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Dairy Policy Inventory of Ethiopia
i
Ethiopia
SNV Ethiopia
Target Business Consultants Plc
www.targetethiopia.com
Getachew Felleke, Medhin Woldearegay
& Getnet Haile
Inventory of Dairy Policy - Ethiopia
Dairy Policy Inventory of Ethiopia SNV Ethiopia
ii
Dairy Policy Inventory of Ethiopia SNV Ethiopia
iii
TABLE OF CONTENTS
ACRONYMS ..........................................................................ERROR! BOOKMARK NOT DEFINED.
1. EXECUTIVE SUMMARY.........................................................................................................................1
2. REVIEW OF MILK AND DAIRY PRODUCTION .......................................................................................5
2.1. OVERVIEW OF MILK AND DAIRY PRODUCTION AND UTILIZATION IN ETHIOPIA ...............................................5
2.2. ETHIOPIAN MILK AND DAIRY PRODUCTION SYSTEMS ...............................................................................9
2.3. Milk and dairy products consumption........................................................................................14
3. MILK AND DAIRY PRODUCTS VALUE CHAIN ......................................................................................15
4. FEED RESOURCE ...............................................................................................................................18
4.1. Overview..................................................................................................................................18
4.2. Feed availability – implications on milk and dairy production.....................................................20
4.3. Forage and feed development initiatives...................................................................................22
4.4. Challenges, constraints and recommendations..........................................................................23
5. BREED IMPROVEMENT AND ADOPTIONS...........................................................................................25
5.1. Overview..................................................................................................................................25
5.2. Breeding practices and service delivery system.........................................................................28
5.3. Breed improvement and use of dairy stock ...............................................................................29
5.4. Challenges, constraints and recommendations..........................................................................30
6. DAIRY HEALTH AND VETERINARY SERVICES.....................................................................................31
6.1. Epidemiological situation ..........................................................................................................31
6.2. Health control practices and delivery system ............................................................................33
6.3. Disease prevalence and control ................................................................................................35
6.4. Challenges, constraints and recommendations..........................................................................35
7. MILK AND DAIRY PRODUCTS UTILIZATION AND POST HARVEST LOSSES.........................................36
7.1. Milk and dairy products utilization.............................................................................................37
7.2. Market outlet and post harvest losses.......................................................................................37
7.3. Challenges, constraints and policy recommendations................................................................39
8. DAIRY EXTENSION SERVICES............................................................................................................40
8.1. Overview of agricultural services ..............................................................................................40
Dairy Policy Inventory of Ethiopia SNV Ethiopia
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8.2. Dairy extension and research ...................................................................................................41
8.3. Challenges, constraints and recommendations in extension services .........................................42
8.4. Challenges, constraints and recommendations in reference to research ....................................43
9. DAIRY FARMERS ORGANIZATIONS AND COOPERATIVES...................................................................44
9.1. Overview..................................................................................................................................44
9.2. Organization.............................................................................................................................47
9.3. Challenges, constraints and recommendations in reference cooperative organization................47
10. BUSINESS AND PROFESSIONAL ASSOCIATIONS ......................................................................48
10.1. Business associations ...............................................................................................................48
10.2. Professional associations ..........................................................................................................49
11. MILK SAFETY AND STANDARDS ...............................................................................................51
11.1. Overview..................................................................................................................................51
11.2. Improving and institutionalizing dairy quality control ................................................................53
11.3. Challenges, constraints and recommendations - milk and dairy products standards and quality 54
12. FINANCIAL SERVICES...............................................................................................................55
12.1. Banks 55
12.2. Microfinance institutions ...........................................................................................................56
12.3. Insurance.................................................................................................................................56
12.4. Challenges, constraints and recommendations in reference to loan...........................................56
12.5. Challenges, constraints and recommendations in reference to insurance ..................................57
13. PROMOTION OF MILK CONSUMPTION .....................................................................................57
13.1. Challenges, constraints and recommendations in reference to milk consumption ......................59
13.2. Dairy information system..........................................................................................................60
13.3. Challenges, constraints and recommendations in reference dairy information ...........................60
14. THE DAIRY INDUSTRY (COMMERCIAL DAIRY FARM AND PROCESSORS)..................................61
14.1. Challenges, constraints and recommendations -to milk processing, packaging and marketing...62
14.2. Informal milk marketing ...........................................................................................................63
14.3. Business environment...............................................................................................................64
15. INSTITUTIONS IN DAIRY DEVELOPMENT.................................................................................64
15.1. Public institutions for dairy development...................................................................................64
Dairy Policy Inventory of Ethiopia SNV Ethiopia
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15.2. Hierarchical structure of public institution relevant to the livestock/dairy sector ........................66
15.3. Duties and responsibilities of the main public actors .................................................................68
16. ROLE OF NGOS IN THE DAIRY SECTOR....................................................................................70
17. THE POLICY ENVIRONMENT.....................................................................................................71
17.1. General ....................................................................................................................................71
17.2. National development policies and their relation to dairy ..........................................................72
17.3. Draft livestock development policy............................................................................................73
17.4. Existing development strategies ...............................................................................................75
17.5. Rural development policy and strategies...................................................................................76
17.6. Sustainable development and poverty reduction program.........................................................77
17.7. The ethiopian poverty reduction strategy..................................................................................78
17.8. The national food security strategy...........................................................................................79
17.9. Agricultural marketing strategy.................................................................................................79
18. RECENT LIVESTOCK DEVELOPMENT PROGRAMMES.................................................................80
18.1. National livestock development program ..................................................................................80
18.2. The livestock development master plan study...........................................................................81
19. LEGAL FRAMEWORKS RELATED TO LIVESTOCK .......................................................................82
19.1. International regulation on trade in livestock ............................................................................82
19.2. Country level proclamations and regulations on livestock and dairy ..........................................82
19.3. National development policies and programs and their implications in dairy development.........85
19.4. Adequacy and relevance...........................................................................................................86
19.5. Compliance of the policies in light of dairy sector......................................................................88
19.6. Effectiveness of strategies on the dairy sector ..........................................................................89
19.7. Need for an institution..............................................................................................................90
19.8. Challenges on the enforcement of the existing policies .............................................................91
20. CROSS-CUTTING ISSUES .........................................................................................................92
20.1. Environment.............................................................................................................................92
20.2. Gender ....................................................................................................................................93
21. BENCHMARKS ..........................................................................................................................93
21.1. Kenya dairy policy ....................................................................................................................93
21.2. Pakistan dairy policy.................................................................................................................97
Dairy Policy Inventory of Ethiopia SNV Ethiopia
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21.3. Indian dairy policy ....................................................................................................................98
21.4. Swaziland...............................................................................................................................101
21.5. Botswana ...............................................................................................................................103
ANNEXES 105
annex 1: animal disease prevention and control..................................................................................107
annex 2: suggested role of dairy board ...............................................................................................109
annex 3: milk value chain map (variant 1) ..........................................................................................110
annex 4: milk value chain – variant 2..................................................................................................111
annex 5: summary of challenges, constraints and recommendations.................................................112
REFERENCES ..................................................................................................................................120
Dairy Policy Inventory of Ethiopia SNV Ethiopia
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ACRONYMS ADB/ADF African Development Bank/African Development Fund ADLI Agricultural Development Led Industrialization AEDD Agricultural Extension Development Directorate, AFRDA/D Animal and Fisheries Resources Development Authority/Department AGDP Agricultural Gross Domestic Product AISD Agricultural Investment Support Directorate AMDD Agricultural Marketing Development Directorate APHRD Animal and Plant Health Regulatory Directorate, ARDU/ CADU Arsi Rural Development Unit/ Chilalo Rural Development Unit BoARD Bureau of Agriculture and Rural Development CIDA Canadian International Development Agency COMESA Common Market for Eastern and Southern Africa CSA Central Statistics Authority DDA/E Dairy Development Agency/Enterprise DRDP Dairy Rehabilitation and Development Project EAFPA Ethiopian Animal Feed Producers Association EAVA Ethiopian Assistant Veterinarians Association EIAR Ethiopian Institute of Agricultural Research EMDTI Ethiopian Meat and dairy Technology Institute EMPPA Ethiopian Milk Producers and Processors Association EPID Extension and Project Implementation Department EPRS Ethiopian Poverty Reduction Strategy EQSA Ethiopian Quality and Standards Authority ESAP Ethiopian Society of Animal Production EVA Ethiopian Veterinarians Association F1LDP First Livestock Development Project F4LDP Fourth Livestock Development Project FAO Food and Agricultural Organization FINNIDA Finnish International Development Agency FTC Farmers Training Centres GDP Gross Domestic Product HACCP Hazard Analysis and Critical Control Point ILRI International Livestock Research Institute IPMS Improving Productivity and Market Success of Ethiopian Farmers KDB Kenya Dairy Board LMPS Livestock Master Plan Study LN2 Liquid Nitrogen
LPS Lactoperoxidase System LSR Livestock Sector Review of AACM, 1985 MFI Micro Finance Institutions MoA Ministry of Agriculture MoFED Ministry of Finance and Economic Development MPP Minimum Package Program NAHDIC National Animal Health Diagnostic and Investigation Centre NAIC National Artificial Insemination Centre NDDB National dairy Development Board of India NEIP National Extension Intervention Program
Dairy Policy Inventory of Ethiopia SNV Ethiopia
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NGO Non Government Organizations NLDP National Livestock Development Project NVI National Veterinary Institute PADEP Peasant Agriculture Development Programme PADETES Participatory Demonstration and Training Extension System PASDEP Plan for Accelerated and Sustainable Development to End Poverty RDPS Rural Development Policy and Strategy SDDP Smallholder Dairy Development Project SDPRP Sustainable Development and Poverty Reduction Program SIDA Swedish International Development Agency SNNP Southern Nations Nationalities and Peoples Region SNV Netherland’s Development Agency SPDDPP Selale Peasants Dairy Development Pilot Project TLU Tropical Livestock Unit TVET Technical and Vocational Education and Training UHT Ultra High temperature Milk UNIDO United Nations Industrial Development Organization WADU Welaita Rural Development Unit WARDO Wereda Agriculture and Rural Development Office WFP World Food Programme WHO World Health Organization WTO World Trade Organization
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1. EXECUTIVE SUMMARY This study is conducted with the objective of inventorying policies relevant to the dairy sector
in Ethiopia, taking into account the current situation and ongoing efforts in this regard, and
reviewing the gaps in the policy landscape that cause bottlenecks, constraints and limitations to
arise in the dairy sector. The report will provide input for further discussion on policy
development needs and the way forward. The document addressed and thoroughly discussed
issues of the dairy system as to their background, status, challenges, gaps and opportunities.
The Ethiopian dairy system can be paraphrased by the statement that “though there is huge
livestock population with high potential for milk and dairy production and ever more people
tend to drink milk and consume more dairy products, yet milk production is still too low in the
country to satisfy the needs, which is hampered by bucketful of paradoxes, hopes and
heartbreaks”.
Category of the Dairy system: The Ethiopian dairy systems can be categorized under five
systems of operation; pastoral (traditional pastoral livestock farming), Agro-pastoral
(Traditional lowland mixed livestock farming), mixed crop livestock system (traditional highland
mixed farming), Urban and Peri-urban (the emerging smallholder dairy farming) and
Commercial (specialized commercial intensive dairy farming)
Dairy products: In the Ethiopian context the type of milk and dairy products that needs to be
considered are whole milk (liquid milk, Ititu, Ergo, buttermilk etc) and other dairy products
from fermented processing (butter, ghee, Ayib, Metata Ayib etc.),
Production: From the overall Ethiopian milk production, the rural dairy system, which includes
Pastoral, Agro-pastoral and Mixed crop livestock system, contributes 98%, while the peri-urban
and urban including the commercial dairy farms produce only 2% of the total milk production
of the country. Indigenous stock produce 97% of the milk produced from cattle and the
remaining 3% from improved exotic crosses and pure grade cattle. Most of the milk produced
in the rural dairy system is retained for home consumption and it is non-market oriented.
Dairy Policy Inventory of Ethiopia SNV Ethiopia
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Although the total amount of milk produced has increased with increases in human population,
the per capita milk production has declined for some years. Based on the 2008/09 survey of
CSA, milk per capita, increased to 37.62 liter. Based on other estimates however, the per capita
milk is much lower than this.
Marketing: Of the total milk produced in the country only 5% is marketed as processed fluid
milk due to the underdevelopment of the infrastructure in rural areas. The volume of
pasteurized milk and other dairy product sales is increasing.
Overall, the value chain encompasses all direct and indirect actors from the point of production
up to the point of consumption of the dairy products. The direct actors are rural traditional
small holder producers, improved market oriented, dairy farmers and dairy cooperatives and
Unions, milk collectors, small scale dairy Processors, dairy input suppliers, commercial dairy
farms, commercial dairy processors, retailers, consumers. Indirect actors and support/service
providers are government offices at all levels, dairy and livestock development projects, Non
Governmental Organization, Producers associations , professional associations, Financial
institutions are among the list.
Feed: In general the feed supply is not adequate. characterization of the Ethiopian feed
situation and feeding system reveal that deliberate production of feed for dairy cattle is
unusual, Policies on land tenure and access to land are based on cropping area requirement,
i.e., the absence of land use plan for pasture land and grazing areas and/or bias on crop
production, Lack of breeding strategy to align with seasonal feed availability, and feed, usually
based on fodder and grass, are either not available in sufficient quantities, or if available the
feed are nutritional poor quality, scarce grazing land, inferior quality of processed feed quality
supplies and high cost of processed feed and processing residues and natural feed.
Breeding: Generally deliberate selection of cattle for milk and dairy is not well practiced. Milk
is produced mainly from indigenous zebu cows (82%), the remaining coming from does and
she camels and insignificant amount from sheep of the same origin. As indicated above, the
exotic crosses and pure grade cattle are representing about 3% of the total milking cows.
Short supply of improved dairy breed, uncontrolled breeding practice and inefficient artificial
Dairy Policy Inventory of Ethiopia SNV Ethiopia
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insemination service are among the major constraints in extensive use of improved dairy
breeds. To alleviate the problem, policy options include promoting communal groups/private
involvement on bull breeding schemes, AI services and bull rearing centers, establishment of
public bull rearing and bull service stations, develop and enact breeding strategy on and
controlled breeding are suggested.
Diseases: Mastitis and retained placenta are known diseases that cause heavy economic
losses to milk producers and the dairy industry. The animal health service organized under the
Federal and Regional Governments had contributed to the national economy through reducing
the negative impacts produced by epizootic and zoonotic diseases.
Lack of inspection and quality control services of livestock products to safeguard the public
from diseases, uncoordinated veterinary drugs administration, efficacy and quality problems
are major constraints. Prevention and control of diseases through development of veterinary
infrastructures and manpower, design and implements appropriate control and prevention
strategies, and encouraging of the private veterinary drug dispensing are recommended.
Consumption and Post harvest losses: Urban consumers buy milk for direct consumption
mainly from the urban and peri-urban dairy farmers near settlement areas where demand for
milk is high. Absence of organized marketing network has made the large amount of milk
produced unable to reach the consumer. Together with the perishable nature of milk post-
harvest losses is thus high due to spillages and spoilage. In some case studies losses of up to
20-35% have been reported from milking to consumption for milk and dairy products.
Inconsistency of demand and supply of milk are among the main factors which affects the dairy
value chain. Promoting extended shelf life dairy products, generic (non-brand specific)
advertisement and promotions, promotion of school milk feeding programme, and aggressive
involvement by Government and the private sector on dairy industry are among the suggested
intervention for the improvement of milk consumption at the national level.
Extension service: Definitive approach of extension service was developed late in 1960’s.
Since then a number of extension packages has been introduced. With all these years effort,
extension package performance indicators show that the livestock husbandry extension
package in particular have not been operating efficiently and effectively as expected. The
extension service was not available for urban and large scale farms.
Dairy Policy Inventory of Ethiopia SNV Ethiopia
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Farmer organizations: There are a number of milk marketing cooperatives who also started
their own small and medium scale processing. Some of the cooperatives played prominent role
in strengthening the dairy value chain and in the improvement of the livelihood of their
members. Limited capacity on management and marketing of their respective cooperative,
limited capital, and weak communal thinking are the challenges that should be over come to
develop the cooperative promotion.
Quality standards of Dairy Products: The quality standards set by the Ethiopian Quality
and Standards Authority are not enforced and no mandatory certification or regular inspection
and quality control are not in place.
Financial institutions: Challenges and constraints from financial institutions to the dairy
sector are poor loan access by small holders, cooperatives and unions, lengthy process in
getting investment loan approval for industries, no or low collateral value of machines and
cattle and unsuitable insurance policies.
Policies: All the relevant policies which are related to the dairy sector, or affects the sector in
one or another way in terms of production, marketing, consumption, quality, breeding, feed etc
are thoroughly reviewed in this document. Policies are reviewed in light of the identified gaps
and challenges analyzed in the dairy sector actors. Inventory of the existing policies and
strategies at sectoral level and programs developed thereof in Ethiopia had indicated that the
overall objective of the policies and strategies are more or less comprehensive in addressing
basic principles of development with a the exception of few items. Intuitional capacity,
ownership, follow-up, coordination and continuity are among the main challenges which deter
the effectiveness of these policies.
Benchmarking: Dairy policies of countries like Kenya, Swaziland, India, and Pakistan are
reviewed and best practices are identified and incorporated as a recommendation.
Finally, the output of this study is summarized and presented in a tabular form in Annex 5 of
this document indicating challenges, constraints and proposed policy level interventions.
Dairy Policy Inventory of Ethiopia SNV Ethiopia
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2. REVIEW OF MILK AND DAIRY PRODUCTION
2.1. Overview of milk and dairy production and utilization in Ethiopia
The paradox - Large livestock Population versus low milk per capita consumption:
The Ethiopian dairy system can be paraphrased by the statement that “though there is huge
livestock population with high potential for milk and dairy production and there are ever more
people tend to drink milk and consume more dairy products yet milk production is still too low
in the country to satisfy the needs which is hampered by bucketful of paradoxes, hopes and
heartbreaks”. The Ethiopian livestock population is the highest in African continent and there
has been efforts exerted to develop the sector, but the outcomes are insignificant (the
paradox). There is increasing population with improved disposable income at some sectors of
the society, especially in the growing urban areas, to absorb the produce (the hope). Despite
the different technological advances and increasing efforts of the government and the private
sector as well as bilateral, international and development oriented NGO’s involvement, the
change expected could not be realized and is frustrating (the heartbreaks).
Based on recent surveys the total milk production has increased significantly (300%) from what
it has been reported by CSA for the year 2000. i.e CSA (2000) indicated national milk
production was 1.2 million where as agricultural Sample survey result of 2007 (CSA, 2008) had
result of 3.2 million litres. The milk per capita, based on the 2008/09 survey is 37.62 litres
(CSA 2009). However, according to the forecast of FAO, the annual production is far below the
survey made by CSA. During the period from 2001 to 2007, based on FAO forecast, cow milk
production is growing at an average rate of 2.6%, which is equivalent to the Ethiopia’s
population growth rate of 2.8% (2007 census). The recommended per capita milk consumption
according to FAO/WHO is 200 litres per capita per annum. The average per capita consumption
of milk in Sub-Saharan African is 25kg, where our neighbor Kenya is consuming about 90kg
and global average is 190 kg. Comparatively Ethiopia’s per capita milk consumption is
estimated to be about 20 kgs.
Socio-economic importance of milk to Ethiopia
Milk, similar to other societies, is our first food and we were raised on our mother’s milk. The
statement made by Author Amadou Hampate Ba of Mali “the baby at the mother’s breast
drinks more than milk, but mercy and love too” (quoted in Spore Magazine of December 2002)
Dairy Policy Inventory of Ethiopia SNV Ethiopia
6
indicates that milk may have its mythical dimensions and development of the mind. We have to
admit the importance of milk in our social development, besides, it is our traditional food,
especially in the agro-pastoral and pastoral areas. It is the basic need the country should avail
for the betterment of its people.
Where milk is a widely accepted most complete food for human beings and is highly regarded
and most essential in the diet, it is important to promote the utilization of milk on public health
and human development perspective. The public has the “right to milk” and the Government
should have the road map to develop the sector and avail enough milk and dairyproducts. The
public is also obliged to get adequate milk and dairy products both qualitatively and
quantitatively for healthy and productive performance with affordable price that suit the socio-
economic situation of the population. Due to its intrinsic nature to be converted to variety of
products through the wide range of technologies available, the type and quality of milk and
dairy products for market are diverse and humans have plenty to bargain for and choose milk
in its unique diverse form to suit the society’s requirement.
If not the same in our country, milk has become an icon of consumption for urban population.
Generations of urban consumers in other countries have acquired a taste of it through
distribution schemes at schools and through advertisements praising its beneficial effects. More
over milk and dairy products are found in all types, shapes, and sizes on market stalls and shop
shelves for the consumers to select from to maximize their need for the product. Pasteurized
milk, UHT milk, cans of evaporated milk, condensed sweetened milk; full and skimmed and non
fat milk, butter milk yoghurt, cream, butter, ghee, powdered milk, baby formula, too many
sorts of cheeses to choose are available for market for whoever needs it. However this practice
of availing all sorts of dairy production and the culture of milk and dairy products promotion is
not practiced in our country. Despite the potential for market outlet for the various milk and
dairy products, with increased population, urbanization and improved standard of living the
formal market is not well developed in Ethiopia. Notwithstanding the need to supply children
and vulnerable sector of the population with this most important food, it is important to
develop the market outlet to avail clean and standard milk and dairy products in different
brands for all consumers to choose from to satisfy requirements at affordable prices.
Dairy Policy Inventory of Ethiopia SNV Ethiopia
7
Challenges and Constraints
Milk hasn’t ever been plentiful in our country due to intermittent drought and less milk available
during the dry season. Other factors for deficit are low potential for milk production of local
breeds; backward and low management knowledge at the farm level (feeding, etc,), and
discontinuous and ineffective public interventions, dictating the existing low productivity and
overall production. Even in the pastoralist and agro pastoralist community only the children,
pregnant women, and the elderly drink it regularly, others getting it on rare occasions. Even
though milk may be produced in many areas and parts of the country, the difficulties in the
smooth transportation of the product to consumption site on time (providing clean milk, both
quality and safety guaranteed) had effect on equitable distribution to provide sufficient amount
due to under developed dairy production and weak marketing system and its linkages. We
need to improve productivity and overall production with efficient marketing system to satisfy
the national demand for milk and dairy products.
Other features of milk and dairy products development in the country are the characteristics of
under developed milk processing and marketing situation, predicament on price and cost of
both raw milk and dairy products for the producer and consumer respectively. Level of
importation and its impact on local production and the issue of affordability and standard of
living are the important considerations.
As milk is highly perishable with variations in temperature and bacterial load, it has short shelf
life that needs care and maintaining its quality to make it available to the consumer on clean
and healthy form. As it is a good media for microbial multiplication with increased temperature
and extended duration, it is prone to contamination with zoonotic and other bacteria, which
causes ill effect for humans. Unless collected on time and consumed, processed and/or
converted to other dairy products accordingly it is prone to wastage and loss. Inefficient
handling that causes loss is major factor that negate increased production and development of
the sector.
The presupposition milk is too cheap to sell (rural) in respect to the producer and too costly to
buy (urban) with respect to consumer are the two dilemma in the extremes of the value chain.
Milk producers especially in the rural areas fetch lower price which could not induce them to
produce more and efficiently to make available steady supply to the milk marketing chain.
Prices as low as less than three Birr are reported in rural areas of Ethiopia while farmers in the
Dairy Policy Inventory of Ethiopia SNV Ethiopia
8
peripheral areas of urban centres are getting up to six Birr a litre based on location and
demand. On the other side consumers are complaining of buying, specially pasteurized milk at
a cost of more than twelve Birr a Litter which is unaffordable for most groups of societies.
Where is the bigger margin is going?
Too little raw milk to collect and too small supply and few varieties of choices in milk and dairy
product are also scenario of concern for the market to operate efficiently. Demand and supply
in both respects are challenges that face and affect all stakeholders in milk production and
market value chain and the overall dairy sector. Both producers and consumers in the
respective end of the milk value chain, blame the market not to be conducive.
Demand for milk products especially in urban areas are mostly met with imported products.
Import has increased from about 3.1 million USD in the year 2001 to the level of USD 9.3
million in the year 2008, which is about 300% growth from what is has been in 2001 (UNIDO,
2009). In terms of quantity it has increased from 1,716 tons (2001) to 2,087 tons (2007) with
steady increases every year except the depressions in two years. On average there is annual
16% increase ranging from decreases in 2003 (-37%) to 59% in 2001.
Prospect
Overcoming the competition of land for crop production and other resources, realization of
increase in local milk production through improved productivity and organized market linkage is
essential to improve minimum level of milk and dairy products consumption requirement for
the 74 million, populations growing at 2.6% per annum (2007 Census).
