dairy investment opportunities in ethiopia

hbk investments strategies

See how Citi is taking steps to help mitigate the effects of the pandemic, from helping clients to providing relief through funds to frontline healthcare workers, organizations such as No Kid Hungry and more. Despite the pandemic limiting options for group events, Citi was determined to do our part through meaningful volunteerism. The Citi Plex Account is a new digital checking and savings account built to make managing money simpler, smarter and more rewarding. Community Development Financial Institutions do more than provide capital, they level the playing field for communities and populations at risk of being left behind. Market attention has focused on the bearish potential return of the U.

Dairy investment opportunities in ethiopia tiger global investment firm

Dairy investment opportunities in ethiopia

There are various challenges in the Ethiopian dairy sector. These challenges could well prove to be opportunities for companies intending to lend a hand on revolutionizing the sector. However, if you are planning on investing in Ethiopian industry, you will need to be aware of the hurdles that you may face in the planning stage:.

Further market research pertaining to government policies shows that processing and marketing activities should put more efforts on the diversity of dairy products to meet the various needs of consumers. There are policies that focus on genetics and improved breeding programs to counter the negative effects of inadequate health practices in the country.

These policies will give rise to a stabilized and centralized dairy sector that could compete with other world producers of milk. We will try to contact you as soon as possible. It may be the case that the specialist that is most suited to answer your question is traveling.

In that case it may take a few days before you hear from us. Alternatively, you can always call us, you can find our team with all their contact details on our contact page. Direct mobile phone number. Company website. What is your role in the company? My encouraging investment in developing countries. The Trade between the two countries is showing an encour- the Netherlands to Ethiopia and Djibouti for her tire- Netherlands Embassy in Addis Ababa therefore felt the aging development in recent years.

Today, there are less effort and the excellent working relations we have need to commission a Business Opportunity Report, to over Dutch companies active in Ethiopia, and this developed over the last two years. However, I strongly feel that the sector and specific information for companies that are current level of investment is not commensurate with the With my best wishes for the success of the Ethio- interested to invest in this sector in Ethiopia. My government is highly Netherlands Business Event.

The latter is about twice as high as it is in neigh- bouring countries in Eastern Africa, mainly because of the significantly higher share of agriculture in the Ethiopian GDP. This increase will require investments and improvements in yields of fodder crops, feeding, genetics, health, and dairy processing.

Surplus 1. The area is known for its Barka products such as local types of yoghurt ergo and soft The development towards more milk supplied to the cattle breed commonly known as begait , which is 1. These products can be made for home formal sector is taking place in the larger cities.

Figure an indigenous zebu breed inhabiting Eastern Sudan, consumption as well as for sale in urban areas, since on page 6 shows the milk volumes produced in nine Southern Eritrea, and Northwest Ethiopia. The breed is The milk is produced by Figure mainly known for its higher milk yield daily yields up to are kept within five different dairy farming systems: also shows where the milksheds are located.

This is why we consider these the aim of boosting milk production. Seven cooperatives and one union are engaged smallholder dairy farming that are kept to produce replacement bulls. Most of as well as the number of milking cows. During the wet season sive dairy farming. It has well-developed June—September cattle depend on natural pastures contribute to meat and hide production.

The four regions with the to feed from nearby feed factories Alema Koudijs Feeds, plementation with commercial feeds is rarely practiced. In the first two groups cattle are greatest number of milking cows are shown in figure Ethio Feed and others and factory by-products are also kept as sources of food for the farm household milk below. Almost all of the cows in Tigray, Amhara, Oromia widely available.

The number of crossbreds and exotic The Bahir Dar milkshed also has good conditions for and meat , to provide traction power, and to store and SNNP are located in highlands. The highlands are cows are relatively high and artificial insemination AI fodder production and is developed by a significant wealth, and prestige. The mixed crop-livestock systems also the regions with market-oriented milk production. The Great Addis milkshed is the most developed milkshed and is leading the dairy development in the country.

In the Hawassa milkshed, still much has to be developed. Milking cows and milk production per region and the total volume of milk produced in metric tons per year in the nine largest milksheds Many linkages between chain partners are already The small cooperative and private processors are so far Source: CSA, , and own calculations, based on data of CSA, developed and are evolving further. Most of the dairy only able to process small volumes.

But many cities and processing industries are located within a few kilometers towns in the surrounding area e. This is also the area that supplies milk to the most affluent popula- In the Dire Dawa and Jimma milksheds, farmers make 2. The region their livelihoods from cash crops such as chat and coffee, 4, tons has good conditions for fodder production and use of and it may be hard for milk production to compete with AMHARA 7.

This situation is exacerbated by the low 3. The tons 4. Alfa Farm in Debre Zeit shows that Holstein- farms and establish their own collection centers. Private The June, July and August are the months cities. Some processors have their own dairy farms to areas. These smallholders keep additional cattle to pro- of milk per lactation equals average production per day with heavy rainfall. September, October and November supply the raw milk. No information is available on the vide traction power, to produce meat and manure, and to of more than 23 liters.

Based on own observations and are the harvest months, when farmers make hay on percentage of milk collected by cooperatives versus serve as an insurance in times of drought or a household expert opinions on farms with crossbreds in the Addis grasslands and harvest forage crops, and this is also private companies. Of the total The indigenous in the morning in January. There may be showers during Processors collect raw milk from dairy farms, private of cattle. That means almost one million farms in this breeds have an average milk production between 1 and 2 March until May, which is the hottest month.

From March milk collectors, cooperatives and unions. As described category. It is processed mercial farmers. The percentage of Friesian or Jersey-blood in constrained by lack of land, cows, feed, and water. Feed After collection, the milk is sold to commercial dairy and hotels located in major urban centres. This type of cattle can mainly be found within dairy sector. Feed is scarce and expensive. Most of the by the cooperatives themselves.

They sell the end Dairy processing is booming in Ethiopia. Every year the urban and peri-urban farming systems and within commercial farms have little land since it is hard to obtain products in their own shops or to private-owned shops, new processing plants are established. Based on the the commercial farms in the milksheds of Great Addis, land from the government. According to government cafeterias, hotels, etc.

The present cooperatives came latest reports there are at least 35 active dairy processors Adama-Asella, Ambo-Woliso, Hawassa-Shashemene and plans, this policy might be changed. The government into existence for various reasons. Some were already in the country. Table on page 28 shows the list of proces- Mekelle. But at the were established afterwards by farmers themselves and NABC. Most of the companies operate in the vicin- same time experts argue that land in the highlands is or with the aid of donors, church organizations, or the ity of Addis Ababa.

The daily processing capacity of the Some cooperatives also provide services largest processor, Lame Dairy, is 60, liters per day, Ethiopian farms with cattle among others, crop growers. They see higher produc- such as selling feed. Primary cooperatives may form but until now it operates at a maximum of 30, liters. Many of the processing plants They can also provide services see table on page Lack of raw milk is the most im- big challenges for the Ethiopian dairy sector.

Fodder such as training, financial audits and other business portant reason for this, according to most processors. Unions serve as umbrella organizations although some farmers perceive that there is a lack of higher-producing cows and providing enough water for 5—30 cooperatives. The number of dairy cooperative demand which prevents them from expanding production for them are additional steps to ensure cows produce unions is rather small around 5.

Cooperatives and and that their cost price is higher than the market price. The production of fod- unions can add much value to the collected milk. The Perceptions differ. Production of concentrates is also gaining roads and sound equipment in the processing plant. Brewers-grain causes of high levels of aflatoxin concentration in feed and in 30, liters per day milk from animals fed with this feed. Many of them 3. The major challenges they experience are: keeping a payment system, where the raw milk price depends on up with high demand, access to finance, supply of raw the percentage of fat content in the milk, as an incentive milk including lack of feed and quality of cows , dealing to discourage dilution of milk with water.

For some con- Building trust in the milk Based on a comment training, increase of milk production and management on the supplying farms, and equipment for dairy processing. Zelalem Yilma in September , it appears that the CSA data in this figure may Collected into informal Cooperatives be misunderstood.

This means Urban sales of loose milk Milk processing-pasteurization eggs and dairy. There are three, long fasting periods for human consumption. And 6. Urban sales of milk Easter and 15 days before August 15th. During the fasting season dairy processors informal market to neighbours or nearby urban house- try to limit the supply of milk, e.

The average milk is consumed or processed at home. The proportion farm-gate milk price per liter in this period is about of the home-processed products sold is It distinguishes between dairy farming Urban farmers a long shelf-life. The low-quality raw milk is one of the systems mentioned before in 1. Many the dairy chain. Within this chain cooperatives and unions other suppliers retailing shops processors mention the problem but there has been little play important roles in collecting and marketing raw milk action to improve the situation.

It seems that the demand and serving the interests of the many small milk pro- for raw milk is so strong that processors cannot afford ducers. The collection of milk from individual farmers is to refuse low-quality milk. And there are many reasons usually done by the cooperatives. Microfinance Commercial banks Transporters Cold stores Insurances First, hygiene is poor during the milking process. Second, Cooperatives serve small groups of farmers and in order there is an absence of chilled storage on the farm and to build market power and achieve economies of scale, chilled transport to the collection centers.

