SNV Milk Sub-sector Analysis
SNV Milk Sub-sector Analysis
Source: http://www.business-ethiopia.com/milk.html
Milk Value Chain Intervention

Economic Background

Constraints

Intervention Points

Suppliers/Equipment

Markets and Marketing

Standards

Coordination Group

Achievements
o Activities
implemented
o Outcome
o Impact
Economic
Background [top]
Entrance to filtration
and cooling chamber
Hand washing prior to
milking
People enjoy drinking milk in its natural form and also use it to
make a wide range of food products, including cream, butter,
yogurt, ricotta, cheese, and ice cream. Humans drink the milk
produced from a variety of domesticated mammals, including
cows, goats, sheep, camels and others. In Ethiopia the vast
majority of milk used for commercial production and
consumption is from cows. This value chain analysis focuses on
dairy cow milk business from farm to processing. Dairy Farming
is concerned with production and use of milk and milk
products. Dairy husbandry includes the management of dairy
cows, the cultivation of crops for feed, the production of milk
and cream, and the manufacture of butter, cheese, and ice
cream.
Ethiopian livestock breeds are with low milk production and
difficult to think business out of milk at household level. Very
few entrepreneurs have started milk and milk products using
exotic dairy breeds around and in big cities like Addis Ababa.
Presently, in most of the big shops and supermarkets of Addis
there are milk and milk products in short supply.
Ethiopia has the largest livestock herd and accounts an
estimated 30 million cattle, 37 million sheep and goats, and 7
million pack animals according to a survey in 2003.
Estimated average annual production of milk is about 938,000
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SNV Milk Sub-sector Analysis
tones. Market –oriented dairy production technologies involving
the introduction of crossbreed cows and utilization of
complementary feed and management for increased dairy
production, is being undertaken in pre-urban and highland
areas of the country. Milk production is treated as a commercial
commodity as milk sales generate regular cash income.
Market-oriented milk production has many food securityrelated benefits for pre-urban and highland smallholder
communities. Dairy industry has multi purpose benefit in terms
of food availability, regular cash income and more employment
opportunities.
Hand milking
The selected regions economy is livestock based and using milk
as direct consumption or selling milk as regular cash income is
the way of life. However, dairy technology is not yet promoted.
Market oriented dairy production in and around Addis Ababa
has 60 years of existence. Shola dairy processing is the largest
dairy processing plant belongs to government. Small-scale
dairy producers and processors are also provided fresh and
processed milk and milk product for urban consumers. Sebeta
Agro Industry is a modern dairy plant established on April 1998
and is the leading private company on milk and milk product
supplies in and around Addis Ababa.
This dairy farm is located 40 km West of Addis Ababa at Sebeta
town of Oromia state. It has its own dairy farm and raw milk
suppliers from different sources in Addis Ababa and
Oromia. Raw milk sources are own farm, smallholders and
milk collectors with in a radius of 100 kilometres from the
processing plant. The dairy processing enterprise has applied
quality standard measures such as Hazard Analysis Critical
Control Practice (HACCP) in the processing and distribution of
the milk and milk products.
Dairy cream seperator
Constraints [top]
Although milk and milk products plays an important role in the economy, the low
productivity of local breeds, shortage of feeds, limited veterinary services and a general
shortage and high cost of feed and exotic dairy breeds are some of the major constraints
of the milk industry. Introduction of crossbreed cattle, improving feeding and
management practice could bring remarkable positive impact in the future prospect of the
sub sector.
Sebeta Agro-Industry (Dairy Processing Enterprise) mentions the following general
constraints:

Quality control is made using physical and chemical laboratories and the company
doesn’t have bacteriological laboratory.

Lack of chilling and cooling centre at potential milk producing and supply area is
non-existence.

