Outlook Dairy Development Ethiopia National Dairy Forum, Addis Ababa, Ethiopia, 23-24 November 2010 Bram Wouters Jan van der Lee Wageningen UR Livestock Research
Nov 15, 2014
Outlook Dairy Development EthiopiaNational Dairy Forum, Addis Ababa, Ethiopia, 23-24 November 2010
Bram Wouters Jan van der LeeWageningen UR Livestock Research
Content of the presentation
Global trends and characteristics
Perspectives and approach for Ethiopia
Priority issues along the value chain
Some global trends in dairy development
Demand for dairy products is increasing
Protection of the dairy sector in developed countries decreasing (EU, USA)
Emphasis on sustainable production and processing systems and food safety
Dairy sector in developing countries
Some major characteristics: Many informal market channels besides formal
channels Economic development > increasing demand for
a larger variety of good quality dairy products Milk mainly produced by small holders with
implications for inclusion in modern chains: Raw milk quality Milk collection >>> high transaction costs
Present situation in Ethiopia
Long tradition in consumption and use of (traditional) dairy products
Consumption per capita of dairy products is low The formal dairy value chain is small (mainly limited
to the milk shed of Addis Ababa) Milk mainly produced by small scale producers The import of dairy products is growing Growing interests of private investors (local and
foreign)
Informal chain
Formal chain
Perspectives for dairy development Ethiopia
Increased demand as result of Population growth>>> rural demand Economic growth & urbanization>>>> urban demand
Market-oriented business environment developing Contribution to sustainable development :
Inclusion of small holders in dairy development more resilient and contribute to rural development
Contribute to economic development (income generation)
Import substitution
Possible pathways for the Ethiopian dairy sector
Which approach to take for development?
Lessons learnt from other countries/ experiences indicate:
Dairy development needs an integrated approach For example: a value chain approach
Possible options for development should take into account the local context
Stepwise development is more sustainable
Value chain approach means:
Taking the market and/or development of the market as starting point
Taking sustainability as a condition for development
Take into account the development stage at local level
Adopting an integral approach when developing the chain at local/regional level
Cooperation and coordination among actors in the chain
export chains
formal value chains New Zealand
informal chains subsistence
Stages in dairy value chain development
Development
Stage
Food security
Meeting urban demand
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Ethiopia
Transition Challenges in Chain Development
Transition from subsistence to informal chains
access to markets and resources
Transition from informal to formal chains
investments and quality
Inclusion of small holders in formal chains transaction costs and quality
Priority issues along the value chain
Market Reliable market for commercial dairy production Improved distribution and promotion Inclusion of small holders in formal dairy chain Development of local value chains
Milk processing Diversification of production of dairy products Improvement of quality of products (also traditional)
Priority issues along the value chain
Milk collection Organization and efficiency of milk collection
Milk production Feeds and feeding: water, roughage/forage supply Breeds and breeding Animal health
Input supply and services Feeds, AI, Animal health and extension
Priority issues along the value chain
Enabling environment for value chain development Supportive government policies and instruments for
private sector development Capacity building of institutions, associations,
cooperatives, groups, individuals Good interaction research-extension-education Coordination and leadership in the value chain
The outlook: the future Ethiopian farmers and consumers
Thank you for your attention