Third, quality they can jointly establish cooperative unions, func- checks at the collection centers and processing plant tioning as super-cooperatives. And fourth, there is a lack of quality- cooperatives and from commercial farms.

Concerns expressed frequently the chain the processor supplies small retail shops or ministries and NGOs Research institutes Agriculture and Meat associations associations bureaus by chain actors include: milk diluted with water, high kiosks, supermarkets and restaurants. AI, crossbreeding, oestrus 1.

Milking 1. The export of fodder ized genetic selection programs are all part of the equipment, tractors and machines are rare. Almost all Feed supply is already mentioned as a weak point of had already been limited earlier.

The mass synchronization cows in the country are milked by hand. The increase the dairy sector. Fodder is scarce and concentrates are and insemination program, developed in Ethiopia over in herd size in the major milksheds may pave the road not very common.

Specialized grass and fodder crop 1. More emphasis on growers sell hay bales to farmers. Results equipment. The medium- and large-scale farms will prices due to drought in the lowlands and NGOs or breeds by producing and distributing quality semen have shown that through this program the pregnancy need simple and cheap equipment. Simple second-hand authorities buying hay to feed the cattle of smallholders.

Further positive influences are expected on the tech equipment. About the same is true for equipment highlands also contributes to the scarcity of hay. This farm oversees the production, testing, number and genetic level of calves.

The many new factories being built selection, and rearing of pure Friesian, Jersey and cross- are creating a substantial need for dairy-processing Some of the farmers visited around Addis Ababa use breeding bulls. The cows on this farm are inseminated Another road in the Livestock Master Plan to improve equipment, but the present situation is that Indian and concentrates produced by feed mills.

Concentrates with international top-bulls to produce superior male AI services is privatization of the service. Bulls that fulfil certain criteria are moved to has recently started a project to explore this.

There Kaliti Addis Ababa area to produce semen that is However, second-hand European equipment is quite is little knowledge about how to make balanced rations distributed to AI technicians. Lack of land to In Ethiopia, veterinary services are primarily delivered produce own fodder is also a constraint on the avail- In , a group of private livestock professionals by the government. In there were a total of 9, ability of feed.

At the same time there are areas in the founded ALPPIS Addis Livestock Production and animal health professionals, at federal level and the Veterinary drug availability highlands with potential for higher harvest yields than Productivity Improvement Service , now the leading remaining 9, distributed across regional states.

Aca- concentrated to Addis Ababa realized. Sires WWS. The organisation also supplies AI equip- ment, veterinary drugs, advisory services and trainings The problems in the veterinary services show similarities Cutting grass two or three times a year, irrigation and for AI technicians and farmers.

Based on The present quality of veterinary services is considered ability for cattle. There is also a drug supply problem for Addis Ababa good for adding fibre to rations, but these often contain shown better results than their fellow AI technicians veterinary service-providers.

Most private veterinary little valuable nutrients. Thus veterinary service providers are forced to 9, animal health professionals quality and feeding by giving more information about inefficiencies in its AI service: different service levels, visit each supplier around Addis and spend two to four in in Ethiopia the quality of the feed, the use of feed in rations and differences in prices between technicians, limited days on procurement.

During this time, they cannot emphasizing the value of roughage for keeping cows availability of technicians, and currency and protocol serve the farmers in their area. At the same time, research has shown that the selection programs for bulls To improve the quality of veterinary services, the govern- Import tax is levied on feed components premixes with and crossbreeding programs have not met expectations ment policy is aiming at privatizing the delivery of veteri- 9.

This and need to be adjusted. Producers sometimes com- nary clinical services and drugs. The present dominant Academic veterinarians tax increases the price of concentrates and may hinder plain about poor services from AI technicians, as well position of the government in these services needs milk production. Recently a group of experts led by as veterinarians.

Due to large distances, lack of fuel for adjustment. They drafted a report in these services do not always function to the best inter- Experts are worried about the high price of drugs due to professionals which they drew the conclusion that the extra import ests of dairy farmers.

Since the government has placed a high taxes do not compensate for the missed added value in priority on livestock production, the sector will request livestock value chains. Within all kebeles villages cooperatives for milk collection and processing, but The collection centers and the processors are the dairy policy of the government.

The formal dairy value development agents are based at farmer training also for financial services such as collecting savings connecting links in the dairy chain. They organize the chain is still in the early stages of development, offering centers and provide extension services.

Development and providing loans. The Cooperative Bank of Oromia logistics as well as the trading from farmer to processor many opportunities for new investors to further develop agents can receive support from subject-matter spe- CBO is the largest of them all and groups such as and from processor to retailers. Practices between the industry. This can begin in the milksheds already cialists who function at woreda district level. Individual milk continued with the development of new milksheds.

The public extension service is mainly focused on CBO has the knowledge and many years of experience haulers may offer good-quality raw milk, but others smallholder dairy farmers. Development partners, such in financing a large number of agro-sectors in the may adjust milk composition to fit consumer demand 1.

It collaborates with various financial institu- for cheap milk. For some time, the average per capita consumption of providing advisory services for dairy-sector actors on tions, e. Rabobank, to improve skills and knowledge dairy products has been estimated at around 20 liters. Transportation of milk from smallholder farms to milk Some additional data from a small survey in four major ductivity, business development, product and market collection centers MCCs or any market outlet is done towns of Ethiopia showed that the average milk con- development, milk quality, etc.

Development Bank although animals, bicycles and motorcycles are also Some individuals rent or own trucks to transport in the survey: 5. Commercial dairy farmers and consumed was pasteurized, in the other three cities velopment and dairy technology advice are few, be they Some cooperatives provide services using part of the dairy cooperatives also use trucks with the capacity all the milk consumed was unpasteurized.

The report freelancers or consultancy firms. Their services are not milk payments to pay the feed supplier or the bank. This to carry to liter milk cans from their farms to concludes that the high consumption in the capital easily accessible due to affordability and quality issues: kind of finance and liquidity structure eases financing markets. With the exception of financial management a better guarantee of continued repayment. For this tion in the other three cities indicates an un-served and audit services, most of the dairy farms and firms reason the Agricultural Transformation Agency ATA 1.

Only a few have received consultancy services digital voucher schemes to smallholders. Especially 1. In the first phase highest growth rate in GDP in recent years. In September Especially in dairy technology and engineering, the ther growth. The same is true for the potential growth , the authors recorded prices in Addis Ababa of shortage of expertise is very pronounced.

Moreover, Additional financing possibilities for farmers can be in the consumption of dairy products. In the agriculture a long tradition of dairy consumption and the increase for pasteurized milk in supermarkets. Many middle and information on these themes. There is a need to establish sector in Ethiopia the most important microfinance in incomes is therefore expected to lead to an increase low-income consumers consider milk prices too high a public or private center of excellence for continuous institutions are the savings and credit cooperatives in dairy consumption as well.

The volume of milk products being produced in Ethiopia has tripled in the last fifteen years.

Dairy investment opportunities in ethiopia 876
Dairy investment opportunities in ethiopia Fairgrowth investments for beginners
Synthetic dividend reinvestment calculator The development of dairy sub sector is the shared effort of all stakeholders that explicitly and implicitly participate in the different activities of dairy development [19]. Feed and nutrition: Inadequate supply of dairy investment opportunities in ethiopia feed is the major factors limiting dairy productivity in Ethiopia. International Forex pair correlation table spss and Agribusiness Management Review 26 2 : Training should be provide by professional for producers, dairy value chain actors, may include: skills and know-how on marketing and branding products to identify new opportunities at the dairy processing level; support for research and development initiatives for new dairy products; case studies and exposure to foreign experiences might stimulate creativity and entrepreneurship at the dairy processing level; a better understanding and a greater focus on market-driven value chains; knowledge of the requirements of food retailers is a precondition for the successful marketing of their products, better knowledge about these requirements may lead to opportunities for increased market participation; developing intermediary support structures that bring buyers and suppliers together is another initiative that can be undertaken at local and national levels. Through appropriate technical support and capacity improvement, the core problem of milk value chain shortage of raw milk supply, access to reach the raw milk, and method and means of milk collection could be tackled. Over the past eight years, the Government of Ethiopia has prioritised the transformation of the agricultural sector as part of the national Growth and Transformation Plan GTP.
Fuktskada iphone indikator forex 904
Dairy investment opportunities in ethiopia 857
Ghobash trading and investment co What is a pamm account in forex
Local trust social investment policy 99

GENERALI INVESTMENTS ASIA LIMITED

Opportunity to invest in a cattle feedlot and abattoir in Ethiopia. Developing an integrated cattle feedlot and abattoir in Ethiopia is a promising opportunity for investors with expertise in feed, feedlots, abattoir, meat processing, or retailing.

Opportunity to invest in a UHT milk processing plant in Ethiopia. Developing an ultra-high temperature UHT processing plant for long-life milk production in Ethiopia is a promising opportunity for dairy-related investors. Opportunity to invest in an integrated chicken processing plant in Ethiopia. Establishment of a soybean meal processing factory in Ethiopia offers an opportunity for investors with expertise in the animal feed, soybean and livestock industries. Investment in tomato concentrate processing for domestic and export markets.