The growth in production can provide a satisfactory supply of milk and dairy products and help
generate more income for farmers and thus trigger development in the sector. Options for the
development of the dairy sector are bound from the minimum setting of creating chain of
smallholder dairy farms up to commercial farms, forming milk shed areas and developing dairy
colonies (group of farmers located in strategic areas) around towns and helping to form
cooperatives (including mini-dairies) to better target their integrated milk value market linkage
with long term effect of policy direction by the public interventions. These polices has to
encourage private investments to develop large scale dairies, cooperatives to bring economies
of scale and building strong investment capacity and the public to adhere to its commitment to
enacting on conducive policy environment for the overall development of the country.
Dairy Policy Inventory of Ethiopia SNV Ethiopia
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2.2. Ethiopian Milk and dairy production systems
Dairying in Ethiopia practiced almost all over the country with the intensity of small or medium
or large-sized, subsistence or market-oriented farms. According to Getachew and Gashaw
(2001) the dairy system of the country is categorized based on agro-ecology characterization of
the area or climate, socio-economic structures of the population and holdings and type of
breed and species used for milk production and the integration with crop production as
criterion
Broadly the country’s milk production system can be classified into two major systems, namely:
1. The rural dairy system which is part of the subsistence farming system and includes
Pastoralists,
agro-pastoralists, and
mixed crop–livestock producers;
2. The peri-urban; and urban dairy systems
With the similar approach and reason of identifying the dairy system the Livestock Master Plan
study (MoARD, 2008) has categorized the dairy system specifically into five dairy system from
extensive grazing at one end to zero-grazing at the other end.
The production system can also be further categorized under three systems of operation:
based on level of inputs. These are Low inputs; Medium inputs and high inputs (State of
Ethiopia’s Animal Genetic Resources-Country Report, 2004).
This way of classification with the augmentation from the Getachew (2001) and review
consideration of the study team and for the purpose of this study the following classification
was used to address the dairy development and polices inventory in Ethiopia. This includes:-
1. Pastoral:- The traditional pastoral livestock farming,
2. Agro-pastoral:- Traditional lowland mixed livestock farming,
3. Mixed crop livestock system:- Traditional highland mixed farming,
4. Urban and Peri-urban:- The emerging smallholder dairy farming,
5. Commercial: - The specialized commercial intensive dairy farming;
Dairy Policy Inventory of Ethiopia SNV Ethiopia
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2.2.1. Pastoral milk production system
This is the major systems of milk production, practiced in the lowland regions of Ethiopia
where the livelihood of the transhumance population is dependent on their stock. Cattle
dominate the livestock population followed by camel, goats, and sheep, (Coppock, 1993). Of
the estimated cattle population cows constitute about 40% of the herd indicating that the
pastoral population considers cattle primarily for increased income there by use these for milk
production. Area extends from the northeast Afar lowlands to the western lowlands including
Somali Region, Borana area and Southern Omo areas.
Because of the erratic rainfall pattern and related reasons resulting in shortage of feed milk
production of milk per unit area is low and highly seasonal. More milk will be produced in the
wet season where they would mostly convert the surplus milk into butter and trade off with the
highlanders in the peripheral markets for grain. Milk is primarily used as fresh whole milk for
consumption followed by sale to urban centers and for fermentation to process it into butter.
Milk storage and use can be either in the form of milk fermented for a short term for lower
than five days (used mainly for family consumption or butter making). The remaining milk will
be stored to be fermented for a longer term for up to 30 to 60 days used as ititu, a social food
commonly reserved for guests (Getachew, 2003).
2.2.2. Agro-pastoral: Traditional lowland mixed livestock farming
The system has similar but gradual to sedentary ecological characteristics and cattle type to
the pastoral area. Its specific identification is livestock dependent but growing of crop and its
further expansion in crop farming gradually allocating the pasture land to crop production. The
crop residue and aftermath of crop farming is used as a feed source for animals in the area in
addition to communal pasture grazing. As compared to the above system, the system have
better consideration for milk market and its access for additional inputs such as animal health
services and supplementary feed from industrial by products and development of forage to
calves and milking cows near to the newly started farm land to some extent.
2.2.3. Mixed crop livestock system: Traditional highland mixed farming
Milk-production is an integral part of the production system of small-scale, non-commercial
subsistence-farms which represent among the 83.9% of the population and are responsible for
the major part of 98% of the total milk produced and 75% of commercial, liquid milk-
production (Getachew, 2003; Tsehay, 2001).
Dairy Policy Inventory of Ethiopia SNV Ethiopia
11
The animals on these farms produce between 400 and 600 liters of milk per cow per lactation.
Indigenous stock are the typical animals maintained within this system; the system is largely a
system of extensive husbandry; that is, the stock are for the most part expected to feed for
themselves, making the best of natural pasture and crop residues. Such a system does not
entail investment in the improvement of stock or of lands. Cash outlays for purchased inputs
are minimal; supplementary feeding is not practiced; and drugs and vaccinations of use much
lower, those medicines required for the handling of indigenous stock are typically provided on a
highly subsidized basis by the Veterinary Department of the Regional Agricultural Bureaus and
sometimes through project finance. Typical extensive milk-producer can thus expect minimal
cash expenses per unit of milk produced, but only a very limited milk output per cow (low input
versus low output).
Milking cows in the traditional sector have an average lactation length of 190 days and an
average milk yield of 1.9 liters per day (excluding what the calf has suckled). (MOA, 2005).
Although the figures represent very low levels of productivity, the genotype of these cows
cannot be totally blamed for such a limited level of productivity under the present standards of
feeding and management. Although the genetic potential of the milk-yield of most indigenous
zebu-cattle is too low to support the investment required in commercial dairying, they will
continue to be the principal source of milk for a long time.
Although this sector is largely based on indigenous breeds, some progressive small-scale
farmers in the various milk sheds are now maintaining cross-bred cows that are capable of
producing 800 to 1200 liters of milk/cow/lactation and sale milk to co-operative societies and
commercial milk collectors (MoARD, 2008).
2.2.4. Urban and Peri-urban: The emerging smallholder dairy farming
The introduction of crossbred dairy heifers into the mixed farming system in the development
of an integrated agricultural production has proved successful in the highland regions of
Ethiopia. This system of dairy production is mainly located in the potential highland areas of
the country where farmers in the peri-urban and some rural areas not distant away urban
centers practice market oriented milk production. They tend to be developed mainly in the
Addis Abeba milk shed area and some other urban centers where market for fresh milk is
readily available and adequate (Getachew, 2003).
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Due to limited land holding and the need to complement the crop production in increasing
efficiency of agricultural production the emerging smallholder dairy farming using crossbred
and improved dairy stock will be the most important feature in dairy development.
It is a production system which is expanding and is largely found in the highlands where
mixed-crop livestock-farming is practiced as well as within urban centers. Economic factors
have been dominant in determining the locations of exotic dairy-cattle in these urban and peri-
urban areas since the milk-production of exotic cattle far exceeds that of indigenous stock. The
animals used in this system are capable of producing 1,120 to 2,005 liters over a 209 day-
lactation (Azage et al, 2002).
The dairy farms in this system rely mainly on purchased feed. They are commercially oriented
and will respond to improved technical, input supply and marketing services. The owners of
dairy cattle in these intensive peri-urban systems are mainly small farmers, but businessmen
and retired civil servants who depend, wholly or partly, on hired labor, are also common.
Urban smallholders are mainly supplying to households though house to house delivery. Most
of them are using plastic jerry can for handling the milk. The main end consumers of house
delivery are infants and children. The delivery is often on a monthly contractual basis with
minimum delivery size of half litre. Some urban smallholders are also supplying to cafe’s and
restaurants. Recently these urban smallholders are facing a pressure from the municipality to
shut off their small farms because of health and environment issues. Based on the discussion
with the chairman of EMPPA, it is estimated that 20% to 30% of these farms are closed in the
year 2009. Based on the information of Vet service provider of Akaki district of Addis Ababa,
the numbers of cows vaccinated in the year 2008/09 are about 600 as compared with that of
the year 2007/08 which was about 1000 cows. The decline in the size of smallholding urban
farmers is believed to be one of the contributing factors (UNIDO, 2009).
2.2.5. Commercial: - The specialized commercial intensive dairy farming
On specialized dairy farming milk production is on a commercial basis and is concentrated in
the central highland plateau. The system comprised of small and medium sized dairy farms are
based on the use of purebred exotic or high grade and crossbred dairy stock. They are mostly
Dairy Policy Inventory of Ethiopia SNV Ethiopia
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operating in the urban and peri-urban areas and around major cities and towns with high
demand for milk having population of more than 10,000.
The system is labour and inputs intensive as compared to the other systems. Most of the feed
sources are based on purchase and some part of the feed requirement being fulfilled from own
source (LSMP, 2006).
The potential for significantly increasing dairy production in Ethiopia lies with the commercial
market oriented production systems in the central highlands in which crossbred and pure exotic
dairy breeds can be used. The simultaneous expansion of small-scale and commercial dairy
development would then be part of the adjustment of agricultural production patterns in areas
where livestock stocking rate is high and smallholder farmers have been facing with shrinking
arable land and higher population density and rising income/and wage rates favor higher
production.
Based on the above classification and the characterization of the systems the milk-production
systems represent a gradually-increasing management level and investment in improved dairy-
cattle-management. The higher levels of investments are found near the main urban markets
where the higher milk prices are obtained (Sintayhu, 2008).
On contribution to the milk production level the rural dairy system, which includes Pastoral,
Agro-pastoral and Mixed crop livestock system, contributes 98%, while the peri-urban and
urban including the commercial dairy farms produce only 2% of the total milk production of the
country (Ketema, 2000). Eighty three percent of milk produced is from cattle and the
remainder from goats and camels. Indigenous stock produce 97% of the milk produced from
cattle and the remaining 3% from improved exotic crosses and pure grade cattle (LSMP, 2006).
Most of the milk produced in the rural dairy system is retained for home consumption and it is
non-market oriented. Different reasons determine the amount of surplus milk found and to be
used for the traditional dairy products processing such as butter, ghee, Ayib and sour milk are
usually marketed through the informal market after the households satisfy their needs
(Getachew, 2003; Tsehay, 2001).
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2.3. Milk and Dairy Products Consumption
In the Ethiopian context when dealing with consumption of milk and safety of milk and dairy
products the type of milk and dairy products that needs to be considered are whole milk
consumption (liquid milk, Ititu, Ergo, buttermilk etc) and use of dairy products from fermented
processing (butter, ghee, Ayib, Metata Ayib etc.), (Getachew and Asfaw, 2004).
The growth in milk production in Ethiopia has been slow. Although the total amount of milk
produced has increased with increases in human population, the per capita milk production has
declined from 26 liters in 1980 to 22 liters per annum in 1993 and then to 19 liters per annum
in 2000. Based on recent surveys the total milk production has increased significantly (300%)
from what it has been the year 2000. The milk per capita, based on the 2008/09 survey is
37.62 litre (CSA, 2009). According to the forecast of FAO, the annual production is far below
the survey made by CSA. During the period from 2001 to 2007, based on FAO forecast, cow
milk production is growing at an average rate of 2.6%, which is equivalent to the Ethiopia’s
population growth rate (2007 census). The production growth rate in Sudan in the same period
has sharply declined to 2.9%, where as Kenya is registering growth rate of 10.4%.
Of the total milk produced in the country only 5% (Getachew and Asfaw, 2004) is marketed as
processed fluid milk due to the underdevelopment of the infrastructure in rural areas. Even in
regions with favorable climates for dairy production, participation of smallholders in liquid milk
markets by means of collecting, processing and distributing it to consumers has always been
limited. The recent growths in road constructions create better market access to peri-urban
and rural small holders. This in turn increases the volume of milk available for sales. Typical
milk production and its utilization and the paths of transaction are illustrated in Figure 1.
When considering the likely prioritization of milk production and utilization in rural producers’
prior objective is for home use as liquid milk. Then sales as an income generation will be the
second priority whenever there is access to market. The third priority is processing of the
remaining milk to other milk products. Processed milk products (household level, Butter and
ayib) are primarily made for sales and the remaining will be for household consumption. The
proportion of consumption, processing and sales vary among the type of producers and their
access to market. Surplus milk produced in pastoral or other remote areas is virtually
unmarketable.
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Figure 1: The Ethiopian Milk Flow
Source: Getachew and Asfaw, 2004
3. MILK AND DAIRY PRODUCTS VALUE CHAIN The dairy value chain starts with the raw product/milk supply at the farm level and ends with
consumers who make the choice to buy, or not to buy, the finished product. The value chain
have three major actors, these are the micro, meso and macro actors. The micro actors are
also called the direct actors of the value chain. These direct actors in the dairy value chain
have several links between the farm (production) and the consumer (consumption). These
actors involve in activities like procurement (collection), transportation, processing and
packaging, storage and distribution, retailing, and food services. (See Annex 3 and 4 for Value
chain map)
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3.1.1. Micro (Direct) Actors
In the direct value linkage the major direct actors identified are:-
i. Raw milk producers, this includes rural traditional small holder producers (pastoralists, agro
pastoralist, high land mixed farmers) and improved market oriented (urban, peri- urban
and commercial) dairy farmers and dairy cooperatives and Unions,
ii. Input providers, this mainly include; feed processors, veterinary drug and dairy equipment
suppliers, vaccine, Artificial Insemination and health service providers, knowledge and skill
providers,
iii. Milk collectors,
iv. Dairy Processors(small scale cottage and industrial),
v. Distributors and retailers, and
vi. Milk and dairy products catering or service providers (café, hotels and restaurants).
3.1.2. Meso level value chain actors
The Meso level value chain actors are those organizations which provide support to the sector
in the development and strengthening of the direct actors. These are:-
i. Federal and Regional Agricultural and Trade offices (Ministry of Agriculture and rural
Development, Ministry of Trade, Bureau of Agriculture and Rural Development),
ii. Dairy or livestock development projects such as National Livestock Development Project
and Livestock Master Plan Study,
iii. Non Government Organization (Local, Regional and Global) addressing dairy development
such as SNV, FAO, WFP, Land O’ lakes, etc.,
iv. Professional association such as Ethiopian Society of Animal Production and Ethiopian
Veterinarians Association,
v. Producers associations such as Ethiopian Milk Producers and Processors Association and
Ethiopian Feed Processors Association,
vi. Federal, Regional and international Agricultural Research institutions such as EIAR, ILRI,
etc., and
vii. Financial institutions such as Banks, Micro Finance Institutions and Insurances;
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3.1.3. Macro level actors
The Macro level actors are those organizations or institutions which provide conducive dairy
development environment by issuing different Ruler, laws, procedures , guide lines and the like
to facilitate the development, strengthening and regulation of the dairy sector. These are:-
Federal and Regional Agricultural, public health and Trade offices,
Federal and Regional cooperative Offices,
Quality and standard Authority,
Ministry of Finance and economic development,
Federal and regional customs Authorities,
Federal and Regional investment offices;
3.1.4. Market and dairy products Outlets
The dairy farmer has three market-outlets apart from his own consumption.
The milk producers can sell surplus milk to neighbors in the informal marketing channel.
The informal market involves direct-delivery of raw, fresh milk to consumers in the
immediate neighborhood and sale to itinerant traders and nearby institutions. The informal
marketing channels are of low cost and use short-cut marketing routes between the
producer and consumers and are thus believed to be more efficient than the formal
marketing systems,
The milk producers can sell to dealers. The dealers also collect milk from farmers and
transport it to nearby urban centers for direct sale to consumers (in some cases to
retailers),
The milk producers can also sell to milk group or co-operative to which he may or may not
belong or he can deliver to a milk-collecting center of the dairy industries mainly supplying
pasteurized milk and dairy products to Addis Ababa and other nearby towns,
The availability of these market-outlets through the establishment of milk groups and co-
operatives as well as the milk-collection centers have given dairy farmers a broader choice of
marketing their milk instead of depending on local traders and neighborhood buyers. These
developments have also encouraged many traditional farmers in the rural and peri-urban areas
to market their surplus milk. It is also suggested that the increasing pressure for cash has
encouraged many cattle holders to sell small quantities of milk normally consumed in the farm
household or fed to calves.
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4. FEED RESOURCE
4.1. Overview Both crop agriculture and livestock rearing are the main stay of the 83.9% Ethiopian rural
population. From the total area of 112 million hectares the country has, 45% is arable.
Cultivated area in 2007/08 accounted for about 10.55 million hectares of the land. According to
CSA (2008) of the arable land area annual crops cover approximately 74.2%, while perennial
crops covers 6%, pasture lands 8.7%, fallow 7.6%, woodlands 0.8% and others 2.7%.
Characteristically agriculture is practiced mainly by smallholder farmers, numbered 12.5 million
and 13.2 million for the years 2006/7 and 2007/8 respectively (CSA, 2008/9). Average land
holding is estimated to be 0.93 hectares in the settled highlands where there is slight increase
in peripheral areas.
The pastoral and agro-pastoral areas cover more than 60% of the total landmass inhabiting 10
million people in seven Regional States (Beruk, 2007). Here land is communally owned and
range conditions dominating land per human inhabitants and livestock are high with low
carrying capacity and seasonally abundant forage and browsing condition. These areas situated
in the peripheral regions of the country are characterized by unpredictable and unstable
climatic conditions; and very fragile environment where livelihood is at risk.
Ethiopian agrarian perspective and production system dictates the scope of animal production
and the associated feeding situation where the type of feed available and the feeding system
are largely functions of the agro ecology, the type of farming system and purposes of livestock
keeping.
In general livestock feeding depends mainly on grazing and browsing. In the highland grazing,
mostly on communal, is augmented with crop residues and agro-industrial by-products which
account substantially to the feed availability for oxen and to some for milk producing animals. To
some extent, dairy production in the highland areas use introduced (new and improved variety)
pasture and forage species.
In this respect grazing and browsing account for nearly 84.8% of the total feed supply from
permanent grazing lands, fallow and stubble following crop harvest. It is estimated that some
62.5 million hectares of land is regarded as grazing and browsing area (MOA, 2000; Azage,
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2009). The trend in feed availability is decreasing with largely in response to increasing land
pressures, land degradation and declining productivity of grazing land. Where there is over
stocking, communal grazing land, it would result on overstocking and cause land degradation and
lower yield on both forage and expected output on milk and the associated livestock products.
Whereas livestock is playing the major role in the agricultural production of the country and its
high potential and opportunities, shift in land use noticed is not in favor of livestock. In this
connection, early studies (FAO, 1989) on land use indicated that the amount of land covered with
permanent pasture showed a 1.1% decline over a 16-year period from 1973. In early 1980’s
contribution of native pasture to the total feed supply was estimated at 80-85% (Alemayehu,
1998). More recent estimates indicate considerably lower contribution. To indicate regional
differences Central Statistics Agency’s (CSA, 2003) estimates for Tigray, Amhara, Southern
Nations and Nationalities (SNNP) and Oromiya were 45.3%, 59.7%, 70.7% and 72.2%
respectively. The trend holds true with the current situation, the shift noticed in emphasis to crop
production both on the highland and lowland areas due to population pressure and expansion of
large scale agricultural production respectively.
In the cropping areas, aftermath and fallow land grazing is estimated to provide 7.1% of the
total feed supply (6.3 million tones of dry matter) as supplement to grazing and browsing. Cereal
straws of Teff, barley and wheat are increasingly used for ruminant livestock diet. Crop residues
currently account for 14.9% of the total feed supply in the country (Getachew, 2003), and
becoming increasingly important in the annual feeding cycle, already accounting up to 50% of
total feed in some areas. The extent to which crop residues are being used has increased
considerably. In SNNP, Oromiya, Tigray and Amhara regions use of 18.9%, 21.6%, 34.2% and
35.3% are reported respectively (CSA, 2003).
Agricultural and industrial by-products (principally bran, molasses, and oil seed meals and
cakes) have greatly increased in cost value; they are primarily used within fattening and
dairying programs. In some areas there has been tradition of stall feeding and there is now a
dramatic shift towards this kind of feeding systems, inspired both by increasing land pressures
and profitable livestock production. Though their use is increasingly important availability and
ever increasing price is limiting the wide use of this locally produced feed ingredient (ESAP,
2008) Feed sources other than grazing and crop residue account for less than 0.3% of the total
feed supply.
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4.2. Feed availability – implications on milk and dairy production
The different milk production systems from intensified (commercial dairy farms, urban and peri-
urban farms) to traditional (highland crop/livestock farmers, agro-pastoral and pastoralists) exhibit
their own characters and challenges in their cattle feeding system. This requires acknowledgment
of these differences and the prospects of improvement for addressing proper feeding for efficient
milk production.
When dealing with issues in feed production and utilization for the dairy production, mainly milk
from cattle, the different sources of feed in terms of roughage and concentrate should be treated
separately. Feed from pasture, conserved feed and crop residue as herbage source and use of
concentrate feed to provide supplement and gap fill the necessary feed ingredients for complete
feed. Furthermore use of feed conservation for efficient utilization and storage for use throughout
the year and specially in lean periods, herbage and crop by-products improvements for quality and
nutritional value to improve palatability, increased intake and grazing management both on
intensive (use of best grazing management and feed utilization on forage based dairy production)
and in extensive management (use of rangelands and grazing management cum destocking)
should be key areas of concern for increased feed availability and efficient utilization.
In intensive dairy production, stall feeding is mostly practiced where herbage from hay or crop
residues are used to satisfy the forage requirement. Pasture based dairy is rarely practiced due
to land limitations. Home produced hay production is seldom practices in rural areas. While the
majority of intensive dairy farms are either in the peripheral urban areas and sub urban areas
land for grazing and hay production is not adequately provided. Purchased feed is
characteristically is the mode of feeding dairy cattle in this system. Though supply of concentrate
feed or the feed ingredients is limited farms use the expensive and meagre amount to
supplement for high milking and early lactating cows. Supplementation is not according to
production or productivity.
Small holder farmers who practice dairy using improved stock follow the same trend in livestock
feeding but they tend to use crop residues and agro-industrial by-products, more of conserved
feed in the form of hay and balanced feed, the magnitude inclining more to high energy feed
depending on the intensity of their dairy production system.
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In general the feed supply is not adequate. To illustrate the feed balance, with estimates of
livestock population projected up to the year 2025 (Getachew and Gashaw, 2001) to be around
35.4 million, 37.1 million, 38.8 million, 40.7 million, 42.2 million and 44.7 million TLU by the year
2000, 2005, 2010, 2015, 2020 and 2025 respectively the subsequent feed requirement
(assuming 3% of the body weight per day for DM) suggested that a supply of 96.4 million, 101.7
million, 106.3 million, 111.5 million, 115.6 million and 122.4 million tons of dry matter feed to be
required in the respective years. The implication for the future trend in livestock population and
associated feed requirement indicated that more livestock would be competing for feed from the
limited resource which is beyond the expected stocking rate or will not be able to stock leading to
diminished production or forced de-stocking. Hence considering the existing situation, the annual
availability of the forage produced, estimated at 60,524,175 metric tones (WBISSP, 2001 in
Adugna, 2009) and the likely supply of feed from the other sources would likely not satisfy
requirement based on the existing potential carrying capacity of the land and the decline in
grazing areas.
The situation on natural grazing lands, in spite its low quality and inadequate availability has
limitation on herbage grazing for 4 or 5 months of the year (MOA, 1985). This causes fluctuation
in the production of milk, reflected in the variation during the different seasons. Furthermore the
natural pasture is seriously deteriorating due to high stocking rate and improper utilization.
With the rapid increase of human population and high demand for crop food, natural pastures
are steadily being converted to agriculture.
In general, shortage of supply, its seasonality and low quality are major problems for livestock
development in Ethiopia. This is more pronounced in the highland areas where modern dairy
development is expected to expand. In the extensive areas feed requirement is growing with
increased livestock pressure where people tend to keep more cattle for social security. Hence,
these result in annual feed deficit that precludes slower growth rate and lower productivity
performance of the livestock.
In particular, characterization of the Ethiopian feed situation and feeding system reveal that:
Feed, usually based on fodder and grass, are either not available in sufficient quantities due to
fluctuating weather condition or, when available are of poor nutritional quality,
Forage sources are unimproved species and are from overgrazed common grazing and fallow
lands,
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Deliberate production of feed for dairy cattle is unusual,
Agricultural and industrial by-products utilization is low as compared to its potential availability,
Use of alternative sources of feed from silage making and conserved residue are limited,
There is improper and inadequate government policy on grazing use right in the highlands.
Policies on land tenure and access to land are based on cropping arearequirement, i.e., the
absence of land use plan for pasture land and grazing areas and/or bias on crop production,
Lack of breeding strategy to align with seasonal feed availability, and
Research on adaptive and high yielding grass legume is limited in scope and application.
4.3. Forage and feed development initiatives Although there have been encouraging results from the efforts made to promote the
development of improved forage in research and development, through F4LDP and NLDP,
endeavors, wide adoption of the technology and intensity of utilization is in its infancy.
