Quality upgrading in Ethiopian dairy value chains: dovetailing upstream and downstream perspectives

Abstract

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.

Production Potential, Challenges and Prospects of Dairy Cooperatives in Aksum and Adwa Towns, Ethiopia

“…The Dairy farmers were highly complaining on the low milk production potential of their cows. It is consistent with the previous study reported by Ruerd Ruben et al [8] which says, in central part of Ethiopia the average milk output per cow remains too low for reaching economies of scale in production. As a reason poor production genotype, poor feeding and management system and reoccurrence of disease was reported during focus group discussion.…”

“…However, there is high demand for processed dairy products in tourist destiny sites like Aksum, Gonder, Lalibela, and so on. It is contrast with the reports of Ruerd Ruben [8] who stated that consumer demand for improved dairy products is also limited, thus restricting their willingness to purchase higher quality dairy products. Since, Aksum is one of the centers of tourists, different types of processed dairy products are highly demanded.…”

“…In contrary to the current study. Ruerd Ruben [8] reported that dairy cooperatives in central part of Ethiopia processed milk into reduced fat milk, butter, cheese, and yogurt and then directly sold to the consumers. The average price per liter of milk at cooperatives shop was 12.8 Ethiopian Birr (ETB) and 16 ETB for curd/yoghurt ( Table 3).…”

Value Chains and Diet Quality: A Review of Impact Pathways and Intervention Strategies

“…Hattersley [53] used a nutrition-oriented value chain approach to study changes in the processed deciduous fruit market in Australia. Around half (i.e., 16) of the studies concerned countries in Sub-Saharan Africa, including Burkina Faso, Cote d'Ivoire, Democratic Republic of Congo, Ethiopia, Ghana, Kenya, Malawi, Mozambique, Liberia, Senegal, South Africa, and Uganda [54][55][56][57][58][59][60][61][62][63][64][65][66][67][68][69]. The next most frequently studied region was South Asia (9 studies), including Afghanistan, Bangladesh, and India [13,56,57,[70][71][72][73][74][75].…”

“…Wesana et al [69] applied lean manufacturing principles in assessing opportunities to reduce losses in dairy value chains in Uganda. Value chains might also become more efficient through interventions which reduce transaction costs, such as public investment in road and telecommunication infrastructure [67]. Many nutritious foods are highly perishable, meaning that business transactions and the movement of produce must occur swiftly.…”