Dairy value chain actors and their roles and linkages in Arsi Highlands, Ethiopia
1. Dairy value chain actors and their roles
and linkages in Arsi
Kulumsa Agricultural Research Centre
Africa-RISING Quick Feed Project Inception Workshop, Addis Ababa, 7-8 May 2012
• Livestock production is an important part of Ethiopian agricultural
• 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
Public extension service providers
Input suppliers and consumers
Research and higher learning institute (KARC& Adama
Cooperative promotion office, cooperatives and unions
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
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
• Most of the milk sold to the cooperatives is processed into butter and
• 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
• Last year 18 farmers benefited from this trainings and graduated and this year 13 farmers
• 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.
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
• 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
• 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.
• 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.