Developing a tomato concentrate industry in Ethiopia has been identified as a sector with significant investment opportunity, particularly for investors with expertise in horticulture and retail. Developing a pre-cut and packaged fruit and vegetable industry in Ethiopia offers an investment opportunity, particularly for investors with expertise in horticulture and retail. Here we feature an example of two investment-ready businesses on the ground today, in which an investor can invest directly or co-invest to develop this up and coming sector.

At the same time, research has shown that the selection programs for bulls To improve the quality of veterinary services, the govern- Import tax is levied on feed components premixes with and crossbreeding programs have not met expectations ment policy is aiming at privatizing the delivery of veteri- 9. This and need to be adjusted. Producers sometimes com- nary clinical services and drugs. The present dominant Academic veterinarians tax increases the price of concentrates and may hinder plain about poor services from AI technicians, as well position of the government in these services needs milk production.

Recently a group of experts led by as veterinarians. Due to large distances, lack of fuel for adjustment. They drafted a report in these services do not always function to the best inter- Experts are worried about the high price of drugs due to professionals which they drew the conclusion that the extra import ests of dairy farmers. Since the government has placed a high taxes do not compensate for the missed added value in priority on livestock production, the sector will request livestock value chains.

Within all kebeles villages cooperatives for milk collection and processing, but The collection centers and the processors are the dairy policy of the government. The formal dairy value development agents are based at farmer training also for financial services such as collecting savings connecting links in the dairy chain.

They organize the chain is still in the early stages of development, offering centers and provide extension services. Development and providing loans. The Cooperative Bank of Oromia logistics as well as the trading from farmer to processor many opportunities for new investors to further develop agents can receive support from subject-matter spe- CBO is the largest of them all and groups such as and from processor to retailers. Practices between the industry. This can begin in the milksheds already cialists who function at woreda district level.

Individual milk continued with the development of new milksheds. The public extension service is mainly focused on CBO has the knowledge and many years of experience haulers may offer good-quality raw milk, but others smallholder dairy farmers.

Development partners, such in financing a large number of agro-sectors in the may adjust milk composition to fit consumer demand 1. It collaborates with various financial institu- for cheap milk. For some time, the average per capita consumption of providing advisory services for dairy-sector actors on tions, e. Rabobank, to improve skills and knowledge dairy products has been estimated at around 20 liters.

Transportation of milk from smallholder farms to milk Some additional data from a small survey in four major ductivity, business development, product and market collection centers MCCs or any market outlet is done towns of Ethiopia showed that the average milk con- development, milk quality, etc. Development Bank although animals, bicycles and motorcycles are also Some individuals rent or own trucks to transport in the survey: 5.

Commercial dairy farmers and consumed was pasteurized, in the other three cities velopment and dairy technology advice are few, be they Some cooperatives provide services using part of the dairy cooperatives also use trucks with the capacity all the milk consumed was unpasteurized. The report freelancers or consultancy firms. Their services are not milk payments to pay the feed supplier or the bank. This to carry to liter milk cans from their farms to concludes that the high consumption in the capital easily accessible due to affordability and quality issues: kind of finance and liquidity structure eases financing markets.

With the exception of financial management a better guarantee of continued repayment. For this tion in the other three cities indicates an un-served and audit services, most of the dairy farms and firms reason the Agricultural Transformation Agency ATA 1.

Only a few have received consultancy services digital voucher schemes to smallholders. Especially 1. In the first phase highest growth rate in GDP in recent years. In September Especially in dairy technology and engineering, the ther growth. The same is true for the potential growth , the authors recorded prices in Addis Ababa of shortage of expertise is very pronounced.

Moreover, Additional financing possibilities for farmers can be in the consumption of dairy products. In the agriculture a long tradition of dairy consumption and the increase for pasteurized milk in supermarkets. Many middle and information on these themes. There is a need to establish sector in Ethiopia the most important microfinance in incomes is therefore expected to lead to an increase low-income consumers consider milk prices too high a public or private center of excellence for continuous institutions are the savings and credit cooperatives in dairy consumption as well.

If this consumption follows to afford. The greatest challenges are to improve the the pattern of other African countries already in a higher is also a growing demand for consultancy services in professionalism of these cooperatives and to reduce GDP-class, dairy consumption per capita is expected to Milk consumption per capita various fields. Affordability and quality of tailor-made their interest charges.

This is one of the reasons for the launch services should meet the needs of the target groups. EUR 0. Farmers need skills on overall farm man- and want to exchange this into foreign currency. Money in Ethiopia are: the positive economic outlook, the large EUR 1.

Often this is done in cash. Payment by interna- million people in , the expected strong further in Addis Ababa resulting in higher milk production per cow per day, and tional transfer is difficult, though international banks growth in population, cheap labour, and urbanisation. Other factors relate to the agro-ecological situation: fertile soil and high precipitation create good conditions There are also more than grocery minimarkets consumers.

Furthermore, there are excellent oppor- engaged in the retail of dairy products. At the same tunities to introduce new, affordable products that time, many processors create their own small retail fit the consumption patterns of different middle- and shops in Addis Ababa and most of the citizens will keep low-income consumer segments. This means Imports of dairy products have strongly fluctuated over that the market volumes will grow.

The projections the years. There is no Ethiopian company processing milk powder, although some processors are planning to invest in The quality of milk in the present market is low compared such facilities. This creates doubts about milk safety amongst consumers. Many consumers are Presently the value of exported dairy products is very uncertain about the safety and expiration date of pas- low.

Based on the projected overshoot of 2. The opportunity for the dairy industry in , this value can rise considerably. Import of milk and milk products in weight and in value Product Net wt. The suggested Investment opportunities interventions mentioned in the list with challenges on page 20 and page 21 can also be considered as opportunities. At the same time the government 7. Establish private AI services to better health.

Barns also need more fresh air, by Many new dairy-processing plants lack experience and production The poor service level of existing AI organisations, the natural ventilation or electric fans. Barns should also know-how about how to operate and repair equipment, need for superior genetics and exotic breeds such as facilitate hygienic procedures, efficient feeding and how to carry out laboratory analyses and how to develop a.

Establish fodder production farms Holstein-Friesian and the mass synchronization and milking, and continuous water availability for cattle. High prices for fodder and fertile soils create opportunities insemination program, create excellent opportunities for specialized farms that grow fodder crops such as alfalfa for AI organisations to start servicing in Ethiopia, Farm equipment for milking and and maize, both in the highlands and lowlands.

Since land whether with or without a bull stud, semen production harvesting 2. Collaboration with NAIC and development and financial better. Some large farms in the lowlands are already experienced in growing hundreds of hectares of alfalfa. Small-scale and second-hand European equipment is popular and perceived as high quality. Supply of concentrates another alternative to get better access to the market.

Business development advice The increase in the number of medium- and large-scale farms, the scarcity of feed and the increase of improved b. Support in optimizing AI services Many of the present farms and processing companies breed dairy cows create the need for more use of concen- Training of technicians, improving the logistics of trans- 2.

Advice by skilled consultants trates produced by feed mills. Lack of experience with porting semen, introducing recording schemes and processing can contribute to better returns on investment. Setting concentrates, questions about the quality and the high selection programs, will help Ethiopian AI organisations up a new company whether a medium- or small-scale price, have resulted in their limited use on a large scale.

Processing plants farm, or processing company first needs preparation Good advice about healthy and productive rations is an and planning. During the start-up and operational important prerequisite for profitable use of concentrates. Develop and implement a national or regional breeding strategy Milk processing is booming in Ethiopia.

There are phases, a company needs instruction and fine tuning, A breeding strategy needs to be developed that is many investment opportunities. International compa- followed by evaluation and further improvement. If the c. Introduce new fodder crops and grass varieties, combined with consistent with regional farm management conditions.

The usable in cooperation with government or research. Establish regional breeding farms to retail partners and 2 assuring the supply of raw crop management, irrigation, more cuts per year from Farms that sell young stock or heifers that are offspring milk fulfils quality standards. Farmers and processors are facing problems in col- grass, and silage making. Dutch banks can contribute by sharing their Supplying young stock expertise on the dairy sector to help regional banks e.

Import of animals or genetic material 1. Offer bulk milk tanker transport equipment assess the performance and investment plans of compa- a. Feed for calves High-quality dairy livestock is expensive and scarce. Offer milk chilling equipment for milk collection nies seeking loans. Milk replacer for young calves and concentrates for Import of semen, embryos, calves and heifers are all centers young stock combined with advice, will result in higher ways to contribute to higher-producing cows.

Offer milk chilling tanks for the processing industry producing cows. Set up a service organisation for maintenance Technical support in controlling Health of dairy equipment, to serve dairy processors in animal diseases b. Establish heifer rearing farms one or more milksheds in Ethiopia Lack of dairy heifers, high heifer prices and poor calf a. Establish mobile veterinary clinical services Dutch experts in the fields of animal identification and rearing on farms create opportunities for farms that The government promotes mobile veterinary clinic If European companies adapt their equipment to the surveillance systems, vaccination programs and bio- specialize in rearing young stock from calf to pregnant services at farm level, as part of the process of privati- needs of the Ethiopian market e.