Introduction of high yielding forages for both annual and perennial plantation and the different
strategies employed for producing high biomass herbages could have effect on the ample and
year round supply of feed. However, the potential could not be realized even in dairy
production areas and the technology implemented not sustainable.
Ago-industrial by-products which include oil seed cakes and flour milling by products as well as
sugar industry by products are also important dairy cattle feed, although their current
contribution to the total feed requirement is negligible. The existing feed processing plants are
very limited in number and are found around Addis Ababa. Shortage of supply for the industry
and the limited output of feed ingredients from the food processing mills and factories and ever
rising cost of the feed ingredients and compounded rations indicated the need for further
development and fair distribution.
According to Alvarez (2006) quoted by Adugna, (2009), production capacity of nine state and
181 private owned flour mills the total production of wheat bran was 269,238 tones working
under capacities of 20-50% due to shortage and high price of wheat. On the other hand due
to oil seeds being the most important export commodities earning foreign exchange growing
at a rate of 66% in 2005/2006 local extraction of the oil seed was limited thus cake production
capacity was lower in this respect. It was estimated that from annual production of oil seeds
with 80-90% processed and 42- 58% cake extraction rate 102, 225 Metric tones could be
produced for local consumption and export (Adugna, 2009). Given the sever feed shortage in
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the county, it was envisaged that the private sector would be encouraged to be involved in the
establishment of feed processing and manufacturing plants.
In the lowlands, although the total quantity of feed available (54.7 million tons DM) from native
pastures do seem to supply adequately to the estimated maintenance requirement, natural
pasture in this area grow fast during the rainy season and decline in quality rapidly after
maturation. Therefore, due to low quality of the feed and shortage of water, the feed resource
of the lowland areas is not efficiently utilized. Average forage yield in Borana area is estimated
at 2 ton per hectare
On milk and dairy production perspective there is an increased demand for purchased feed for
both roughages and concentrates not only for commercial urban and peri-urban farmers but
also by those farmers with highland mixed farming and agro-pastoralist semi intensive in rural
areas due to limited land area for forage production. This calls for the improvement of both
supply and quality of the feed for the dairy cattle to be productive and to attain improvement in
the sector.
Institutionally forage development has been constrained by poorly developed mechanisms for
exchange of ideas at all levels, between farmers, between kebeles and Wereda, and very
significantly between regions. There is also poor coordination between regions and the federal
level, with federal groups increasingly constrained by structural readjustment to deliver support
by manpower and funding limitations.
4.4. Challenges, constraints and recommendations
From the above background and descriptions of feed production, conservation, value adding
and feeding system the challenges, constraints and recommendations are summarized as:
Challenges
Feed, usually based on fodder and grass, are either not available in sufficient quantities, or if
available the feed are nutritional poor quality,
Inefficient utilization of Agricultural by products,
Low and uneven supply of industrial by-products,
Scarce grazing land,
Inferior quality of processed feed (concentrate) quality supplies,
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High cost of processed feed and processing residues and natural feed (hay);
Constraints
Sources are from overgrazed common grazing and fallow lands,
Overstocking beyond the carrying capacity of the land,
The existing land use policy doesn’t consider grazing use right. Policies on land tenure and
access to land are based on cropping area,
Absence of enforcement of quality standards on processed feed supply,
Low dissemination and adoption of improved feed technology and inputs,
Uneven distribution of feed processing plants in the country,
Low support to commercial feed processors;
Policy recommendation
Deliberate production of feed for dairy cattle,(commercial!!)
Promotion of production on cultivated forages through the different forage development
strategies employed which fit into the farming system such as conservation based forage
development strategies (technology transfer and input supply),
Improve pasture use through appropriate grazing land management system,
More research and development activities and dissemination of improve feed value of locally
available feed resources,
Use of alternative sources of feed from silage making and conserved residue,
Breeding strategy to align with seasonal feed availability,
Research on adaptive and high yielding grass legume in scope and application,
Revising of the land policy to incorporate the forage production and grazing areas and to
consider livestock development on the land use plan,
Research and extension services to develop and strengthen improved feed conservation
strategy to ensure year round feed availability,
Encourage and assist establishment of feed processing plants,
Develop feed quality control system,
Encourage self regulation of quality standards on processed feed supply through the
Ethiopian Animal Feed Industries Association,
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Impose livestock tax and assign quota (stock control) for controlling overstocking based on
stratification of livestock production system,
Encourage forage bank establishment in feed deficit prone areas,
Forest utilization as animal feed resource in expansion of agro forestry,
Develop and enact Animal Feed Resource Strategy,
Integrated water and pasture resources development strategy,
Encourage and provide incentive for feed processers in the livestock development potential
areas;
5. BREED IMPROVEMENT AND ADOPTIONS
5.1. Overview The population growing at 2.8% per annum necessitates unprecedented growth in agricultural
production particularly in the foods of animal origin to satisfy the food (nutrient) requirement
of the growing population. To satisfy the increasing requirement of milk and meat, with
existing productivity being low, production has to come from increased number of animals.
However as resources, particularly land is scarce to raise as many livestock as possible to
produce the requirement all increases in production have to come from improved productivity
of inputs. Increased productivity per animal and per unit of investment or area is option for
increased production where genetic improvement is basic for maximum performance and
productivity.
As has been reported frequently milk and dairy production is common practice in Ethiopia
involving a vast number of Pastoralists, Agro-pastoralists, smallholders (high land mixed, urban
and pre-urban) and medium sized farms using mostly indigenous stock. Modern dairy
production with use of specialized dairy breeds of animals is rare and is confined to large scale
dairy farms.
In reference to the mixed crop-livestock system of the Ethiopian highlands, traditionally
livestock is an important source of draft power for crop production, deriving cash income from
sale of live animals, milk and other animal products for household consumption. Deliberate
selection for milk and dairy is not practiced. As result milk and dairy products, though
important source of income, are considered as by-products of agricultural production. However,
when we consider the milk value chain and market situation for urban and rural consumers,
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smallholders’ and their local breeds’ contribution is significant. Rural areas produce about 85%
of the milk (Bennett, A., 2001), and hence smallholders are by far the largest in number who
produce and supply milk to the formal market and sell part of their traditional dairy
products(butter and Ayib) to urban consumers.
Pastoral and agro-pastoralists rear about 30% of the indigenous livestock of the country to
produce mainly milk which serve as the major source of food at their locality. Milk production in
this system is characterized by low milk yield and there is seasonal availability (Sintayehu, et al,
2008). In contrast in the highland smallholder farming system milk and dairy production is part
of the subsistence mixed crop and livestock farming, though main emphasis being given to
crop production. The indigenous stock raised in this system have the same genotypic and
generally have low performance with average age at calving of 53 months, average calving
interval of 25 months, and average lactation yield of 524 liters (Zegeye, 2003; Ahmed et al,
2003).
Peri-urban and urban milk production are emerging as main suppliers of milk and dairy
products to the cities. They possesses dairy animals ranging from 50% First dairy crosses to
high grade Friesian breeds in small and medium sized farms mainly in urban areas. Large scale,
though small in number as compared to smallholder, are found in peri-urban areas (Azage and
Gebrewold, 1998; Azage, 2003). The peri- urban dairy farming though mainly involve
smallholders is characterized by commercial dairying expanding in the highland area. Among
the most pronounced dairy production sites are the mixed farming areas in Selale, Holeta etc.
(Alemu, et al 2000).
The introduction of different exotic dairy breeds (Friesian, Jersey, Holstein, Brown Swiss,
Guernsey, Ayrshire, and Simmental etc.) in the highlands of Ethiopia had proved that these
dairy breeds and their crosses are adaptable provided that the management level is adequate.
The potential performance of these breeds has been evaluated by research (Holeta and
Debrezeit research stations), teaching Institutions (Alemaya and Ambo), CADU/ARDU (Asela
dairy farm) and their performance on private and state dairy farms since 1947. By virtue of
their production and adaptation Friesian and Jersey are important breeds introduced and has
got wide acceptance. As recommended, based on the research and production performance,
the draft breeding policy of Ethiopia had used these breeds as base for intensive and semi
intensive farming using high dairy blood or crosses and grade respectively (Getachew and
Dairy Policy Inventory of Ethiopia SNV Ethiopia
27
Gashaw, 2001). These are the exotic dairy breeds that are widely present in the country
distributed within the commercial, urban and peri-urban private dairy farms as pure and grade
and smallholder farms as crossbreds.
The introduction of crossbred cows and complementary feeding as well as management
technology adopted for increased production had paved the way in commercialization of
smallholder farms. Milk produced is then treated as a cash commodity and integration into the
market occur as deliberate milk production for sale is expanding. Community of smallholder
dairy farmers had emerged which encouraged cooperation among them and to be organized for
marketing of their produce. Such specialized and market oriented dairy production and
cooperation substantially raised milk production that look for lucrative market and make the
smallholder farming system more viable and sustainable.
During the last four decades genetic improvement has been recognized in the design and
implementation of development programmes and projects in the country. F1LDP had distributed
grade dairy cattle imported from Kenya and established Abernosa cross breed cattle production
Centre, DRDP had imported 400 cross Friesian Boran cross bred heifers from Kenya and 92
Pure Jersey from Zimbabwe and Expanded and rehabilitated the cattle breeding ranches of
Abernosa, Gobe, Andasa, Metekel, Didtuyura and Sodo, SPDDPP and SDDP as well as Ethiopian
Red Cross had imported 350 cross bred cattle. The production and distribution of crossbred
heifers, provision and dairy stocks, provision and strengthening of AI services and/or bull
services were major components of the development projects implemented.
Urban dairy production is characterized by use of improved dairy stock either purposely
selected indigenous stock/cross/grade/improved dairy stock of European dairy breed
specifically Friesian. These breed combination integrated with intensive management has
significant contribution to the milk supply of urban areas. In Addis Abeba milk shed area, for
instance, smallholders by supplying 73% of the milk marketed produced the largest amount of
marketable milk. Further more from the 6,813 small producers identified in 1993 by Addis
Abeba Dairy producers Association only 177 are large producers (Staal, et al 2005; Getachew,
2003) which indicate their significance. When we consider other urban areas the same trend in
milk supply holds true (Sintayehu, et al, 2008), that milk supplied to urban population is mainly
through smallholder dairy farms within the urban limits. Most households own cows to produce
milk for family needs and or sale as source of income. It can then be concluded that the
Dairy Policy Inventory of Ethiopia SNV Ethiopia
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smallholders in all section of the population, urban, peri-urban and rural, are the main actors in
the milk supply system of the country and the main suppliers of milk are mostly the indigenous
breeds (97%) of cattle followed by 3% improved crossbreds and grade and pure dairy breeds
of cattle.
Use of improved and pure (exotic) dairy cattle for high production and as a farm business is
well recognized in urban, pre-urban and mixed highland areas where market favors sale of
milk. As a result the need for the supply of these improved dairy breeds is increasing. With
limited sources, inefficiency of breeding services both natural mating and artificial insemination
and difficulty to import such foundation stock, it is imperative to address the breed
improvement and introduction issue accordingly.
5.2. Breeding practices and service delivery system An efficient breeding system with adequate provision of services is vital for sustainable
development of the dairy industry. A well regulated and strategically implemented breeding
system could be used to maintain the genetic make up for desired character. These actions
should be for improving dairy character of local cows (through selection or increase in exotic
dairy blood) and to keep dairy blood level of those already proved productive animals to the
desired level for optimum production.
In Ethiopia where establishment of large scale dairy farming using exotic breeds is possible in the
highland, smallholder market oriented dairy farming in urban and peri-urban are emerging and
market outlet for milk produced is not constraint, introduction of pure and grade dairy cattle and
use of these and their crosses for milk production are practical. In this regard breeding services
to upgrade the milk character and maintain the desired blood level using either natural mating or
artificial insemination services is empirical.
Despite controlled breeding is rarely practiced using selected and proven bulls for desired
product, there are alternative technologies available to accelerate effective breeding such as use
of artificial insemination and other technologies to be adopted. However, it has to be noted that
an efficient and practical practice of bull selection is being carried in the lowland area of Ethiopia,
where bull selection and traditional breeding is effective.
Dairy Policy Inventory of Ethiopia SNV Ethiopia
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Historically establishment of bull stations for cross breeding and maintenance of exotic blood
were interventions introduced through ARDU and WADU and later expanded by SDDP and NLDP.
Their approach in provision of the bulls and modalities for services differs. The earlier two were
using cooperative while SDDP used individual farmers as venue for the service. Outcomes in
terms of number of services and increase in improved stock production were encouraging but
sustainability of the approach was hampered as they were only implemented by projects but not
taken as public intervention.
The National Artificial Insemination Service since its establishment in 1981 would have been the
choice of best breeding practices in providing reliable, efficient and effective insemination
services upto mid 1990’s after decentralization. The mandates and responsibilities of the
institution were in recruiting bulls of high pedigree records locally for semen production;
importing semen and bulls of high pedigree records, collecting, processing, preserving and
distribution of semen, producing and dispatching liquid nitrogen (LN2,) training of AI
technicians and farmers, monitoring and evaluation of the overall AI service, among others .
With eight sub centers in selected regions and the AI field service run by Regional Agriculture
and Rural Development Bureau and Wereda Agriculture and Rural Development Office with 791
technicians trained to provide the service the expectations are high.
To date, though strengthened with assistance from FINNIDA and financial support from NLDP,
services provided is considered to be not satisfactory due to low number of inseminations
provided, low conception rate (1.88 number of services per conception by Desalegn (2009)
with ranges from 2.48 as reported by Abate (2006), 1.7-2.7 reported by Bacha (2007), both
values as referred by Desalegn (2009). It was revealed that coordination is loose by all
responsible bodies from Federal to Wereda levels. As far as the constraints associated with the
AI service at national and regional levels is concerned, absence of national livestock breeding
policy and lack of clearly defined share of responsibilities among stakeholders in artificial
insemination were identified as the most important constraints.
5.3. Breed improvement and use of dairy stock Although the country owns the potential agro-ecologically of suitable environment and
abundant livestock resources for milk and dairy production existing performance is low and
there is insignificant contribution to satisfy nations’ requirement for the product. Milk from its
selected indigenous breeds and those from adaptable introduced and improved dairy breeds
Dairy Policy Inventory of Ethiopia SNV Ethiopia
30
through adoption and use of proper management could have the contribution to the overall
production. Low productivity and hence inadequate production from the herd needs measures
to expand appropriate programmes to realize the potential. Conditions that contribute to this
low genetic potential include:
Traditional livestock breeding system characterized by uncontrolled grazing and breeding
where different classes of livestock are allowed to graze together,
Selection on merit not practiced for efficient breeds (Breeding is carried out without
selection or controlled breeding),
Absence of breeding centre for exotic dairy herd as source of bull and heifers,
Limited number of modern dairy farms which could serve as alternative source for heifers
and bulls ,
Lack of public and private institutions to multiply improved dairy stock,
Low improvement in genetic improvement of indigenous animals,
Animal breeding and development research not adequate to satisfy the need of improved
animals in the country,
Lack of record keeping for livestock breeding and improvement;
5.4. Challenges, constraints and recommendations
Improved and pure dairy cattle supply as foundation for increase of herd size is main constraints
for the expansion of dairy development in the country. The limited local sources are not capable
of providing sufficient number of stock and the prices are escalating making affordability factor of
choice to involve on local cattle for subsistence production. There is thus a pressing need to
produce more dairy animals and maintain sustainable sourcing locally.
Challenges
Low genetic potential for increased milk production of local breeds,
Short supply of improved dairy breed,
Uncontrolled breeding practice,
Inefficient Artificial Insemination service
Few private participation in artificial insemination service providers;
Constraints
Low capacity for genetic improvement of indigenous animals,
Animal breeding and development research not adequate to satisfy the need of improved
Dairy Policy Inventory of Ethiopia SNV Ethiopia
31
animals in the country,
Lack of public and private institutions to multiply improved dairy stock,
Selection on merit not practiced for efficient breeds (Breeding is carried out without
selection or controlled breeding),
Absence of breeding centre for exotic dairy herd as source of bull and heifers,
Limited number of modern dairy farms which could serve as alternative source for heifers
and bulls,
Low supply of artificial insemination inputs such as liquid nitrogen, equipments and logistic,
Low level of staffing and career development scheme for Artificial Insemination Technicians
in the organization structure,
Uncoordinated artificial insemination services at all level of the system,
Low semen quality due to inefficient production and preservation,
Uncontrolled breeding bull selection due to poor recording;
Policy recommendation
Establishment of a local market structure for improved stock,
Promotion of enabling farmers to buy and sell cows directly from each other through short
term credit facility that would be available at low collateral,
Farmer based crossbreeding program using group breeding scheme and bull station,
Encouraging private AI services of the Artificial Insemination Service not only on crossbred
and grade cattle but also for crossbreeding the local animals to produce the required
number of dairy animals,
Promote communal groups/private involvement on bull breeding schemes, AI services and
bull rearing centers,
Establishment of public bull rearing and bull service stations
Develop and enact breeding strategy on and controlled breeding,
Encourage private artificial insemination service provision;
6. DAIRY HEALTH AND VETERINARY SERVICES
6.1. Epidemiological situation There is widespread prevalence of livestock diseases and parasites in all agro-ecological zones
of the country that causes direct economic losses through mortality and morbidity. The impact
of these diseases also contributes to the poor reproductive performance of the animals.
Dairy Policy Inventory of Ethiopia SNV Ethiopia
32
These diseases categorized under epizootic, reproductive and zoonotic conditions represent one
of the important constraints to increased livestock production in general and dairy in particular.
Though the intensity varies along the production systems and among the breeds and exotic
blood level, diseases are responsible for high mortality, morbidity and zoonosis. These clinical as
well as sub-clinical diseases reduce reproductive and productive performances, quality of
products and growth rates of young animals. Mortality of 8-10%, 14-16% and 11-13% has been
reported for the indigenous cattle, sheep and goats respectively (MoARD, 2007). Morbidity has
indirect effect which is manifested by slow growth rate, reduced mature weight, poor
reproductive performance and decreased milk production. This is true with improved dairy
cattle breeds which are inherently more susceptible to infections and reproductive diseases
compared to the indigenous cattle.
A number of diseases both endemic and pandemic affect dairy cattle. The major diseases
diagnosed are Contagious Bovine Pleuro-Pneumonia, Foot and Mouth Disease, Lumpy Skin
Disease, Anthrax, Blackleg, Haemorrhagic septicemia, mastitis, Streptothricosis (Cutaneous
dermatophilosis), Tick-borne diseases including Anaplasmosis, Babesiosis, and Heartwater,
infertility due to Brucellosis, Trichomoniasis, Campylobacteriolosis and Anoestous, Calf
Pneumonia, Calf scour, Helminth parasites, tick infestations, and metabolic disorders.
Prevalence and risk factors of major clinical reproductive health problems like repeat breeding,
retention of placenta, abortion, dystocia, anoestrus, and prolapses were among the many that
causes loss of calf and inefficient reproduction. The major clinically manifested diseases were
mastitis, retained fetal membrane, infectious disease, abortion, milk fever (hypocalcaemia),
dystocia, lameness, bloat, diarrhea, simple indigestion, metritis, mange mites (Regasa, et al,
2009; Behailu H. and Abebaw G, 2009). Different authors have demonstrated similar clinical
problems such as mastitis, retained placenta, milk fever (hypocalcaemia), ketosis, displaced
abomasum, laminitis, digestive disorders, nutritional deficiencies, skin problems and parasitic
infestations (Matthewman, 1993; Gary, 2001; Lema et al, 2001) that affect intensive dairy
production. Among the above mastitis and retained placenta are known diseases that cause
heavy economic losses to milk producers and the dairy industry. This mainly by reducing the
quantity and quality of milk output increased veterinary expenses due to excessive use of
medications. These diseases also reduce the milk and meat products with consequent public
health hazards.
Dairy Policy Inventory of Ethiopia SNV Ethiopia
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The extent of productive diseases in dairy cattle like mastitis is high and farmers’ awareness of
the problem and control practiced is low. The prevalence of mastitis in dairy farms is reported
to be high (42.1% for sub clinical, 3.8% for clinical and 2.1% for blocked teat cases) (Girum,
2009). According to the study it was significantly higher in large size herds (53%) than small
holder farms is high (30%) the major causes being lack of attention and low management
level. Hence the economic loss will continue to increase in farms with subsequent effect on milk
production at the national level.
Tuberculosis, Brucellosis and Listeriosis are major zoonotic diseases in Ethiopia due to their
endemic nature in domestic stock and poor implementation of adequate measures to reduce
the incidence. Studies conducted so far indicate an increase in the prevalence of Bovine
Tuberculosis, particularly in dairy farms practicing intensive animal husbandry and raising
crossbred and exotic cattle.
In extensive, small holder and intensive dairy farming the mean prevalence of Bovine
Tuberculosis is 9.1% (75), 8.1% (221) and 27.8% (1,316) respectively (Mahlet, 2008). A nine
years record on TB patients in St Peter Hospital indicates high proportion of extra- pulmonary
TB in human.
Different studies conducted in four regions of Ethiopia indicate the wide existence of brucellosis
in the country. The infection rates range between 0 - 0.69% in different districts of Amhara
region, 0.2%-5.19% of Oromiya region while 2.46% is the highest infection rate recorded in
Southern Nations Nationalities and Peoples Regional State (SNNP).
6.2. Health control practices and delivery system Diseases negatively affect the productivity and economic goal of animals reared to produce
milk and other food products and are among the constraints of dairy development crucial to
many of the management decisions of milk production enterprise, be it smallholder or large
scale farmer especially in high-producing dairy cows.
The major clinical diseases are expected to hinder the dairy development. Especially, high herd
prevalence together with incidence rate of mastitis and pneumonia are important. So far efforts
have been attempted to minimize the negative impact of the clinical problems focused on
treatment of clinical cases rather than prevention. Hence, to alleviate the health problems of
Dairy Policy Inventory of Ethiopia SNV Ethiopia
34
smallholder dairy cows both treatment and preventive measures should be practiced. Decision
making process in disease control and prevention starts from investigation of existing
problems; necessitating the designing and implementation of appropriate control and
prevention strategies.
The animal health service organized under the Federal and Regional Governments had
contributed to the national economy through reducing the negative impacts produced by
epizootic and zoonotic diseases. In this regard the regional governments have responsibilities
of ensuring the accessibility of animal health services to all citizens in affordable manner
(Berhe, et al, 2009) while at the Federal level on disease surveillance, research and regulating
the services.
At national level, there have been progresses with establishment of 2,275animal health clinics
including 1,628 animal health posts and 647 animal health clinics (MoARD, 2006). The
respective number of Animal Health Clinics for the four major Regions of Oromiya, Amhara,
SNNP and Tigray being 215 clinics, 115 clinics, 49 clinics and 110 clinics. In addition 2,490
Community based Animal Heal Workers were trained and 1,654 are functionally involved in
primary animal health care services in pastoral and agro pastoral areas of Ethiopia namely Afar,
Amhara, Gambela, Harari, Somali and Tigray Regions. The private sector is also involved in the
provision of clinical services and sell of veterinary drugs (MoARD, 2007). In this respect 47
animal health clinics, 4 animal health posts, 28 veterinary drug importers 376 veterinary
pharmacies and 172 rural drug shops are operational through out the country.
Major role of the Regulatory Directorate in providing the input, manpower and service delivery
process for the prevention and control program in animal health are:-
In the production of different vaccines by the National Veterinary Institute,
manpower training by Animal health Assistants School and Veterinary Faculty of Addis
Abeba University which now involves six more Universities and the Alage TVET (current
animal health personnel under the Ministry and the Regional Bureau being 353
veterinarias,1452 animal health Assistants, 1622 Animal health Technicians, 228 meat
inspectors, and 202 laboratory technicians (MoARD, 2007) and
On quality control and disease investigation the establishment of the National Animal
Health Diagnostic and Investigation Centre as well as the nine Regional veterinary
laboratories played a major role.
Dairy Policy Inventory of Ethiopia SNV Ethiopia
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6.3. Disease prevalence and control Direct loss from mortality and morbidity are high with fertility hampered, reproductive
performance reduced, growth rate decreased (retarded). Constraints to veterinary services in
Ethiopia with special reference to dairy production on technical, organizational and
management capacity which encompass infrastructure, budget and human resources were
reviewed and discussed with the different stakeholders including milk and dairy producers,
veterinary input suppliers, public and private veterinary service providers, public entities and
milk and dairy consumers and association. The lack of appropriate and consistent veterinary
policy and program and institutional arrangement and comprehensive capacity for action are
main constraints identified in the country.
