DAMBI DOLLO UNIVERSITY

DEPARTMENT OF AGRIBUSINESS AND VALUE CHAIN MANAGEMENT

REVIEW ON DIARY PRODUCTION, PROCESSING AND MARKETING IN ETHIOPIA

SUBMITTED TO THE DEPARTMENT OF AGRIBUSINESS AND VALUE CHAIN
MANAGEMENT IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE
COURSE OF SEMINAR IN AGRIBUSINES

NAME ID/NO

1. DESTA GELALCHA NSR/1497/20

2. HANNA DEREJE NSR/1652/20

3. LALISA ADDAM NSR/845/20

4. MIRATE MELKAMU NSR/986/20

ADVISOR: Mr. WAKJIRA K.(M.Sc.)

DECEMBER, 2023

DAMBI DOLLO, ETHIOPIA

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 TABLE OF CONTENTS
Contents Pages
ACKNOWLEDGEMENT...............................................................................................................ii

ABREVIATION.............................................................................................................................iii

1. INTRODUCTION.......................................................................................................................1

1.1. Back ground of the review....................................................................................................1

1.2. Objective of the Seminar.......................................................................................................4

1.2.1. General Objective...........................................................................................................4

1.2.2. Specific Objectives.........................................................................................................4

1.3. Significance of the review dairy production.........................................................................4

2. LITERATURE REVIEW............................................................................................................5

2.1. Definition and concepts of Dairy production in Ethiopia.....................................................5

2.2. Dairy Production systems in Ethiopia...................................................................................6

2.3. The ways of dairy processing and milk handling in Ethiopia...............................................7

2.2. EMPIRICAL REVIEW......................................................................................................10

2.2.4 Dairy animals as a source of food and income..............................................................11

2.2.5 Common challenges and opportunity of dairy production and marketing in Ethiopia. 12

3. CONCLUSION AND RECOMMENDATION.....................................................................14

3.1. Conclusion..........................................................................................................................14

3.2. Recommendation................................................................................................................15

4. REFERENCE.........................................................................................................................17

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 ACKNOWLEDGEMENT

My sincerest appreciation, before all, goes to Almighty God who gives solidarity and patience
for me in order to accomplish this Seminar paper. I am deeply and indebted to my indefatigable
advisor Mr Wakjira K devoted his precious time to comment on the paper from its very
commencement and thus I am indebted to her for her kind and tireless efforts that enabled me to
finalize this paper. Last but not the least, my thank also extend to Department of agribusiness
and value chain management for their assistance in preparation of this Seminar.

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 ABREVIATION

AADPA Addis Abeba Producer Association

AI Artificial Insemination

DDA Dairy Development Agency

DDE Dairy Development Enterprise

ESAP Ethiopian Society of Animal Production

FAOSTAT Food Agricultural Organization Corporate Statistically Data Base

GDP Growth Domestic Product

SNNPRS South Nation Nationality and People Regional State

UNICEF United Nation Relief and Rehabilitation Administration

USD United States Dollar

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 1. INTRODUCTION
1.1. Back ground of the review
Livestock production is the world's largest user of land, either directly through grazing or
indirectly through consumption of fodder and feedgrains. Globally, livestock production
currently accounts for some 40 percent of the gross value of agricultural production. In
industrial countries this share is more than half. In developing countries, where it accounts for
one-third, its share is rising quickly; livestock production is increasing rapidly as a result of
growth in population and incomes and changes in lifestyles and dietary habits.

During the 1970s the performance of livestock production in sub-Saharan Africa was poor.
Technological and technical constraints, shortages of trained manpower, and lack of well
conceived projects have all been indicated as major reasons for this low performance ombad,
R. 2011).

Across Africa, livestock sector provides a large proportion of agricultural value added, almost one
third and in some countries more than one-half. Close to 60% of the value of edible livestock
products is generated by cattle (meat and milk). Sheep and goats (meat and milk) and poultry (meat
and eggs) contribute about 20% each. (FAO, 2006).