Emphasis on health and growth will deliver dairy zation of veterinary services. Support government in disease control programs Higher requirements of meat and livestock importers and the need for strategies to control disease outbreaks create opportunities for health monitoring and control programs.

Also the availability of but will also pave the way for export of dairy products. Land leasing Over the past 5 years, the Government of Ethiopia has by-products from oil-production will be stimulated by A milk surplus of 2. Ultimately, the contri- leased by those who want to use the land. There are two as part of the national Growth and Transformation processed within the country and to limit the import of bution of the dairy sector to GDP is expected to rise broad classifications of land for rent or lease purposes: Plan GTP.

Researchers conclude that investing to im- urban land, mainly used for industrial purposes or other ventions bundled together in the so-called Livestock The processing and marketing activities should focus prove cattle productivity has high potential to reduce activities. The Cow Dairy Development Roadmap on more diversity of dairy products to meet the needs poverty, contribute to national income growth, meet on location.

The lease price of rural land is set by is the part of the LMP concerning the dairy sector. This of various consumer segments. This will require invest- future domestic consumption requirements, and also authorities and may depend on factors such as the plan has two tracks to reach the goal of significantly ments in the production of UHT-milk, milk powder, and increase meat and milk exports and foreign exchange development level of the area, distances from all-weather higher milk production: value-added products such as yogurt, ice cream and earnings.

To support this development, capacity-building ties, and agricultural activity. The duration of the lease 1. For the traditional smallholder dairy farming of dairy technologists is an important requirement. The In addition to the above activities, the success of the contract can also vary depending on the same factors.

For the commercial dairy farming system, the diseases to improving accessibility to drugs. The policy services in all areas, whether or not breed improve- Taxes proposed interventions are: bringing more on genetics will focus on improved breeding programs.

A team of experts supported the Ethiopian Ministry of For the entire livestock sector—dairy as well as animals the capital goods and spare parts imported during the Agriculture to consider alternative strategies for reaching for meat—the government is aiming at better policies first five years after the start of the investment project. The second track is in line with the proposal to make the goals set within the LMP by using economic model and measures for prevention, control and eradication land available for commercial fodder production by calculations.

These specialists expect that the imple- of major livestock diseases. When this forage production. To stimulate the production of milk production see figure below. Investors who Cow milk production and consumption as projected in the Livestock and external parasites.

The prevention and control of produce for export can receive an additional two-year Master Plan LMP Source: MoA, these economically important diseases also requires exemption from paying income tax. Milk processing the implementation of livestock movement control, and facilities may obtain a tax exemption period of up to Million liters identification and traceability systems. These systems 15 years if located in the assigned integrated agro-pro- 7, Projected cow milk production also have to be in line with the requirements set by cessing parks.

Four of these parks will be established 7, international trading partners to facilitate the growth of in the coming years. For more detailed information: 6, Cow milk surplus—available for export exports of live animals and meat. Elemtu Integrated Milk Industry Solulta 30, 4.

Evergreen Dairy 30, 5. Etete 9, 6. Berta and Family plc Addis Ababa 9, 6, 9. Genesis Farm Debre Zeit 4, 4, Holland Dairy Debre Zeit 4, 4, Lema Dairy Debre Zeit 10, 3, Abay fana Awash Agro-Industry Adama 3, 2, Ruth and Hirut Dairy Farm Chacha 4, 1, Life Milk Processing Enterprise Sululta 1, 1, Mojo Milk Mojo 1, Life Agro dairy 3, Beral dairy 3, Zemen Milk Mekelle 2, Pinguin International Business plc cheese world Addis Ababa 1, Kassa Abebe Integrated Alem Tshai Tesfa Dairy Aberash Workineh Dairy Farm Asnakech Dairy Yakla Milk Henok Dairy Farm Beral Milk Addis Ababa Quite a number of universi- in Ethiopia, is aiming at doubling household incomes ATA is a government agency that aims to promote agricul- ties have an animal science program usually including from dairy activities and improving the nutritional sta- Ethiopian Institute of Agricultural Research tural sector transformation by supporting government a focus on dairy , but only two of the more established tus of children through increased consumption of dairy EIAR and the private sector in addressing systemic bottle- universities Haramaya and Hawassa have the full range products.

The project, which is funded by the Embassy EIAR is a national research institute coordinating all necks to achieve growth and food security. Livestock of disciplines involved in dairy value-chain development: of the Kingdom of the Netherlands, is focussed on activities of 15 federal and 7 regional institutes and is one of the prioritized value chains.

One of the animal science, veterinary science, rural and cooperative smallholder dairy farmers with crossbred dairy calves, advising the government on agricultural research policy studies ATA carried out for the livestock sector was development, business and marketing, and food tech- and gives special priority to women who do most of the formulation. The research center of Holetta deals with the aforementioned in-depth study of the impact of nology.

Some other universities—Jimma, Gondar, Mekelle calf-rearing and caring for cows. The project seeks to dairy research. Within the dairy sector the institute is import taxes on feed ingredients on the development and Wolaita—also have a broad range of disciplines but increase milk production through improved calf-rearing involved in the mass synchronization and insemination of the livestock sector.

In the case and animal feeding, and promote increased consump- program and in crossbreeding indigenous breeds with of Bahir Dar University, there is no veterinary science tion of dairy products through the development of new bulls from the Holstein-Friesian, Jersey and Simmental Ethiopian Meat and Dairy Industry department, and Addis Ababa University has no animal dairy-based nutritional products, innovative milk-pro- breeds.

Research is also carried out on feeding, health, Development Institute science department. In addition to the universities, there cessing methodologies and marketing strategies. This institute, under the Ministry of them offer animal health courses.

Results will improve both own programming. ILRI works to improve food security and reduce poverty 2. The overall goal is in developing countries through research for better and ments, medicine facilities, port inspection sites to improve smallholder incomes and nutritional status. Livestock genetics improvement program more sustainable use of livestock. Product: production up to consumption of medi- businesses. Within the dairy sector it focusses on dairy provement program funded by the Bill and Melinda Ethiopian smallholders, concerns technologies and cines, medical equipment and trade devices, food producer groups, milk collectors, processors and other Gates Foundation aiming at public-private partnership innovations to develop high-value livestock and and food supplements, herbal products, cosmetics, supporting businesses to increase milk production at for AI in Ethiopia and Tanzania.

It works in close cooperation with different value-chain actors. Mengistu, B. Kassa, M. Yohannes and J. Its objective is to function breeds, Animal Genetic Resources Information Bulletin, , 25 : page 1— Related Papers. By dejen gizaw. By adinew dessie.

Сообщение picking winners investment consultants Москве

The other economic benefit of livestock, as a source of additional income, assets and security are also important, however due to low productivity of the indigenous stock these functions requires maintaining large herds which demand additional area of grazing land.

In the lowlands the pastoralists and agro-pastoralists derive maximum benefit from livestock through milk and meat the output function. Similarly, in order to compensate for low livestock productivity and to offset risks due to recurring draught the pastoralists maintain large cattle stock for food as well as security functions.

Animal health problem: Poor animal health and management are major constraints of dairy development in Ethiopia which cause poor performance across all dairy production systems. Many of these problems result from the interaction among constraints themselves e. Poor grazing management systems continue to cause high mortality and morbidity e. Many of the disease constraints which affect supply are also a consequence of the non-technical constraints e.

The animal health services provided are inadequate, the costs of drugs is very high, while the diagnostic services are not readily available to the dairy farmer. This is partly attributed to the insufficient budget allocated to veterinary services. Experience in many countries, such as India and Kenya, shows that private veterinary services also supplemented by public services for the "public goods" such as vaccination are highly desirable, and can provide the flexible, dynamic services the smallholder dairy producer requires.

Feed and nutrition: Inadequate supply of quality feed is the major factors limiting dairy productivity in Ethiopia. Improved feeding is crucial to provide satisfactory environment for animal growth and feed supplements stimulate higher milk productivity. Feed, usually based on fodder and grass, are either not available in sufficient quantities due to fluctuating weather conditions or when available are of poor nutritional quality.

These constraints result in low milk yields, high mortality of young stock, longer parturition intervals, and low animal weights. Feed supply is a major issue for smallholder dairy systems, as most systems operate under conditions of extreme land pressure, feed conservation for dry season supplementation has been a major issue, as most technologies, such as silage, haymaking, and urea treatment are not suitable for smallholder. Fodder trees and mixed tree-legume protein banks can be a solution.

Hence, improved nutrition through adoption of sown forage and better crop residue management can substantially raise livestock productivity. In highland zones, high population growth and density are causing the shortage of grazing land on which livestock production by smallholders depends.

In the lowland areas, the shortage of feed and water during the dry season forces animals and livestock keepers to trek long distances in search of food. The quality of feed also deteriorates during the dry season in both the mixed farming and pastoral system. Apart from this, there is critical shortage and high cost of feed. Low Productivity and Genetics : The productivity of indigenous stock is a major constraint in dairy development.

