1. Dairy value chain actors and their roles
and linkages in Arsi
Highlands, Ethiopia
Mesay Yami
Kulumsa Agricultural Research Centre
EIAR
Africa-RISING Quick Feed Project Inception Workshop, Addis Ababa, 7-8 May 2012

2. Introduction
• Livestock production is an important part of Ethiopian agricultural
system.
• Ranking second next to coffee.
• Majority of them reside in highlands.
• Arsi highland –
 Productive agricultural zones
 Relatively good infrastructural facility
 Opportunity to expand the dairy market

3. • The main diary value chain actors in Arsi zones
Farmers
Public extension service providers
Input suppliers and consumers
Research and higher learning institute (KARC& Adama
University (AMAE))
Cooperative promotion office, cooperatives and unions
NGOs

4. Roles played by each actor
• Dairy producer:
 The first link in the dairy vale chains
 Milk leaves the farm in two channels; sale to cooperatives or collector
into the formal channel, or sales within the community.
 Farmers are responsible for the delivery of their milk into the
distribution chain.
 Producers do not supply more distant consumers.
 The primary market outlet is the local market.

5. Primary cooperatives and union
• Currently in Arsi Zone there are 24 dairy cooperatives were formed in
Digelu-tigho, Tiyo, Limu- Bilbilo, Munessa, Sherka, and Honkolo-wabe
districts.
• Most of the milk sold to the cooperatives is processed into butter and
“ayib”.
• The main market outlet for this dairy cooperatives is the local market and
consumers of Assela town.
• To improve the marketing efficiency beyond the local market and Assella
town currently this cooperatives form one unions.
• Financial support of FAO this union have owned cooler machine.

6. Arsi bureau of agriculture and rural development
• Support this dairy cooperatives in market promotion of their products.
• Engage in forage development through seed multiplication of fodder bit and
Alfalfa, etc, in Digelu-tigho, Limu-bilbilo, Lode-hetosa,and Tiyo districts.
• Provides training –
 On how to maintain the quality of the supplied dairy products.
 In collaboration with FAO (the financial help) and technical support of
AMAE provides trainings for the members of the dairy cooperatives
on AI.
• Last year 18 farmers benefited from this trainings and graduated and this year 13 farmers
undertook trainings.
• The trainings will last for 45 days, after that this trainers will equip with the skills and
material also provided for them like Nitrogen Container, insemination gun, glove etc.
• Relying on the success stories of this AI trainings for ordinary farmers, last year field
day for calves were organized.

7. Field day of calves to popularize diary innovations on AI

8. Higher Learning Institutions
• Assela Model Agricultural Enterprise (AMAE) is one of the higher learning
institutions which actively participated in the diary value chain system in
Arsi zones.
• It is one of the old institutions which had more than 30 years experience in
breeding improvement related activities.
• Processing of bull seamen started for the first time in Ethiopia in this
institution.
• So far it had delivered a one and half – month training course organized
and financed by FAO for 31 selected farmers to make them AI technicians.
• AMAE had also trained another 15 days on processing and handling of
milk and milk products.
• It also provides practical training on dairy feed preparation.

9. AI trainees
in AMAE for the year2012

10. KARC
• KARC has been involved in alfalfa seed multiplication.
• Multiplied oat seeds on sixty farmers field in Tiyo district and
harvested two tones providing the possibility of on-farm
forage seed multiplication on wider use.
• The centre is also working on multiplication and distribution
of Tritcale, a hybrid of wheat (Triticum) and rye (Selale).

11. Development partners (FAO)
• Provides technical and business development support to the
dairy sub-sector at all level in the value chain.
• They strengthening the organizational and technical capacity.
• They work on developing the market and improving the
quality of the milk and milk products.

12. Feed Source
• The feed sub-sector can be comprised of
Communal grazing of government
land, purchased feed/forage and
manufactured commercial feed.
To small extent agro-industrial byproducts
from Assela Malt Factory also supplies the
breweries by -product (brewery - waste).
• The zonal bureau of agriculture in collaboration with KARC
tries to developed backyard forage development through
fodder, elephant grass seed multiplication on farmers field.

13. Forage development as feed resource in Tiyo
district (Elephant grass)

16. • AMAE also tries to solve the problems of lack of quality feed
formulation mechanisms by giving practical trainings on the
preparation and management of livestock feeding system.
.

17. Silage pit in AMAE which used as training
ground for practical feed formulation
techniques

18. Thank you