Livestock production in ethiopia is a major source of animal protein, power for crop cultivation,
means of transportation, export commodities, manure for farmland and household energy,
security in times of crop failure, and means of wealth accumulation. The sector contributed up to
40% of agricultural Gross Domestic Product (GDP), nearly 20% of total GDP, and 20% of
national foreign exchange earnings in 2017 (World Bank, 2017).

World total trade in dairy products is forecast at 85 million tonnes in 2013, near stagnant at the
last year`s level as higher import demand in central America, North Africa, the middle east and
south east as Asia is likely counterbalanced. Milk production from cows is predominant in East
Africa. East Africa is the leading milk producing region in Africa representing 68% of the
continents milk output. For examples Rwanda average milk production 2000 to 2013 was 188
liter industrialization plays a major role in nation enhanced through promoting sustainable
industrial development in east Africa countries of Kenya, Tanzania, Uganda, Rwanda, etc.

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World milk production would constitute a second consecutive year of slow growth, as foreseen
significant year-on-year reductions in milk production in south America, Africa, Europe and
Oceania.
The handling and safety of milk and milk products is of great concern around the world, this is
especially true in the developing country where production of milk and various dairy products
takes place under unsanitary condition and poor production sale must consider the health of
consume Al-maze G, Foster HA, Holzapfel WH (2012).
To days Africa is less developed dairy production in the world with only 0.5% of the world
milk production and consumption level per capital is also very low. However, the dairy sector
including milk production and the dairy market have developed dynamically in the last decade.
The aim of this report is to analyse the development on the Africa dairy market until now and the
future prospects. Special report of food and agriculture organization of the united nation Ethiopia
has the largest livestock inventory in Africa with the estimated domestic animals, population of
52.13 million, 24.2 million sheep, 22.6 million goats, 2.5 million camels, 44.89 million poultry,
1.96 million horse, 0.37 million mules and 6.4 million donkeys.

dairy production is critical in Ethiopia where livestock and its products are important sources of
food and income, however dairying has not been fully exploited and promoted in the country.
Based on market orientation and land holding, milk production system in Ethiopia can be
broadly categorized in to three systems such as rural milk production system, peri-urban milk
production system and urban milk production system. Cattle have the largest contribution
(81.2%) of total national animal milk output followed by goat (7.9%), camel 6.3% and sheep
4.6%. From the national 3.3 billion of milk production in Ethiopia 32% is allocated for calf
consumption and wastage and 68% is allocated for human consumption Source in 2022

Dairy sector is a major contributor to economic development especially among the developing
countries. As an engine of growth, it provides increased income, employment, food and foreign
exchange earnings as well as better nutritions Bereda, 2014.

International Journal of food microbiology, Ethiopia. Err. In most part of the countries milking
container are normally made from woven grasses, calabash, hollowed wood, skin, clay pat, in
which disinfection is difficult and rinsed with cold water, smoked by burning chip of clean
African or acacia busi FAO (2010) Status and Prospects for Smallholder Milk Production:

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A Global Perspective. Hemme T, Otte J (Eds.), Rome, Italy. Milk processing is usually designed
to remove water from milk or reduce the moisture contain of the product. General milk
processing is not well developed in Ethiopia AzageTegegne, Tsehay Reda, Alemu M Hizakias K
(2001) Milk Recording and Herd Registration in Ethiopia. In: An essential step towards genetic
improvement for milk production. Pastoralism and agro-pastoralism which way forward;
proceedings of the 8th annual conference of the Ethiopian society of animal production (ESAP).

Milk production system based on market orientation and land holding, Tsehay in 2022, that
Ethiopia can be broadly categorized in to three systems such as rural milk production system,
peri- urban milk production system and urban milk production system. The main source of milk
production in Ethiopia is from the cow, but small quantities of milk obtained from goat and
camel is also used in some regions particularly in pastoralism areas

Ergo is one of the most common traditionally made fermented milk product in Ethiopia. As
indicated by Desaleg A (2013) Anti-Microbial Activity of Lactic acid Bacteria Isolated from
“Ergo”, Ethiopian Traditional fermented Milk. Current research in microbiology and
biotechnology, 1(6): 278-284n, Arera is a local name for defatted butter milk in Ethiopia.
Defatted butter milk is a semi-liquid product that remains after butter making. It has a thin
consistency and basically contains the casein protein of milk. Ayib (Ethiopian traditional cottage
cheese) is made from butter milk obtained after churnig of sour whole milk. Aguat is Amharic
name for whey which remains after most of the fat and protein in the milk are removed during
cheese making.

