Affiliation:
1. Department of Animal Sciences, College of Veterinary Medicine and Animal Sciences, University of Gondar, Gondar PO Box 196, Ethiopia
Abstract
The increasing demand for raw milk cannot be met with the current inefficient production and marketing systems; designing a sustainable dairy value chain has the potential to increase the availability and affordability of milk for poor consumers and reduce poverty. Therefore, this study aimed to characterize the downstream dairy value chain and evaluate the relationship among the chain actors and their share of profit margin in Ziway-Hawassa milk shed areas of Ethiopia. The downstream chain has several links and is operated by a number of actors. In this study, the upstream part of the chain includes the input supply and production of raw milk at the farm level, and the rest parts of the chain are considered. Producers, collectors, and consumers channel was reported as the dominant milk route in the Ziway-Hawassa milk shed. The results showed that the downstream chain was controlled and monopolized by a few large-scale collectors and processors. Milk collectors took the highest gross margin in fresh milk, but the value share was higher for producers. In general, milk collectors and processors sourced milk directly from producers. Unlike the gross margin, the value share for collectors on fresh milk was less than the share of producers which implies that chain sustainability is under question. Therefore, fair value addition and share must be maintained across each actor of the chain.
Funder
Netherlands Fellowship Program
Subject
Soil Science,Agricultural and Biological Sciences (miscellaneous),Agronomy and Crop Science,Animal Science and Zoology,Food Science
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