In the indigenous herds genetic potential for milk production is low. However, there is still a potential for increased production through improved management; selection of the best animals; improved reproduction; etc. Similarly, the potential for production of marketable milk is not fully exploited in the indigenous herd. The choice of dairy breed has been subject to much debate.

Generally, a combination of selection in local breeds and cross-breeding with exotic genetics is more appropriate, leaving it to the skill of the individual smallholders to decide on the level of exotic germ-plasm they can manage. The feed governments cross breed heifers multiplication centers that used to distribute in calf cross breed heifers to producers at reasonable prices have been sold after the introduction of the privatization policy.

Prices of cross breed cows and heifers are now unaffordable by the poor smallholder farmers that would have liked to engage in the dairy business. Quality Problem : Adulteration is the major problem in processing and marketing. Milk adulteration is usually done by farmers and brokers.

Both hygienic and nutritional aspects are important in milk quality. It is important to identify where adulteration in particular occur in the marketing chain:- farmer level, middlemen, distribution. Collection Problems : Delays in collecting milk from the farmers to the processing plants and in delivering from the processors to the distributors contribute to high incidences of spoilage.

Poor customer care coupled with unreliable and unhygienic processing methods contributed to poor product quality which in turn suggests the need to strengthen management and investment in udder hygiene and cold chain technologies. The use substandard milk collecting utensils and buckets for up lifting the milk from the supply centers, where many smallholders are doing their sells, may result in poor milk quality.

Similarly, non-existence of chilling and cooling center at potential milk producing and supply area also cause a deterioration of milk quality. Moreover, faulty processing equipment that result in leakage of the processed products and keeping milk collected from over a km radius for long hours without refrigeration results in milk quality decline and high incidences of spoilage.

Institutional Concern : Development of dairy co-operatives is too slow and they are too weak. Due to problems with the leadership and competence in cooperatives a lot of a dairy cooperative do not concentrate on dairy and divert the limited resources into other activities. Transparency and accountability are important issues for survival and success.

Co-operatives have to be business organizations that make profit for the members. The only objective of a dairy cooperative should be to make as good a profit as possible by handling milk delivered from the members. A dairy cooperative is not a social institution.

It is expected that the association would serve as voice for milk value chain actors in identifying policy issues and forwarding to the relevant regulatory body, facilitate market access and linkage among members, working towards improving dairy technology and techniques by sharing experiences and good practices, and developing culture of dialogue, conflict management and competitiveness. Another area of institutional concern is that most extension staff has little experience with livestock and dairy farming.

Key areas requiring additional extension training include fodder production and livestock feeding schemes, husbandry in particular calf rising , and dairy hygiene. Health and breeding services can best be handled by specialized professional services. Extension staff must also help producers cope with social change, such as changing gender roles and issues of access and control over resources.

Lack of technical support : Milk suppliers need to have technical support on the process of production including feeding and nutrition, breeding, sanitation and milk hygiene, human and animal health, marketing and handling and transportation of milk towards collection centers. Through appropriate technical support and capacity improvement, the core problem of milk value chain shortage of raw milk supply, access to reach the raw milk, and method and means of milk collection could be tackled.

Inadequate Extension and Training Services: Effective and adequate extension services, advice on animal nutrition and feeding management, reproduction, hygiene, extension works to transfer new technologies, training in milk handling and marketing, farm management and dairy production efficiency are not always available to the dairy farmer.

There is no extension to supply information about technologies to improve production and marketing to estimate certain development. A shift towards a developed dairy industry requires more support from advisory services and more effective links with research services. Challenges and opportunities of investment on dairy sector of Ethiopia.

A B Abera Beyu Author. Add to cart. Dairy Production Systems in Ethiopia Dairy production system is a biological efficient system that converts large quantities of roughage, the most abundant feed in the tropics, milk the most nutritious food to man. Consumption of Milk and Dairy Products Ethiopians consume less dairy products than other African countries and far less than the world consumption.

Challenges for investment in dairy sector in Ethiopia The livestock sector in general and the dairy sub-sector in particular do not make a substantial contribution to the national income, despite its large size, due to numerous socio-environmental factors. Supply Side Constraints Livestock population: One of the serious constraints to the livestock development in Ethiopia rest on the importance attached to the economic functions of the livestock found in various agro ecological zones.

Similarly, in order to compensate for low livestock productivity and to offset risks due to recurring draught the pastoralists maintain large cattle stock for food as well as security functions Animal health problem: Poor animal health and management are major constraints of dairy development in Ethiopia which cause poor performance across all dairy production systems.

Sign in to write a comment. Read the ebook. Benefits and Challenges in Public Pro Challenges, Opportunities and Prospec Challenges and Prospects of the Ethio Last Mile Distribution in Disaster Re Pan-European Real Estate Investment a Book Review of "The Next Global How to increase production and produc Challenges and Opportunities of Cross Challenges and Opportunities of Susta International Crowdsourcing as a busi Industrialization in Sub Saharan Afri Challenges and Opport The American Challenge: Reflections o Assessment of Leadership Challenges i Our statistics tions of the two countries to a higher level.

My encouraging investment in developing countries. The Trade between the two countries is showing an encour- the Netherlands to Ethiopia and Djibouti for her tire- Netherlands Embassy in Addis Ababa therefore felt the aging development in recent years. Today, there are less effort and the excellent working relations we have need to commission a Business Opportunity Report, to over Dutch companies active in Ethiopia, and this developed over the last two years.

However, I strongly feel that the sector and specific information for companies that are current level of investment is not commensurate with the With my best wishes for the success of the Ethio- interested to invest in this sector in Ethiopia. My government is highly Netherlands Business Event. The latter is about twice as high as it is in neigh- bouring countries in Eastern Africa, mainly because of the significantly higher share of agriculture in the Ethiopian GDP.

This increase will require investments and improvements in yields of fodder crops, feeding, genetics, health, and dairy processing. Surplus 1. The area is known for its Barka products such as local types of yoghurt ergo and soft The development towards more milk supplied to the cattle breed commonly known as begait , which is 1.

These products can be made for home formal sector is taking place in the larger cities. Figure an indigenous zebu breed inhabiting Eastern Sudan, consumption as well as for sale in urban areas, since on page 6 shows the milk volumes produced in nine Southern Eritrea, and Northwest Ethiopia. The breed is The milk is produced by Figure mainly known for its higher milk yield daily yields up to are kept within five different dairy farming systems: also shows where the milksheds are located.

This is why we consider these the aim of boosting milk production. Seven cooperatives and one union are engaged smallholder dairy farming that are kept to produce replacement bulls. Most of as well as the number of milking cows. During the wet season sive dairy farming. It has well-developed June—September cattle depend on natural pastures contribute to meat and hide production. The four regions with the to feed from nearby feed factories Alema Koudijs Feeds, plementation with commercial feeds is rarely practiced.

In the first two groups cattle are greatest number of milking cows are shown in figure Ethio Feed and others and factory by-products are also kept as sources of food for the farm household milk below. Almost all of the cows in Tigray, Amhara, Oromia widely available. The number of crossbreds and exotic The Bahir Dar milkshed also has good conditions for and meat , to provide traction power, and to store and SNNP are located in highlands.

The highlands are cows are relatively high and artificial insemination AI fodder production and is developed by a significant wealth, and prestige. The mixed crop-livestock systems also the regions with market-oriented milk production. The Great Addis milkshed is the most developed milkshed and is leading the dairy development in the country. In the Hawassa milkshed, still much has to be developed.

Milking cows and milk production per region and the total volume of milk produced in metric tons per year in the nine largest milksheds Many linkages between chain partners are already The small cooperative and private processors are so far Source: CSA, , and own calculations, based on data of CSA, developed and are evolving further. Most of the dairy only able to process small volumes.

But many cities and processing industries are located within a few kilometers towns in the surrounding area e. This is also the area that supplies milk to the most affluent popula- In the Dire Dawa and Jimma milksheds, farmers make 2. The region their livelihoods from cash crops such as chat and coffee, 4, tons has good conditions for fodder production and use of and it may be hard for milk production to compete with AMHARA 7.

This situation is exacerbated by the low 3. The tons 4. Alfa Farm in Debre Zeit shows that Holstein- farms and establish their own collection centers. Private The June, July and August are the months cities. Some processors have their own dairy farms to areas. These smallholders keep additional cattle to pro- of milk per lactation equals average production per day with heavy rainfall.

September, October and November supply the raw milk. No information is available on the vide traction power, to produce meat and manure, and to of more than 23 liters. Based on own observations and are the harvest months, when farmers make hay on percentage of milk collected by cooperatives versus serve as an insurance in times of drought or a household expert opinions on farms with crossbreds in the Addis grasslands and harvest forage crops, and this is also private companies.

Of the total The indigenous in the morning in January. There may be showers during Processors collect raw milk from dairy farms, private of cattle. That means almost one million farms in this breeds have an average milk production between 1 and 2 March until May, which is the hottest month. From March milk collectors, cooperatives and unions. As described category. It is processed mercial farmers. The percentage of Friesian or Jersey-blood in constrained by lack of land, cows, feed, and water.