6.4. Challenges, constraints and recommendations From the background on disease conditions and discussions on veterinary services for
sustaining healthy animals for increased production and improved productivity as well as in
light of producing safe milk and dairy products for the public the challenges, constraints and
recommendations in this respect are summarized as:
Challenges
Widespread prevalence intensification and spread of livestock diseases and parasites in all
agro-ecological zones of the country
Lack of inspection and quality control services of livestock products to safeguard the public
from zoonotic diseases,
Uncoordinated veterinary drugs administration and control, assurance on drug safety,
efficacy and quality;
Constraints
Lack of proper livestock movement control, quarantine and surveillance systems to prevent
the dissemination of dangerous diseases and to prevent exotic diseases from becoming
established in the country;
Insufficient staffs and high turnover of man power of the respective bodies (federal and
regional) to perform actives and responsibilities given to them by law or proclamation,
Increased problem on external parasites and internal parasites,
Shortage and high cost of veterinary drugs,
Dairy Policy Inventory of Ethiopia SNV Ethiopia
36
Direct economic losses through mortality and morbidity,
Poor reproductive performance of the animals due to diseases,
Weak national animal health information system,
Weak and un-harmonized veterinary extension delivery,
Limited regional and international co-operation in information exchange and in the control
of trans-boundary diseases,
Lack of record keeping on livestock ill/health (vaccination, treatment) and other related
activities,
Extended time for veterinary products registration and import permit processing and import
bans for some very important vet drugs;
Policy recommendation
Need for integrated public and private to undertake adequate disease prevention and
control through essential veterinary infrastructures and man power development,
Design and implement appropriate control and prevention strategies for all public and
economic important milk born diseases such as TB and mastitis,
Strengthening the institutional capacity of the pubic to implement what has been given by
veterinary services proclamation and regulations,
Encouraging the private veterinary drug manufacturers to invest on the sector,
Encourage promotion of private veterinary drug dispensing;
7. MILK AND DAIRY PRODUCTS UTILIZATION AND POST HARVEST
LOSSES
About 81.2% of the total milk produced in the country is from cows; where as the remaining
6.3% and 7.9% is from she camels and does respectively. Indigenous cows' contribution is
about 97% to the total milk production from cattle, the rest 3% coming from improved dairy
stock (Getachew, 2003). As the major source of the milk being from local cows and as 85% of
the population are agrarian it indicates that milk production is practiced widely scattered even
to the remote part of the country where market outlet is a limitation in this respect. Thus, the
milk produced in the rural areas is either used for direct consumption at home or soured and
processed into butter and “Ayib” to be sold to farther areas and urban centres (Getachew and
Gashaw, 2001).
Dairy Policy Inventory of Ethiopia SNV Ethiopia
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7.1. Milk and Dairy products Utilization
Based on studies as reported by Tefera GebreMeskel (2003) in reference to the works of
Belachew (1994), Getachew (2003), Staal and Shapiro (1996) and Milk production and
Marketing Plan (2003, Draft in Amharic), on the milk flow through different marketing channels
(from production to consumption), it can safely be indicated that 68.4% of the annual milk
production is used for rural consumption and only 14.6% is marketed leaving 17% for calves
suckling.
The National Agricultural Sample Enumeration Results of 2001/2002 (CSA, 2003) indicated that
at national level 48.2% of the milk is consumed as whole fresh milk or in fermented form
where as 46.6% is used for butter making and only 5.2% marketed (CSA, 2003). Milk
utilization in rural areas did not vary much from the national average. Significant difference
exists for urban produced milk, which shows home consumed, used for butter making and sale
are 77.3%, 11.8% and 10.1% respectively. However, the high value of coefficient of variation
for home used milk, milk for other purpose/use (butter making) and milk used for sell indicates
that there is wide variation in percentage utilization of milk between regions and socio
economic structure of the society in this respect and hence the data indicated earlier as quoted
by Tefera (2003) for can safely be used to indicate the milk flow and estimate the amount of
home retained milk.
It was noted also that regional differences in the milk utilization pattern, which also indicates
the type of market outlet and the pattern of dairy production. The country is mainly known for
butter production. Taking the extreme and widely used profile as " milk used either as food
source or processed to be sold in farthest areas" the higher home utilization indicates where
people are forced to consume milk above their requirement or process it to butter and Ayib
using locally available technology, prone to high level of post harvest losses.
7.2. Market Outlet and Post Harvest Losses
Those farmers near urban centres have advantages in getting their milk an outlet. Urban
consumers buy milk for direct consumption mainly from the urban and peri-urban dairy farmers
near settlement areas where the elasticity for demand for milk is high. There is also variation
between location of producers (rural, intra-urban and peri-urban dairy producers) and amount
sold. Belachew (1997) as referred by Getachew Asfaw (2004) indicated that per-urban farmers
Dairy Policy Inventory of Ethiopia SNV Ethiopia
38
and intra-urban producers sell 59% and 74% of the daily milk produced respectively in fresh
form in the Addis Abeba milk shed area.
Absence of organized marketing network has made the large amount of milk produced unable
to reach the consumer. Together with the perishable nature of milk post-harvest losses is thus
high due to spillages and spoilage. In some case studies losses of up to 20-35% have been
reported from milking to consumption for milk and dairy products (Getachew, 2003).
The various instances that enhance the post harvest spillage and spoilage of milk are either
resultants of low technology used and/or lack of market outlet for the produce. The wastages
may be either of potential losses i.e. wastage of milk due to mishandling, uneconomical use; or
efficiency losses which could be attributed to use of low level of technology in preservation and
conversion of milk to other dairy products (Getachew, 2005).
Losses can be quality losses by storing in unclean storage utensil, handling during and after
milking where milk is exposed losses through spillage and contamination. Milk transportation
dominated by hand carrying or packing on donkey/horses or using public transport and long
distance traveled, may cause spoilage due to the high ambient temperature and time taken.
The type and level of post harvest milk losses differ with the various actors in the milk value
chain; producer-seller, milk collector-seller (individual and cooperatives or user groups),
processors and retailers levels. Generally the reasons given for milk losses were either due to
spillage during milking, milk transferring and transportation at premises; adulteration of milk
rejected by the consumer; use of poor containers liable for pathogenic bacteria to foster and
poor hygiene that causes continuous deterioration of the milk quality from the milk let down up
to the time it reaches at consumer table (Getachew, 2005). Hence the magnitude of milk to be
contaminated and be losing to the producer and supplier had a geometric progression that
affects the volume and quality of milk and dairy products. The commonest reason for milk
spoilage was unhygienic practices especially originating from the farm. As reported by Getachew
and Asfaw (2004) losses due to spillage and over consumption increased with increasing number
of handlers along marketing channels. It ranged between 2.9% and 4.2% at household level.
Production to consumption losses of milk also shows increased value considering the transaction
from the farm collector to the retailer, 1.8% and 3.6% each respectively. At farm level lose of
Dairy Policy Inventory of Ethiopia SNV Ethiopia
39
2.9% (0.6% for spillage and 2.3% for consumption above requirement) shows significant losses
due to high rural household numbers that exist in the country.
7.3. Challenges, Constraints and Policy recommendations The different challenges facing proper utilization of milk and dairy products and in minimizing
post harvest losses are summarized and Policy recommendations in this respect are outlined as
follows:
Challenges
There is high post harvest milk loss from farm to consumer level;
Constraints
Lack of proper knowledge on milk handling,
Use of improper milking and milk handling equipment,
Under developed milk collection and milk cooling facility,
Poor infrastructure and lack of proper milk transport facilities,
Few processing plants and their uneven distribution,
Unavailability of regulatory system on quality control,
Policy recommendations
To avoid and minimize the post-harvest losses of milk and dairy products actions needed are
mainly training and provision of appropriate inputs as well as introduction of regulatory
measures. These are as:
Avoiding delay and incomplete milking: Timing and complete removal of secreted milk
is essential to increase the volume of milk produced per day per cow in order to gain the
efficiency other wise could have gone unnoticed.
Using proper milking utensils: Avoid predisposing factor of both spoilage and spillage by
using proper and cleanliness and safe guarding the utensils from contaminants
Using proper storage: Proper milk preservation technologies at house hold, collection site,
milk unit, and in the vehicle should be promoted.
Using proper means of transportation: Proper and fast transport and Chilling centres
installed near to potential villages; vehicles used to transport milk should be equipped with
cooling facilities.
Milk collection, processing and marketing: Care should be taken from production
through consumption including activities during collection; transportation, chilling,
processing and distribution to reduce post harvest losses and improve quality.
Dairy Policy Inventory of Ethiopia SNV Ethiopia
40
Awareness raising: Awareness creation should be done on basic milk handing conditions,
Quality control: To keep the quality of milk from deteriorating and reduce product losses,
introducing quality consciousness to milk producers, collecting centers, processors and
distributors and consumers and milk sampling and testing kits have to be introduced to
effectively control milk quality
Promotion of clean milk production: Awareness creation and training of producers on
hygiene care at storage and during transportation, at milk processing and distribution, milk
testing, quality control and safety, etc.
8. DAIRY EXTENSION SERVICES
8.1. OVERVIEW OF AGRICULTURAL SERVICES The Ethiopian extension service has undergone a number of changes in organization,
management styles and approaches. During these different periods, the amount of budget
allocation, the number of extension personnel and farmer’s participation and area coverage has
increased significantly (Sintayehu, 2009). Progress in crop productivity is well recognized.
However, impact of the extension programs in increasing productivity in livestock hampered by
shortage of input and emphasis is considered negligible. Major causes for the poor
performance of the extension programs are attributed to the poor rural infrastructure,
insufficient resource allocation; poor staffing, the repeated restructuring of and transfer of
trained personnel at all levels.
Definitive approach of extension service was developed late in 1960’s when the Minimum
Package Program (MPP) under Extension and Project Implementation Department (EPID) and
Peasant Agriculture Development Program (PADEP) under MoA were adopted as alternative
models for the extension delivery services. The approaches promoted larger farmer’s
participation and wider area coverage than the models that preceded them.
MPP and PADEP were then replaced by the Participatory Demonstration and Training Extension
System (PADETES) in the early 1990’s. This was adopted as the “National Extension
Intervention Program” NEIP with the express intention of eliminating the problems and
deficiencies of the previous programs.
Dairy Policy Inventory of Ethiopia SNV Ethiopia
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8.2. Dairy Extension and Research
Specialized dairy extension was introduced by Dairy Rehabilitation and Development Project
(DRDP) during its five years of implementation (from 1985 to 1993). In the early period of the
project target of intervention was on producer cooperatives. Along with working on improving
milk production through the production and provision of improved crossbred cattle, the project
was involving on addressing technology dissemination of improved husbandry practices by
producing Dairy Technology Manual for Extension staff. Delivery of the service was through its
Dairy Extension component with the assignment of a Chief Dairy Officer at HQ, 5 Senior Dairy
Officers at Administrative Regions level and several Dairy Officers at Woreda level in 17
Woreda. They were responsible for cooperative dairy farms but later through the mixed
economy and early in 1990 their service shifted to individual peasant holders.
The performance of smallholder farmer extension was progressive as many farmers were
participating on Dairy Colony concept of cross bred heifer distribution. The area of operation
for a Dairy Colony limited within a Milk Shed Area. As the number of participating farmers
increases in specific Dairy Colony members will then be organized to deal with marketing
where the small scale milk processing technology introduced. The User Groups (the term used
to replace the name cooperative as farmers were reluctant to use the name due to bad
experience of the past producers cooperative) were engaged in milk collection from members
and non members, process the milk to butter and Ayib. An exemplary performance was in
Bakelo (North Shewa) and Bilalo (Arsi), where in Bakelo 92 farmers were members of the user
group under one Dairy Colony. Milk collection and performance of the group was satisfactory
during the time. The first dairy show in the country after Janmeda dairy show, held during the
Imperial period, was exhibited in Bakelo, Debre Berhan in 1993.
The extension packages that were developed by the Federal MoARD have been implemented
by the Regional Extension Departments and Woreda Extension Teams. The extension packages
were implemented under three different agro-ecological zones, namely:
areas with adequate moisture,
moisture stress areas, and
Agro-pastoral areas.
Under the current set up each Demonstration area will have Farmers Training Centres (FTC)
and three Development Agents each from Crop agronomy. Livestock husbandry and natural
Dairy Policy Inventory of Ethiopia SNV Ethiopia
42
resources will be assigned where as one Animal Health Assistant will be deployed for the
Development areas.
Woreda administration has the power to administer, distribute and control the use of funds
allocated to extension activities and hence priorities are set accordingly to the needs of each of
the Wereda.
Dairy development package was one of the six livestock husbandry extension packages. But
significant obstacles had limited their effective implementation. The major limitations are
shortage of genetic materials, insufficient supply of forage crop seeds and feed supplements.
In addition inadequate supply of credit, insufficient training and advisory services in
management techniques had consequences. The livestock extension package program
formulated for agro-pastoral areas are currently being applied in several Wereda in Afar and
Somali regions but limited to small ruminants and cattle fattening programs. Despite the need
for specialized livestock extension including dairy as a commodity that need production
improvement, the service rendered has bias towards crop even in the late stages. This should
be highlighted as most important issue for low adoption performance.
In general, all extension package performance indicators show that the extension package
program in general and the livestock husbandry extension package in particular have not been
operating efficiently and effectively as expected.
8.3. Challenges, constraints and recommendations in extension
services In reference to the review made on the extension services in Ethiopia and the prospects of
developing the system for effective dissemination of appropriate technology for improved
productivity the following challenges and constraints addressed and the recommendations
forwarded are summarized as:
Challenges
Inefficient and absence of extension services on dairy development for rural and urban and
large scale farms respectively;
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Constraints
It is largely biased to food and cash crops, leaving livestock extension as "filler" of the
system,
There is no service provided for large scale and urban dairy farmers,
Low supply of improved technological input for distribution,
Solely public service and frequent restructuring of extension institutions and policy signals
in terms of focus and priority,
Lack of coordination and harmony of extension services rendered by multi-actors, including
NGOs, and Regions,
Technical applications are more on enhancing productivity, ignoring such important fields
as marketing, agribusiness, communication and facilitation,
Low knowledge of the dairy producers about important dairy inputs such as concentrated
animal feed, vet medicine.
Policy recommendation
Establish strong research, farmer and extension linkages,
Formation of specialized dairy extension service,
Adequate supply of improved inputs,
Develop extension and advisory service for private dairy farms as well,
Encourage private extension service and advisory service;
8.4. Challenges, constraints and recommendations in reference
to research
Based on the reviews made on the research developments in Ethiopia several limitations and
prospects for enhanced productivity were identified. For effective identification, introduction
and adaptation of technology for improved production the following challenges and constraints
addressed and recommendations forwarded are summarized as:
Challenges
Limited and biased research output on different profiles of dairy production and utilization
Constraints
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Limited scope of research strategy,
Low emphasis on need assessment and basis on problem solving
Focus limited on productivity enhancement on applied research on nutrition
Peace meal approach of research on dairy production,
Impact of long generation interval of cattle on research output,
Inadequate and absence of high technology utilization to enhance research out put;
Policy Recommendation
Encourage embarking on comprehensive dairy research,
Strengthen research- extension –farmer linkage to foster applicable research on dairying,
Encourage research on development of appropriate milk processing technology,
Promote applied research on preservation of dairy products and render extension services
for the adoption of the technology,
Develop and promote the technology of improving the efficiency of traditional butter
churning techniques,
Promote use of high technology, like embryo transfer and genetic manipulation etc, to
improve impact of generation interval to accelerate and increase research output;
9. DAIRY FARMERS ORGANIZATIONS AND COOPERATIVES
9.1. Overview Farmers’ organization on dairy production can be considered recent intervention in Ethiopia. There
had been establishment of Producers Dairy Cooperatives during the Derg Regime, These were
short lived as they were owned and operated communally, the efficiency of which was very low
and lack responsibility and accountability. As their primary objective was to deal with production,
knowledge on market development (market accesses) was limited, and were not operating cost
effectively.
Since the early 1990’s dairy cooperative formation followed two different modes to suit their need.
In urban areas dairy farmers were organized with primary objective of solving input supply,
specially concentrate and feed ingredients for their cattle. The Addis Abeba Dairy Producers
Association could be one where in the later stage milk marketing was introduced as part of their
activity. In rural areas milk marketing was the basis for organizing farmers. Farmers were
organized to market milk, get steady outlet for their surplus milk after satisfying homestead
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needs. These groupings later transformed to use of small scale processing technology, introduced
as an object to add value to the milk with production of butter (ghee) and Ayib, which help to
reduce wastage and increase dairy income. These were operating in peri- urban areas with
exception of Selale and Arsi areas, where mostly known as User Groups involved in milk collection,
dairy processing and marketing.
There are also progresses on organizing cooperatives. As a result of efforts made on dairy
development there are a number of milk producers and marketing cooperatives and small scale
milk processing and marketing user groups organized in the different regions mainly in
Amhara, Oromiya, Addis Ababa and Southern Nations and Nationalities.
There are also large numbers of small scale individual processors who are operational
especially in Addis Ababa milk shed area which produce/collect and process milk. There are
three dairy producer cooperatives and three small scale milk processing Cooperative in the
SNNP region. In Oromiya the Selale milk marketing cooperative Union encompasses the eleven
small-scale milk processing cooperative and the Chancho milk producers and Marketing
cooperative. Adaa Milk Marketing Cooperative with main aim to collect milk from its members and
other farms to sell whole milk to the commercial dairy processors and to urban consumers in
Debrezeit and Addis Ababa. The cooperative has established milk processing plant recently
(2008). In addition there are 20 milk cooperatives established by SDDP and by the Region
through NLDP.
The Addis Ababa Dairy Producers and Marketing Cooperative, established in 1991 has 252
members of small-scale intra-urban dairy farms of which 104 (42%) are female. In Tigray
seven small scale milk processing units are present.
In the absence of major improvements in milk collection, processing and distribution,
marketing activities may remain stagnant unless
Milk processing industry enters the market,
Aggressive demand creation promotion,
Diversification different dairy products of better shelf life;
These in general provides higher returns and encourage the farmers to expand their milk
production. This may not be practical in the short term. The smallholder as both the producer
and marketing outlet is then much pronounced in the current stage of dairy development
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(Getachew, 2003) and organizing them into producer and marketing will be the driving force
for dairy development.
Cooperatives and unions are known for their limited organizational capacity mainly in the
following are:
They are lacking managerial and marketing skills and exposures because of their low level
of educational background,
As many of the members and executive committees are busy with their own private issues,
absenteeism and delay in committee meetings are common. Because of this, decisions are
slow, and some functions of the committee are left undone,
They are shy away from employing of paid manpower when the size of their operation
increases because, they often worried on the amount of salary they are paying than looking
at the potential increase in the volume of sales (or return) as they employees staffs to fill in
their gaps,
Limited capital base is a limiting factor for many of the cooperatives not to expand their
volume of transactions and extension of their services to their members;
Farmer’s organization, as producers and marketing agent of their own product, should then be
encouraged because its aims are increasing income of its members. This would provide steady
product outlet, increase the quantity and quality of milk and dairy products offered for consumers,
decrease reliance on imported products by producing quality and diversified products. As a result
this safeguards the well being of consumers by supplying fresh, hygienic and quality milk and
dairy products. The organization can also assist to follow strict quality control at primary
production level involving large but separate entities from production to distribution.
Production and marketing organizations are essential for the sustainable development of the
sector. In this respect production units could assist in the delivery of government services and
creation of self- reliance among producers while marketing units could be involved in
promoting output through milk collection, transportation processing and distribution.
Establishment of farmer’s organizations, registration and licensing with acceptable minimum
requirement could assist in developing the dairy sector. As actors of change participation of
organized producers is important in promoting milk production and utilization, in providing
services in marketing. In addition these cooperatives serve as a forum for promoting quality
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control and act as a quality testing facility, assist in promoting training and serve as a collective
action media for procurement of goods and services
9.2. Organization
Rare presence of organized bodies for milk production and marketing (dairy farmers associations)
in the rural areas in particular is one of the major drawbacks in facilitating the development not
only on marketing but also on addressing even for problems in production.
Strong and well organized dairy farmers associations could create effective and efficient market
outlet for milk, and facilitate and supply feed, vet drugs, heifers and other inputs and services
required for efficient dairy production. They even can cater for installing milk handling, processing
and marketing facility. Farmers need to form dairy associations and be organized on commodity
(dairy) at primary, secondary (union) and Federation in local, regional and national level. The
transformation of farmers associations from one level to a higher level should be based
progressive maturity at each level.
9.3. Challenges, constraints and recommendations in reference
Cooperative Organization From the background and experiences of cooperative organizations in augmenting agricultural
development in general and dairy development and marketing of milk and dairy products in
particular the challenges, constraints and recommendations are summarized as:
Challenges
Limited capacity on management and marketing of their respective cooperative,
Limited capital,
Weak Communal thinking;
Constraints
Governance system is not enabling for continuity of leadership and management
Policy recommendation
Review of the governance part of the cooperative law,
Continuous trainings on marketing and cooperative management,
Engagement of the right personnel;
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10. BUSINESS AND PROFESSIONAL ASSOCIATIONS
10.1. Business Associations
10.1.1. Ethiopian Milk Producers and Processors Association (EMPPA)
Ethiopian Milk and Milk Products Producers and Processors Association (EMPAA), was
established in September 2006. The major objective of the association is to create a
platform to discuss the major business problems of the member companies and to improve
the capacity of their members to deliver a sufficient supply of milk and milk products in
good quality. Deemed importance of the association are:
Ensuring that external assistance can be achieved in an organized manner,
To request assistance in jointly carrying out (market) studies and promotional activities
which will benefit the sector as a whole,
To attract partnership for Public Private Partnership activities,
Organizing of policy forums with other value chain stakeholders, such as the Chambers
of Commerce’s are appropriate and powerful;
Since its establishment, the association coordinates the provision of trainings and facilitation
of access to supplies to its members. Currently the association is weak in terms of
organizational capacity in addressing the critical issues of its members and the industry as a
whole.
10.1.2. The Ethiopian Animal Feed Producers Association (EAFPA)
The Ethiopian Animal Feed Producers Association with the vision of to improve productivity and
profitability of the members and contribute to the overall agricultural development of the
country has the objectives among others to engage in activities designed to enhance
understanding and cooperation between the members and the public sector regarding
livestock feed industry needs, organize and provide technical assistance , education and
training in feed production, marketing distribution and management, improve the quality and
availability of necessary production inputs, enhance the availability credit facility to members
and provide members with market information.
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10.2. Professional Associations
There exist four professional associations in relation to livestock which have stakes in dairy
development. These are the Ethiopian Society of Animal Production (ESAP), Ethiopian
Veterinary Association (EVA), Ethiopian Assistant Veterinarians Association (EAVA) and
Ethiopian Agricultural Professionals Association (EAPA). Among the above ESAP and EVA have
major role to play not undermining the pioneer and significant contribution.
10.2.1. Ethiopian Assistant Veterinarians Association
The first association was the Ethiopian Assistant Veterinarians Association inaugurated in 1966.
This was followed by the Ethiopian Veterinarians which was established in 1974.
EVA has 90% of the veterinarians working in Ethiopia and abroad (Government, academia,
private and corporate practices, industry and NGO). With its official scientific 0rgan, Ethiopian
Veterinary Journal as a medium of communication with professionals in the field of animal
health and production and other related disciplines had played major role in promoting animal
health, production and agricultural development in Ethiopia. EVA has developed strategic plan
to achieve its objective of equipping its members with advanced science and art of veterinary
science including its relationship with public health biological sciences and agriculture through,
among others (EVA, 2009):
Serve as a voice of information conduit to the veterinary profession through its journal,
Newsletter and proceedings, interacting with Government and NGO regarding animal and
public health issues, influencing animal health, livestock production including veterinary
public health policy (lead and involvement in Livestock Production strategy development),
strategy and plan development (e.g. Influence on the issue of veterinary drug
administration and control),
Maintain and improve professional standards and excellence in generation of EVA
professional policies and medical ethics, and influence policy, strategy in training and
research,
Advocate and promote high standard professional ethical practices
10.2.2. The Ethiopian Society of Animal Production
The Ethiopian Society of Animal Production (ESAP) was established in 1990 with the objective
of promoting the advancement of livestock production through sustained scientific research,
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development and extension. ESAP provides common forum to exchange scientific ideas and
research outputs in animal science and publishes these in various forms and disseminate to
users. It has been working towards fostering interest in research and development in animal
production; as well as safeguarding professional quality, academic standards and relevance in
research. It has been fostering interaction and promoting discussions towards appropriate
policy options for the advancement of livestock production in the country.
ESAP has an official journal Ethiopian Journal of Animal Production (EJAP), and A Newsletter.
Besides these special publication on thematic areas have been published like forage
development.
During the last 20 years of ESAP’s existence, 18 Annual Conferences were held. Currently, it
has about 600 regular and associate members. ESAP realizes (ESAP, 2003) that there exist a
number of future challenges for research and development in animal production in Ethiopia.
