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Dairy Intensification and Milk Market Quality in Amhara Region, Ethiopia Dairy intensification and milk market quality in Amhara region, Ethiopia October 2011 Dairy intensification and milk market quality in Amhara region, Ethiopia By Addis Bitew, Mesfin Bahata, Kindu Mekonnen and Alan Duncan October 2011 ILRI works with partners worldwide to help poor people keep their farm animals alive and productive, increase and sustain their livestock and farm productivity, and find profitable markets for their animal products. ILRI s headquarters are in Nairobi, Kenya; we have a second principal campus in Addis Ababa, Ethiopia, and 14 offices in other regions of Africa and Asia. ILRI is part of the Consultative Group on International Agricultural Research (www.cgiar.org), which works to reduce hunger, poverty and environmental degradation in developing countries by generating and sharing relevant agricultural knowledge, technologies and policies © 2011 International Livestock Research Institute (ILRI) This publication is copyrighted by the International Livestock Research Institute (ILRI). It is licensed for use under the Creative Commons Attribution-Non-commercial-Share Alike 3.0 Unported License. To view this license, visit http://creativecommons.org/licenses/by-nc-sa/3.0/. Unless otherwise noted, you are free to copy, duplicate, or reproduce, and distribute, display, or transmit any part of this publication or portions thereof without permission, and to make translations, adaptations, or other derivative works under the following conditions: ATTRIBUTION. The work must be attributed, but not in any way that suggests endorsement by ILRI or the author(s). NON-COMMERCIAL. This work may not be used for commercial purposes. SHARE ALIKE. If this work is altered, transformed, or built upon, the resulting work must be distributed only under the same or similar license to this one. NOTICE: For any reuse or distribution, the license terms of this work must be made clear to others. Any of the above conditions can be waived if permission is obtained from the copyright holder. Nothing in this license impairs or restricts the author s moral rights. Fair dealing and other rights are in no way affected by the above. The parts used must not misrepresent the meaning of the publication. ILRI would appreciate being sent a copy of any materials in which text, photos etc. have been used. Proofreading, design and layout ILRI Editorial and Publishing Services, Addis Ababa, Ethiopia. Citation: Addisu Bitew, Mesfin Bahta, Kindu Mekonnen and Alan Duncan. 2011. Dairy intensification and milk market quality in Amhara region, Ethiopia. Addis Ababa, Ethiopia, ILRI. This is an output of the project Livestock intensification: investigating impacts on livelihoods in dairy value chains in India and Ethiopia- funded by the OPEC Fund for International Development. International Livestock Research Institute P O Box 30709, Nairobi 00100, Kenya P O Box 5689, Addis Ababa, Ethiopia Phone + 254 20 422 3000 Phone + 251 11 617 2000 Email [email protected] Email [email protected] www.ilri.org 2 Dairy intensification and milk market quality in Amhara region, Ethiopia Table of Contents List of Tables iv Foreword v Acknowledgements vi Executive summary vii 1. Introduction 1 1.1 Background of the study 1 1.2 Objectives 2 2. Approaches and methods 3 2.1 Selection of study districts 3 2.2 Pretesting of the questionnaires 3 2.3 Handling of the survey 3 2.4 Selection of respondents 3 2.5 Interview/discussion/documentation 4 2.6 Data management, entry and analysis 4 3. Results and discussion 5 3.1 Marketing aspect of intensification 5 3.1.1 Market structure main buyers 5 3.1.2 Prevailing market channels and actors 6 3.1.3 Milk collection, handling, processing and selling 6 3.1.4 Input supply and services to the producer 7 3.2 Production aspect of intensification 9 3.2.1 Feeding pattern (grazing, seasonal stall feeding pattern and availability of feeds, use of concentrates) 9 3.2.2 Breeding and reproduction 11 3.3 Trends, issues and government role 14 3.3.1 Trends in dairy development 14 3.3.2 Main issues in dairy development 16 4. Conclusions and recommendations 17 References 18 Dairy intensification and milk market quality in Amhara region, Ethiopia iii List of Tables Table 1. Name of sample districts, KAs and villages surveyed in Amhara region 4 Table 2. Market share (%) of most important milk buyers of liquid milk and main processed products by milk marketing quality 5 Table 3. Variety and share (%) of milk products produced by households by season 5 Table 4. Share of milk (%) bought by different buyer types 5 Table 5. Share (%) of milk bought by various intermediate actors 6 Table 6. Average number of market channel actors (adjusted by share of milk) 6 Table 7. Share of households selling milk (%) 6 Table 8. Milk sold, consumed and processed (%) for sale/consumption 7 Table 9. Share (%) of milk sold at type of place (from three most important buyers) 7 Table 10. Availability of services in villages (producers) 8 Table 11. Share (%) of milk suppliers reached by non-fed services and inputs provided by milk buyers 8 Table 12. Feed composition by market quality 9 Table 13. Stall-fed diet composition (%) by market quality and season 9 Table 14. Dominant concentrate types by market quality (% of total concentrate offered) 10 Table 15. Seasonal contribution of grazing (%) by dairy animal type and market quality 10 Table 16. Price and source of purchased dry fodder and concentrate. 