Feed After collection, the milk is sold to commercial dairy and hotels located in major urban centres. This type of cattle can mainly be found within dairy sector. Feed is scarce and expensive. Most of the by the cooperatives themselves. They sell the end Dairy processing is booming in Ethiopia. Every year the urban and peri-urban farming systems and within commercial farms have little land since it is hard to obtain products in their own shops or to private-owned shops, new processing plants are established.

Based on the the commercial farms in the milksheds of Great Addis, land from the government. According to government cafeterias, hotels, etc. The present cooperatives came latest reports there are at least 35 active dairy processors Adama-Asella, Ambo-Woliso, Hawassa-Shashemene and plans, this policy might be changed.

The government into existence for various reasons. Some were already in the country. Table on page 28 shows the list of proces- Mekelle. But at the were established afterwards by farmers themselves and NABC. Most of the companies operate in the vicin- same time experts argue that land in the highlands is or with the aid of donors, church organizations, or the ity of Addis Ababa. The daily processing capacity of the Some cooperatives also provide services largest processor, Lame Dairy, is 60, liters per day, Ethiopian farms with cattle among others, crop growers.

They see higher produc- such as selling feed. Primary cooperatives may form but until now it operates at a maximum of 30, liters. Many of the processing plants They can also provide services see table on page Lack of raw milk is the most im- big challenges for the Ethiopian dairy sector.

Fodder such as training, financial audits and other business portant reason for this, according to most processors. Unions serve as umbrella organizations although some farmers perceive that there is a lack of higher-producing cows and providing enough water for 5—30 cooperatives. The number of dairy cooperative demand which prevents them from expanding production for them are additional steps to ensure cows produce unions is rather small around 5.

Cooperatives and and that their cost price is higher than the market price. The production of fod- unions can add much value to the collected milk. The Perceptions differ. Production of concentrates is also gaining roads and sound equipment in the processing plant. Brewers-grain causes of high levels of aflatoxin concentration in feed and in 30, liters per day milk from animals fed with this feed.

Many of them 3. The major challenges they experience are: keeping a payment system, where the raw milk price depends on up with high demand, access to finance, supply of raw the percentage of fat content in the milk, as an incentive milk including lack of feed and quality of cows , dealing to discourage dilution of milk with water.

For some con- Building trust in the milk Based on a comment training, increase of milk production and management on the supplying farms, and equipment for dairy processing. Zelalem Yilma in September , it appears that the CSA data in this figure may Collected into informal Cooperatives be misunderstood. This means Urban sales of loose milk Milk processing-pasteurization eggs and dairy. There are three, long fasting periods for human consumption. And 6. Urban sales of milk Easter and 15 days before August 15th.

During the fasting season dairy processors informal market to neighbours or nearby urban house- try to limit the supply of milk, e. The average milk is consumed or processed at home. The proportion farm-gate milk price per liter in this period is about of the home-processed products sold is It distinguishes between dairy farming Urban farmers a long shelf-life.

The low-quality raw milk is one of the systems mentioned before in 1. Many the dairy chain. Within this chain cooperatives and unions other suppliers retailing shops processors mention the problem but there has been little play important roles in collecting and marketing raw milk action to improve the situation. It seems that the demand and serving the interests of the many small milk pro- for raw milk is so strong that processors cannot afford ducers. The collection of milk from individual farmers is to refuse low-quality milk.

And there are many reasons usually done by the cooperatives. Microfinance Commercial banks Transporters Cold stores Insurances First, hygiene is poor during the milking process. Second, Cooperatives serve small groups of farmers and in order there is an absence of chilled storage on the farm and to build market power and achieve economies of scale, chilled transport to the collection centers. Third, quality they can jointly establish cooperative unions, func- checks at the collection centers and processing plant tioning as super-cooperatives.

And fourth, there is a lack of quality- cooperatives and from commercial farms. Concerns expressed frequently the chain the processor supplies small retail shops or ministries and NGOs Research institutes Agriculture and Meat associations associations bureaus by chain actors include: milk diluted with water, high kiosks, supermarkets and restaurants. AI, crossbreeding, oestrus 1. Milking 1. The export of fodder ized genetic selection programs are all part of the equipment, tractors and machines are rare.

Almost all Feed supply is already mentioned as a weak point of had already been limited earlier. The mass synchronization cows in the country are milked by hand. The increase the dairy sector. Fodder is scarce and concentrates are and insemination program, developed in Ethiopia over in herd size in the major milksheds may pave the road not very common.

Specialized grass and fodder crop 1. More emphasis on growers sell hay bales to farmers. Results equipment. The medium- and large-scale farms will prices due to drought in the lowlands and NGOs or breeds by producing and distributing quality semen have shown that through this program the pregnancy need simple and cheap equipment. Simple second-hand authorities buying hay to feed the cattle of smallholders. Further positive influences are expected on the tech equipment.

About the same is true for equipment highlands also contributes to the scarcity of hay. This farm oversees the production, testing, number and genetic level of calves. The many new factories being built selection, and rearing of pure Friesian, Jersey and cross- are creating a substantial need for dairy-processing Some of the farmers visited around Addis Ababa use breeding bulls.

The cows on this farm are inseminated Another road in the Livestock Master Plan to improve equipment, but the present situation is that Indian and concentrates produced by feed mills. Concentrates with international top-bulls to produce superior male AI services is privatization of the service. Bulls that fulfil certain criteria are moved to has recently started a project to explore this.

There Kaliti Addis Ababa area to produce semen that is However, second-hand European equipment is quite is little knowledge about how to make balanced rations distributed to AI technicians. Lack of land to In Ethiopia, veterinary services are primarily delivered produce own fodder is also a constraint on the avail- In , a group of private livestock professionals by the government. In there were a total of 9, ability of feed. At the same time there are areas in the founded ALPPIS Addis Livestock Production and animal health professionals, at federal level and the Veterinary drug availability highlands with potential for higher harvest yields than Productivity Improvement Service , now the leading remaining 9, distributed across regional states.

Aca- concentrated to Addis Ababa realized. Sires WWS. The organisation also supplies AI equip- ment, veterinary drugs, advisory services and trainings The problems in the veterinary services show similarities Cutting grass two or three times a year, irrigation and for AI technicians and farmers. Based on The present quality of veterinary services is considered ability for cattle. There is also a drug supply problem for Addis Ababa good for adding fibre to rations, but these often contain shown better results than their fellow AI technicians veterinary service-providers.

Most private veterinary little valuable nutrients. Thus veterinary service providers are forced to 9, animal health professionals quality and feeding by giving more information about inefficiencies in its AI service: different service levels, visit each supplier around Addis and spend two to four in in Ethiopia the quality of the feed, the use of feed in rations and differences in prices between technicians, limited days on procurement.

During this time, they cannot emphasizing the value of roughage for keeping cows availability of technicians, and currency and protocol serve the farmers in their area. At the same time, research has shown that the selection programs for bulls To improve the quality of veterinary services, the govern- Import tax is levied on feed components premixes with and crossbreeding programs have not met expectations ment policy is aiming at privatizing the delivery of veteri- 9.

This and need to be adjusted. Producers sometimes com- nary clinical services and drugs. The present dominant Academic veterinarians tax increases the price of concentrates and may hinder plain about poor services from AI technicians, as well position of the government in these services needs milk production.

Recently a group of experts led by as veterinarians. Due to large distances, lack of fuel for adjustment. They drafted a report in these services do not always function to the best inter- Experts are worried about the high price of drugs due to professionals which they drew the conclusion that the extra import ests of dairy farmers.

Since the government has placed a high taxes do not compensate for the missed added value in priority on livestock production, the sector will request livestock value chains. Within all kebeles villages cooperatives for milk collection and processing, but The collection centers and the processors are the dairy policy of the government.

The formal dairy value development agents are based at farmer training also for financial services such as collecting savings connecting links in the dairy chain. They organize the chain is still in the early stages of development, offering centers and provide extension services. Development and providing loans. The Cooperative Bank of Oromia logistics as well as the trading from farmer to processor many opportunities for new investors to further develop agents can receive support from subject-matter spe- CBO is the largest of them all and groups such as and from processor to retailers.

Practices between the industry. This can begin in the milksheds already cialists who function at woreda district level. Individual milk continued with the development of new milksheds. The public extension service is mainly focused on CBO has the knowledge and many years of experience haulers may offer good-quality raw milk, but others smallholder dairy farmers. Development partners, such in financing a large number of agro-sectors in the may adjust milk composition to fit consumer demand 1.

It collaborates with various financial institu- for cheap milk. For some time, the average per capita consumption of providing advisory services for dairy-sector actors on tions, e. Rabobank, to improve skills and knowledge dairy products has been estimated at around 20 liters. Transportation of milk from smallholder farms to milk Some additional data from a small survey in four major ductivity, business development, product and market collection centers MCCs or any market outlet is done towns of Ethiopia showed that the average milk con- development, milk quality, etc.