These include:
Emerging global issues such as climate change, environmental pollution, food security
and safety and the HIV/AIDS pandemic;
Need for manpower and institutional capacity development at all levels;
Worsening poverty in rural and urban areas of the country;
Environmental degradation and associated influences on animal production;
Wastages and inequity in the use of available livestock genetic resources in the country.
Lead and advocate for the creation of a consortium of civic societies in agricultural
research and development,
Rapidly growing demand for livestock products,
Opportunities in the fast growing information technology and knowledge management,
Opportunities with the use of the emerging biotechnological tools for livestock
improvement and production,
ESAP has contributed a lot in facilitating various research papers in related with dairy
development including animal feed production. In addition, the association had spear
headed the drafting of livestock breeding policy development;
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11. MILK SAFETY AND STANDARDS
11.1. Overview From the standpoint of the highly perishable nature of milk, care should be taken to reduce
post harvest losses and improve efficiency to convert the milk to products likely to value add
during processing from production through consumption including activities during collection,
transportation, chilling, processing and distribution.
Prompt cooling or chilling of milk at a temperature of 5°C or below is necessary to minimize
microbial growth and prevent milk quality deterioration during handling, storing and
transporting before the raw milk being processed. In order to facilitate bulking of raw milk
supply and transport the incoming milk, refrigeration facilities are provided at points of
collection and transport means to maintain the temperature as much as possible.
Furthermore care should be taken at reception and processing in order to supply the consumer
with milk, which is clean, sweet, and free from unacceptable odor and flavor, and which does
not carry or transmit diseases. Hence proper quality control at every stage of production,
collection, storing, transportation, processing and retailing is essential. This could be achieved
if the Government leads the implementation of official controls through legislation and
directives and the organization of associated capacities on enacting on quality control which
calls for certification, inspection and control in the level expected are in place.
For safe use of milk and dairy products and increased efficiency of production of quality dairy
products, setting standards and minimum load of essential bacterial concentration with
acceptable threshold levels must be set. It should then be acceptable internationally and needs
to be harmonized with Common Market for Eastern and Southern Africa COMESA and World
Trade Organization (WTO).
In addition, to minimize losses of milk and dairy products and safeguard the population from
health hazards, proper setting of legislations on production, processing and marketing is
essential. On formal setting, this should follow the WHO/FAO code of practice and use of
Hazard Analysis and Critical Control Point (HACCP) system. This would require the support or
back up of a food control laboratory capable of a range of milk quality and safety tests.
Awareness creation of the public in quality and healthy food products utilization and training of
all value chain actors is also vital in implementation of the safety measures.
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Hence development and existence of standards on milk and dairy products are required at
national level and to cope up with international requirements. The need for quality and
standards as stated in published data by the Ethiopian Quality and Standards Authority, among
others are hence:
to protect the health and safety of the end users,
to establish on effective basis for commercial transactions,
to enable order to be placed in terms that have clear and common understanding to both
producers and consumers,
to create confidence to competitiveness in the regional trade like COMESA and global
market,
to enhance greater product quality, better production and delivery efficiency and
To enables producers to produce safe and wholesome product;
In this conjunction the Ethiopian Quality and Standards Authority (QSAE) had developed milk
and dairy products standards in the year 2001. These standards were then revised in 2005 to
be harmonized with the Common Market for Eastern & Southern Africa (COMESA) accepted
Standards. QSAE in collaboration with other stakeholders had prepared a Recommended Code
of Practice for General Principles of Food Hygiene, Code of Practice and standards for
Pasteurization and handling of milk and Specifications for Whole Milk (pasteurized and fresh
whole milk). In the revision new product standards like Ultra High temperature Milk (UHT milk)
are included and consideration was also made to address health and safety issues like pesticide
residue, Antibiotics residue and microbiological requirements on most of the revised Standards
specification. In addition, most of the test methods in this revision of milk and dairy product
standards are ISO adopted standards.
However, since Certification is not mandatory for milk and dairy products in the country as it is
not included in Regulation No. 12/1999 of the Ethiopian Quality and Standards Authority,
regular control on the industry is not practiced and is left for voluntary inspection. Quality
control on milk collection and reception is not practiced and self-regulated by collectors and
processors driven by demand and supply rather than on standard terms.
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11.2. Improving and institutionalizing dairy quality control
For clean milk production, at least two stages of control mechanism are essential. These are
certification and inspection where proper food production, processing and marketing following
the WHO/FAO code of practice and use of HACCP could be applied.
In a country where formal milk and dairy marketing is not developed and Certification is not
mandatory on the process quality control on the process and product would be futile exercise.
It was reported that certification is only on voluntary and request basis, and it is only done
when any milk processing industry feels that it is ready and has satisfactory standards as set
by the Authority and the HACCP.
Identification of cause of risk or hazardous conditions done early and at every stage in the milk
and dairy products manufacturing chain should be the prime objective for safe guarding the
health and supplying standard abundant milk and dairy products for the population.
This would require the support or back up of a food control laboratory capable of a range of
milk quality and safety tests. Awareness creation of the public in quality and healthy food
products utilization and training of producers, processors and milk and dairy products handlers
are also vital in implementation of the safety measures. Inspection on the other hand is rare
exercise as there is no standard food quality control laboratory.
Hence, critical issues to be addressed and support services required for efficient production of
clean milk should be:
Quality control
An effective health service for regular vaccination and health check of animals against
diseases,
Well equipped collection centers should be set in strategic areas and coverage,
Organize producers both smallholders and the private to form milk collection and marketing
for ease of quality controls,
Provide extension and education on importance of clean milk production and animal health
care,
Create awareness among the public on clean milk utilization,
Empower women to be involved in milk production, processing and marketing since the
milk belongs to them;
Inspection
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hygiene and safety established on critical control points (HACCP),
Establishment of standard quality control laboratory,
mandatory certification and inspection service,
Implementation of standards and legislations on milk quality and assurance;
The presence and enforcement of standards and procedures and their enforcement ensures
production and processing of hygienic, safe and high quality product to be available for the
public.
11.3. Challenges, constraints and recommendations in reference
to milk and dairy products standards and quality
Quality and safety of milk and dairy products are central to production enhancement and for
safe guarding public health point of view. Based on the background presented and the
requirements for clean milk production and hence minimizing post harvest losses the
challenges, constraints and recommendations are summarized as:
Challenges
Safety and standard of milk and dairy products supplied to the consumer not guaranteed,
Post harvest handling problem causes quality deterioration of milk and dairy products;
Constraints
High disease prevalence of zoonotic livestock diseases,
Lack of aggressive livestock disease control,
Lack of effective quality control at different stages of milk production and transaction,
Lack of efficient liquid milk collection and cooling facility and transportation means to
processing sites,
Poor infrastructure, road access etc
Under developed milk processing and marketing system,
Lack of enforcement of quality control regulations and standards;
Policy Recommendation
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Quality control
An effective health service for regular vaccination and health check of animals against
diseases,
Well equipped collection centers should be set in strategic areas and coverage,
Organize producers both smallholders and the private to form milk collection, processing
and marketing for ease of quality controls,
Provide extension and education on importance of clean milk production and animal health
care,
Create awareness among the public on clean milk utilization,
Empower women to be involved in milk production, processing and marketing;
Inspection
Hygiene and safety established on critical control points (HACCP),
Establishment of standard quality control laboratory,
Mandatory certification and inspection service,
Implementation of standards and legislations on milk quality and assurance;
12. Financial Services
12.1. Banks
There was no private bank in the socialist regime. Since 1991, about 12 private banks are
opened. There are three state owned banks. Commercial banks have different types of loan
products, including overdraft facilities, terms loans and loans for letter of credits. Development
Bank of Ethiopia is granting loans for long term investments, especially to sectors privileged by
policy. Commercial Bank of Ethiopia (state owned) is the largest bank of all operating in many
parts of the country. Major Private Investments are financed by this bank.
In terms of flexibility and speedy decision, some of the dairy sector managers are complaining
at all banks, mainly those of state owned. For any loan, all types of banks are demanding
marketable collaterals to secure the loan. Based on the interviewed made with some dairy
sector managers, some banks do not consider machinery and livestock as collateral for the
dairy processors. Low level of understanding of the sector by banks for the purpose of rating
proposals was one of the factors which make bankers to be reluctant in providing loan facilities
to the sector.
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The recent loan cap with the objective of reducing the price surge impact (inflation), has
affected a number of industries including the dairy sector.
12.2. Microfinance Institutions
For small holders, microfinance institutions are the most suitable source of finance. Because of
size and single borrower limit issues, the amount of loan to be granted to a single borrower is
often too small for further investment at small scale level. In Ethiopia there are about 29
microfinance institutions. The interest rate of the microfinance institution is relatively higher
than the regular banks, which is about from 16% to 18% per annum. In addition, because of
low level of area coverage there are not accessible to many of the needy.
12.3. Insurance Most private banks have related insurance companies. There are nine insurance companies and
one of them is the biggest of all, which is state owned. Insurance companies have different
types of policies for property and in relation to manpower. Most of the insurance companies
have not insurance policies for livestock. Some of the insurance companies have livestock
insurance policies. However, their policies lack flexibility and suitability to address the
peculiarities of the various livestock holders. In addition no insurance policies are available no
potential losses on unexpected natural disaster or to cover potential perils for milk products in
transit or storage.
12.4. Challenges, constraints and recommendations in reference
to loan Challenges and constraints related with financial institutions in dairy development anf Policy
recommendations are:
Challenges
Poor loan access mainly by small holders, cooperatives and unions,
Lengthy process in getting investment loan approval from Development Bank of Ethiopia for
loan requests by commercial Dairy farms and processors;
Constraints
Complicated procedures and formalities,
High value collateral demand,
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Absence of a system which guaranty financiers to consider livestock (milking cows and
other stocks) as a collateral for securing loan,
Limited individual borrowing limit of MFI,
High interest rate of MFIs,
Absence of qualified dairy expert in commercial bank to assess proposals,
Though commercial banks are regarding the agriculture sector as their top priority, dairy
sub sector is not often pronounced;
Policy recommendation
Enhancement of the capacity of state owned banks in administering Dairy related loans,
Considering a system to use livestock and processing machines as collateral in such a way
that risks of the financiers will be properly mitigated,
Increasing the single borrowing limits of MFIs and creating a conducive environment to the
MFI to accept as collateral,
Attention given or priority to the dairy sector;
12.5. Challenges, constraints and recommendations in reference
to Insurance
Challenges
No suitable policy for livestock insurance to cover potential risks to the dairy farm holders
and to use these assets as a collateral for bank financing
Constraints
Insurance company has not suitable livestock insurance for different types of livestock
holdings.
Policy recommendation
Encouraging insurance companies to have customized and suitable insurance policies for
dairy farm owners, which is also will be a basis for using the livestock as collateral.
13. PROMOTION OF MILK CONSUMPTION Consumption at the buyers’ level has increased with the expansion of dairy processing industry
and the infrastructure development on road and communication which create conducive
environment for market linkages.
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The growth of consumption at the buyers’ level is not however big enough to absorb seasonal
increases in milk supply. As stated in different parts of this document, wet seasons coupled
with fasting period of the Christians are accountable for short lives demand deficit.
As stated above, despite absolute growth in total milk consumption at country level, the growth
in per capita consumption is very low and varies among the urban and rural population.
Consumption of milk and other diversified products can be improved as long as there is
possibility to have longer shelf life products.
Consumption at the household level of small holder producers increases as producers are
engaged in marketing of their products. Excess milk left over from marketing, sometimes
because of substandard quality, are consumed by the family.
The major factor for the weak consumption growth is the low level of demand for milk and
dairy products compared to other liquid products. Though some blame increasing price of milk
as a factor for low level of demand, based on our rapid assessment, the volume of potential
consumers which could afford to pay for milk is enormous. High volume of liquor and other
drinks sales is evidence of buying ability of substantial size of the population than despite the
fact that milk has great nutritional value. Table-one indicates scope and variation in utilization
of milk and dairy products with other manufactured liquid products. The trend shows that high
proportion of soft drinks and beverages are produced and eventually consumed than milk. Table 1: Status of Ethiopian manufactured liquid food and beveragesfrom200/04 to2006/07
Type of product 2004/05 2005/06 2006/07
Pasteurized milk (hecto litre) 135,077 162,103 134,617
Butter (ton) 394 588 354
Cheese (ton) 104 122 408
Beer (hecto litre) 1,462,775 1,560,683 1,733,570
Wine (hecto litre) 64,526 51,378 52,866
Liquor (hector litre) 54,132 71,776 74,635
Soft drinks(hecto litre) 1,069,126 2,061,683 978,415
Source: CSA, 2008
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Commercial advertisements of other drinks outweigh the brand advertisement of dairy
industries. No conscious effort is made in the development of on the demand for milk by the
public, industries and NGOs than the tremendous effort made on the development of dairy
production.
13.1. Challenges, constraints and recommendations in
reference to milk consumption Challenges and constraints in relation to demand and consumption situation in milk and dairy
products and policy options to develop the demand perspective and possible policy options are:
13.1.1. Demand
Challenge
Seasonality of demand for dairy products;
Constraint
Low level of consumption by non-fasting communities including non-fasting orthodox
Christians;
Policy recommendation
Promoting production of dairy products with extended shelf life extended shelf life dairy
products,
Promoting consumption of children, as children are not required to fast from dairy products,
Promoting generic (non-brand specific) promotion of dairy products consumption;
13.1.2. Consumption
Challenge
Low per capita consumption of milk;
Constraint
Weak habit and poor understanding on the importance of milk, Though, there is a general
understanding that milk has something good to our body, the level of knowledge about the
comprehensive nutritional value of milk is not well understood by majority of the
community.
Policy recommendation
Promoting milk consumption and nutritional value,
Promotion of school milk feeding programme,
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Aggressive involvement by Government and the private sector on dairy industry;
13.2. DAIRY INFORMATION SYSTEM Lack of accurate, timely and reliable information on dairy sector remain a challenge for many
years. Data available from the Central Statistical Office are known for inconsistency. For
example, the annual milk production of the country was estimated at 3.22 billion liters in the
year 2008, and reported in the following year (2009) with estimation of 2.76 billion liters
despite the increase in cattle population in the same report.
Pedigree data on dairy cattle and other milking animals are inexistence. For improved
production performance of existing animals and improve the breeding value, record keeping
and analysis on milk and reproductive performance is vital to select high performing cows to be
dams of the future progeny. Record at farm level is limited to farm use only.
No compiled report of production and productivity information at level (at all value chain
actors) which makes it difficult to undertake various research and policy interventions and of
measuring of the impacts of any sort of interventions in the sector.
13.3. Challenges, constraints and recommendations in reference
Dairy information Challenges and constraints related with the development of dairy information system and Policy
recommendations are:
Challenge
Unavailability of dairy information of production, marketing and consumption;
Constraint
No organized body in charge of collecting, summarizing, archiving, analyzing and
disseminating;
Policy recommendation
Organizing or establishing an institution for dairy information system;
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14. THE DAIRY INDUSTRY (COMMERCIAL DAIRY FARM AND
PROCESSORS)
As discussed in the previous sections, severe shortages of animal feed supplies, the cost of
running a dairy farm is becoming more expensive. Ever increasing cost of feed was the primary
reason that one of the companies assessed for this study has closed its dairy farm and
continuing processing by outsourcing the milk.
Similarly some small holders in regional towns have also closed their farms because of the
scarcity of feed supply or excessive cost of feed. Transportation cost is the other additional
extra costs paid by regional farm holders, as they are buying majority of the feeds from Addis
Ababa. Low productivity of cattle because of their Generic makeup increased the running and
investment cost per unit.
Value Added Tax is applicable on feed ingredients and the feed itself where as liquid milk is
exempted from tax. Hence VAT paid for input is remained part of the cost of production of
milk. Cost of packing, spare parts and machinery has increased highly because of the
devaluation /deflation of Ethiopian Birr. The imported duty for feed and industrial inputs such
as premixes, additives and other, is up to 53% of the CIF price.
Demand side: Low consumption behavior is blamed by many writers for the low level of
demand pressure to the dairy sector as compared with neighboring countries (Sudan and
Kenya). In addition, consumers prefer the traditional products than pasteurized and factory
produced products. Extended fasting days of Ethiopian Orthodox Christian greatly affects
the demand for milk. During fasting time most of the processors sales volume will decline.
Ethiopian Orthodox believers constitute 41% of the total Ethiopian population (2007
Census).
Management: Lack of modern animal husbandry and management, limited skilled
manpower in dairy technology and marketing, inadequate distribution systems and limited
packaging choices, has affected the sector.
Recent Power Cut: Ethiopia has faced the worst power cut in its recent history. For about
six months, there was a power cut for almost 50% of the day time. As a result of this many
of the processors were using generators, which cost them higher than the regular electric
power source. The power cut also affects the shops and small kiosks that do not have a
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power backup. When there is no power, they do not collect packed milks as refrigerators
are not working. ADA dairy cooperative is one of the enterprises whose sales volume is
dropped drastically during the power cut period.
Unfair competition: Many of the milk processors, unions and cooperatives are
complaining and blaming each other for unfair trade practices, including frequent breaches
of contracts. In addition, a product rejected by one company will be accepted by another;
processors renegotiate with members of cooperatives while they have agreement with the
cooperative, rivalries pushes the prices of milk at a higher rate than the rate of increase in
pasteurized milk are among challenges in the marketing area.
Access to Land: Land is the crucial challenge in the sector, especially for the dairy farm
owners and feed processors. Land allocation for dairy farm establishment usually would not
consider forage production as part of the input to produce enough feed and is limited to
small sizes.
Availability of breeds: Scarcity of improved and exotic breeds is a challenge for the
existing dairy farmers and new entrants in the business especially for intensive production
which calls for use of high producers as productivity is factor for increased production and
profitability.
Absence of policies: Essential policies like land, livestock breeding and dairy
development strategy in the country except for the draft policy incorporated in the general
agricultural policy and the draft breeding policy of 1986, neither of which are yet finalized.
Past dairy development efforts were based on projects related to purpose- and area-
specific dairy strategies, without any national policy aimed at setting out a comprehensive
dairy development strategy or programme (staal 2008).
14.1. Challenges, constraints and recommendations in reference
to milk processing, packaging and marketing
Challenges and constraints related with milk processing, packing in dairy processing and
marketing and the associated policy options for development are:
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14.1.1. Milk Processing
Challenge
Operating under capacity;
Constraint
Low level and uneven supply of liquid milk to processors with the required quantity and
quality,
Low level of demand for processed milk;
Policy recommendation
Promotion of collection, chilling and transportation facilities in order to increase the supply
of raw milk to processors,
Promotion demand for pasteurised milk;
14.1.2. Packaging
Challenge
Uneven supply and high cost of packing materials,
Use of substandard packaging materials;
Constraint
Few suppliers in the market and low level of capacity of the individual industries,
High cost of packing materials, this is aggravated by the devaluation of Ethiopian Birr and
foreign currency rationing;
Policy recommendation
Facilitation by government in forming clustering to producing and printing of low cost but
with a minimum standard of quality;
14.2. Informal Milk marketing
The challenges and constraints associated with the informal market and Policy
recommendations sited to transform or structure the marketing system are:
Challenge
Inferior quality and health hazard;
Constraint
Poor collection, handling and transportation,
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Lack of sufficient knowledge on milk quality and risk on zoonotic disease transmission,
Presence of unregulated and uncontrolled milk supply to the society;
Policy recommendation
Registration and special licensing of milk traders,
Provide basic knowledge on milk quality and safety,
Provisions of standard milk collection, handling and transportation equipment,
Transformation and promotion of raw milk trade to small scale milk preservation and
processing technology;
14.3. Business Environment The challenges, constraints and Policy recommendations associated with dairy business
environment are summarized as follows:
Challenges
Breach of contractual agreements and unfair competition,
Unfair business competition among processors,
Poor and weak market linkage of the dairy farms or milk producers at different categories
with different level of actors in the value chain;
Constraints
Lack of experience in the milk marketing - by cooperatives, unions and processors Poor
culture of settling disputes in the rule of law,
Weak market information system and infrastructure,
Weak and poor institutional support and organization of the dairy farmers and dairy
cooperatives from the relevant institutions and support organizations;
Policy recommendation
Introducing code of ethics,
Promoting business practices, contracts and contract enforcement and low cost and
dependable dispute resolution mechanism;
15. INSTITUTIONS IN DAIRY DEVELOPMENT
15.1. Public institutions for dairy development
History of public livestock development services indicated that early and initial emphasis was
on reducing the incidence of diseases. For rendering such animal health services the Imperial
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Animal Health Service was structured as an autonomous Government structure and served
between 1943 and 1963. From then until 1972, its status was reduced to a department under
the same Ministry. Between 1973 and 1976, the Ministry was structured into the Ministry of
Agriculture and Forestry; and the Animal Resources Development Department emerged and
became one of its main divisions.
Major structural changes were: the Ministry of Agriculture and Settlement was organized, under
which the Animal and Fishery Authority comprising the animal health service department and
the Livestock and Meat Board (LMB), were instituted. The structural change, made after a year,
brought back the Ministry of Agriculture (MoA) and the Animal and Fishery Resources
Department (AFRDA). National Animal Health Institute and the Trypanosomiasis Prevention
and Control Centre were separated from the animal health service, and thus the status of the
latter was downgraded into a Team, all three being accountable for the Department (AFRDA).
Between 1985 and 1994, animal health service was with the status of a Department parallel
with the Animal and Fisheries Resources Development Department, under the MoA. In 2004,
the status of the animal health services was then downgraded to a Team and made
accountable for AFRDA.
Animal, Animal Products and By-products Marketing Authority (renamed as Livestock Marketing
Authority) was then instituted, under the Ministry of Trade and Industry, and operated
between 1998 and 2004, it was the second breakthrough, after the formation of the then
Livestock and Meat Board (LMB).
During the restructuring of the Ministries of Agriculture and Rural Development into the
Ministry of Agriculture and Rural Development (MoARD) as well as livestock Marketing
authority, livestock development get impetus and three Departments were formed to deal with
Livestock production, veterinary services and livestock marketing under two sectors. The prior
two Departments were under Agricultural Development Sector and the later under Agricultural
Marketing Sector. It is during this time that dairy development was upgraded to a Team level
under AFRDD.
Currently with the civil service reform and revision of the duties and responsibilities of MoARD,
level had scattered and degraded. Livestock development, let alone dairy have structured to be
part of Case Team under the Agricultural Extension Development Directorate, Animal and Plant
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Health Regulatory Directorate, Agricultural Investment Support Directorate and Agricultural
Marketing Development Directorate. Recently duties and responsibilities of the Agricultural
Investment Support and Agricultural Marketing Development Directorates of MoARD have just
been transferred to the Ethiopian Meat and dairy Technology Institute, which is instituted in
January 2008 (Regulation number 143/2008). The Ethiopian Meat and Dairy Technology
Institute is a major institution whose duties are focused to commodity based development
where milk and meat are on innovations to increase their productivity.
15.2. Hierarchical structure of public institution relevant to the
livestock/dairy sector
15.2.1. Federal
As a country and in respect to direct responsibility three tiers of government - the Federal,
Regional and Woreda, the smallest administrative structure being Kebele under the Wereda,
are structured. Leading institutions for the development of livestock and specifically to dairying
are the Federal MoARD and Regional Bureau of Agriculture and Rural Development (BoARD).
Under the Federal structure current responsibility for the development of livestock falls under
two Sectors headed by State Ministers. Those entities accountable to State Minister of
Agricultural Development are the Agricultural Extension Development Directorate, Animal and
Plant Health Regulatory Directorate and Agricultural Investment Support Directorate where as
Agricultural Marketing Development Directorate is under Agricultural Marketing Sector. In
addition the Ethiopian Meat and Dairy Technology Institute, National Artificial Insemination
Centre, National Veterinary Institute and National Animal Health Research Centre are
specialized agencies dealing with livestock.
Institutions that deals with overall mandate on national development and have influence on
livestock development also exist and include,
Ministry of Finance and Economic Development (MoFED) which provides policy and
strategic guides, budgetary allocation, and evaluation,
Pastoral Development Department under the Ministry of Federal Affairs (MoFA), which
coordinates pastoral development in the country and
Animal Science Research Directorate of the Ethiopian Agricultural Research Institute under
Ethiopian Institute of Agricultural Research.
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Micro and Small Enterprise Development Agency, which guides and supports development of
entrepreneurship through micro and small enterprise development with Livestock is one of the
institution with target activities on post harvest technology development which could be of vital
importance on the processing chain enhancement.