11 Table 17. Feeds provided by buyers (% reach) 11 Table 18. Animal type (%) by market quality 12 Table 19. Dominant breeds (%) by market quality 12 Table 20. Reproductive and milk yield performance by animal type and market quality 12 Table 21. Types of mating (%) by market quality 13 Table 22. Source and price of AI service 13 Table 23. Share (%) of AI service by animal type and market quality 14 Table 24. Average time (years) for which different types of dairy development facilities have been available 14 Table 25. Availability (%) of different types of dairy development facilities at different times according to the views of milk producers 15 Table 26. Trends in dairy development over the past 10 years (%) 16 Table 27. Main issues in dairy development (% of responses) 16 iv Dairy intensification and milk market quality in Amhara region, Ethiopia Foreword The report covers survey results of a study on livestock intensification in Amhara region. The research was conducted for 12 months from September 2009 until September 2010. Amhara Regional Agricultural Research Institute (ARARI) and ILRI jointly handled the research activities. A total of six woredas were included for the study. The overall objective of the study was to generate an overview of dominant dairy marketing chains and institutions in selected woredas (districts) of Amhara region in Ethiopia as well as productivity levels to illustrate their current distribution and to aid the identification of high-potential areas for future interventions. Our interest in this study was mainly to understand the relationship between market quality and on-farm practice and specifically the extent to which production has intensified in response to market quality. Quality in this context means where reliable and attractive dairy procurement systems have been established, which often also support the delivery of livestock-related services. We hope that by looking at how market quality influences intensification of dairy production some indications will emerge on where efforts should be focused to allow dairy-derived incomes to improve for poor dairy cow keepers in the Amhara region. The data is presented in relatively crude form in order to make the information publicly available as soon after collection as possible. More polished outputs synthesising information from this study will follow. Addisu Bitew 12 October 2011 Bahir Dar Dairy intensification and milk market quality in Amhara region, Ethiopia v Acknowledgements We are grateful to the agricultural experts and the farmers of the study areas that have devoted their time during villages and farmers selection, and group discussion. This work was funded by the OPEC Fund for International Development. vi Dairy intensification and milk market quality in Amhara region, Ethiopia Executive summary Ethiopia is one of the largest livestock-keeping countries in Africa. So far, most dairy animals are being kept for subsistence purposes in smallholder mixed crop livestock, pastoral and agropastoral systems, whereas some urban and peri-urban dairy systems can be found around the major centres. Most of the milk production comes from indigenous breeds, yielding around 500 lt/head per annum, and the milk products are sold in informal markets. However, population growth, increasing urbanization and an improved road network are leading to a gradually increasing demand for milk and milk products even in rural areas. The study was carried out in June 2010 in selected villages of Amhara region of Ethiopia, representing three levels of market quality (high, medium and low), with the general objective of developing a systematic understanding of the links between market opportunities and productivity increases in livestock, with a focus on dairy production. Market quality in this case refers to reliability or assured clearance of milk at reasonable price. This involves effective market chains or efficient market chains; sustainable market linkages with appropriate prices; and sustainability of supply of inputs such as feeds, veterinary and AI services. The present report focuses on aspects of dairy intensification in Amhara region. Six districts were selected in Amhara region based on the level of market quality (high, medium and low market qualities). Each market quality was represented by two districts. Basona Werana and Gonder represented high market quality, Wegera and Gozamin medium market quality, and Tehulderie and Goncha Sisoenesie low market quality. The selection of the districts was the result of a combination of purposive and random approaches. Village survey questionnaires were prepared for milk producers, key informants and buyers.
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