1. Liquid Milk and Feed Value Chain Analysis for Wolmera District
Dairy Team
Holeta Agricultural Research Center

2. Introduction
Wolmera woreda is among the highland areas categorized under the Addis Ababa dairy milk shed
It has conducive agro-ecological conditions suitable for improved dairy animals
Its proximity to the large consumer base in Addis Ababa
Dairy is an important means of livelihood for the farmers in the area
There are different market outlets for liquid milk: cooperative unions, processors and private traders
The purpose of this study is to understand the dairy value chain test tools developed for this purpose

3. It is conducted with specific objectives of:
The major objective of this study is to assess fluid milk and feed value chain in Wolmera woreda .
It is conducted with specific objectives of:
(a) understanding the core functions and major actors involved in each value chain
(b) Identifying major constraints and opportunities in each value chain
(c) Testing and further refining of the VCA tool for wider scale use in the future.

4. Results of Value Chain Analysis

5. Core functions and activities in the fluid milk value chain
Input supply
Production
Raw milk marketing
Processing
Retailing
Consumption
Semen
Bulls
Feed ingredients
Land
Labor
Seed
Drugs
cow rearing
Feeding
Milking
Collection
Refrigeration
transportation
Delivery to processors
Milk chilling
Pasteurization
Packaging
Products making
Quality assessment
Selling
Transporting
Quality assessment
Quality assessment

6. Fluid Milk VC Actors and Major Channels
Raw Milk Marketing
Processing
Production
Consumption
Smallholder dairy farmers
Unions/coops
Individual traders
Collectors of milk processing plants
Small scale processors
Processing plants
Retailing (processed milk)
Small shops
Hotels and restaurants
Super markets
Institutions
Households
Input Supply
Extension services
Vet services
Credit services
Seeds supply
AI services
Knowledge & Skills
Enabling Environment
Land availability
Rules and Regulations
Drought

7. Major milk marketing channels identified
Channel 1: Total milk produced retained for home consumption
Channel 2: Milk reaching the consumers through formal marketing
Channel 3: Milk reaching the consumers through informal market

8. Core functions and activities in the feed value chain
Input supply
Production
Processing
Marketing
Consumption
seed supply
Supply of fertilizers
Supply of wheat, noug, linseed, cotton seed etc
land preparation
planting
weeding
harvesting
Baling
Stacking
Storage
Grinding/crushing
Mixing
Branding
Packaging
Transportation
Storage
Retailing
Distribution
Quality assessment
Feed Formulation
Treatment
Supplementation
Feeding

9. Feed VC Actors and Major Channels
Marketing
Consumption
Enabling Environment
Production
Smallholder farmers
Agro-processing industries
Traders
Unions/coops
Small holder rural farmers
Institution/colleges, research centers etc
Urban & peri-urban farmers
Input Supply
Extension services
Provision of Planting materials & fertilizer
Credit services
Technology
Land availability
Rules and Regulations
Drought

10. Channels Identified for Feed
Channel 1: Total feed produced and retained for own consumptions
Channel 2: Feed produced reaching the producers through traders
Channel 3: Feed produced reaching terminal markets with/out coops/unions
Constraints along the milk value chain
Input Supply
Shortage of feed supply
Poor quality feed
Lack of awareness about feed formulation
Inadequate supply of improved dairy stock and AI
Inefficient AI and vet services
Shortage of vet drug supply
High interest rate and demand for collateral for credit

11. Production High investment cost to start dairy farms High feed cost
Low productivity of dairy cattle
Poor management skill from milking to selling
Lack of training in dairy production and management
Processing
Shortage and seasonality of raw milk supply
Supply of poor quality milk to processors
Low technical skill of staff
Poor marketing in labeling and distribution
High cost of packaging

12. Marketing Long distance poor road infrastructure to reach markets
High cost of transportation
Lack of chilling facilities (most of the traders)
Improper milk packing and handling
Shortage of processed milk for distribution
Consumption
Long fasting days of the Orthodox Christian followers
Wrong assumption that milk is meant only for kids
High milk price
Lack of consumers’ knowledge on milk quality
Low enforcement of milk quality standards

13. Constraints in feed value chain
Input Supply
Land shortage
Shortage of seed and other planting materials
Lack of training on forage production and pasture management
Shortage of raw materials for agro-industries and feed processing plants
Production
- Low productivity of pasture
Lack of forage production skill
In-effcient feed preservation practices
High cost raw materials for agro-industries and feed processing plants
Processing
Few processing plants that are congested around Addis
Most of them operate under their installed capacity
Vat + other taxes on feed
No quality control on feed

14. Cont’d Marketing Seasonality in availability and price of feed
High transportation costs
Non market oriented production of improved forage and seed
Absence of feed quality control in the market
Few actors monopolizing the concentrate feed market
Consumption
High feed price
Shortage of supply
Lack of awareness on improved feeding
High adulteration
High transportation cost
Low level of understanding of feed quality by consumers

15. Opportunities identified
Suitable agro-ecology for dairy & feed production
High domestic and export demand for milk & feed
Large number of emerging dairy and feed processing industries
Availability of relatively cheaper labor force
Strong government support
High population growth with better income and demand for better quality food
Expanding livestock industry with high demand for better quality feed
Good and reliable road connectivity

16. Lessons Learned
The VCA tool for dairy should have been developed separately
The feed and dairy value chains should have been studied independently of each other
VCA demands more time and well organized group

17. Filed level Monitoring Evaluation

18. Thank you !!