15.2.2. Regional Level
Institutional arrangements at Regional and Wereda levels are almost a reflection of the federal
arrangements with slight modifications, if any. In most cases, common regional-level
institutions related to livestock mainly include Bureaus Agriculture and Rural Development with
two main departments charged with responsibility for livestock development namely
Agricultural main departments (under it, livestock and extension & training departments),
Agricultural marketing and input office (in SNNP) or Department (in Tigray), Pastoral
development and food security commission, in regions with pastoral areas which plays a role of
leading and coordinating actors involved in development of pastoral areas and food security
programs. Recent development in livestock development structure is in Oromiya is the
establishment of Oromiya Livestock Health and Marketing and Development Agency. Other
agencies in support of livestock development are Bureau of Finance and Economic
Development and Micro and Small Enterprise Development Agency
15.2.3. Zonal Level
Most regions have zonal level structure as a status of Branch Office to the Regional Bureaus of
Agriculture and Rural Development. The office is comprised of a multi-disciplinary staff,
including experts in animal health and/or animal production, and extension.
15.2.4. Woreda and Kebele levels
Wereda Office of Agriculture and Rural Development is the core institution, within which
Agriculture is the direct unit in charge of livestock development. There are two or three teams:
animal health, animal production, and/or forage development. Development areas with
Farmers Training Centres (FTC) at kebele level are the smallest unit in charge of agricultural
and rural development. This unit is accountable to the Kebele Council.
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15.3. Duties and responsibilities of the Main Public Actors
15.3.1. Ministry of Agriculture and rural Development
In accordance with the Executive Organs of the Government Establishment Proclamation
(4/1995), the powers and duties of the Ministry relevant and in relation to livestock
development among other include:
Assist in the direction and expansion of agricultural development,
Encourage and assist provision of agricultural extension services to peasants,
Facilitate agricultural inputs and credit to peasants,
Establish and direct research and training establishments to assist enhancement of the
development of agriculture and improvement of rural technologies,
Encourage organization of peasants and the development of peasant cooperatives,
Encourage agricultural investment, issue agricultural licenses to, and supervise foreign
investment in agricultural activities,
Ensure conducting of quarantine control of plants, seeds, and animal and animal products
brought into and out of the country,
Ensure extension services to pastoral people;
15.3.2. Ethiopian Agricultural Research Institute
Under Proclamation (No. 79/1997), the powers and duties of the institute among other include
Generate, develop, and adapt focused agricultural technologies,
Coordinate research activities of research centres, higher learning institutions, and others,
establish an effective system for coordination between the federal research centres and the
end users,
Collect, organize and disseminate information on agricultural research activities and results
available in the country or abroad, and develop and coordinate information exchange
mechanisms;
15.3.3. Institute of Biodiversity Conservation and Research
Proclamation 120/1998 requires possession of permit issued by the Institute for collection,
dispatch, import and export of any biological specimen/sample.
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15.3.4. Animal and Plant Health Regulatory Directorate
The Animal and Plant Health Regulatory Directorate is organized to lead the Animal Health
Regulatory Group and Plant Protection Group under which four Case Teams on Inspection and
Certification Case Team, Risk Analysis Case Team, Quarantine Stations Case Team and Export
Abattoirs Case Team. The duties and Responsibilities of the Directorate are (Assegid, 2009):
Establish workable system to enable protection of animal from diseases and risks of
occurrence of dangerous diseases through surveillance of animal diseases, inspection of
poisonous chemical additives and toxic substances
Monitor and control plant disease, drug residues, and poisonous additives
Inspection of import and export animal and plant products;
Conduct thorough monitoring and control of export products
Formulate policy and legal documents on sanitary and phyto-sanitary and HACCP principles
ratifying them, updating the current working manuals
15.3.5. Ethiopian Meat and Dairy Technology Institute
The institute is under MoARD and emphasis on meat and dairy production starting from the
primary market (village markets). It is on the process of organizing itself to improve the meat
and dairy sector in the country. It has also a plan to establish modern abattoir for training,
testing, and other services. The major objective of the Institute are provide short training
supported by demonstration and consultancy services in livestock production, products
handling, processing and marketing; and enabling a standard quality production of meat and
dairy products to help improve the productivity and profitability of the commercial livestock
production systems. Currently the responsibilities of Agricultural marketing Directorate and
Agricultural Investment Support Directorate on meat and dairy has been transferred to the
Institute and now the responsibility had expanded to expand to give more comprehensive
services to the private sector on enhancing investments and regulating market for both internal
consumers and export.
15.3.6. Agricultural Investment Support Directorate
Major activities
Formulate policy strategies, rules and regulation that can accelerate the agricultural
investment,
Identify agricultural investment potential lands,
Transfer investment lands to investors,
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Support agricultural investors in the built up of their operational capacities,
Identify specialized development clusters,
Link farm level production with the agro industries,
Link agricultural investor with social and financial service providers,
Bridging role between private investors and out growers,
Provide necessary information and advisory services to agricultural investors,
Create conducive environment to scale up applied technologies and best practices among
investors and out growers,
Monitor and evaluate investment operations and give corrective measures;
16. ROLE OF NGOS IN THE DAIRY SECTOR A number of nongovernmental organizations have been working in the past for the
development of the dairy sector. For the purpose of this study only those which are currently
playing a vital role in the development of the dairy sector are described briefly.
SNV Ethiopia has a project entitled Business Organizations and their Access to Markets
(BOAM). Under this project, it has made a number of value chain studies and assisted for the
formation of Ethiopian Milk Producers and Processors Association (EMPPA). It provides trainings
to private companies, cooperatives and private milk collectors, funding for business plan
development for new entrants in the sector, and support for innovative projects and sector
wide issues and research.
Land O Lakes Inc, funded by USAID, is engaged in a dairy Development project. It is working
in milk shed development, stimulating business development, strengthening market linkages,
supports industries with technical assistance, procurements, and artificial insemination services.
Land O’ Lakes is currently financing the Ethiopian Animal Feed Industry Association (EAFIA).
EAFIA is established with the objective of improving the quality and quantity of livestock feed
production and services for the members.
Improving Productivity and Market Success of Ethiopian Farmers (IPMS) project is also
engaged in value chain development in the dairy sector for Wereda (districts) as a learning
project sites. IPMS with is implemented by ILRI on behalf of the Ministry of Agriculture and
Rural Development (MoARD) in four Regional States of Amhara, Oromiya, SNNP and Tigray. It
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is funded by the Canadian International Development Agency (CIDA) for these 5 years. The
project has four main objectives:
To develop an agricultural knowledge management system that will enable Ethiopian
0institutions, farmers and pastoralists to adopt appropriate technologies from research and
development institutions based in Ethiopia and elsewhere,
To build and strengthen existing institutional capacity and foster institutional learning and
change so that new collaborative arrangements across sectors and levels are developed to
better support the dissemination, use and impact of demand-driven sustainable agricultural
technologies & information,
To increase the capacity of farmers, pastoralists, community-based organizations, and
private organizations for enhanced technology up-take by farmers and pastoralists,
To develop recommendations, policy options and strategies to enhance the impact of public
policies and programs;
FAO’s recent activities include encouraging the commercialization of small farmers in area with
recognized market potentials. The Crop Diversification and Market Development Project funded
by the Italian Government and implemented by FAO in Arsi zone of Oromiya Region has
components in dairy development working on introduction of improved dairy stock and
organization and development of cooperatives in milk and dairy marketing through the
provision of small scale milk processing sets is one of the areas where FAO is currently working
in dairy products in addition to crops.
17. THE POLICY ENVIRONMENT
17.1. General Early dairy development efforts in Ethiopia were basically treated under programs within
livestock sub sector and/or agriculture sector. During the Imperial period these were based on
either reviews carried and the Government’s Five-Year and Annual Plans and on purpose and
area specific dairy projects like the Addis Ababa Dairy Development Project.
There was then a shift in emphasis during the 1980’s when Livestock Sector Review (LSR)
(AACM, 1985) was carried and the Ten Year Perspective Plan on livestock Development was
prepared during the Derg period. The study and development plan had given emphasis and
directions on dairy development through development of projects on dairy (DRDP) and Forage
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and health development (F4LDP) on the state, cooperative and smallholder involvement
underlining introduction of appropriate technology for realization of targeted outcome. Though
the study had highlighted private involvement as key area for improved production it was
basically on smallholder dairy and fattening. These were very much oriented to smallholders
and biased to cooperatives as it was during the Socialist era.
Later development of the Ruminant Livestock Strategy (1993) had given directions of the sub-
sector by underlining the strategy under the two ecological categories and classifying the
constraint areas in animal breeding, health, animal nutrition and marketing. However, this was
used as base but not implemented fully. The National Livestock Development Program
developed in 1997 also served as a base for the implementation of the National Livestock
Development Project, which has components in the constraint areas - namely improving
breeding, forage development and capacity building of veterinary services.
In general policies and strategies aimed at creating enabling environment for investments in
the dairy development in Ethiopia are part and parcel of the Ethiopian rural development
policy. As referred in several documents (MoFED, 2005; Demise et al, 2009) the Ethiopian
Rural Development policy, based on the principles of promotion of labor-based technologies
and land capitalization is the governing policy for agricultural and livestock development in
general dairy development included in livestock. The strategy is basically aimed at increasing
agricultural production for both domestic and international markets; the enhancement of which
is believed to serve as the catalyst for economic growth and could therefore contribute
significantly to achieving food security, creating employment and reducing poverty at the
national and household levels.
17.2. National Development policies and their relation to dairy The constitution of the Federal Democratic Republic of Ethiopia is the base which had provided
the economic, social, and cultural rights for its citizens. The constitution sets the principles and
objectives to govern decisions and actions by the state as well as by the citizens. Basic
constitutional principles that set the scenario and objectively guide the state to formulate
economic, social, and development policies for positive development as present on PASDEP
(MoFED, 2002) are that it:
Provides citizens with the right to engage freely in economic activity and to pursue a
livelihood of one’s choice anywhere within the national territory,
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Provides the right to choose his/her means of livelihood, occupation and profession;
Charges the state to pursue policies and necessary measures that expand job opportunities
for the unemployed and the poor,
Provide enabling environments for farmers to receive fair prices for their products and to
obtain an equitable share of the national wealth,
Provides nationals the right to participate in national development and be consulted with
respect to policies and projects affecting their communities,
Charges the state that all international agreements and relations shall protect and ensure
the rights of the country to sustainable development;
In principle, poverty reduction is the core objective of the Ethiopian Government in its
endeavor to achieve its goal of economic growth. Where poverty is essentially dominant,
affecting the rural population and agriculture is the main source of livelihood and its progress
entails a potential for food security and as source to generate surplus input for other sectors of
the economy to develop. In line with this the Ethiopian Government policies and strategies
developed are to guide the overall development with focus given on rural and agriculture
development.
17.3. Draft Livestock Development Policy The draft document indicated that the policy on livestock development is set with overall aim of
increasing the contribution of livestock to the socio-economic development of the country with
specific objectives of achieving food self-sufficiency in animal products, increasing employment
and income, increasing industrial material supply, and increasing foreign currency earnings.
As component and part of the livestock development the policy dairy development
encompasses strategies on:-
enhancing management of indigenous dairying cows,
improving, multiplying, and distributing improved local breeds,
promoting establishment of dairy farms in potential stratified areas using appropriate pure
and improved dairy breeds,
promoting dairy cooperatives and firms,
characterizing local breeds, developing ranches for production of pure dairy breed and
distribution,
establishing a national centre for dairy Management Information System,
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identifying and prioritizing milk shed areas, and
Enhancing and regulating quality of milk and milk products.
In relation to forage production, strategies include:-
improving productivity and use of pasturelands through limiting carrying capacity,
improvement of livestock water supply facilities, making use of appropriate forage
technologies (low land areas),
expanding and integrating use of improved forage species with soil and water conservation
practices,
identifying, enhancing, and using agricultural residues and industrial by-products, and
Developing mechanisms for keeping emergency feed reserves in dry seasons.
Regarding animal health service delivery the focus given to be:-
control and eradicate epizootic animal diseases through setting priorities for list "A" animal
diseases, and
Establish a functioning information and communication system.
Other key animal health strategies on dairy include:-
strengthening of animal and animal products quarantine and inspection services,
adopting and complying with OIE policies and regulations through harmonizing with the
current Ethiopian situation,
issuance of certificate of competence for processing and exporting institutions ,
health and sanitary certificates for import and export of animals and animal products and
Regulating production, importation and distribution of drugs and equipments in the field
with respect to standards, quality, etc.
Characteristically the development of the dairy sub-sector in the early periods and continued in
the early 1980th, was mostly project-oriented, driven to short-lived objectives. There is
currently no dairy master plan developed on assessing the situation prepare lead document on
the development. Dairy master plan would imply not only on assessment of the demand for
milk and dairy products, status of milk production, processing and marketing of milk and dairy
products but also on policy and institutional issues that would derive its efficient development.
Thus would prepare the way forward (road map) that would have positive effects for
development of the dairy industry. Thus most of the project benefits were not realized and
activities were not sustainable to impact change in output, and were unable to transform the
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dairy industry. It can be concluded as well that most projects were responses to availability of
external assistance, and were geared to address specific issue in the development of the
sector.
17.4. Existing development Strategies
The development strategy of the Government of Ethiopia is based on Agricultural Development
Led Industrialization (ADLI) of 1993. This was designed initially to rehabilitate and revitalize the
economy in general and agricultural development in particular. This was designed to secure
three interrelated visions:-sustainable economic growth, equity and self reliance through the
delineated development priorities of food self-sufficiency and food security, natural resource
conservation and management, expansion of economic and social infrastructure, and
encouragement of private participation. ADLI is centered on agricultural development with the aim of transforming the country’s
economy from agriculture to non-agriculture sector. Agriculture is expected to play a leading
role to enhance its contribution to economic growth in to two way-supplies and demand side.
On the supply side, the sector provides export products, food and industrial raw materials,
while the demand side it stimulate industrial expansion by providing markets for domestically
produced goods. The contribution of the two sides for agriculture is enhanced through by the
improvements in the productivity of peasant farmers, pastoralists, and establishment of large
scale farming.
ADLI also emphasizes progress in terms of commercialization of agriculture with more intensive
farming, increasing proportion of marketable output and correspondingly decreasing ratio of
production for own consumption. This will mean greater market interaction on the part of the
farmer. Extension of credit to the small farmer will gain importance with commercialization of
agriculture, and give impetus to the establishment of rural banks. Cooperatives play important
roles in facilitating input and output marketing as well as in promoting the provision of rural
finance.
ADLI is the lead national economic development strategy which continued to influence the
formulation of successive policy, strategy, and plan documents. The sector specific policy and
strategy documents such as Rural Development Policy (RDP) and Strategy as well as the two
consecutive plans known as Sustainable Development and Poverty Reduction Program (SDPRP)
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and Plan for Accelerated and Sustainable Development to End Poverty (PASDEP) are based on
ADLI. Main national and sectoral policies that have influence on and relate to dairy and livestock as
well are, Rural Development Policy and Strategies, Sustainable Development and Poverty
Reduction Strategy, Food Security Strategy; and Agricultural Marketing Strategy.
17.5. Rural Development Policy and Strategies
The Ethiopian Rural Development Policy and Strategy (RDPS) is an overall policy on agriculture
and rural development pertaining to efficient food production, socio economic transformation
and sustainable and efficient utilization of the natural resources.
The policy recognizes that agriculture is the dominant sector in the economy but trapped by
the low-input-low-output structural problem. Its growth has not been only low but also volatile.
It claimed low levels of income and investment, low technological application, low capacity and
absence of appropriate policies, strategies, and instruments in the past contributed to the
underdevelopment of the sector (MoARD, Vol. D, 2008).
The “agriculture-centred rural development” strategy under RDPS has been adopted as a major
strategy and is expected to assist in the realization of the country’s economic development
objective (MoFED, RDPS, 2003; Demise et al, 2009). The fundamentals of Ethiopia’s rural
development strategy pertaining to agriculture as clearly put in PASDEP are:
Adequately strengthen human resources capacity and its effective utilization,
Ensuring prudent allocation and use of existing land,
Adaptation of development path compatible with different agro-ecological zones,
Specialization, diversification and commercialization of agricultural production,
Integrating development activities with other sectors, and
Establishment of effective agricultural marketing system.
In general policy solution involves structural change, for which major capacity development in
human resource, input supply, technology adoption, and provision of infrastructure is needed.
The policy bases a free market economy, to ensure rapid development, reduce dependence on
food aid, and make the smallholder the main beneficiaries of economic growth. The main
agricultural sector policy instruments relevant to livestock extracted from the policy document
include:
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Introduce menu-based extension package to enhance productivity,
Expand training of agricultural development extension agents,
Expand training of farmers at Farmers Training Centres,
Improve capacity and functions of agricultural inputs and outputs markets,
Organize and strengthen cooperatives to provide better marketing service and serve as
bridges between small farmers and the non-peasant private sector,
Facilitate credit provision and coverage of micro finance institutions,
Develop private business and entrepreneurship,
Strengthen rural-urban linkages,
The strategy classified the country into the major agro-ecological zones for which tailored
development plans and packages need to be adopted and implemented. Specifically it includes
zones and regions with adequate rainfall, pastoral areas, drought prone regions and areas with
significant potential for commercialization and diversification covering areas like the rift valley
and under-exploited productive areas.
17.6. Sustainable Development and Poverty Reduction Program The fundamental objectives of FDRE in its SDPRP are to build a free-market economic system
in the country which will enable the economic development rapidly, the country to extricate
itself from dependence on food aid and poor people, mostly rural, to be the main beneficiaries
from economic growth.
The SDPRP strategy is based on four pillars namely:-
Agricultural Development Led Industrialization (ADLI),
the Justice System and civil service reform,
decentralization and empowerment, and
Capacity building in public and private sectors.
Each of the four pillars is briefly summarized as:
ADLI has been Ethiopia’s long-term economic strategy since 1993 and remains valid as
it places emphasis on raising the income of rural people constituting 83.9% of the
population, who are almost exclusively engaged in agriculture.
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The Ethiopian Government's civil service reform process with a view to improve
the performance of the Civil Service with regard to the management of financial and
human resources, identification and delivery of services to citizens,
Decentralization and empowerment with the devolution of power to the regional
governments where implementation of economic policies and development programs is
shifting, to large extent, from central to the regional is expected to facilitate
development.
The capacity building program comprises the development of human resources,
building and strengthening of institutions, and establishment of effective working
practices. The program is to be implemented in relation to smallholder agriculture, the
private sector, and public sector, Training of farmers, supporting micro-financing
institutions, and strengthening public and private sector organizations involved in the
development of agriculture will be the main activities.
17.7. The Ethiopian Poverty Reduction Strategy
The Ethiopian Poverty Reduction Strategy (EPRS) is framework that bring together all relevant
poverty sector policies, strategies, and programs into an integral whole to take advantage of
their synergies and finally to achieve rapid, sustained, and wide scale based poverty reduction
and growth. The strategy has been in place with two phases "Sustainable Development and
Poverty Reduction Program" and "Plan for Accelerated and Sustainable Development to End
Poverty" and relies on involving a significant injection of external capital, either in foreign direct
investment or donor financing for infrastructure investment. Within the framework of PASDEP, the main objective of agricultural development in the
medium term is to accelerate the "transformation" from subsistence to a more
business/market-oriented agriculture, while at the same time protecting the "essential"
agricultural base upon which the poor depend for their livelihood (Demise et al, 2009). Thus,
the thrusts to the strategy are the commercialization of agriculture, and the continued support
to pro-poor basic agriculture within the framework of the national food security program that
aims to achieve food security within five years.
The current program (PASDEP) strategy is on commercialization, most of the response is
expected to come from the private sector, both by small and large-scale farmers.
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Basically major strategies dedicated to realize the objectives and targets are summarized as:-
Through commercialized agriculture, stipulated government supports, which has influence
on dairy include provision of road access, facilitation of agricultural credit and markets,
provision of specialized extension services for differentiated agricultural zones and types of
commercial agriculture and improving land tenure security and availability to large-scale
commercial farming,
On smallholder agriculture, some of the adopted policy instruments include provision of
intensified extension services at kebele level (deployment of specialized extension staff),
establishment of a network of demonstration centres (Farmers Training Centres), increase
of low-level veterinary services;
17.8. The National Food Security Strategy
The strategy with core objective to increase food availability and access at household level
through increased crop and livestock production and productivity, and increase access to other
non-farm income through agricultural and non-agricultural activities. The targets to be met
through helping farmers use their own resources to overcome food insecurity both through
agricultural improvement, diversification of off-farm income sources.
17.9. Agricultural Marketing Strategy In recognition of the importance of integrating increased production and improving the
marketing system to reduce market failures that put producers at a disadvantage, the
government has developed a long-term strategic framework to improve the agricultural
marketing system. The marketing strategies encompass supply and demand sides of inputs and
outputs, as well as domestic and foreign markets targeting market infrastructure and
information systems, regulatory frameworks, capacity building implementation, and finance.
The major strategies stipulated and more important among other include focus on:-
A more efficient exchange of agricultural inputs,
Creating efficiencies in agricultural product markets,
Quality assurance programs,
Expansion of the export of agricultural products,
Expanding and strengthening marketing infrastructure,
Development of finance/loan and insurance components,
Ensuring the prevalence of marketing rules and regulations,
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Development of an implementation capacity for agricultural marketing,
The establishment of a market information system;
18. RECENT LIVESTOCK DEVELOPMENT PROGRAMMES
Two programs are considered here. These are National Livestock Development Program and
the livestock development master plan study. Brief descriptions are as follows:
18.1. National Livestock Development Program
The National Livestock Development Program, which is the second after 1980’s Livestock Sub
sector Review, was prepared in 1997 (MoA, NLDP, 1997). This program was developed based
on the analysis of performances of past livestock development efforts and the Ruminant
Livestock Strategy prepared in 1993. The Program realizing the potential to develop a viable
livestock industry and increase domestic production indicated path ways to tackle the
development of the necessary infrastructure, improvement of production by better feeding,
breeding, health care, and the development of links between rural producer and urban
consumer by improving the collection, transport, storage and distribution network for livestock
and livestock products to bring about a significant change in the livestock sub-sector.
The basis and major areas of focus of the program premises were:
Improved breed development that are highly adapted to the diverse agro-climatic
conditions of the country, as the basis for increased supply of animal products, milk and
meat, and work input and hence possibility for improvement of the genetic potential of the
indigenous breeds and introduction of high yielding and adaptable stock,
Increased animal feed in both quantity and quality through improved resource
management and introduction of high yielding grass and legume species could alleviate
the problem. In view of the expansion of cropping and the decline of grazing lands, there
is a need of integrating feed production into the cropping system so as to sustain the
productivity of the animals and improving soil fertility in due time,
Strengthening of the veterinary service and control of the main economically important
diseases and thereby reduction of the excessive wastage due to disease, where many
endemic and epidemic diseases and varied internal and external parasites are highly
prevalent,
Need for programmes designed to improve the marketing infrastructure that could
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immensely improve the performance of the sub-sector. The programme was designed to
improve the nutrition, health, breeding, management and market situation of the livestock
with overall objectives of increasing income of the farming family, meeting the rising
demand for livestock and livestock products, and earn the foreign
The cumulative effect of the various components of the program was to bring about substantial
increment in milk, meat, eggs and other products of livestock in the country. By the end of the
fifth year of the programme the milk production of 222 kg per lactation from local breeds to be
increased to 315 kg, while the lactation length to grow from 189 to 210 days. The production
from improved breeds will grow from 1,500 kg per lactation to 2,400 kg. The per caput milk
consumption was expected to be improved from the existing 16 kg per year to 32 kg per year
(MoA, 1997). The project is its final stage of execution for completing quality control laboratory
and other activities through Government financing.
18.2. The Livestock Development Master Plan study
The livestock development master plan study was designed to develop a comprehensive set of
strategies to address the major constraints hindering the country’s ability to take advantage of
the resource and market opportunities and harness the full potential of the sub-sector. In
retrospect objectives of the study include preparation of a comprehensive livestock
development master plan on dairy, meat, hides and skins, draught power, eggs and apiculture
sub sectors for a plan horizon and investment period of twenty years.
The study involved the collection of data and information for the analysis of the technical,
biophysical, institutional, political, environmental, economic and social investigations in order to
prepare a master plan for sustainable and equitable development of the livestock and
formulate and prepare at least four priority projects for future financing.
Phase I of the study was completed to date with production of review documents on all
thematic areas underlined in the study protocol. The second phase had been initiated and on
process and currently the study was interrupted awaiting decision by the Government
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19. LEGAL FRAMEWORKS RELATED TO LIVESTOCK
19.1. International regulation on trade in livestock Fulfilling the stringent requirements on public health from a risk of importation of dangerous
human or animal pathogens under the “maximum acceptable risk”, as International regulation
applicable to agricultural (and livestock) commodities and that the “Sanitary and Phytosanitary
Agreement” (SPS Agreement) of the World Trade Organization (WTO) should be complied and
basic if we are exporting milk and dairy products. Though countries have the right to establish
the level of health protection, they deem necessary and are based on international standards
to facilitate harmonization of certification.
Many bilateral agreements were signed where almost all trade agreements are on meat and
live animal export.
19.2. Country level proclamations and Regulations on
Livestock and dairy A number of laws, regulations, and decrees related to livestock existed since the late 1940’s.