Peri-urban milk production: This system includes small holder and commercial dairy farmers
near Addis Ababa and other regional town Ahmed MAM, Ehui S, Yemesrach A (2003) Dairy
Development in Ethiopia ILRI working paper no. 58. Addis Ababa, Ethiopia.

Most of the improved dairy stock is used for this type of dairy production. Currently small holder
farmer milk marketing units, DDE (dairy development enterprise), Mama Agro industry and
private dairy farmers in and around Addis Ababa supplying dairy products to the city
market.Peri-urban dairy production system is mainly operational in areas where the population
density is high, agricultural land is shrinking due to expanding urbanization, and labor cost is on
the increase. Peri urban dairy system occurs around cities, where demand for milk is high.

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Peri-urban milk production system includes smallholders and commercial dairy farmers working
in the proximity of the city of Addis Ababa and other regional towns. Most of the improved dairy
stock in Ethiopia is used for this type of production system.

Urban milk production: In most towns of Ethiopia, the urban dairy cattle production systems are
practiced with little or no land resources for the production and sale of milk. It is the most market
oriented dairy cattle production system compared to other production systems (Bekele et al.,
2015). Urban areas producers use crossbred, as well as high grade, dairy animals. However, only
1% of the dairy cattle from the total population of dairy cattle of the country are kept under urban
dairy cattle production system (Gezu and Zelalem, 2018). Cattle are housed in improved shelters
made of locally available materials. Concentrates, roughages and non-conventional feeds are the
main feed resources which are used in urban dairy cattle production system. Moreover, road side
grazing, fruits of plants and wastes also used in urban dairy cattle production system (Gurmessa
et al., 2015).

1.2. Objective of the Seminar

1.2.1. General Objective

The main objective of the review is to review of the dairy production processing and marketing
in Ethiopia.

1.2.2. Specific Objectives

 To review on dairy production and its constraints in Ethiopia.
 To review on dairy processing systems in Ethiopia
 To review on dairy marketing systems in Ethiopia

1.3. Significance of the review dairy production

The review is important to increase their knowledge and skill, better production and processing
practice, improved marketing strategies.

In addition to this, important to improved quality of dairy production as individual are trained on
proper dairy production and processing practice. This can lead to increase the demand for the
product which can result in higher profit those involved in the industry.

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 2. LITERATURE REVIEW
2.1 Theoretical Review

2.1.1. Definition and concepts of Dairy production in Ethiopia

Dairying is one of the livestock productions practiced almost all over Ethiopia, involving a vast
number of small, medium, or large-sized, subsistence or market-oriented farms. According to
Ahmed et al. (2003), in the first half of the 20th century, dairying in Ethiopia was mostly
traditional. Modern dairying started in the early 1950s when Ethiopia received the first batch of
dairy cattle from United Nations Relief and Rehabilitation Administration (UNRRA). With the
introduction of these cattle in the country, commercial liquid milk production started on large
farms in Addis Ababa and Asmara (Ketema,2000). Government intervened through the
introduction of high-yielding dairy cattle in the highlands in and around major urban areas. The
government also established modern milk processing and marketing facilities to complement this
input-oriented production effort.
Dairy production is a biologically efficient system that converts large quantities of roughage, the
most abundant feed in the tropics, to milk, the most nutritious food to man (De Leeuw et al,
(1999).
The dairy industry also occupies a special position among the other livestock sectors due to four
interrelated features .The first is related to the specific properties of milk in that it is a bulky and
heavy commodity produced on a daily basis. Secondly, the socio-economic position of the
majority.
In 1960, UNICEF established a public sector pilot processing plant at Shola on the outskirt of
Addis Ababa in order to enhance growth of the dairy sector. The plant started by processing milk
produced by large farms. The plant significantly expanded in a short period and started collecting
milk from smallholder producers in addition to large farms. This led to further expansion of large
dairy farms. During the second half of the 1960s, dairy production in the Addis Ababa area
began to develop rapidly as a result of the expansion in large private dairy farms and the
participation of smallholder producers with indigenous cattle facilitated by establishment of milk
collection centers (Ahmed et al. 2003). Subsequently, different dairy development projects were
launched in different parts of the country. The distribution of exotic dairy cattle, particularly the
Holstein Friesian, in different parts of the country, especially around the major urban areas, also
Contributed to the further development of dairying in Ethiopia.

