Assessment of Dairy Value Chain in Arsi Highlands: The Case of Lemu-Bilbilo District

Course ID
Ethiopian Economics Association (EEA)
Mesay Yami

This study was initiated with the purpose of assessing the dairy value chain and identifying major constraints and opportunities that could be used as points of entry for research, policy and development interventions to revitalize the dairy sector of the study area. Lemu‐Bilbilo district was purposively selected based on its potential for dairy production and its inclusion in Agricultural Growth Program (AGP). Different Participatory secondary data was collected using a wall‐to‐wall fieldwork. The dairy value chain in Lemu‐Bilbilo district involves six distinct value‐adding activities from the inception of milk production through reaching the final consumer. These activities include input supply, production, gathering (bulking), processing, transporting and retail trading. In the study area, crop residues were mainly used as a source of livestock feed together with natural pastures. Farmers provide supplementary concentrate feed only to oxen and lactating cows because of its high price, which made it costly to feed to other animals. Most farmers do not have access to training on ration formulation and improved feeding techniques. The study depicts that there were five main market channels for fresh milk produced in Limu‐ Bilbilo district with which it reaches final consumers. Relative to all other fresh milk channels, a higher proportion of final price of fresh milk reaches producers when milk is sold along the channel to individual consumers in Bekoji town. The major prioritized challenges that hampers the development of the dairy value chain of the study area include feed shortage and undeveloped forage seed production, low quality and poor timeliness of AI and animal health service provision, lack of awareness and knowledge regarding improved feed formulation, information gap on credit services and weak coordination between union, primary cooperatives and farmers. To this end, in order to create knowledge based commercial dairy development in the area, there should be an urgent need to encourage the introduction and development of improved forage and organize recurrent training for dairy producers on improved forage developments, feed conservations, formulation and feed preservation techniques. There is also a need to improve the timely availability and effectiveness of AI services. This can be achieved through in‐service training of local service providers, training of farmers on AI services and on community bull selections. Furthermore, micro‐finance institutions should also create a platform for organizing training in credit service terms and condition for dairy producers. Strengthening the capacity of dairy cooperatives in terms of their processing apacities linking them to better markets is suggested in order to enhance the development of the dairy sector in the study area.

Corporate Author: Getnet Alemu, Worku Gebeyehu & Demirew Getachew (Editors) & Ethiopian Economic Association (EEA)
Publisher: Ethiopian Economic Association (EEA)
ISBN/ISSN: 978-99944-54-38-9
Primary Descriptors: Dairy products industry

Secondary Descriptor: Dairy processing

Geographic Descriptors: Ethiopia
Broad Subject heading: Agricultural industries
Call Number: 330.963 PRO 2014
Serial Key Title: Proceedings of the Eleventh International Conference on the Ethiopian Economy
Publication catagory: International Conference
Content type: EEA Publication
Volume: II
Place of publication: Addis Ababa, Ethiopia
Type of material: Book
Current frequency: Annually
Author: Mesay Yami and []…