Milk suppliers need to have technical support and Milk collection centres with
enough capacity and safety.
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SNV Milk Sub-sector Analysis

Milk collecting utensils and buckets for up lifting the milk from the supply centres
where many smallholders are doing their sells can improve the supply quality.
However the core problem of this value chain is shortage of raw milk supply, access to
reach the raw milk and method and means of milk collection should be tackled. Lack of
infrastructures that reaches the rural community has limited the production of milk to be
at a reduced scale. Even if farmers have the capacity to produce more milk than they are
doing today, they are not encouraged to make effort on milk production they can not sell.
On top of inconvenient infrastructures the milk collection centres are not at the level of
what
they
should
be
and
needs
special
attention
at
different
cites.
Intervention
Points [top]
In Oromia and SNNP regions except farmers and small scale dairy farms there is no
private investor both in production and processing of milk and milk products. Sebeta agro
industry is the only private company involved in modern milk industry business in Addis
Ababa sourcing farmers in Oromia as suppliers of raw milk. The low level of raw milk
supply is critical for the company and at the same time many farmers cannot use the raw
milk market opportunity. Therefore the objective of the value chain intervention should
focus on resolving the gap that can bring mutual benefits for raw milk suppliers and the
company.
Possible interventions on the supply side could be strengthening of raw milk supply,
improving milk collection centres, feed security, logistics and breed improvement. In the
processing chain quality improvement, business linkages, training, and technology
transfer are important activities to be considered. The value chain diagram indicated the
intervention points marked with 8-point stars.
Raw milk supply has three possible sources the owner dairy farm, small farmers and milk
collectors. The collected raw milk is transported to the processing centre and used as
main raw material to end up to pasteurized milk and other milk products through various
technological processes. In this value chain four intervention points are mapped the most
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SNV Milk Sub-sector Analysis
critical and applicable can be finalised and get into plan of action. The possible
intervention points are:

Improving source of milk and get sustainable milk supply

Supporting possible sources of raw milk such as small farmers who can able to
work on through training and organization

Introduce milk collection centres with the necessary facilities that can help to
increase the volume of milk supply

