Review on Potential of Small Scale Cooperatives on Milk Marketing and Processing in Ethiopia

Abstract

Ethiopia holds a substantial potential for dairy development mainly due to its large livestock population. The objective of this senior seminar is reviewing on potential of small scale cooperatives on milk marketing and processing in Ethiopia. The seminar reviewed on the major emphasis of milk production systems, small holder dairy developments, small scale milk collection, processing and marketing, potential of small scale cooperatives on milk marketing and processing and current situation of its practices in Ethiopia. The milk production system in Ethiopia, in respect to marketing situations, can be broadly categorized into urban milk production system, the peri-urban milk production system and the rural milk production system. Smallholder farmers in Ethiopia represent 85% of the country’s population. In all the systems, the liquid milk and milk products markets are dominated by informal marketing systems. The market groups are conceptualized and framed to operate as profitable milk units where smallholders organize themselves in collecting, processing and marketing of milk and value-added milk products. Small-scale milk collection, processing and marketing operations of an introduced output-oriented model for dairy development. Moreover, it outlines a story, which helped the initiative to improve rural milk marketing and processing systems in Ethiopia. Market-oriented agricultural production (milk and milk products) would secure food supply to the rapidly growing non-farming community; create employment and promote economic development in rural societies. Marketing services are critical to rural as well as to urban food security.