Abstract
The study was aimed at mapping the dairy value chain, assessing constraints and opportunities in the sector, and identifying factors affecting channel choices of producers in Harar and Dire Dawa milkshed areas. Data were collected from 93 producers, six collectors, seven wholesalers, seven retailers, and ten consumers. Both descriptive and econometric analysis were employed. The study revealed that the channel choices available to producers include selling to collectors, wholesalers, retailers, and directly to consumers. The multinomial model output indicated that being in rural areas, breed type, separate milking place, and supply of hay negatively determined the choice to sell to wholesalers, retailers, and consumers. In contrast, education status and milk storage duration positively determined producers’ choice not to sell to collectors. The major recommendations include provision of training, disseminating dairy technologies, encouraging value chain actors to add values; and enhancing collective actions of producers.
Highlights
IntroductionLooking into the structure of the economy in 2013/14 production year, for instance, agriculture contributed 39.9% to the GDP where industry and service sectors contributed 14.2% and 45.9%, respectively (NBE, 2014)
Agriculture is the foundation of Ethiopia’s economy
Profile of major value chain actors Six value chain actors were identified in Harar and Dire Dawa Milk shed areas
Summary
Looking into the structure of the economy in 2013/14 production year, for instance, agriculture contributed 39.9% to the GDP where industry and service sectors contributed 14.2% and 45.9%, respectively (NBE, 2014). The same report indicated that out of the total contribution of agriculture to the GDP, the animal production subsector contributed 20.6% whereas crop and forestry subsectors had 70.7% and 8.7% contributions, in that order. Some studies indicated that contribution of the livestock sub-sector is underestimated because of the fact that some benefits of livestock like traction power, manure for fertilizer, security during crop failures and others are not routinely included in agricultural GDP calculations (ICPALD, 2013). The country is believed to have the largest livestock population in Africa. These livestock categories are all important assets for rural households and for the country in general
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