Abstract
Ethiopia is endowed with diverse and large livestock populations resides in suitable environmental condition. The aim of this review is to review characteristics of dairy value chains as a way forward to design viable strategies for upgrading of the Ethiopian dairy sector. Dairy production systems are classified as small scale, peri-urban and urban based on climate, production intensity, land holding and integration with crop productions. Moreover, considering market orientations, scale of operation and production intensity, it is classified as traditional smallholder, private state far, and urban and peri-urban systems. Ethiopian value chain is characterized by both formal and informal channels and exist complex. From the total amount of milk produced nationally only 5% of it is marketed. In Ethiopia, the dairy sector has an immense role in securing household income and job creations. Understanding the value chain definitely starts with consumer demand and continues with different levels of production, processing and marketing. For describing all activities, actors, relationship among different levels of the chain and connections between producers and intermediaries the designing value chain map is found vital. There are various challenges that restrain the dairy sector to express to its potential. There is limited contribution from the scholars with regard to dairy value chains and designing viable strategies for upgrading. Therefore, it is found difficult to realize, formulate and implement desirable intervention measures to upgrade the dairy value chain development actions. Hence it is vital to go with construction of viable strategies for upgrading existing value chain systems.
Highlights
In Ethiopia, the considerable dairy potential resides in large livestock population associated with conducive environment to produce [1]
The dairy sector is constrained with various challenges like unimproved technologies, high disease prevalence, limited feed supply, poor extension service, poor marketing and infrastructure and limited credit services [4]
The major source of milk in Ethiopia is dairy cows with the contribution of 83% of the total milk and the remaining 17% is comes from goats and camels [11]
Summary
In Ethiopia, the considerable dairy potential resides in large livestock population associated with conducive environment to produce [1]. Ethiopia is endowed with 57.83 million cattle and from which females contribute 55.38%. From the total female cattle population, the contribution of dairy cows is 20% [2]. Ethiopian economy is highly dependent in livestock productions. It contributes 10% formal export earning which accounts 150 million USD per year and 300 million USD per year from the informal market sources. It contributes 70% of household livelihoods [3]. The dairy sector is constrained with various challenges like unimproved technologies, high disease prevalence, limited feed supply, poor extension service, poor marketing and infrastructure and limited credit services [4]
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