Improve the packing technology and quality of finished product during processing
Suppliers and
Equipment [top]
Tetra Pak - International Packaging Company www.tetrapak.com
Tetra Pak works for and with its customers to provide preferred processing and packaging
solutions for food. Tetra Pak today supplies hundreds of different types of carton
packaging formats. Tetra Laval is a private industrial group of Swedish origin
headquartered in Switzerland. The industry groups´ activities focus on systems for
processing, packaging and distributing food and accessories for dairy production and
animal husbandry.
On the webpage www.tetrapak.com please find details on: Business relations, Products,
Processing Packaging, Distribution, Business stories and Documents for download on
Packaging and other fields of intervention.
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SNV Milk Sub-sector Analysis
SUPPLIERS and / or PRODUCERS OF DAIRY /
DAIRY PACKAGING EQUIPMENT AND OTHER MATERIAL
Information was provided by:
Hosein Aminy, DeLaval, [email protected]
Gary Zeller ,Tetra Pak, [email protected]
Luc Petit, CDE, email: [email protected]
Company
Tetra Pak
Country
international
DeLaval
international
Packo
Belgium
Specialized in
Whole range: processing,
packaging &filling (dairy and
other products), distribution
Whole range dairy systems (“all
but the cow”) from the barn to
chilled milk
Wide range / general equipment
Nile Star Import
Export
Ethiopia
Wide range
Serac
Elecster
Belgium
Finland
Cooling
Combiblock/
PKL/SIG
A.E.S.
Germany
Packing also UHT – Aseptic
filling
Aseptic filling
France
Packing machines & materials
Sersia-Breeding
France
(contact M. Petit)
I.P.I.
France /Italy
Aseptic packaging
Novopac
Germany
Form-Fill-Seal
Nova Socimec/
Serac
France
Filling machines
Actini
France
Processing / Filling / UHTAseptic
Promaco
Kenya
Everything in dairy
Bernhardt
France
Packing machines & materials
Thimonier
France
Packing machines & material
ALPES
France
Prepac
Damy
France /
(Canada)
France
Processing & Packaging
materials
Packing machines & material
TOMEGA
Belgium
Small equipment & packing
machines
Small equipment & ingredients
France
Sterilisation
Sterilisation
Sterilisation
Acb/Hydrolog
Lagarde
Steriflow
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Email / Website
Contact Gary Zeller, Tetra Pak South Africa
(Pty) Ltd
[email protected]
Contact Hosein Aminy, Food for Dev’t Office,
Tuma, Sweden
[email protected]
[email protected] /
www.packo.com
Tel. 011 - 6522751
Contact M. Petit
[email protected]
www.elecster.fi
www.sigcombibloc.com
Mr. Laurent Vizzavona
[email protected]
Mr. Ali Haidar
[email protected]
M Paul Furioux
[email protected]
www.ipi-srl.com
Msses. Lang
[email protected]
www.novopac.de
M R. Meneguz
[email protected]
www.nova-packaging.com
M-. Francois Quenard
[email protected]
www.actini.com
Mr. Mulinge
Promaco.wananchi.
Com
[email protected]
www.bernhardt.fr
www.bernhardt-sa.com
[email protected]
www.thimonnier.com
[email protected]
www.alpes-is.com
[email protected]
[email protected]
[email protected]
www.tomega.be
www.acb-ps.com
www.lagarde-autoclaves.com
Tel. +33-1-40370845
SNV Milk Sub-sector Analysis
TESSA I.E.C. GROUP LTD www.iec-il.com/dairy.html
TESSA I.E.C. GROUP LTD food processing and packaging
equipment. specializes in manufacturing & upgrading of Mini Dairy
lines of different production rates i.e. from 500 - 20,000 litres per
day. TESSA I.E.C. mini factories are fully equipped with all
necessities for a full technology cycle including the equipment for
receiving and cooling of milk, pasteurisation, separation,
fermentation, packing of ready products. Apart from these, the
lines include all necessary auxiliary units and equipment such as:
compressor, pumps, filter, auxiliary capacities, dairy pipes &
valves, electrical communi-cations etc.
Packing & Filing Machines for liquid & semi liquid products into
laminated carton boxes such as: Tetra-Rex & Pure-Pack.
Model M-36. Production rate - 200-400 boxes/hour
Model M-40. Production rate - 1000-1600 boxes/hour
These machine are using the already printed cardboard sheets.
The packing volume can be for 250, 500 & 1000 ml. The filling
products: milk, yogurt, juices, fruit drinks and others.
Shrink machines, Labeling machine, Twist-off machines, Capping
machines,Blisters, Vacuum Packing
machine, Separators, Homogenizes, Chillers (Cooling
systems), Mixers, Tanks such as: receiving, cooling, fermentation,
balance ect., Cooling tunnels, Bottle rinsing
machine, Autoclaves, Cookers for: tomato ketch-up, mayonnaise,
salad dressing
Pasteurization systems:
Plate Pasteurizer Production rate: 300-8000 L/Hour
Tube Pasteurizer Production rate: 300-2000 L/Hour
Batch Pasteurizer Production rate: 100-300 L/Hour
Products for pasteurizations: dairy, beverages and other liquids &
semi liquids products. TESSA pasteurizations systems can be
supplied as separateequipment or in full production line.The full
body material of this pasteurizer is built of Stainless steel as
per world standards
EON Trading LLC
http://milkanalysers.com/
Automated multiparameter milk
analyzer providing rapid test results:
FatnessSolids non fat (SNF), Milk
density, Protein,Lactose, Freezing Point
Added water to milk, pH, Conductivity
Temperature, Measuring cycle - 45 seconds
and other milk processing equipment.
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SNV Milk Sub-sector Analysis
DeLaval - Milking Equipment
http://www.delaval.com/Products/MilkingEquipment/default.htm
Automatic milking, Parlour milking systems, Tie stall milking systems, Sheep and goat,
Milking equipment, Milk quality, Pulsators, Milk meters/indicators, Clusters, Liners,
Tubing, Milk receivers, Milk filters, Milk line, acuum, Automation, Herd management,
Cooling, Cleaning, Feeding, Barn stalling, Manure handling, Cow comfort, Udder hygiene,
Service, Electric fencing.
Markets ad
Marketing [top]
Alibaba - Virtual Market Place
www.alibaba.com
Buying and Selling of milk and milk products
Standards [top]
see also Links about International Standards
Milk and Milk Products Specification for Download
Pasteurized liquid milk specification - 145 KB
download\milk\es-549-001-pasteurized-liquid-milkspecification.pdf
Milkfat products specification - 184 KB
download\milk\es-554-2001-milkfat-productsspecification.pdf
Coordination Group of the Value
Chain [top]
The coordination group including the main stakeholders
is the leading group for the value chain specific intervention.
of
each
value
See also Coordination Group workshop reports in the library.
Value Chain Leader:
Election of the chain leader will be made after 3 months.
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chain
SNV Milk Sub-sector Analysis
Value Chain Facilitator: Tamne Hilegiorgis - TAM Consult
Consultant / Moderator
P.O.Box 19522 Code 1000, Addis Ababa
Tel: +251-91-123 5090, E-mail: [email protected]
Resource Persons
Gary Zeller - Tetra Pak, South Africa
Country Manager, Ethiopia, Awassa
P.O.Box Private Bagx2007 isando, 1600
Tel. +27824401244, Fax: +27115703148
E-mail: [email protected], Website: www.tetrapak.com
Coordination Group Members are the following:
 Ministries and implementing agencies:
o Ministry of Trade and Industry
o Ministry of Agriculture
o Oromia Bureau of Finance and Economic Developmen (BoFED)
o Oromia Cooperative Promotion Commission
o Oromia Micro and Small Enterprise Development Agency
o SNV-BOAM (Jürgen Koch, BOAM Coordinator