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the farmers involved is small-scale producers, with a weak and vulnerable position on the
market. Thirdly, dairy cooperatives hold a strong position in milk marketing and processing. The
fourth and final feature is that milk is valuable but an extremely expensive raw material to make
a wide range of products (Perera, 1999).

2.1.2 Dairy production and food accessibility;

Dairy production enhances food availability directly and indirectly. It directly increases food
supply by making livestock products available for consumption, if farmers can forego cash
income from marketing these high value products. Animals are important sources of high-quality
protein, minerals, vitamins and micronutrients, essential for balanced growth. Meat, milk and
eggs provide 17 to 18% of the dietary protein in African diets (Win rock International 1992).
Quality foods of animal origin enhance human growth and development, particularly of children
in chronically mild to moderately malnourished populations, because they contain amino acids
absent in cereals and essential to human health. In developed countries, animal products provide
about 60% of the dietary protein, compared with 22% in developing countries. In developing
countries, animal products are important in preventing malnutrition as they are concentrated
sources of amino acids not found in vegetable proteins or frequently eaten staple foods. Animal
products contribute 30% of total calories in developed countries and less than 10% in developing
countries (Sansoucy et al. 2011)

Cash can be obtained from the regular sale of milk, eggs, butter, cheese and dung cakes and
occasionally from the sale of live animals, wool, meat, hides and skins as well as from services
such as draft power and transport. In the mixed farming system of the Ethiopian highlands, sales
of livestock and livestock products account for 83% of the cash income per year. Dairy products
account for over 50% and manure for 25% of the sale of livestock products (Gryseels 2013) An
important part of the income obtained from animal husbandry is spent on food, agricultural
inputs and other family needs (Sansoucy et al. 2011). This is particularly important for pastoral
households for whom the terms of trade between livestock and grain is a major indicator of food
security. Livestock keepers also exchange high value commodities like meat, eggs or milk for
cheaper and larger quantities of food, such as local cereals and vegetables (Buoys and Haddad
1990). The introduction of market-oriented livestock technology, especially dairying, is one of
the principal means through which the welfare and food security in mixed crop–livestock

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systems, such as that of Ethiopia, can be improved. It has the potential to contribute to the
accessibility and stability elements of food security, via increased output of livestock and non-
livestock agricultural products and through employment and income generation that may assure
access to food (Sansoucy, et al.2011).

2.2.4 Dairy animals as a source of food and income

A pastoral herd tends to have as many cows as possible to produce milk for human consumption.
Cattle and camels are the two important species in the pastoral areas due to their ability to
provide more milk to the family consumption, while sheep and goats have fewer acceptances.
Most of the pastoralists keep cattle, sheep, goats, and camel principally for milk production as a
mainstay of their diet (IPS, 2000). The proportional importance of livestock to household income
differs from one culture to another and within production system. For instance, mixed crop
livestock farmers have opportunities for obtaining income from a variety of sources, thus,
income from livestock probably contributes a smaller proportion to their household food. In the
Borana plateau, roughly 40 % of gross revenue is derived from milk and the remainder from live
animals and meat. Nearly all of the food and income for pastoralist is ultimately derived from
livestock (Coppock, 1994). Despite the lower absolute volume of dairy sales, income from dairy
sale provided 37 % of the annual income of poor pastoral households that are close to market, for
the wealthy this was 22 %. The poor with few animals, to sale without endangering their herd
capital, had no variable alternative to sell milk in order to get money. Compared to animal sales,
dairy sale permits purchasing of quantities of grain that are more convenient to handle by the
household (Coppock,1994).