Between 1949 and 1971 there were four proclamations and amendments issued for the control
of animal diseases. Recent proclamation is the Animal Disease Prevention and Control issued in
2002 that replaced the Animal Disease Control of 1961.
Animal disease prevention and control (No 267/2002)
Refers to prevention and control of diseases; outbreak notification authority, provisions,
declarations, measures, and power, establishment of quarantine stations, entrance and exit to
ports for export of livestock and livestock products, international animal health sanitary
certification, and animal movement permit. Further more it aims at enhancing the disease
reporting, investigation and surveillance mechanisms at federal and regional levels. It also sets
modus operandi for intervention and control of disease outbreaks. The main provisions of the
proclamation related to dairying are presented in Annex 2.
Draft Regulation to control movement of animal and transportation of
animal products and byproducts
Sets mechanisms to prevent spread of infectious diseases out of the foci of occurrence and
increase confidence of recipient/importing countries.
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Draft Regulations to provide for the registration and licensing of animal
health professionals
Issue legislations on the registration of animal health professionals on delivery of services and
other provisions
Guidelines
There was no guideline developed on dairy but most are on meat inspection, hygiene and
construction of export abattoir, and Operational procedures of export abattoir.
Cooperative Societies Proclamation (No 147/1998)
The Proclamation allows establishment of cooperative societies to actively participate in the
free market economic system. The provision elaborates that cooperative societies are
voluntary, democratic, and autonomous, self-help organizations controlled by their members.
Specific provisions and guidelines having implication for livestock are:
A minimum of ten-members to form a society,
Any cooperative society is a 'limited liability' organization that can be established at
different levels up to the federal level,
Allows a society to engage in either production, service-rendering activities, or both,
Entitles members to receive dividends according to their share,
Puts restrictions on interest received from its members not to exceed the current interest
rate of the bank,
Restricts a society from extending loans to others who are not its members or a society
established under this proclamation,
Entitles cooperative societies a right to exemption from income tax,
Allows cooperative societies to acquire land and to receive other government assistances
through training and other means, not withstanding the incentives permitted by investment
codes
Public health proclamation (No 200/2000)
Public health proclamation gives Ministry of Health (MoH) the mandate to "inspect any
premises where there exists a situation endangering public health".
Proclamation to establish Quality and Standard Authority of Ethiopia
(102/1998)
Objectives of Quality and Standard Authority of Ethiopia include the following:
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To promote and assist establishment of appropriate quality management practices as
integral and yet distinct management functions in the social and economic sectors,
To promote and co-ordinate standardization at all levels in the country,
To assist improvement of quality of products and processes through promotion and
application of Ethiopian standards;
The powers and duties to achieve these sets of objectives include:
To formulate, approve, declare, and issue Ethiopian standards for general and specific
applications as may be necessary,
To specify quality marks and certification of conformity,
To popularize quality and standards amongst users and public,
To establish a documentation and information center for the provision of quality and
standards related information;
Investment proclamation (280/2002):
As a result of the New Economic Policy and the series of reforms since 1992/93 an enabling
environment was created for both domestic and foreign private investment. In realizing the
role of private activity in generating growth and supporting poverty reduction the National
Poverty Reduction Strategy had dwelt and emphasized participation of the private sector as
part of driving forces of change in achieving food security.
Opportunities in the private sector are based on factors that created favorable climate. These
investment climates as presented by (MoARD, 2008) are peace and stability, macroeconomic
stability, access to land and taxation.
The investment code is one of the most flexible and has undergone several amendments in a
view to progressively improve the investment climate in Ethiopia.
The most recent (amendment) proclamation (373/2003) allows the Ethiopian Investment
Commission to complete the following tasks:
Issue investment permit on behalf of the Ministry of Trade and Industry (MTI),
Authorize memorandum of understanding and article of association,
Commercial registrations,
Issue work permits and business licenses;
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Investment regulation (84/2003)
Stipulates the following incentives that are relevant to livestock production, processing and
marketing:
Exempts from income tax for five-years, those manufacturing, agro-processing or
agricultural production enterprises that export 50% of their products, or supply at least
75% of their products to an exporter as a production input. Depending on circumstances,
the exemption will be extended to seven years and above,
Provides two-year exemptions from income tax against export of less than 50% or supply
of products only to domestic market - the latter being subject to the decision of the Board,
Where the investment takes place within the emerging regions of the country, an additional
one-year tax exemption is allowed,
Two-year income tax exemption for expansion or upgrading of existing enterprises that will
export 50% of the product and increase in value of the production by 25%,
In case of incurring losses by the enterprise, the regulation allows the carrying forward of
the payment of the income tax by half the pre-stated exemption period after expiry date,
To assist improvement of quality of products and processes through promotion and
application of Ethiopian standards;
19.3. National development policies and programs and
their implications in dairy development An appropriate and effective policy by definition should be clear, detailed, and coherent, with
clearly defined instruments and linked to other relevant national policies. Incomplete policy and
that do not have compatible and inter related policies could not lead to the attainment of its
own objectives.
Policies on dairy, specifically and livestock in general, could not be studied in isolation as they
are strongly influenced by other policies related to livestock, and agriculture respectively. In
addition the environment and natural resources management, land tenure, marketing and
trade, transport, human development and institutional capacity building, public health and food
processing and regional and international cooperation are also important considerations.
Effectiveness of policy is measured by its impact on the development of the sector or sub-
sector in question. It is therefore essential to review of all existing dairy, dairy related,
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agricultural related and rural development policies to indentify limitations, challenges and
successes within the policies and of their respective implementation.
19.4. Adequacy and Relevance National and sectoral policy objectives
Development policy objectives of the Government are focused on achieving economic efficiency
where it is concerned with increasing the level of real national income to be achieved
concurrently with sustainable conservation of the natural resource base in the interests of long-
term economic efficiency and sustainability. Maintaining the stability of the envisaged growth
and equity is a pro-poor objective that focuses on making fair distribution of income and wealth
from the growth realized as most farming is based on smallholder basis.
In context of the above statement the development policy objectives of the country are
relevant and sufficient to guide livestock development in general and dairy development in
particular (MoARD, 2008; Demise et al, 2009). This is reflected on the dairy development policy
objectives in the draft Agricultural development Policy and livestock (draft) policy objectives to
include the following:
Self-sufficiency in livestock production through improved nutrition and management
Export promotion (increasing raw material supply and export earning)
Income generation and employment creation.
Strategic Orientations
The strategies of sectoral policies recognize livestock as a potential area for poverty reduction
and economic growth and to have leading role. Furthermore transformation of the smallholder
subsistence agriculture into a productive and market-driven and the advancement of this on
agro-ecological criteria to a more geographical differentiation of the country into different
growth opportunity zones is an important strategy to the marginalized livestock sub-sector and
dairy.
Policy Instruments
Key policy instruments common for the agriculture sector are applicable to livestock. These
include rights and access to the land, credit, research (technology), extension, input supply,
market information and knowledge and skills. Specific measures to livestock include access to
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land tenure and land security; rights and access to improved breeds, veterinary services,
pastureland and water and quality control services.
The land policy dictates the use of land for its best. However, as indicated in several reports
there remains impediment to use land as an important input to enhance investment, such as
high land lease rates, bureaucratic hurdles to secure land, and absence of infrastructure
services.
Access to land use is one of the major issues of agricultural development (New coalition,
2003). The essential elements of the land policy among others relevant to dairy production
should be free and non-time bounded access to farmers/pastoralists, leasing to other
participants, restriction of land redistribution without the will and consent of the farmers at
large, leasing of peasant holdings to other farmers or investors, presenting land use certificate
as collateral by investors.
Access to market and market information
Informal dairy market dominating the system, the poorly organized and functioning market is
unable to stimulate modern dairying and supply of adequate milk and dairy products to local
and national markets. The articulated reasons are dominance of subsistence production
combined with under developed rural infrastructure, limited involvement of private investors in
the marketing system, weak financing systems, scarce market information and weak rural-
urban linkages. In response to the constraints on livestock marketing MoARD had adopted,
though major emphasis being on export marketing, an agricultural marketing strategy in 2005.
Hence accepting policy and institutional constraints are largely contributing to market
inefficiencies, realization of adequate policy and implementation of the policy with applicable
instruments and efficient institution is essential
Access to livestock extension services
Existing extension approach is menu-based integrated packages with the household as focal
point for intervention. While the technological interventions are commodity based
encompassing breeding, feeding and health, extension services related to delivery of animal
health and artificial insemination services are seen and run as separate functions. This needs
strong functional linkages where inefficiency in only could affect the adoption of the
technology.
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The agricultural extension system did not target the larger commercial their influence on
smallholder farmers to adopt technology could offer as drivers of change in technology
transformation, input and service providers and market Therefore there is limitations in scope
and coverage in livestock and dairy extension.
Access to Technology
Focus on livestock research in the past was marginal being to identify, test, and adapt existing
technologies while strengthening research on areas of strategic or national importance do not
exist. Long term research on thematic areas and focus on dry land and pastoral agro-ecologies,
on improving forage varieties, generating better information of husbandry, health care, and
breed improvement would be strategic areas.
Access to Inputs
Improved breeds, fodder crop varieties, and veterinary services are vital inputs to raise
productivity. However, supplies availed are limited and service provided are ineffective and
inefficient, unable to satisfy the rapidly growing demand for improved technology. Policy guides
and support for development and utilization of forage plants, crop residues, and industrial by-
products and breeding are also lacking
Dairy development in particular and livestock development in general is highly constrained by
inadequate access to productivity enhancing technologies and inputs. Supplies are limited and
are hardly affordable by farmers.
Private sector development
Introduction of Investment Code designed to encourage larger scale private investment has
favored growth in certain agricultural sub sectors. In response to the investment climate, new
investment in livestock has been emerging. However, these are mostly on import, wholesaling,
and retailing of veterinary drugs which are fully run by the private sector.
19.5. Compliance of the policies in light of dairy sector Inventory of the existing policies and strategies at sectoral level and programs developed
thereof in Ethiopia had indicated that the overall objective of the policies and strategies are
more or less comprehensive in addressing basic principles of development. Intuitional capacity,
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ownership, follow-up, coordination and continuity are among the main challenges which deter
the effectiveness of these policies.
However, the dairy sector development is impaired in most cases not by the lack of general (or
national) policies and strategies but limitations and constraints of their implementation and lack
of focus. Implementation requires appropriate institutions with the required capacity and public
sector participation. In the case of Ethiopia dairy development involves many stakeholders from
production of raw milk to collection, processing, marketing of the product, input and service
delivery and regulatory functions as well as the consumer. All stakeholders should be involved
in promoting efficient production, clean, safe and standardized milk and regulating the market
which include public and the private sector as well as NGOs, CSOs, CBOs and donors. Efficient
and effective implementation of existing policies and strategies are thus essential.
In addition, livestock in general and dairy in particular are not policy deficient nor are the
existing policies are hindrance to its development. But inexplicitness of the issues in existing
official documents (RDPS, PASDEP, etc.). Livestock sub-sector has lack of focus in specific
policy regimes in an integrated and comprehensive setting (MoARD, 2008; Demise et al 2009).
To address the issue of inexplicitness and avoid lack of focus, there is need for national dairy
policy to guide the development nationally. Accordingly there is requirement for specific policies
like the draft breeding policy which include on dairy feed and feeding, dairy health, etc.
19.6. Effectiveness of strategies on the dairy sector Most of the strategies advocate for integrated development approach. However coordination
and integration of managing the different development tasks under the development programs
and different projects were not practical in most instances where problems are emerging on
slow and inadequate performance by not invoking and using this integrated development
approach.
The draft Livestock Breeding Strategy should be reviewed to include issues of timely breeding
such as synchronized breeding for the purpose of fixed time breeding through efficient mating
and insemination system to achieve compact calving, thus align breeding programme with feed
availability and marketing.
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Review the existing animal feed strategy should be examined. The strategies developed for
improved forage production and use of other feed resources had little if not any impact on feed
availability as indicated in their perspective plans.
Smooth linkages among stakeholders and systematically linked and institutionalized activities
could have played significant role for the implementation of development interventions.
Coordination and alignment of duties and responsibilities is thus are of attention where diverse
institutions are involved where there magnitude and involvement differ between regions
Inadequate technology generation and transfer and weak research extension farmers’ linkage
are challenges contributing to the lack of effectiveness in the Research, Extension and
Development chain.
Linkage and proper enactment of legislation on quarantine, standard and quality control among
and by institutes mandated to enforce the law and standards should be considered issue of
national concern. MoARD’s Animal and Plant Health Regulatory Directorate, and Ethiopian
Quality and Standards Authority should come in a formal linked for institutional arrangement in
order to address national issues of agricultural inputs and outputs quarantine, standard and
quality.
19.7. Need for an institution There is no single organization responsible for the development of dairy at national level in the
country. This has created a rift between the producers and consumers and all those actors in
the value chain to involve in the development process coherently. This could have assisted in
the development of the dairy sector and improve the food security in terms of making sufficient
clean and standardized milk and dairy products available and improve the stability of supply
resulting in the poor facilitation of production and marketing of the products in the country.
If dairying in Ethiopia is expected to develop at a pace to guarantee food self-sufficiency in
milk and dairy products and promote import substitution and export earnings institutionalizing
is essential. An organization or institution responsible for the overall dairy development; co-
ordination in development, marketing, and quality control and pricing, for the coordination of the
dairy development, marketing and control of quality and hygiene is vital for smooth and
efficient development of the dairy sub sector.
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19.8. Challenges on the enforcement of the existing policies
Achievements of the dairy sector due to the implementation of existing policies, strategies and
programs on milk production and consumption could not indicated its effectiveness but futile
exercise where data is scarce and magnitude are diverse. It would be worthwhile if not directly
related to dairy to refer on trends of agricultural development in the past decade.
Recent study (Demise et al, 2009) on impact of policy on agricultural development due to the
implementation of existing policies, strategies and program indicated share of agriculture GDP
has declined from 57% to 46% in ten years time between 1996 and 2007. And within
agriculture it is the crop sub sector which is leading in terms of contribution to GDP. As of
2006/07 crop agriculture share from GDP is 30% while its share from AGDP is 65%. For the
same period the share of the livestock, is 12.3% from GDP and 26.5% from AGDP, and the
budget allocated for agriculture both at the Federal and Regional State Governments level is
about 15%. In terms of milk production, although the average daily milk yield of cow and
camel is showing a slight positive increase, the change is still small per capita consumption of
milk of Ethiopia is the lowest in Africa which is about 23Kg per annum.
In general, the livestock sub-sector is not policy deficient nor is the existing policies are
hindrance to its development. The reflection of these policies on dairy development can be
considered the same. The problem in achieving the expected goal of efficiency lies on lack of
focus, institutionalization (ownership) and reinforcement. As emphasis of interventions in
agriculture are bound to differ with in the sectors and commodities depending on potential
resources, incompatibility to address more critical issues in the development phase could
hamper achievement of the overall expected goals.
As the number of stake holders involved in the milk value chain is immense and need for
concerted effort on dialogue and involvement in the development process is vital. A platform is
required to address the issue of productivity and production, efficient marketing and supply of
clean and standard milk and dairy products for the use of the public, which necessities the
importance the dairy board like many countries on the globe.
The need to develop dairy development policy is imperative to deal with issues of focus.
Further in line with the recently formulated Livestock Breeding Policy and Strategy (MoARD,
AFRD, 2008; Demise et al, 2009) and submitted to the Council of Ministers there is need for
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detailed separate policies on animal health and animal feed. Where milk involves production
and health safety in the production and consumption chain interventions for increased
production, regulating the market and guarantee quality milk supply.
20. CROSS-CUTTING ISSUES Cross cutting issues like environment, gender and youth in the dairy sector are not reviewed in
depth. In the course of this study certain issues identified as challenges are incorporated in this
report.
20.1. Environment
Though poorly managed dairy farm is posing environmental and health threat, many urban
small holder dairy farmers are forced to close their farms because of health and environmental
issues. No significant effort is made to enable these small holder dairy farmers to be safe and
clean environmentally before being pushed to quit their business. Packaging used for
pasteurized milk, are not biologically degradable and some of the packaging materials used are
not safe for in keeping the quality of milk before usage.
Challenges, constraints and recommendations are summarized as follows:
Challenges
Chasing of urban dairy farmers from town, mainly from Addis Ababa,
Non environmental friendly packaging,
Weak waste disposal system;
Constraints
The unjustified and misperception of some governmental and municipal authorities on the
dairy farming of urban and peri-urban dairy system,
Lack of knowledge and skill on potential usage of farm manure for energy and fertilizer,
High cost of packing materials and unavailability of environmental friendly packing in the
market;
Policy recommendation
Introducing cost effective waste management system to the urban dairy farmers,
Introduction of environmentally friendly packaging materials;
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20.2. Gender
Based on the rapid assessment on few cooperatives on dairy, the composition of women as a
member is too low, which is below 20%. It is evident that women are bearing the majority of
burden in the dairy farming, whereas their role in influencing the business out of dairy
transaction looks slim. Training opportunities organized through farmer organizations are
attended by men members where as women who are involved in the operation are missing
such opportunities as they are not often member of such cooperatives. Challenges, constraints
and recommendations are summarized as follows:
Challenges
Low participation of women and youth in cooperative and union organizations despite the
fact that they are playing significant role in dairy.
Constraints
Cultural misperception on women participation in farmers organization
Policy recommendation
Encouraging women’s participation on dairy cooperatives,
Privilege of farm level and cooperative level trainings to women,
Encouraging of membership of wife and husband at a time;
21. BENCHMARKS
The Ethiopian Dairy policy gaps can be analyzed based on the data gathered from documents
available, which are relevant to dairy sector and reviewing on the policy gaps and challenges
from the various dairy sector actors. And the other important reference on the dairy polices are
also be compared from best experiences of countries that are selected based on some
similarities of the dairy with Ethiopia like Kenya, Swaziland, India, and Pakistan. The dairy
policies of Kenya, India, and Pakistan are narrated for these study are mainly from the Steven
J. Staal, Alejandro Nin Pratt, and Mohammad Jabbar,2006 :A Comparison of Dairy Policies and
Development in South Asia and East Africa Part 2:Country Case Studies from South Asia and
East Africa – Kenya, Ethiopia, Pakistan and India.
21.1. Kenya Dairy Policy
The Kenya Dairy Industry Policy covers key issues relating to quality control and standards,
consumer safety, consumption, promotion of local dairy products and exports.
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To promote dairy production and marketing the government of Kenya (with the support of its
development partners and the private sector) has been implemented variety of policy
instruments and strategies. These include:
Regulatory framework,
Feed prices and quality,
Breeding and artificial insemination services,
Tick control,
Veterinary clinical services,
Investment in research,
Extension services,
Pricing and taxation policies,
Market and trade policy, and promotion of marketing services such as through
cooperatives,
Expansion of rural infrastructure (e.g., roads, electrification, water, etc);
Main Lessons from Kenya’s Dairy Policy
Legal and Statutory Framework
A conducive legal regulatory framework is important in facilitating growth and development in
the dairy industry and the economy. The regulatory framework for the dairy industry of Kenya
consists of various laws enacted in a number of legal documents. These acts include the Dairy
Industry Act (CAP 336, Laws of Kenya) which was first enacted in 1958 and established the
Kenya Dairy Board (KDB) to regulate the dairy industry. The Act has been revised in the past
(1962, 1972 and 1984) with the aim of improving sectoral performance in the dairy industry.
The main functions of the KDB include (i) licensing of retailers, (ii) controlling of milk
movement and quality, and (iii) appointment of dairy inspectors.
Another important regulation is the Co-operative Development Act (Cap 390, Laws of Kenya),
which governs all dairy marketing co-operatives. Despite good performance in many cases,
most dairy co-operatives have not allowed sufficient farmer participation in their management.
The Act was revised in 1997 to ensure greater farmer control, and less government
intervention.
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The Companies Act (Cap 486, Laws of Kenya) is another important legal and policy framework
that provides for registration of companies engaged in various business transactions in the milk
supply chain. These include (i) registration and licensing of milk processors, (ii) licensing of
retailers, (iii) regulations of milk transportation, and (iv) inspectors’ regulations (by KDB).
Violation of these regulations is liable to prosecution.
Another statutory body, the Kenya Bureau of Standards (KEBS) promotes adherence to
standards in industry and commerce, and to undertake educational work in connection with the
standards. The KEBS is established under the Standards Act (CAP 496, Laws of Kenya). These
standards are intended to safeguard both consumers and producers for product quality and for
fair commercial dealings. KEBS has specified the methods of analysis to be followed for various
products (including dairy products) and has powers to enforce these standards even by
prosecution, if necessary.
Feed Prices
To reduce the cost of animal feeds, the government waived duty on imported feed ingredients
and there are no additional taxes on manufactured feeds.
There is generally greater feed availability and usage in most parts of the country, although its
quality is sometimes suspect.
Animal Breeding Programs
The Kenya Stud Book was established to keep animal breeding records in the early 1920s.
Since then, major cattle breeding-related activities have been introduced. These include
Livestock Recording Centre (LRC) to keep all livestock statistics and performance, Dairy
Recording Services of Kenya (DRSK) - formerly Kenya Milk Records (KMR) – to keep all milk
performance data; Central Artificial Insemination Station (CAIS) to produce semen and the
Kenya National Artificial Insemination service (KNAIS) to distribute semen (Connelly, 1998). To
assist further the adoption of the higher yielding inputs and enhance dairy productivity, duties
were waived on imported semen and embryos.
Milk Marketing
The informal milk marketing has enormous potential for off-farm employment generation.
However, the efficient operation of, and potential evolution towards higher standards with the
raw milk market has been impeded by the non-recognition of raw milk traders due to public
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health concerns. The mobile traders have often operated without trade licenses and actively
sought innovative ways and means to circumvent such official impediments to business
operations. Research has shown that the quality of milk sold by the mobile milk traders is not
significantly different from those with fixed premises (Omore et al, 2005).In 2004 and 2005,
the Kenyan Government has taken steps to “formalize” and legalize raw milk marketing,
through training and certification of small scale traders. Where appropriate, institutions should
explore alternative systems, such as self-regulation and partnership with the private sector.
The required legislation to safeguard these policy changes is currently making its way through
the legislative channels to be enacted.
Similar changes have occurred or are occurring in other countries in East Africa, particularly
Tanzania and Uganda. Thus even as income and urbanization trends move towards a larger
share of the formal market, this type of policy shift can mainstream the informal sector, and
raise the quality of milk it handles, bridging the informal-formal gap as the industry develops.
Dairy Business Environment
To address limitations in the dairy business, the Kenyan government will work closely with
stakeholders in the industry to address problems pertaining to dairy business environment.
Areas of priority will include: - guide the industry towards self-regulation path; development of
contractual norms and corresponding legal mechanisms, low cost dispute resolution
mechanisms, and industry codes of practice; facilitate the formation of a stakeholder driven
ethical committee to handle arbitration issues in the industry; facilitation of the organization of
interest groups along the value chain to improve performance in the sector; and support the
setting up of an industry umbrella association within the sector where stakeholders can
dialogue and lobby. A tribunal to handle livestock disputes will be established to arbitrate
issues on dairy industry, among others.
Renewed public investment in livestock services
It’s apparent that the withdrawal of government support to livestock services in the 1990s was
not matched with increased provision of private services. Smallholders in particular, have lost
access to some of these services. In order to support continued opportunities for resource poor
farmers to increase productivity and opportunities in dairy, it’s likely that renewed public
investment in services will be required until viable, appropriate private services are widely
available.
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21.2. Pakistan Dairy Policy
In Pakistan two broad sets of policy measures influenced the dairy sector growth directly
and/or indirectly:
Policies, institutions and programs for improving dairy production and marketing;
Public investment in livestock extension and services,
Promotion of dairy cooperatives,
Targeted dairy development projects,
Public sector investment in milk processing and marketing,
Facilitating private sector investment in dairy processing,
Import tariff on milk powder and income tax exemption to dairy farmers;
Other policies that indirectly impacted the dairy sector;
Promotion of green revolution technologies,
Exchange rate policies,
Tax policy for processed milk products and agricultural inputs,
Regulations banning animals in metropolitan city areas,
Regulation to control milk quality;
Main Lessons from Pakistan’s Dairy Policy
Several policy, institution and program areas stand out as major contributors to dairy
development through improvement in production and marketing.
First, increased public investment in extension, research and other support services, especially
investment in artificial insemination and other breeding services and veterinary services,
contributed significantly to yield and output growth by improving the genetic, health and
overall quality of dairy animals.
Second, targeted dairy development projects in specific parts of the country for promotion of
improved feed, management and genetics as well as dairy cooperatives to improve market
access for inputs, services and products contributed to dairy growth.
Promotion of green revolution technologies
Among the policies that indirectly impacted on the dairy sector, the promotion of green
revolution technologies stand out clearly as it contributed to dairy growth from both supply and
demand sides.
