appraisal technique was used with butter traders at four major market centers. Random samples of 398 dairy farmers, 198 consumers, 79 butter traders, and 53 hotels/restaurants were surveyed. Analytical tools including descriptive statistics, total gross marketing margin and farmer's gross marketing margin were used. Dairy farmers were found producing mean milk yield of 8 litres per day, out of which 27.8% was used for home consumption, 58.2% used to sale to market outlets and 26.6% used for value addition. About 27.9%, 22.1%, 9.4% of the milk produced per day was sold to consumers, hotels/restaurants and cooperatives, respectively. Hotels/restaurants purchased on average 52.6 litres of milk per day with average price of 5.5 birr per liter and sold with average price of birr 5.9 per liter. Traders purchased on average 53kg of butter per day with average purchase price of birr 54.49 per kg and average sale price of birr 59 per kg. Consumers purchased milk and butter with average price of birr 4.9 and 53.63 birr per liter and per kg respectively. Shortage of feed, low cattle productivity and genetics, inadequate extension services, inadequate institutional support and veterinary services were major constraints. Fodder trees and mixed tree legume protein banks, efficient breeds selection that adapt to the environment, appropriate technical and institutional support and capacity improvement are important steps to improve smallholder dairy value chain. Increased dairy product availability at affordable prices and promotional activities are necessary to increase consumption levels.
Citation
Proceedings of the 19th Annual Conference of the Ethiopian Society of Animal Production (ESAP), p. 357-382
Link
Language
en
Publisher
Ethiopian Society of Animal Production
Title
Value chain analysis of dairy products in Wolaita zone, Ethiopia
Type of document
Conference Publication
Entity Type
Publication

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