2.2. EMPIRICAL REVIEW

2.2.1. Dairy Production, Constraints and its Opportunity in Ethiopia
2.2.1.1. Dairy Production systems in Ethiopia
In Ethiopia, dairying is practiced all over the country by a large number of small or medium or
large-sized, subsistence or market-oriented farms. Cattle, camel and goats are the main livestock
species that supply milk in Ethiopia, with cows contributing 81.2% of the total milk output
(Getachew, 2008). In Ethiopia, urban and pre urban areas are used about 300,000 exotic cows for
milk production under improved management conditions (Azege, et al., 2013).

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According to (Tsehay, 2011), based on their location, milk production systems can be classified
into four: commercial, urban (pre-urban), mixed crop-livestock and the pastoral milk production
systems.
Commercial
commercial dairy production system are higher levels of the investment in the central plateau in
terms of scale operation the farms as large, small, medium scale. Being licenced farm with
operation business plans, they are marketed -oriented specifically target customers in cmmercial
areas. The commercial dairy system is labour and input intensive relative other system
(Tsehay,2011).
urban or peri-urban dairy
Urban production system is an expanding production systems largely found in highland and is
concentrated in addis ababa milk shed area and the regional capital cities where an adequate
market for fresh milk is readily avialable. The producer market -oriented and respond to improve
technical, input supply and marketing services.
Urban dairy production system has a better access to inputs and services provided by the public
and private sectors, and use intensive management compared to other systems (Azege, et al.,
2013).
Highly specialized, or businessmen owned farms, which are highly involved in urban dairy
farming system of the country (Getachew, 2008). Due to urbanization around big cities like
Addis Ababa, the population density is high and agricultural land is decrease. Pre-urban milk
production is developed in these types of areas. Smallholder and commercial dairy farmer sectors
in the proximity of Addis Ababa and other regional towns are included and owns the pre-urban
milk system (Tsehay, 2011).
mixed crop -livestock
Mixed crop-livestock dairy production is a subsistence oriented farm system concentrated in the
mid and high altitude agro ecological zones where cereal and cash crops are dominants activities.
However, milk production is an integral part of production system.
pastoral
Pastoral production is the major system of milk production practiced in lowland of regional
Ethiopian where livelihood are heavily dependent livestock. Cattle dominate the livestock
population followed camel, goats, and sheep.

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In generally According to (Ahmed, et al, 2004) other type of dairy production system is the rural
dairy system, which includes pastoralist, agro pastoralist and mixed crop–livestock producers,
mainly in the highland areas. The milk produced in rural dairy system is consumed for personal
purpose and not market-oriented. The demand for milk by the family and its neighbors, the
potential to produce milk in terms of group, and access to a close market is determinant for the
level of extra milk (Getachew, 2008).

2.2.2. Dairy Production of constraints in Ethiopia

Shortage of Animal Feed and water Resources
Feed shortage in terms of quality and quantity and access to water during the dry season in the
dairy production system was the major constraint. According to Azage, et al.(2013) the general
belief that feed is abundant during the wet season is not true in all production systems and agro-
ecologies. The most important limitations associated with milk production were feed and water
shortage in Bahir Dar Zuria and Mecha Woreda (Asaminew and Eyassu 2009).
Shortage Land
Dairy farms in urban and pre-urban dairy farming system are under remarkable pressure to
expand dairy production mainly due to rapid urbanization and human population
growth. Most urban dairy producers (97%) keep their cattle within their own residence
compound (Azage et al.2013).
Animal Health Problems
Diseases in dairy animals affect reproduction, milk production, milk quality and cause for
mortality and morbidity of dairy animal and calves (Azage et al.2013).
Waste Disposal
Waste from dairy farms is a serious problem, particularly in urban production system. If not
properly managed, manure is a source of bad odor and flies, source of conflict with neighbors,
and source of zoonotic diseases. Dairy producers from urban dairy system complained that
manure disposal incurs cost. Although urban dairy farming is recognized by public authorities in
some urban centers, it was not encouraged in others and so there is lots of pressure and
restrictions on dairy producers (Azage et al.2013).