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On the demand side, higher cereal productivity and rural income enhanced demand for
livestock products in the rural areas, and higher cereal productivity reduced real prices of
cereals for urban consumers, so enhanced their ability to increase consumption of dairy
products. Thus green revolution induced demand growth acted as a pull factor for dairy
development. On the supply side, three interrelated factors emerged that contributed to
enhance dairy growth.
First, mechanization of various farm operations at mature stages of green revolution
released draft animals thereby created room for increased number of dairy cows to be raised
with available feed. Cattle were more used for draft purposes, so mechanization allowed an
increase in the buffalo population, and a higher milk yielding animal. Higher cereal productivity
also released some land to increase production of green fodder for dairy animals. These factors
together resulted in higher yield per animal and in higher output.
Second, overvalued exchange rate policies pursued in the 1960s protected the domestic
market but stifled growth by giving a reasonable income from low productivity and providing
disincentive to invest in productivity improving technologies. Combined with this, the policy on
high import duty on imported dairy products, mainly powdered milk, and also soft growth as it
discouraged domestic producers to be competitive.
21.3. Indian Dairy Policy
Main Lessons from Indian Dairy Policy
Having achieved the status of the largest milk producing nation in the world, India clearly
offers a number of important lessons for dairy development, and the policies associated with it.
Regulatory Environment in the Dairy Sector
The Indian dairy industry has grown and diversified enormously in the last few decades. To
ensure the proper development and growth of this sector, the government has formed various
laws and regulations. The regulations are briefly discussed below.
Food quality and safety
Food quality and safety issues were regulated by a number of acts and agencies. The Ministry
of Food and Consumer Affairs is the main agency dealing with issues of food safety. There are
other ministries/departments, which are involved in food regulations.
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The Prevention of Food Adulteration Act is the main food safety act enforced by the Ministry of
Health and Family Welfare, Government of India. It focuses on the establishment of regulatory
standards for food safety and applies equally to domestic and imported foods including
livestock products. It covers various aspects of processing and distribution such as colour,
preservatives, and pesticide residues, packaging, labeling and sales regulations.
The Bureau of Indian Standards creates standards for food products. The Standards of Weights
and Measures Act establishes fair trade practices with respect to packaged commodities, and
makes it essential for the manufacturers to display information about the nature of the
commodity, date of manufacture and retail price on the label.
Besides these, there are a number of commodity specific quality control orders issued under
the Essential Commodities Act. Milk and Milk Products Order (MMPO) has promulgated for dairy
products. This is applicable to both the domestic and imported products. The MMPO regulates
the production, distribution and supply of milk products. It establishes sanitary requirements
for dairy products, machinery, premises, and establishes quality standards for milk and milk
products.
Agricultural Products (Grading and Marketing) Act, 1937, commonly known as AGMARK is
enforced by Directorate of Marketing and Inspection under the ministry of rural development.
Under this Act, Grade Standards are prescribed for agricultural and allied commodities. Grading
under the provisions of this Act is voluntary. Manufacturers who comply with standard laid
down by DMI are allowed to use "Agmark" labels on their products.
The fact that food safety regulations are enforced by these multiple agencies and Acts is
considered to be restrictive to the growth of food processing industry. Recognizing the growth
potential of food processing and to create an enabling environment for value addition to
agricultural products the Government of India has taken an initiative to create a Unified Food
Law by merging/amending all the existing food laws taking into consideration the global food
quality standards. The Unified Food Law, known as the Food safety and Standards Bill, was
introduced in the legislature in August 2005 and after approval from the parliament all the prior
acts/regulations related to food would be repealed. The proposed act would be implemented
and coordinated by a single agency.
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Multiplier effects of the Green Revolution - In general, development of the crop sector
and the infrastructure related with this development during the period of the Green Revolution
have played a key role in dairy development. The role of irrigation and fertilizer through
increasing year around availability of fodder, and through broader innovation processes of
farmer technology uptake, have been some of the main driving forces to dairy development in
India.
Improved dairy animals – Improved (through selection) and cross-bred cattle, as well as
dairy buffaloes, have played a key role in India’s dairy development. The success of cattle
crossed with exotic dairy genes offers important lessons for similar approaches in tropical
settings.
Meeting traditional demand – Related to the growth in demand, was a shift by formal
market processors to traditional Indian products such as paneer, chhena, khoa, gulab jamun,
products formerly supplied almost entirely by the informal market. This created new market
opportunities, and allowed the formal market to build on traditional demand patterns, rather
than try to create demand for Western style products. Some of the latter, however, such as
sweetened yoghurt and ice cream, also helped create new markets.
Raw milk and traditional markets - These markets continue to dominate the dairy industry
in terms of market share. By virtue of their huge scale, they have clearly played a role in being
the primary mechanism for linking growing demand among consumers with increased
production coming from producers. A key policy ingredient in this role was the approach by
regulators and policymakers generally towards small scale informal market activity. That policy
stance, although not stated but nevertheless implemented and observed, has allowed the
relatively efficient operation, organized and mostly competitive milk and dairy product chain.
Cooperative development:-Although the Operation Flood and the role of dairy cooperatives
is always mentioned as a key factor in the growth of the dairy sector in India, the empirical
evidence suggests that the role of cooperatives in growth was not as direct as generally stated.
Cooperatives still account for a small proportion of dairy market share, and there is little
evidence to show that development of milk markets through cooperatives has driven growth in
dairy. However, the evidence does suggest that dairy cooperatives have had impact on the
supply side, in fostering the introduction of new technology, particularly improved dairy cattle.
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The role of cooperatives may thus have been more in terms of supporting technology
development and uptake.
Market linkages Several factors have worked to ensure that smallholder dairy producers can
retain participation in gradually changing market. Key among these has been dairy
cooperatives in a number of States, to which tens of millions of smallholder rural milk
producers belong and rely on to sell their milk. Another increasingly important avenue for
reliable market linkages that provide scope for increased productivity and scale are contract
farming arrangements with private dairy processors, such as those with Nestle in Punjab.
Support continued animal breed improvement. India also provides a strong case for
continued investment in improved breeds of cattle and buffalo. With the proportion of cross-
bred dairy cattle in the population at over 70% in some States (including crosses between
indigenous breeds), it is clear that exotic dairy genes can play an important role in even semi-
arid, high temperature settings. The regional analysis shows that improved animals have been
critical to dairy productivity and development. Further public support to this process, as well as
through cooperatives, is central to the continued progress of the dairy industry.
21.4. Swaziland
Important policy issues and relevant strategies followed by the Kingdom of Swaziland which
are more applicable to Ethiopian dairy industry are briefly summarized as follows:
The Livestock marketing policy
The strategy to be followed is the improvement of the distribution of better and tested bull
from breeding stations and the training of farmers to keep breeding records for improved herd
quality and performance.
The Processing industries policy
Promote primary processing industries and participate where and when necessary through
minimum shares to ensure their maturation and the eventual participation of producer groups
through the purchase of the Government shares.
The strategy to be followed in the Swazi case as their primary objective was on beef market
the strategy was on beef fattening and sale. Where as in our case the policy indicated could be
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used in dairy processing and market as the sector need high financial injunction to invest in
milk collection, transportation and processing.
The Cost recovery and commercialization of livestock development Policy
Commercialization of livestock development through the introduction of a cost recovery policy
and the rational use of Government revenue in all matters of animal health and production
The strategy to be followed are 1) privatization of the veterinary clinical services in such a way
as to save Government revenue and improve the delivery of veterinary services to the farmer
and 2) creation and management of livestock development funds and revolving funds where
levies and or contributions for the specified commodity could be deposited for the development
of that particular industry
The Promotion of Livestock enterprises and entrepreneurship policy
Promote small holder livestock enterprises and a spirit of entrepreneurship among farmers
The strategy to be followed are 1) introduction of appropriate credit schemes and packages
and the training of farmers on the use of such schemes within the cost recovery framework,
and 2) facilitating access to all available lines of credit by qualifying producers and
entrepreneurs and the use of livestock funds and revolving funds on a cost recovery basis
The maintenance of good range and pasture management practices Policy
Develop and maintain a high level of range and pasture management in the country with soil
and water conservation practices
The strategy to be followed among others pertinent to Ethiopia are 1) establishment of farmers
groups in communal grazing areas on pasture management, 2) introduction of grazing area
fencing schemes and 3) establish stocking rates for the different stratified grazing areas and to
enforce through the livestock grazing group
The National herd improvement Policy
Improve the national herd and ensure the maintenance of internationally accepted standards of
livestock production and breeding
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The strategy to be followed among others pertinent to Ethiopia are 1) establish clear breeding
objectives and programs, 2) registration of breeders and breeders associations and monitoring
of livestock breeding activities in the country
The Livestock nutrition Policy
Develop and use internationally acceptable standards of livestock nutrition and feeds quality
and to protect the consumer from sub-standards feeds and their dumping
The strategy to be followed among others pertinent to Ethiopia are 1) establishment of a
national animal feed standards to be met by feed manufacturers and importers and to protect
animal feeds consumers from the use of costly but very low quality feeds in the market, 2)
Provision of a feeds quality assurance service to farmers, feed manufacturers and distributors.
The Legislation Policy
Enforce compliance and ensure administrative efficiency and harmonization of established
policies, regulations on animal health, production, processing and trade
The strategy to be followed among others pertinent to Ethiopia is the enforcement of
legislations that will support and enforce compliance with established policies, and regulations
for the development of a sustainable livestock industry and the protection of the consumers.
Details of policies on Swaziland agriculture and dairy can be refer on: Livestock Development
Policy, Ministry of Agriculture and Cooperatives, Swaziland Government, Mbabane, 1995)
21.5. Botswana Botswana’s National Master Plan for Arable Agriculture and Dairy Development and the policy
thereof indicates the country to follow intensive development in both sectors as in irrigated
agriculture and dairy development. As the country is classified as an upper middle income
country and due to its agro climatic factors, it is more inclined to intensive agricultural
development. This is well demonstrated by the well developed beef industry. Hence the policy
on dairying in the same token and the strategies envisaged in the document follow the same
pattern of high capital seeking large scale dairy farming. Thus the policy indicated will not be
compatible to our needs of dairy development.
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In the case of Botswana expansion of milk production was envisaged with the use and
importation of dairy breeds of cattle and the Government will have high investment and
collaborate and encourages investors to promote dairy in the country. The dairy farmers will be
advised to maintain a minimum herd size of 50 milking cows. Hence there is no lesson to be
learnt from Botswana’s dairy development policies and strategy. (Reference: National Master
Plan for Arable Agriculture and Dairy Development (Government White Paper No. 1 of 2002),
Republic of Botswana).
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Annexes
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Annex 1: Animal Disease Prevention and Control
Animal Disease Prevention and Control
The Animal Disease Prevention and Control Proclamation (267/2002) is the most recent and
relevant legal provision to regulate livestock, livestock products and by-products.
The main provisions of the proclamation related to dairying are:
Controlling the movement of animals, animal products and by products within, into,
and out of the country,
Authorize the appropriate government authority (MoARD) to declare areas infected with or
free from 'noticeable' animal diseases and take measures for the prevention and control of
animal disease into and from the country,
Establish an emergency preparedness and epidemic surveillance system to contain the
spread of animal diseases and avoid the introduction of exotic diseases into the country,
Set priorities of animal diseases based on their socio-economic and public health impact
and implement control programs,
Requires the competent authority to work in close collaboration with the Ministry of Health
to control zoonotic diseases,
Authorize animal health officers to inspect and limit or prohibit movement of animals if
required before, during, and after transport; enter and inspect any premises or area where
animals, animal products, and by-products, or animal feeds are kept,
Carry out appropriate inspection at entry and exit points,
Demands the Ministry to establish the national animal health information system, and each
regional government shall exchange necessary information with neighboring regional
governments and the Ministry,
Requires the need to issue international animal health and sanitary certificates for export
and import of any products and biological materials of animal origin,
Permits registration of animal health professionals to deliver services or practice veterinary
profession, and demands establishing veterinary council for the registration and
professional licensing of animal health professionals,
Requires the competent authority to promulgate directives on conditions of performing
animal health interventions by unregistered animal health professionals and other non-
professional users,
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Liberalized the animal health services by allowing any person to establish animal health
station, centre or institution upon the fulfillment of the necessary requirements, which
include holding a certificate of competence from the Ministry or concerned regions, and
business license from the Ministry of Trade and Industry or the regional competent
authority,
Requires the Ministry to create favorable conditions for the promotion of private animal
health service delivery, and define the roles and responsibilities of the public and private
sector in the delivery of animal health services
Introduction of cost/recovery-based animal health services;
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Annex 2: Suggested Role of Dairy Board Suggested Role of Dairy Board
Institutional gaps related to linkages and synergy including issues of information exchange;
linkages among quarantine, standard and quality control; irrigation construction and use; are
gaps identified that limit progress in the dairy development. It will then be appropriate to have
public with private operated institutional arrangement such as dairy board to address
coordination and coherence of services required for the development. In addition, it need to
focus on issues related to animal feeds, trans-boundary livestock diseases, pre and post-
harvest losses, and existing land administration and use policy of the federal and land
administration and use proclamation of the regions which did not address the problems related
with grazing land and natural resources are constraints to focus on.
The board to be established has objectives of the optimal utilization of the financial, human
and other resources in the most efficient possible way and has the responsibility to plan,
coordinate, monitor and evaluate all activities related to the dairy industry in the country.
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Annex 3: Milk Value Chain Map (Variant 1)
D.MKTPasturized Milk V.C
InputRaw Milk production Collection Transportation
Processing & Packing Distribution
Point of SaleConsumption
Specific faction FEED Medcine Traning
Equipments A.I Husbandry QT., Test & Safe Storage
Milk CanntrasportBy Truck
Pastrurizing & Packing
Whole Selling Transport Storand Promotion
Retailine Consumption
Mic
role
vel
Feed Processors Suppliers
Small Holderas Dairy Cooperatives Traders Supermarkets House holds & Individulas
VET Drugs & Vacction AI Suppliers Commercial Dairy
Farmers Milk Processors Milk Processors Milk Processors Retail Shops Institutional
Consumers
Training Provider MOARD, NGO,
Consultant, EQPT Supplires
Dairy Cooperatives Individual Traders Café & Hotels
Mes
so
Mic
role
vel
MOADR/EIAR
NGO, ASSO
MFIs
QSAE
Financial Institutions
NGO
Moard/Eiar
Mac
ro M
icro
leve
l
MOTI
Financial Institutions
QSAE
NGOs
Moard/EiraFederal Regional
Governments MOADR/EIAR, QSAE
International Organigions FAO, WFP,
etc
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Annex 4: Milk Value chain – Variant 2
Source: UNIDO
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Annex 5: SUMMARY OF CHALLENGES, CONSTRAINTS AND
RECOMMENDATIONS
Policy issues Challenges Constraints Policy Recommendation
1 Cattle feeding in reference to milk production
Feed, usually based on fodder and grass, are either not available in sufficient quantities, or if available the feed are nutritional poor quality,
Inefficient utilization of Agricultural by products,
Low and uneven supply of industrial by-products,
Scarce grazing land,
Inferior quality of processed feed supplies,
High cost of processed feed
Feed sources are from overgrazed common grazing and fallow lands,
Practice of overstocking beyond the carrying capacity of the land,
Existing land use policy do not consider grazing use right. Rather land tenure and access to land are based on cropping area,
Absence of enforcement of quality standards on processed feed supply,
Low dissemination and adoption of improved feed technology and inputs,
Uneven distribution of feed processing plants in the country,
Low support to commercial feed processors
Deliberate production of feed for dairy cattle,
Promotion of production on cultivated forages through the different forage development strategies employed which fit into the farming system (technology transfer and input supply),
Improve pasture use through appropriate grazing land management system,
More research and development activities and dissemination of improve feed value of locally available feed resources,
Use of alternative sources of feed from silage making and conserved residue,
Follow breeding strategy to align with seasonal feed availability,
Research on adaptive and high yielding grass legume in scope and application,
Revising of the land policy to incorporate the forage production and grazing areas and to consider livestock development on the land use plan,
Research and extension services to develop and strengthen improved feed conservation strategy to ensure year round feed availability,
Encourage and assist establishment of feed
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Policy issues Challenges Constraints Policy Recommendation
processing plants,
Develop feed quality control system,
Encourage self regulation of quality standards on processed feed supply through the Association,
Impose livestock tax and assign quota (stock control) for controlling overstocking based on stratification of livestock production system,
Encourage forage bank establishment in feed deficit prone areas,
Promote forest utilization as animal feed resource in expansion of agro forestry,
Develop and enact Animal Feed Resource Strategy,
Implement integrated water and pasture resources development strategy,
Encourage and provide incentive for feed processers in the livestock development potential areas.
2 Breed improvement and increased use of dairy stock
Low milk yield from local breeds
Short supply of improved dairy breed
Slow progress on genetic progress
Inefficient Artificial Insemination service
Uncontrolled breeding practice,
Low capacity for genetic improvement of indigenous animals,
Animal breeding and development research not adequate
Lack of public and private institutions to multiply improved dairy stock,
Absence of breeding centre for exotic dairy herd as source of bull and heifers,
Establishment of a local market structure for improved stock
Promotion of enabling farmers to buy and sell cows directly from each other through short term credit facility that would be available at low collateral,
Farmer based crossbreeding program using group breeding scheme and bull station,
Expansion of the Artificial Insemination Service not only on crossbred and grade cattle but also for crossbreeding the local animals to produce
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Policy issues Challenges Constraints Policy Recommendation
Limited number of modern dairy farms which could serve as alternative source for improved stock
Low supply of artificial insemination inputs
Low level of staffing and career development scheme for Artificial Insemination Technicians in the organization structure,
Uncoordinated artificial insemination services at all level of the system,
Low semen quality
Uncontrolled breeding bull selection
the required number of dairy animals,
Promote communal groups/private involvement on bull breeding schemes, AI services and bull rearing centers,
Establishment of public bull rearing and bull service stations
Develop and enact breeding strategy on and controlled breeding,
Encourage private artificial insemination service provision;
3 Disease prevalence and control
Widespread prevalence and spread of livestock diseases and parasites in the country
Lack of inspection and quality control services to safeguard the public from zoonotic diseases,
Lack of proper livestock movement control, quarantine and surveillance systems
Insufficient staffs and high turnover of man power of the respective bodies (federal and regional)
Increased problem on external parasites and internal parasites,
High cost of veterinary drugs,
Poor reproductive performance of the animals due to diseases,
Weak national animal health information system,
Lack of record keeping on livestock ill/health (vaccination, treatment) and other related activities,
Need for integrated public and private to undertake adequate disease prevention and control through essential veterinary infrastructures and man power development;
Design and implement appropriate control and prevention strategies for all public and economic important milk born diseases such as TB and mastitis.
Strengthening the institutional capacity of the pubic to implement what has been given by proclamation.
Encouraging the private veterinary drug manufacturers to invest on the sector
Encourage promotion of veterinary drug dispensing
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Policy issues Challenges Constraints Policy Recommendation
4 Standards and quality control
Safety and standard milk and dairy products supply to the consumer not guaranteed
High post harvest losses occurring at the different channels of milk production
High zoonotic disease prevalence
Lack of effective quality control at different stages of milk production and transaction,
Lack of efficient liquid milk collection, cooling facility and transportation to processing sites,
Poor infrastructure, road access etc
Under developed milk processing and marketing system,
Lack of enforcement of quality control regulations and standards
Quality control
Effective health service for regular vaccination and health check of animals against diseases
Well equipped collection centers be set in strategic areas and coverage
Organize producers (both smallholders and the private) to form milk collection, processing and marketing for ease of quality controls
Provide extension and education on importance of clean milk production and animal health care
Create awareness among the public on clean milk utilization
Empower women to be involved in milk production, processing and marketing
Inspection
Establishment of standard quality control laboratory
Mandatory certification and inspection service
Implementation of standards and legislations on milk quality and assurance
5 Dairy Research
Limited and biased research output on different profiles of dairy production and utilization
Limited scope of research strategy,
Low emphasis on need assessment and basis on problem solving
Focus limited on productivity enhancement on applied research on nutrition
Piece meal approach of research on dairy production,
Encourage embarking on comprehensive dairy research
Strengthen research- extension –farmer linkage
Encourage research on development of appropriate milk processing technology
Promote applied research on preservation of dairy products and render extension services
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Policy issues Challenges Constraints Policy Recommendation
Impact of long generation interval of cattle on research output,
Absence of high technology use to enhance research out put
Develop and promote technology of efficiency of traditional butter churning techniques,
Promote use of high technology, (embryo transfer and genetic manipulation etc) to improve impact on generation interval and accelerate research output;
6 Extension services
Inefficient and absence of extension services on dairy development for rural and urban and large scale farms respectively
It is largely biased to food and cash crops, leaving livestock extension as "filler" of the system;
N service provided for large scale and urban dairy harmers
Accompanied by no or low supply of improved technological input
Solely public service and frequent restructuring and policy signals in terms of focus and priority,
Lack of coordination and harmony of extension services rendered by multi-actors
Technical applications are more on enhancing productivity, ignoring marketing, agribusiness,
Low knowledge of dairy producers on important dairy inputs (animal feed, vet medicines)
Establish strong research, farmer and extension linkages
Formation of specialized dairy extension service
Adequate supply of improved inputs
Develop extension and advisory service for private dairy farms as well
Encourage private extension service and advisory service
7 Financial Services – Loan
Poor loan access mainly by small holders, cooperatives and unions.
Lengthy process in getting investment loan approval
Complicated procedures & formalities
High value collateral demand
Absence of system which guaranty financiers to consider livestock as a
Government needs to ensure that state owned banks have both the institutional capacity in administering Dairy related loans.
Considering a system to use livestock as collateral in such a way that risks of the
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Policy issues Challenges Constraints Policy Recommendation
from Development Bank of Ethiopia for loan requests by commercial Dairy farms and processors.
collateral for securing loan
Limited individual borrowing limit of MFI
High interest rate of MFIs
Absence of qualified dairy expert in commercial bank to assess proposals,
Low emphasis given by commercial banks on dairy
financiers will be properly mitigated.
Increasing the single borrowing limits of MFIs
8 Financial Services – Insurance
No suitable policy for livestock insurance to cover potential risks to the dairy farms & to use these assets as collateral for bank financing
Companies have not suitable livestock insurance for different types of livestock holdings.
Encouraging insurance companies to have customized and suitable insurance policies for dairy farms, which are also, are a basis for using the livestock as collateral.
9 Demand seasonality
Seasonality of demand for dairy products
Low level of demand during Ethiopian Orthodox fasting seasons
Promoting extended shelf live dairy products
Promoting consumption of children,
10 Cooperative/Union Organization
Limited capacity on management & marketing of respective cooperative
Limited capital
Governance system is not enabling for continuity of leadership and management
Review of the governance part of the cooperative law
Continues trainings on marketing and cooperative management
11 Consumption
Low per capita consumption of milk
Weak habit and poor understanding on the importance of milk
Promoting milk consumption and nutritional value
Promotion of school milk feeding programme
Aggressive involvement by Government on the dairy industry
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Policy issues Challenges Constraints Policy Recommendation
12 Dairy information
Unavailability of dairy information of production, marketing and consumption
No organized body in charge of collecting, summarizing, archiving, analyzing and disseminating
Organizing or establishing an institution for dairy information system.
13 Packaging
Uneven supply and high cost of packing materials
Use of substandard packaging materials
Few suppliers in the market and low level of capacity of the individual industries
High cost of packing materials, aggravated by the devaluation of Ethiopian Birr and foreign currency rationing
Facilitation by government in forming clustering to producing and printing of low cost but with a minimum standard of quality
14 Milk Processing
Operating under capacity
Low level and uneven supply of liquid milk with the required quantity and quality
Promoting demand
Facilitation of collection, chilling and transportation facilities
15 Informal Milk marketing
Inferior quality and health hazard
Poor collection, handling and transportation
Lack of sufficient knowledge on milk quality and risk on zoonotic disease
Presence of unregulated and uncontrolled milk supply to the society
2. Registration and special licensing of milk traders
3. Provide basic knowledge on milk quality and safety
4. Provisions of standard milk collection, handling and transportation equipment
5. Transformation and promotion of raw milk trade to small scale milk preservation and processing technology
16 Cross-cutting Issues
Chasing of urban dairy farmers
Non environmental friendly packaging
Weak waste disposal
The unjustified and misperception of some governmental authorities on urban and peri-urban dairy system
Lack of knowledge and skill on potential usage of farm manure for
Introducing cost effective waste management system
Introduction of environmentally friendly packaging materials
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Policy issues Challenges Constraints Policy Recommendation
system
energy and fertilize
High cost of packing materials and unavailability of environmental friendly packing in the market
17 Gender and Youth
Low participation of women and youth in cooperative and union organizations despite playing significant role in dairy
Cultural misperception on women participation in farmers organization
Encouraging women’s and youth participation on dairy development
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