National Support Institutions:
o Quality and Standards Authority of Ethiopia
o Ethiopian Chamber of Commerce
o Adama Chamber of Commerce
o Export Promotion Department
o International Livestock Research Institute (ILRI)

Private Milk Processing Firms:
o Lema Milk

Associations/Cooperatives:
o Selale Farmers Cooperative Union
o Adaa Milk Cooperative
o Adama Milk Producers' Association
o Adama Women Entrepreneurs' Association

NGOs and Projects:
o Growing Ethiopian Market (GEM)

Finance:
o Bank of Abyssinia
o Oromia Cooperative Bank

Consultancy:
o Agonafir Consult Accessible Business Technology (ACABT)
o TAM Consult
Achievements [top]

SNV-BOAM achieved the participation of the world leader in packaging and milk
processing equipment Tetra Pak in the value chain meetings. This led to a concrete
Public Private Partnership perspective for the milk and milk products sector in
Ethiopia: Consultancy and advice on market research (on a cost sharing basis for
the study “Developing a Market led Strategy for the Ethiopian Diary Industry”),
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SNV Milk Sub-sector Analysis
engagement on a school feeding programme, know how transfer and advice to
optimising support to existent and newly to create milk collection centres.

On request of various milk processing companies SNV-BOAM has successfully
contributed to the creation of the Ethiopia first Milk Processors Association. By
doing so, it is expected to deliver direct impact on the four results of actual
operation plan (particular results 4 and 5). Processed milk can be better promoted
by effective service delivery to processing companies and farmers, policy issues
can be better tackled by effective advocacy and lobbying and the coordination of
the whole milk value chain could considerably improved.

Leverage Fund (LF) contract signed with Ethiopian Milk and Milk Producer and
Processors Association (EMMPPA). Promote Milk in the Motto of "Taste the full
Cream, Enjoy Milk in 40 ways", on August 30-06; cost sharing of featuring in Addis
Ababa Exhibition Centre.

The members of EMMPPA have promoted their products in the Addis Ababa trade
exhibition center for one week (September 2006) and BOAM programme has cosponsored the promotion.

Permanent CDS and advice is given for EMPAA and Ada Liben Dairy Cooperative:
introduction of new milk processing equipment (milking machines, quality control
equipment, chilling technology etc.); amendment of various training proposals.

A visit to Adaa Liben / Debre Zeit revealed that the cooperative opened a L/C.
They are ready to import dairy equipments.

Sile Enat Dairy Farm Micro Enterprise Associations’ proposal for leverage fund
entitled “Training to Improve the Quantity and Quality of Milk Supply and
Processing” is approved and contract is signed on September 2006.