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2.2.3 Dairy production of opportunity in Ethiopia
2.2.3.1 income generation and employment opportunity

Dairy farming supports livelihoods of society under low input production system; generates
income and creates employment opportunity under market-oriented production system. Dairy
farmers in urban, peri-urban and rural dairy production systems demonstrated strong interest to
expand dairying as one of the means of income generating activity. Particular attention should be
paid to increase the role of women in dairy development, since some studies shows that they play
a major role in dairy production and marketing (Azage et al.2013).
2.2.3.2 Demand for Consumption of Milk and milk products
Although, the contribution of cow milk is dominant, milk from camels and goats are also
consumed in Ethiopia, especially in pastoral and agro-pastoral systems of production. In Ethiopia
there is long standing and strong culture Food Science and
Quality management consumption of milk and milk product products. In addition to raw milk,
milk products, such as cottage cheese, butter, whey and fermented milk (yogurt) are also
commonly consumed (Azage et al.2013).

2.3 Dairy processing systems in Ethiopia

2.3.1 The ways of dairy processing and milk handling in Ethiopia

2.3.1.1 Modern dairy processing industries in Ethiopia
In Ethiopia the numbers of dairy production industries reported at different time out of them, 32
dairy productions was established in different parts of country Most of the year Ethiopia has a
hot climate and unless the milk is cooled, during this condition the raw milk is mess up.
However, in some part of the rural area the cooling systems are not practicable. Besides, there
are things like cleaning and smoking poor handling, pollution, technology applied which has low
level in the conservation of milk to expand its shelf life and lack of market which create losses in
the post-harvest (Getachew, 2008). In milk production, it is important and takes in to
consideration to clean up the store, the person who is involved in milking and the utensils used to
collect and store milk. And also, essential to cleaning of the udder before milking). For
collecting, storing and processing milk, dairy farmers used different milk utensils (Yitaye, et al.,
2009). In addition, there are farmers in urban who used gourd and clay pot utensils 33% and 21%

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respectively (Yitaye, et al, 2009). Milking procedures and cleanness of the milking utensils are
one of the major factors affecting the quality of dairy products. 94 percent of the farmers in
urban and pre-urban milk production system are cleaned the udder before milking. But there are
farmers which cleaned the udder before and after milking, 6.7% and 5% urban and pre-urban
farmers respectively. However, mostly at the pre-urban farms the water used especially from
rivers for cleaning was uncertain quality. Due to this, the cleaning of udder and milking utensils
might at danger (Yitaye, et al 2009).

2.2.3.2 Traditional dairy production in Ethiopia

Traditional dairy production is a farmer processed milk produced in farmers to another milk
product in order to increase its shelf life. Output total milk produced was used for traditional
processing and convert it into dairy product. such as butter milk, cottage cheese, whey and ghee
etc. it is not commonly practice to clean udder before milking. Across all the PLWs, the
traditional home processing method is the dominant processing method and it processing fresh
milk into fermented or sour milk, butter and local cheeseghee, butter, etc (Ayib) (Azege, et al.,
2013).

This method is in general time consuming, verities of products was limited and less milk fat
recovery turned into butter per unit of milk processed (Getachew, 2008). Cows are the main
source of milk, and it is cow milk that is the focus of processing in Ethiopia (Layne et al. 1990).
Dairy processing in Ethiopia is generally based on ergo (fermented milk in Ethiopia), without
any defined starter culture, with natural starter culture. Raw milk is either kept at ambient
temperature or kept in a warm place to ferment prior to processing (Mogessie, 2002).

Dairy processing in the country is basically limited to smallholder level and hygienic qualities of
products are generally poor. According to Zelalem and Faye (2006), about 52% of smallholder
producers and 58% of large-scale producers used common towel to clean the udder or they did
not at all. Above all they do not use clean water to clean the udder and other milk utensils. Of the
interviewed small-scale producers, 45% did not treat milk before consumption, and organoleptic
properties of dairy products was the most commonly used quality tests Zelalem and Faye (2006).

In a study conducted in the Borena region of Ethiopia, butter was found to be an important
source of energy as food for humans, and is used for cooking and as a cosmetic. The storage

11
stability of butter, while not comparable to ghee, is still in the order of four to six weeks. This
gives butter a distinct advantage over fresh milk in terms of more temporal flexibility for
household use and marketing (Layne et al., 1990).

