Value Chain Analysis of Milk and Milk Products in Borana Pastoralist Area

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Value Chain Analysis of Milk and Milk Products in Borana Pastoralist Area VALUE CHAIN ANALYSIS OF MILK AND MILK PRODUCTS IN BORANA PASTORALIST AREA COMMISSIONED BY: CARE-ETHIOPIA Regional Resilience Enhancement against Drought Project BY YONAD BUSINESS PROMOTION AND CONSULTANCY PLC Address: P.O.BOX 18054, Telephone 011-3714731, Mobile 091-1507881, Fax 011-1550323 E-mail: [email protected] Addis Ababa, Ethiopia Contents Page No Excutive Summary..................................................................................................................................6 Acknowledgements...............................................................................................................................10 Acronyms..............................................................................................................................................11 1. Introduction.....................................................................................................................................12 1.1 Overview ....................................................................................................................................12 1.2. Background of the study............................................................................................................12 1.3. Description of Borana Pastoral Area .........................................................................................12 1.4. Objectives of the study ..............................................................................................................14 1.5. Methodology of the study..........................................................................................................14 2. Livestock and milk production in Ethiopia: An Overview ...............................................................16 2.1. Livestock Production in Ethiopia ..............................................................................................16 2.2. Milk Production and marketing in Ethiopia ..............................................................................17 2.2.1. Pastoral milk Production ....................................................................................................17 2.2.2. The highland smallholder milk production ........................................................................17 2.2.3. Urban and peri-urban milk production...............................................................................18 2.2.4. Intensive Dairy Farming.....................................................................................................18 2.2.5. Milk Marketing ..................................................................................................................18 3. Livestock in borena pastoralist community ................................................................................19 3.1. Livestock management and production Systems.......................................................................19 3.1.1. Sheltering: ..........................................................................................................................19 3.1.2. Mobility:.............................................................................................................................19 3.1.3. Herd division and herding:.................................................................................................20 3.1.4. Feeding...............................................................................................................................20 3.1.5. Watering.............................................................................................................................20 3.1.6. Breeding systems................................................................................................................21 3.2. Livestock population and production components ....................................................................21 3.4. Household herd size and Wealth ranking ..................................................................................24 3.4.1. Household herd size ...........................................................................................................24 3.4.2. Wealth ranking ...................................................................................................................24 3.5. Stock- breeding complex and herd compositions trends ...........................................................25 4. Milk and milk products production and marketing...........................................................................28 4.1. Milk production systems ...........................................................................................................28 4.1.1. Quantity of milk Produced .................................................................................................29 4.1.2. Seasonal Variability of milk production ............................................................................31 4.1.3. Milk quality........................................................................................................................32 4.2. Milk products.............................................................................................................................33 4.8. Milk and milk Products Marketing in Borena ...........................................................................34 4.8.1. General features of the open markets.................................................................................34 4.8.2. Major milk and milk product markets................................................................................35 4.9. Women and milk marketing ......................................................................................................39 2 4.10. Challenges and opportunities in milk and milk products marketing .......................................40 5. Small scale milk processing units .....................................................................................................41 5.1. Current status of pastoralists milk processing units...................................................................41 5.2. Socio- economic benefits of small-scale milk processing units ................................................42 5.2.1. Saving and credit................................................................................................................42 5.2.2. An entry point to economically empower women .............................................................42 5.3. Performance of Milk Processing Units......................................................................................43 5.4. Viability of the milk processing units........................................................................................44 5.4.2. Milk quality........................................................................................................................44 5.4.3. Seasonality of Milk Supply................................................................................................44 5.4.4. Facilities and Equipments ..................................................................................................45 5.5. Business and Marketing skill.....................................................................................................45 5.6. Profitability................................................................................................................................45 5.7. Technical Support......................................................................................................................47 5.8. Opportunities and Challenges....................................................................................................47 6. Milk and milk products value chain analysis....................................................................................48 6.1. Overview of the value chain......................................................................................................48 6.2 Production...................................................................................................................................48 6.2.1 Producers (pastoralists) .......................................................................................................48 6.2.2. Milk Production..................................................................................................................48 6.2.3. Milk utilization...................................................................................................................49 6.2.4. Production cost and Gross margin for cattle and milk production.....................................50 6.2.4. Cattle Milk production value chain....................................................................................52 6.2.5. Milk Production constraints and opportunities ..................................................................53 Policy issues .................................................................................................................................55 6.3. Milk assembly and transportation chain....................................................................................56 6.3.1 Milk Assembly ....................................................................................................................56 6.3.2. Milk Transportation............................................................................................................58 6.4. Retail trading .............................................................................................................................60
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