Development Bank although animals, bicycles and motorcycles are also Some individuals rent or own trucks to transport in the survey: 5. Commercial dairy farmers and consumed was pasteurized, in the other three cities velopment and dairy technology advice are few, be they Some cooperatives provide services using part of the dairy cooperatives also use trucks with the capacity all the milk consumed was unpasteurized.

The report freelancers or consultancy firms. Their services are not milk payments to pay the feed supplier or the bank. This to carry to liter milk cans from their farms to concludes that the high consumption in the capital easily accessible due to affordability and quality issues: kind of finance and liquidity structure eases financing markets.

With the exception of financial management a better guarantee of continued repayment. For this tion in the other three cities indicates an un-served and audit services, most of the dairy farms and firms reason the Agricultural Transformation Agency ATA 1. Only a few have received consultancy services digital voucher schemes to smallholders. Especially 1. In the first phase highest growth rate in GDP in recent years.

In September Especially in dairy technology and engineering, the ther growth. The same is true for the potential growth , the authors recorded prices in Addis Ababa of shortage of expertise is very pronounced. Moreover, Additional financing possibilities for farmers can be in the consumption of dairy products. In the agriculture a long tradition of dairy consumption and the increase for pasteurized milk in supermarkets. Many middle and information on these themes.

There is a need to establish sector in Ethiopia the most important microfinance in incomes is therefore expected to lead to an increase low-income consumers consider milk prices too high a public or private center of excellence for continuous institutions are the savings and credit cooperatives in dairy consumption as well.

ZOMERLAND 11 ZEVENBERGEN CAPITAL INVESTMENTS

These challenges could well prove to be opportunities for companies intending to lend a hand on revolutionizing the sector. However, if you are planning on investing in Ethiopian industry, you will need to be aware of the hurdles that you may face in the planning stage:.

Further market research pertaining to government policies shows that processing and marketing activities should put more efforts on the diversity of dairy products to meet the various needs of consumers. There are policies that focus on genetics and improved breeding programs to counter the negative effects of inadequate health practices in the country.

These policies will give rise to a stabilized and centralized dairy sector that could compete with other world producers of milk. We will try to contact you as soon as possible. It may be the case that the specialist that is most suited to answer your question is traveling.

In that case it may take a few days before you hear from us. Alternatively, you can always call us, you can find our team with all their contact details on our contact page. Direct mobile phone number. Company website.

What is your role in the company? In how many countries is the company active? Within this chain cooperatives and unions other suppliers retailing shops processors mention the problem but there has been little play important roles in collecting and marketing raw milk action to improve the situation.

It seems that the demand and serving the interests of the many small milk pro- for raw milk is so strong that processors cannot afford ducers. The collection of milk from individual farmers is to refuse low-quality milk. And there are many reasons usually done by the cooperatives. Microfinance Commercial banks Transporters Cold stores Insurances First, hygiene is poor during the milking process. Second, Cooperatives serve small groups of farmers and in order there is an absence of chilled storage on the farm and to build market power and achieve economies of scale, chilled transport to the collection centers.

Third, quality they can jointly establish cooperative unions, func- checks at the collection centers and processing plant tioning as super-cooperatives. And fourth, there is a lack of quality- cooperatives and from commercial farms. Concerns expressed frequently the chain the processor supplies small retail shops or ministries and NGOs Research institutes Agriculture and Meat associations associations bureaus by chain actors include: milk diluted with water, high kiosks, supermarkets and restaurants.

AI, crossbreeding, oestrus 1. Milking 1. The export of fodder ized genetic selection programs are all part of the equipment, tractors and machines are rare. Almost all Feed supply is already mentioned as a weak point of had already been limited earlier. The mass synchronization cows in the country are milked by hand. The increase the dairy sector. Fodder is scarce and concentrates are and insemination program, developed in Ethiopia over in herd size in the major milksheds may pave the road not very common.

Specialized grass and fodder crop 1. More emphasis on growers sell hay bales to farmers. Results equipment. The medium- and large-scale farms will prices due to drought in the lowlands and NGOs or breeds by producing and distributing quality semen have shown that through this program the pregnancy need simple and cheap equipment.

Simple second-hand authorities buying hay to feed the cattle of smallholders. Further positive influences are expected on the tech equipment. About the same is true for equipment highlands also contributes to the scarcity of hay.

This farm oversees the production, testing, number and genetic level of calves. The many new factories being built selection, and rearing of pure Friesian, Jersey and cross- are creating a substantial need for dairy-processing Some of the farmers visited around Addis Ababa use breeding bulls. The cows on this farm are inseminated Another road in the Livestock Master Plan to improve equipment, but the present situation is that Indian and concentrates produced by feed mills.

Concentrates with international top-bulls to produce superior male AI services is privatization of the service. Bulls that fulfil certain criteria are moved to has recently started a project to explore this. There Kaliti Addis Ababa area to produce semen that is However, second-hand European equipment is quite is little knowledge about how to make balanced rations distributed to AI technicians.

Lack of land to In Ethiopia, veterinary services are primarily delivered produce own fodder is also a constraint on the avail- In , a group of private livestock professionals by the government. In there were a total of 9, ability of feed. At the same time there are areas in the founded ALPPIS Addis Livestock Production and animal health professionals, at federal level and the Veterinary drug availability highlands with potential for higher harvest yields than Productivity Improvement Service , now the leading remaining 9, distributed across regional states.

Aca- concentrated to Addis Ababa realized. Sires WWS. The organisation also supplies AI equip- ment, veterinary drugs, advisory services and trainings The problems in the veterinary services show similarities Cutting grass two or three times a year, irrigation and for AI technicians and farmers. Based on The present quality of veterinary services is considered ability for cattle.

There is also a drug supply problem for Addis Ababa good for adding fibre to rations, but these often contain shown better results than their fellow AI technicians veterinary service-providers. Most private veterinary little valuable nutrients. Thus veterinary service providers are forced to 9, animal health professionals quality and feeding by giving more information about inefficiencies in its AI service: different service levels, visit each supplier around Addis and spend two to four in in Ethiopia the quality of the feed, the use of feed in rations and differences in prices between technicians, limited days on procurement.

During this time, they cannot emphasizing the value of roughage for keeping cows availability of technicians, and currency and protocol serve the farmers in their area. At the same time, research has shown that the selection programs for bulls To improve the quality of veterinary services, the govern- Import tax is levied on feed components premixes with and crossbreeding programs have not met expectations ment policy is aiming at privatizing the delivery of veteri- 9.

This and need to be adjusted. Producers sometimes com- nary clinical services and drugs. The present dominant Academic veterinarians tax increases the price of concentrates and may hinder plain about poor services from AI technicians, as well position of the government in these services needs milk production. Recently a group of experts led by as veterinarians. Due to large distances, lack of fuel for adjustment. They drafted a report in these services do not always function to the best inter- Experts are worried about the high price of drugs due to professionals which they drew the conclusion that the extra import ests of dairy farmers.

Since the government has placed a high taxes do not compensate for the missed added value in priority on livestock production, the sector will request livestock value chains. Within all kebeles villages cooperatives for milk collection and processing, but The collection centers and the processors are the dairy policy of the government.

The formal dairy value development agents are based at farmer training also for financial services such as collecting savings connecting links in the dairy chain. They organize the chain is still in the early stages of development, offering centers and provide extension services.

Development and providing loans. The Cooperative Bank of Oromia logistics as well as the trading from farmer to processor many opportunities for new investors to further develop agents can receive support from subject-matter spe- CBO is the largest of them all and groups such as and from processor to retailers. Practices between the industry. This can begin in the milksheds already cialists who function at woreda district level.

Individual milk continued with the development of new milksheds. The public extension service is mainly focused on CBO has the knowledge and many years of experience haulers may offer good-quality raw milk, but others smallholder dairy farmers. Development partners, such in financing a large number of agro-sectors in the may adjust milk composition to fit consumer demand 1. It collaborates with various financial institu- for cheap milk. For some time, the average per capita consumption of providing advisory services for dairy-sector actors on tions, e.

Rabobank, to improve skills and knowledge dairy products has been estimated at around 20 liters. Transportation of milk from smallholder farms to milk Some additional data from a small survey in four major ductivity, business development, product and market collection centers MCCs or any market outlet is done towns of Ethiopia showed that the average milk con- development, milk quality, etc. Development Bank although animals, bicycles and motorcycles are also Some individuals rent or own trucks to transport in the survey: 5.

Commercial dairy farmers and consumed was pasteurized, in the other three cities velopment and dairy technology advice are few, be they Some cooperatives provide services using part of the dairy cooperatives also use trucks with the capacity all the milk consumed was unpasteurized.

The report freelancers or consultancy firms. Their services are not milk payments to pay the feed supplier or the bank. This to carry to liter milk cans from their farms to concludes that the high consumption in the capital easily accessible due to affordability and quality issues: kind of finance and liquidity structure eases financing markets. With the exception of financial management a better guarantee of continued repayment.

For this tion in the other three cities indicates an un-served and audit services, most of the dairy farms and firms reason the Agricultural Transformation Agency ATA 1. Only a few have received consultancy services digital voucher schemes to smallholders. Especially 1. In the first phase highest growth rate in GDP in recent years.