2.4 Dairy marketing systems in Ethiopia

In Ethiopia, milk and milk products are marketed through both informal and formal marketing
systems.

2.4.1 informal marketing system

Informal marketing system is producers sell to consumers directly or to unlicensed traders or
retailers. Price is usually set through negotiation between the producer (seller) and the buyer; this
system is predominant in the rural dairy production system. Informal market involves direct
delivery of fresh milk by producers to consumers in the immediate neighborhood and sale to
itinerant traders or individuals in nearby towns. The study on the status of the per urban dairying
showed that about 70, 69, 60, 52 and 43 % of the respondents sell fresh milk in Ambo, Jimma,
Naqamte, Gimbi and Dambi Dollo towns respectively. Relatively, small proportions of milk
sales were reported from Baddalle and Mattu (Ulfina G et al. 2013).

2.2.2. formal marketing system

Formal marketing system there are cooperatives and private milk collecting and processing
plants that receive milk from producers and channel to consumers, caterer supermarkets and
retailers; this system does exist in urban and per-urban dairy system of Shashemene-Dilla milk
shed, although the number of cooperatives is few and its performance is low (Woldemichael,
2008). In Ethiopia, dairy products (fresh milk, butter, buttermilk and cottage types of cheese) are
distributed through the informal and formal marketing systems.

The informal market involves direct delivery of dairy products by producers to consumers in the
immediate neighborhood and sales to itinerant traders or individuals in nearby towns. Therefore,
markets involve sales, locations, sellers, buyers and transactions (Debrah and Berhanu, 1991).

According to Tsehay (2002), a milk-marketing group can be defined as a group of smallholder

farmers who individually produce at least one liter of saleable milk and are willing to form a
group with the objective of collectively processing and marketing milk

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 3. CONCLUSION AND RECOMMENDATION

3.1. Conclusion
Ethiopia has high potential in dairy sector which account annual growth rate in milk production
of 1.2 percent falls behind the annual human population growth estimated at 3 percent. The
production systems of dairy product can be classified into three: urban, pre-urban and rural milk
production systems. Also, there are different dairy processing systems during preparation of milk
for consumption. These are naturally fermented milk is the basis of diversified milk products
such as butter, yoghurt, buttermilk and whey manufacturing. In Ethiopia, milk and milk products
are marketed through both informal and formal marketing systems. In the dominant informal
marketing system, producers sell to consumers directly or to unlicensed traders or retailers. Price
is usually set through negotiation between the producer (seller) and the buyer; this system is
predominant in the rural dairy production system. In the formal marketing system there are
cooperatives and private milk collecting and processing plants that receive milk from producers
and channel to consumers, caterers, supermarkets and retailers. Major constraints affecting milk
production potential of dairy cattle in the most parts of Ethiopia were shortage of grazing land,
disease and parasites, shortage of land for cultivation of improved forage, inadequate veterinary
service, low milk production potential of local zebu cattle, inadequate AI service and labor
shortage. Cooling fresh milk to extend the shelf life by a day or two, or freezing it. Heating milk
to destroy both contaminating microorganisms and naturally occurring enzymes that change the
flavor of milk. Making the milk acidic to slow down or prevent the growth of spoilage bacteria
or food poisoning bacteria, reducing the amount of water in milk products to slow down or
prevent the growth of bacteria. Therefore, dairy production processing and marketing has great
role in economic development in Ethiopia.

In this seminar paper In general the stake holder of this sector has to participate and improve the
production and processing system of dairy production.

3.2. Recommendation
In Ethiopia, dairying is practiced all over the country by a large number of small or medium or
large-sized, subsistence or market-oriented farms. Cattle, camel and goats are the main livestock
species that supply milk in Ethiopia this review dairy product are marketed informally via
different channels and mainly hampered by many constraints. Dairy production is a biologically

13
efficient system that converts large quantities of roughage, the most abundant feed in the tropics,
to milk, the most nutritious food to man (De Leeuw et al., 1999)

