In this article, we analyze opportunities and constraints for upgrading product quality in the dairy value chain in Ethiopia. Our analysis is based on an integrated understanding of supply chain performance both from producer and from consumer perspectives. We outline as main drivers for quality upgrading: (a) factors that influence producers' willingness to invest toward intensification by smallholder dairy farmers and cooperatives and (b) factors that induce consumer's willingness to pay for healthy and nutritious dairy products delivered at specific retail outlets. Since there are large gaps between upstream producers incentives and downstream consumers motives, possibilities for dairy quality upgrading remain fairly limited. Given this market structure, decisive policy support is required for better tailoring producer's investments with consumer preferences.

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We study the relationship between smallholder milk market participation and women`s intra-household bargaining position in Ethiopia, using a quasi-experiment and propensity score matching. In market participant households, milk income is higher and its control has shifted from women to men. Our data also indicate that men transfer this income partly to their wives. Qualitative findings indicate that men see this as recognition for their wife's household maintenance responsibility. Women argue however that transferring income is also men`s tactic for reducing intra-household conflict. Overall, dependency between husbands and wives seems higher and a woman's bargaining position stronger in participant households.