This document summarizes interventions and lessons from dairy value chain development projects. It discusses interventions targeting input supply, production, and processing/marketing. Key lessons include: (1) dairy development requires continuous adaptation to commercialization levels, (2) knowledge and skills of public staff and farmers were inadequate initially but improved through training, and (3) initiatives like AI privatization and small processing units face challenges from scale but show potential with expanded milk sheds.

1. Dairy value chain development
Interventions and lessons
Knowledge
Va l u e c h a i n i n t e r v e n t i o n s management /
Input supply interventions:
Capacity development
Ta r g e t i n g
Targeting women and farmers
Proper animal breeding (AI) promoted with entrepreunial skills willing
to invest
Knowledge management / skill
development
Organising farmers to ensure quality fodder supply
Access to knowledge through trainings, study tours, farmer field
days
Dairy value chain actors and their
roles
Concentrate feeds and veterinary drug supply
Knowledge/Skills Input supply
Production interventions: MoARD, BoARD, OoRD, services Use of FTCs for training and Training farmers with simple
EARS
Cooperative shops demonstration materials veterinary techniques
Private Sector
Cooperatives Dairy shops
Specialized farmers Veterinary Clinics
Consultants Government
NGOs NGOs
Students
Introduction of appropriate genetic material to meet market demand Dairy Producers
Credit Processing /
Marketing
Microfinance institutions
Cooperatives Private industry
Proper Housing – good lighting, Get your feeds and feeding right! Additional ICT-supported information /
Private industry Cooperatives
ventilation, drainage key to a knowledge via Ethiopian Agriculture Portal
Shops Traders
successful dairy production (EAP) www.eap.gov.et
Feed suppliers
Lessons & Challenges
• Dairy value chain development is a continuous process, which requires new responses in knowledge, skills and interventions and sets
of actors depending on differences in the level of commercialization of households and Districts.
• Most Districts and households are still at the early stages of commercialization and demand for milk and milk products are around urban
and peri-urban centers, Most of the project’s participatory value chain approach was therefore focused on these “pockets”, rather than
the Districts as a whole.
Ensure adequate water supply Udder and teat care with proper • In general the public sector staff and dairy producers knowledge and skills required for more commercialized dairy production were inad-
milking and hygiene equate and were therefore augmented with i) study tours, ii) in service training with follow up learning sessions in the field , iii) improved
access to knowledge through Woreda Knowledge Centers and FTCs and iv) use of trainers from research and consultants. Both man
Processing / Marketing interventions and women were targeted, which had a positive effect on women involvement in dairy development.
• Recently, a change in public service provision has taken place as a result of the creation of Urban Agricultural Offices under the Ministry
of Trade and Industry. So far this has affected the quality and availability of the services. With increased levels of commercialization
private advisory services may be considered.
• Production interventions like introduction of backyard fodder, improved livestock husbandry/feeding practices with concentrate were
successful in some locations, but hampered by consistency of quality and supply and unpredictable price fluctuations. Urea treatment of
straw and UMB were not adopted. More efforts will be required to improve quality and quantity of concentrate feeds for different type of
animals. Farmers who applied advanced production technologies, have shown that dairy production is a good and dependable livelihood
source.
• AI services and veterinary services are predominantly provided by the government. The project facilitated the introduction of more
privatized services such as private bull stations; semi decentralized privatized AI service, para vets. Most of these efforts will take time
to yield tangible dairy outputs. However it is observed that the financial viability is constrained of these initiatives are constrained by the
Small scale milk processing tools “School Milk Day” an efficient way to fact that business volume is still low (no economics of scale), and competition from government subsidized service provision in the same
promoted and marketed through local promote and market dairy products location. More attention will have to be paid to the use of advanced technology (synchronization, coupled with sex semen) coupled with
shops private delivery systems, supported by credit.
• The project also facilitated the processing/marketing of dairy products in several locations, by the supporting the government’s strategy
aimed at introducing small cooperative dairy processing units in the small urban centers. It is observed however that practically all suffer
from lack of economics of scale and inadequate agro business manpower. It is doubtful that such manpower can be gainfully employed
at this low level of production. A wider milk shed approach rather should be promoted and pursued in which small geographical locations
will become collection centers.
Addressing demands of urban markets as driver for dairy development