In Ethiopia, milk and milk products are marketed through both informal and formal marketing.
informal market system is producers sell to consumers directly or to unlicensed traders or
retailers. Price is usually set through negotiation between the producer (seller) and the buyer; this
system is predominant in the rural dairy production system. Informal market involves direct
delivery of fresh milk by producers to consumers in the immediate neighborhood and sale to
itinerant traders or individuals in nearby towns. Relatively, small proportions of milk sales

In the formal marketing system there are cooperatives and private milk collecting and processing
plants that receive milk from producers and channel to consumers, caterer supermarkets and
retailers; this system does exist in urban and per-urban dairy system of Shashemene–Dilla milk
shed, although the number of cooperatives is few and its performance is low (Woldemichael,
2008) are reported from Baddelle and Mattu (Ulfina G et al. 2013).

In Ethiopia the numbers of dairy production industries reported at different time out of them, 32
dairy production was established in different parts of country Most of the year Ethiopia has a hot
climate and unless the milk is cooled, during this condition the raw milk is mess up. However, in
some part of the rural area the cooling systems are not practicable. Besides, there are things like
cleaning and smoking poor handling, pollution, technology applied which has low level in the
conservation of milk to expand its shelf life and lack of market which create losses in the post-
harvest (Getachew, 2008).

The dairy industry also occupies a special position among the other livestock sectors due to two
interrelated features .The first is related to the specific properties of milk in that it is a bulky and
heavy commodity produced on a daily basis.Secondly, the socio-economic position of the
majority Dairying is one of the livestock productions practiced almost all over Ethiopia,
involving a vast number of small, medium, or large-sized, subsistence or market-oriented farms
Low amount of milk produced, distance to the market and high cost of transport was the major
among the constraints.

As market is the driving force to the development of this sector and provision of improved and
sustainable milk marketing arrangements in smallholder villages is indispensable for

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advancement of the national dairy industry, responsible stakeholders should not only work
towards dairy production and productivity of cattle but also towards dairy marketing options.
Feed availability is low both in quality and quantity hence strong extension service on use of
concentrate feed, grazing land management system, and development and utilization of improved
forage is very important.

Diseases are among the major constraints; therefore, dairy owners should be trained with good
management practices and the government should expand enough veterinary services and better
health care. It is important to use AI service to increase milk production by improving genetic
potential of local dairy cattle. It is important to use modern production system with improved
technology in urban area and in rural area improve traditional system through feed
supplementation and better health care. Make market channel to increase marketing of dairy
cattle and its products.

2. REFERENCE

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presented at the ‘Successes in African agriculture’ conference In WEnt, IFPRI, NEPAD,
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International Livestock Research Institute. Socio-economics and policy Research
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Traditional Fermented Milk Products. International Journal of food microbiology,
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Azage Tegegne, Tsehay Reda, Alemu M Hizakias K (2001) Milk Recording and Herd
Registration in Ethiopia. In: An essential step towards genetic improvement for milk

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 production. Pastoralism and agro-pastoralism which way forward; proceedings of the 8th
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Berea A, WilmaZ, Nurfeta A (2014). Dairy Production System
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Bereda A, Yilma Z, Nurfeta A (2014). Dairy Production System

and Constraint’s in Ezha Districts of the Gurage Zone Southern
Ethiopia. Global Veterinaries 12(2): 181-186

Brhanu ( et al 2014) assessing factors affecting milk market participation and volume of supply
in Wolaita zone, Ethiopia.

Brhanu etal (2014) assessing factors affecting milk market participation and volume of supply

Derese, T., 2008. Present situation of urban and per-urban milk production and quality of raw
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Gatwech T., 2012. Dairy production, processing and market system: A case study of Gambella,
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its Derivative in Ethiopia

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Kassa A (2019). Review of performance, marketing and milk processing of dairy cattle
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Tsehay (2002), a milk-marketing group can be defined as a group of smallholder farmers who
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 Zewdu T, Aklilu A, Ameha S (2003). Assessment of the livestock production system,
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General Comments

1. Your background of the review is too poor and shallow, please rewrite it.
2. You did not use scientific citation, the citation you used was not used in references, you are
plagiarized
3. Your scientific writing is poor(TNR, indentation, alignment, font size, spacing….) therefore
you have to improve it
4. If all of the comments will not incorporate, it will not accept!

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