Characterizing Milk Supply and Marketing Chains and Losses in Wolmera and Ejere Districts of Ethiopia

Abstract

This study was made with the purposes of characterizing milk supply and marketing chains, postproduction losses of milk, and evaluating the potential of supply chain management approach to reduce milk losses in Ethiopia. Primary data were collected by semi-structured survey questionnaire and interview of key informants. The collected data were analyzed using SPSS and Microsoft Excel sheets. Mapping, characterizations, and descriptive statistics were used to analyze the collected data. Both quantitative and qualitative-narrative methods were used in analysis. The finding revealed that farmers, cooperatives/unions, traders, and catering institutions were the major chain actors in milk chain in the study area. With 73% of milk sold by farmers passing through cooperatives/unions to the next chain actors, cooperatives/unions were the focal firms in this supply chain. Production was characterized by smallholders with few numbers of cows and low productivity of milk per cow per day. Cow breed and lack of access to credit were identified as critical resource and the most constraint that hinder production improvement. Marketing relationships among the chain actors were characterized as lacking long-term market orientation and were mostly on the spot and transaction based. The assessment on the enabling environment indicated further need of support from governmental and non-governmental stakeholders to build the capacity of chain actors, particularly the farmers. The study indicated existence of significant amount of milk losses in the milk chain. With 39% of the total losses happening at cooperatives/ union stage, cooperatives/unions were identified as loss hotspot point in the chain. Poor milk handling practice at the collection points, lack of immediate acceptors, milk carrying tools used, means of transport used, and ineffective communication with other partner in the chain were identified in order of severity as important problems causing milk losses in the study area. Based on the study results and review of others' work in similar contexts, this study argued for SCM to be part of solution in improving this dairy chain. The study showed cases where effectively imple-* Corresponding author. T. K. Amentae et al. 824 mented SCM approach converted dairy chains from chains characterized by dismantled, high conflicts of interests among the chain actors, and high losses of food in the chain to chains with mutual interest trying to maximize the profit to the whole chain actors. Integrated and collective actions by all chain actors aiming at reducing costs, improving quality, and minimizing food losses in the chain were central to these efforts. Therefore, SCM approach needs to be part of the solution in increasing profitability and reducing milk losses in Ethiopia in general and in the study area in particular. However, the needs for detailed further study, some of which are recommended by this study, are worthwhile.

Milk Post-harvest Losses, its Causes and Mitigation Strategies along the Dairy Value Chain of Selected Milk Sheds of Ethiopia

“…The current results showed that the total milk postharvest loss at farm level was in disagreement with the results of FAO ( 2005), which reported that the total milk postharvest loss at farm level was estimated to be 6.5% of the milk available in Tanzania. The current findings showed that the total milk post-harvest losses in Addis Ababa-Selale concur with the findings of Tadesse et al (2015), who reported that the milk postharvest losses occurring at the cooperative/union stage was 39% identified as loss hotspots in the dairy value chain in Ejere and Wolmera districts.…”

“…Refrigerators are more effective than other methods at reducing milk postharvest losses. The majority of respondents did not use cooling devices (refrigerators) as mitigation strategies, which is slightly consistent with the finding of Tadesse et al (2015), who reported that smallholder dairy producers were 95% did not use cooling devices for milk storage in Ejere and Wolmera districts.…”

Analysis of Downstream Dairy Value Chain in Ziway-Hawassa Milk Shed Areas of Ethiopia

“…e current study identi ed four types of strategies that were used in the milk procurement procedures and helped maintain the existing relationships between collectors and producers, such as a simple contract agreement, an incentive-based system, creating fair value share, and building trust (Figure 4). According to [3], in the Oromia region and the southern part of Ethiopia, hardly any formal contractual agreements exist between milk collectors and producers. Everything was based on trust, and there were no formal contractual agreements and advanced payments.…”

“…ey select their buyers based on the ultimate share in the pro t, trust-based relationships, and lack of alternatives to access another buyer. Also, price, delivery convenience, and business relationships were indicated as some criteria in the buyer selection decision [3].…”

Fish value chain and the determinants of value addition decision: Empirical evidence from Bangladesh

“…Despite substantial improvement in the aquaculture sector, very few studies have so far been conducted to identify the fish value chain actors and their value addition decision, preferably for Rui, Labeo rohita, Catla, Catla catla, Tilapia, Oreochromis nilotica, and Pangas, Pangasius hypophthalmus (Alam, 2011;Alam et al, 2012;Amentae, 2016;Chowdhury et al, 2012;Hossain, 2011;Islam et al, 2014;Obiero et al, 2019;Tola, 2014). Therefore, we have addressed the following research questions in this study: (i) who were the actors in the Rui, Catla, Tilapia, and Pangas fish value chain, and how were they linked in the value chain process?…”