A joint workshop was organized by Land O' Lakes and SNV-BOAM to promote a
study on "Consumer Research" in October 2006. 53 stakeholders and most of the
members of EMPPA who are working in the dairy business attended the meeting.
The outcome of the study was that the best way to promote processed milk & milk
products is to focus on quality, diversification of the product range and branding
(even of traditional products like Ayib).

A market research and dairy value chain study “Developing a Market Led Approach
for the Ethiopian Dairy Industry” by Technoserve, Kenya was completed and
promoted in December 2006. Main findings of the study focused on: Production
system, animal diseases and detection, transport, producers (cooperatives),
processors, investment opportunities. The study recommends that Ethiopian Dairy
Cooperatives should transform into business hubs in which farmers are able to
access services such as education, credit facilities, AI and extension services,
access to inputs including feed, transport and testing services. In addition, it was
recommended that a dire need to revamp the current dairy cooperatives by
separating the management from policy issues, mobilize and recruit producers
based on improved access to services that will result in tangible commercial gains
for members and shareholders.

A milk collection centre improvement system via the creation of several models of
milk collection centers for the Addis Ababa milk shed (Holetta and Debrezeit) was
developed. The models will be implemented by using capital grants (FIF window 2)
as tools for working with innovative partners (Fantu supermarket, Adaa Liben
cooperative, etc.). Current activities include contracting of a GIS mapping (using
GPS technology) of the milk collection system by location, proximity to
infrastructure (roads, electricity), quantity supplied and quality supplied. SNVBOAM team members went on various morning collections to observe current
practices and in process of collecting full price information of technology to be
purchased as part of the scheme.
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SNV Milk Sub-sector Analysis

A joint workshop was organized by Land O' Lakes and the programme to promote
a study on "Consumer Research". 53 stakeholders and most of the members of
EMPPA who are working in the dairy business attended the meeting. The outcome
of the study was that the best way to promote processed milk and milk products is
to focus on quality, diversification of the product range and branding (even of
traditional products like Ayib).

Advice was given to a private investor assisting him to understand the UHT milk
market in Ethiopia and to encourage him to invest in this technology.

Selale Dairy Farmers' Cooperative Union requested fund to provide Training on
Dairy Processing & Marketing for its members and training is on going.

Cheese coating research is going on (Evaluation of Imported & Locally Available
Beeswax for Cheese Processing).

46 women participated in training course entitled “Training to Improve the
Quantity and Quality of Milk Supply & Processing “ from Oct.23 -November 3, 2006
and they acquainted knowledge & technical skills regarding the management of
milk & milk products (including animal feeding, milk quality control and milk
technology)

At present, they are planning to open milk collection centers with processing
facilities (butter, yoghurt)
Outcome

Improved knowledge and understanding concerning factors that are driving the
market and linkages between producers and processors of the dairy sector in
Ethiopia and improved information concerning market potential, value added in the
chain and technological potentials has been granted on a permanent basis.

Registration of EMMPPA and its role as service provider for its members and
advocate and lobbyist.

Expansion of services offered (e.g. by cooperatives to members, processors to
farmers and equipment suppliers to processors) via qualified BDS providers.

Increased measurable interest of private investors in the dairy sector (value
addition in milk processing, e.g. Ultra High Temperature (UHT) technology.
Impact Indicators of the Programme Objective (impact according to the milk
value chain):
 Impact in terms of increased production capacity and increased turnover and
sales:Private investors showed interest for investments into value-addition (e.g.
milk processing). EMPPA, together with partners, is actively promoting efforts to
establish school milk feeding systems; and the organization has taken a leading
role in promotional campaigns for milk and milk products. These activities will have
the expected result on increased production, turnover, sales and income.

Impact in terms of improved product quality: Town Milk Supply (TMS) technology
is initiated and technologies with the result of better milk quality are introduced for
milk stakeholders. Collection improvement system is on the way (mapping).

Impact in terms of increased employment: MB Plc (milk value chain) is in the
process of establishing dairy processing plant in Addis Alem. The total employees
needed for the operation of the project is about 67 permanent and a number of
casual laborers during peak seasons as indicated in the business plan.

Impact in terms of networking: Networking activities are functionning on the basis
of concrete value chain interventions and bring concrete benefit to the network
members.
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SNV Milk Sub-sector Analysis
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