In September Especially in dairy technology and engineering, the ther growth. The same is true for the potential growth , the authors recorded prices in Addis Ababa of shortage of expertise is very pronounced. Moreover, Additional financing possibilities for farmers can be in the consumption of dairy products.

In the agriculture a long tradition of dairy consumption and the increase for pasteurized milk in supermarkets. Many middle and information on these themes. There is a need to establish sector in Ethiopia the most important microfinance in incomes is therefore expected to lead to an increase low-income consumers consider milk prices too high a public or private center of excellence for continuous institutions are the savings and credit cooperatives in dairy consumption as well.

If this consumption follows to afford. The greatest challenges are to improve the the pattern of other African countries already in a higher is also a growing demand for consultancy services in professionalism of these cooperatives and to reduce GDP-class, dairy consumption per capita is expected to Milk consumption per capita various fields.

Affordability and quality of tailor-made their interest charges. This is one of the reasons for the launch services should meet the needs of the target groups. EUR 0. Farmers need skills on overall farm man- and want to exchange this into foreign currency. Money in Ethiopia are: the positive economic outlook, the large EUR 1. Often this is done in cash. Payment by interna- million people in , the expected strong further in Addis Ababa resulting in higher milk production per cow per day, and tional transfer is difficult, though international banks growth in population, cheap labour, and urbanisation.

Other factors relate to the agro-ecological situation: fertile soil and high precipitation create good conditions There are also more than grocery minimarkets consumers. Furthermore, there are excellent oppor- engaged in the retail of dairy products. At the same tunities to introduce new, affordable products that time, many processors create their own small retail fit the consumption patterns of different middle- and shops in Addis Ababa and most of the citizens will keep low-income consumer segments.

This means Imports of dairy products have strongly fluctuated over that the market volumes will grow. The projections the years. There is no Ethiopian company processing milk powder, although some processors are planning to invest in The quality of milk in the present market is low compared such facilities. This creates doubts about milk safety amongst consumers. Many consumers are Presently the value of exported dairy products is very uncertain about the safety and expiration date of pas- low.

Based on the projected overshoot of 2. The opportunity for the dairy industry in , this value can rise considerably. Import of milk and milk products in weight and in value Product Net wt. The suggested Investment opportunities interventions mentioned in the list with challenges on page 20 and page 21 can also be considered as opportunities.

At the same time the government 7. Establish private AI services to better health. Barns also need more fresh air, by Many new dairy-processing plants lack experience and production The poor service level of existing AI organisations, the natural ventilation or electric fans. Barns should also know-how about how to operate and repair equipment, need for superior genetics and exotic breeds such as facilitate hygienic procedures, efficient feeding and how to carry out laboratory analyses and how to develop a.

Establish fodder production farms Holstein-Friesian and the mass synchronization and milking, and continuous water availability for cattle. High prices for fodder and fertile soils create opportunities insemination program, create excellent opportunities for specialized farms that grow fodder crops such as alfalfa for AI organisations to start servicing in Ethiopia, Farm equipment for milking and and maize, both in the highlands and lowlands.

Since land whether with or without a bull stud, semen production harvesting 2. Collaboration with NAIC and development and financial better. Some large farms in the lowlands are already experienced in growing hundreds of hectares of alfalfa. Small-scale and second-hand European equipment is popular and perceived as high quality. Supply of concentrates another alternative to get better access to the market. Business development advice The increase in the number of medium- and large-scale farms, the scarcity of feed and the increase of improved b.

Support in optimizing AI services Many of the present farms and processing companies breed dairy cows create the need for more use of concen- Training of technicians, improving the logistics of trans- 2. Advice by skilled consultants trates produced by feed mills. Lack of experience with porting semen, introducing recording schemes and processing can contribute to better returns on investment.

Setting concentrates, questions about the quality and the high selection programs, will help Ethiopian AI organisations up a new company whether a medium- or small-scale price, have resulted in their limited use on a large scale. Processing plants farm, or processing company first needs preparation Good advice about healthy and productive rations is an and planning.

During the start-up and operational important prerequisite for profitable use of concentrates. Develop and implement a national or regional breeding strategy Milk processing is booming in Ethiopia. There are phases, a company needs instruction and fine tuning, A breeding strategy needs to be developed that is many investment opportunities. International compa- followed by evaluation and further improvement. If the c. Introduce new fodder crops and grass varieties, combined with consistent with regional farm management conditions.

The usable in cooperation with government or research. Establish regional breeding farms to retail partners and 2 assuring the supply of raw crop management, irrigation, more cuts per year from Farms that sell young stock or heifers that are offspring milk fulfils quality standards. Farmers and processors are facing problems in col- grass, and silage making. Dutch banks can contribute by sharing their Supplying young stock expertise on the dairy sector to help regional banks e.

Import of animals or genetic material 1. Offer bulk milk tanker transport equipment assess the performance and investment plans of compa- a. Feed for calves High-quality dairy livestock is expensive and scarce. Offer milk chilling equipment for milk collection nies seeking loans. Milk replacer for young calves and concentrates for Import of semen, embryos, calves and heifers are all centers young stock combined with advice, will result in higher ways to contribute to higher-producing cows.

Offer milk chilling tanks for the processing industry producing cows. Set up a service organisation for maintenance Technical support in controlling Health of dairy equipment, to serve dairy processors in animal diseases b. Establish heifer rearing farms one or more milksheds in Ethiopia Lack of dairy heifers, high heifer prices and poor calf a.

Establish mobile veterinary clinical services Dutch experts in the fields of animal identification and rearing on farms create opportunities for farms that The government promotes mobile veterinary clinic If European companies adapt their equipment to the surveillance systems, vaccination programs and bio- specialize in rearing young stock from calf to pregnant services at farm level, as part of the process of privati- needs of the Ethiopian market e.

Emphasis on health and growth will deliver dairy zation of veterinary services. Support government in disease control programs Higher requirements of meat and livestock importers and the need for strategies to control disease outbreaks create opportunities for health monitoring and control programs. Also the availability of but will also pave the way for export of dairy products. Land leasing Over the past 5 years, the Government of Ethiopia has by-products from oil-production will be stimulated by A milk surplus of 2.

Ultimately, the contri- leased by those who want to use the land. There are two as part of the national Growth and Transformation processed within the country and to limit the import of bution of the dairy sector to GDP is expected to rise broad classifications of land for rent or lease purposes: Plan GTP. Researchers conclude that investing to im- urban land, mainly used for industrial purposes or other ventions bundled together in the so-called Livestock The processing and marketing activities should focus prove cattle productivity has high potential to reduce activities.

The Cow Dairy Development Roadmap on more diversity of dairy products to meet the needs poverty, contribute to national income growth, meet on location. The lease price of rural land is set by is the part of the LMP concerning the dairy sector. This of various consumer segments. This will require invest- future domestic consumption requirements, and also authorities and may depend on factors such as the plan has two tracks to reach the goal of significantly ments in the production of UHT-milk, milk powder, and increase meat and milk exports and foreign exchange development level of the area, distances from all-weather higher milk production: value-added products such as yogurt, ice cream and earnings.

To support this development, capacity-building ties, and agricultural activity. The duration of the lease 1. For the traditional smallholder dairy farming of dairy technologists is an important requirement. The In addition to the above activities, the success of the contract can also vary depending on the same factors.

For the commercial dairy farming system, the diseases to improving accessibility to drugs. The policy services in all areas, whether or not breed improve- Taxes proposed interventions are: bringing more on genetics will focus on improved breeding programs. A team of experts supported the Ethiopian Ministry of For the entire livestock sector—dairy as well as animals the capital goods and spare parts imported during the Agriculture to consider alternative strategies for reaching for meat—the government is aiming at better policies first five years after the start of the investment project.

The second track is in line with the proposal to make the goals set within the LMP by using economic model and measures for prevention, control and eradication land available for commercial fodder production by calculations. These specialists expect that the imple- of major livestock diseases. When this forage production. To stimulate the production of milk production see figure below. Investors who Cow milk production and consumption as projected in the Livestock and external parasites.

The prevention and control of produce for export can receive an additional two-year Master Plan LMP Source: MoA, these economically important diseases also requires exemption from paying income tax. Milk processing the implementation of livestock movement control, and facilities may obtain a tax exemption period of up to Million liters identification and traceability systems.

These systems 15 years if located in the assigned integrated agro-pro- 7, Projected cow milk production also have to be in line with the requirements set by cessing parks. Four of these parks will be established 7, international trading partners to facilitate the growth of in the coming years. For more detailed information: 6, Cow milk surplus—available for export exports of live animals and meat.

Elemtu Integrated Milk Industry Solulta 30, 4. Evergreen Dairy 30, 5. Etete 9, 6. Berta and Family plc Addis Ababa 9, 6, 9. Genesis Farm Debre Zeit 4, 4, Holland Dairy Debre Zeit 4, 4, Lema Dairy Debre Zeit 10, 3, Abay fana Awash Agro-Industry Adama 3, 2,