Ethiopia National Dairy

Development Strategy
2022–2031
Ethiopia National Dairy
Development Strategy
2022–2031

Getachew Legese1, Ulfina Gelmesa2, Temesgen Jembere2, Tamrat Degefa2, Seyoum Bediye2,
Tariku Teka3, Daniel Temesgen4, Yohannis Tesfu5, Asmelash Berhe6, Lema Gemeda6, Dejene Takele6,
Gashaw Beyene6, Gebeyew Belachew6, Girma Hailu6 and Segni Chemeda6

1. International Livestock Research Institute (ILRI)

2. Ethiopian Institute of Agricultural Research (EIAR)
3. Ethiopian Livestock Development Institute (LDI)
4. Ethiopian Society of Animal Production (ESAP)
5. Global Alliance for Improved Nutrition (GAIN)
6. Ministry of Agriculture (MOA)

December 2023
©2023 Ministry of Agriculture, Federal Democratic Republic of Ethiopia.

Editing, design and layout—ILRI Editorial and Publishing Services, Addis Ababa, Ethiopia.

Cover photos—ILRI/Apollo Habtamu, Zerihun Sewunet, Stevie Mann and Paul Karaimu

Citation: Legese, G., Gelmesa, U., Jembere, J., Degefa, T., Bediye, S., Teka, T., Temesgen, D., Tesfu, Y., Berhe, A., Gemeda, L.,
Takele, D., Beyene, G., Belachew, G. Hailu, G. and Chemeda, S. 2023. Ethiopia National Dairy Development Strategy 2022–2031.
Ministry of Agriculture, Federal Democratic Republic of Ethiopia. Addis Ababa, Ethiopia.
Contents

Tables iv

Figure iv

Acknowledgments v

Foreword vi

Acronyms and abbreviations vii

Executive summary xi

1 Introduction 1

1.1 Background 1

1.2 Rationale for developing the strategy 2

1.3 Vision, mission, goal and objectives 2

1.4 Scope of the strategy 3

1.5 Guiding principles 3

2 Situation analysis 5

2.1 Development goals in the dairy sector 5

2.2 Trends in dairy production and marketing 6

2.3 Institutional capacity and policy framework 7

2.4 Dairy cattle improvement in Ethiopia 11

2.5 Strengths, Weaknesses, Opportunities and Challenges (SWOC) analysis 14

2.6 Benchmarking 26

3 Strategic issues and interventions 28

3.1 Description of strategic issues and interventions 28

3.2 Detailed strategic issues and interventions 33

4 Roles and responsibilities 54

5 Expected outputs 57

References 58

iii
Tables

Table 1: Livestock sector development goals 5

Table 2: SWOC analysis for dairy development in Ethiopia 14

Table 3: Proportion of cattle population, milk production and reproduction performances in Brazilian,
Indian and Ethiopian dairy cows 27

Table 4: Strategic issues and interventions 33

Table 5: Roles and responsibilities of different actors 54

Figure

Figure 1: Commercial dairy farm growth plan of Ethiopia 9

iv
Acknowledgments

This National Dairy Sector Development strategy of the Ministry of Agriculture (MOA) of the Federal Democratic
Republic of Ethiopia has been realized with collaboration of different institutions and professionals. The Ministry
of Agriculture’s livestock led the strategy development process by providing guidance on the government’s
development agenda and key focus areas. The government, therefore, guided the technical task force that were
part of this collaborative effort.

We appreciate the Global Alliance for Improved Nutrition (GAIN) for financially supporting efforts of the technical
task force.

The MOA is grateful to the International Livestock Research Institute (ILRI) for committing a resource person who
contributed to leading the strategy development process closely working with experts from MOA, Livestock
Development Institute (LDI), and Ethiopian Institute of Agricultural Research (EIAR). ILRI has provided financial and
technical support on publication of the strategy document in both English and Amharic.

We owe special thanks and appreciation to a task force composed of experts from MOA, EIAR, LDI, ILRI, Ethiopian
Society of Animal Production (ESAP), and GAIN for their professional inputs and commitment towards realizing
this national dairy sector development strategy. The commitment shown by this professional team of experts was
impressive and exemplary.

We appreciate all actors who committed their time in reviewing the strategy document and providing
professional inputs to improve the quality, at different stages of the strategy development process. We further
express special gratitude to all stakeholders from regional states, universities, non-government Organizations
(NGOs) and other partners who travelled long distances to attend the validation meeting at Adama and provided
inputs that contributed to the realization of a comprehensive strategy document relevant to different parts of
Ethiopia’s complex agriculture landscape.

Special appreciation goes to Ato Segni Chemeda of MOA and Dr Getachew Legese of ILRI for their leadership and
coordination of the strategy development process.

Tsigereda Fekadu
Lead Executive of Livestock and Fisheries Development
Ministry of Agriculture

v
Foreword

Ethiopia is endowed with huge livestock genetic diversity and immense potential for dairy development. Dairy
in Ethiopia forms the basis of livelihoods of several millions of smallholder farmers in the rural and urban settings,
as well as, pastoralists and agro pastoralists settings. Because of increasing demand for dairy products, the
dairy sector has continued providing income, nutrition and employment for many youths, women and all actors
working along the dairy value chain.

However, the current contribution of the Ethiopian dairy sector to the national economy and livelihoods of
Ethiopians is not congruent with the value of this resource base and its potential for development. Important
constraints hampering the development of the dairy sector include production system-specific constraints related
to genetics, feeds and feeding systems, limited access to health services and inputs, low adoption of improved
technologies, an inefficient marketing system, absence of clear policy support, poor access to finance, poor rural
infrastructure, high post-harvest losses, weak value addition, poor product quality and safety, and a weak regulatory
system to enforce government rules and regulations to improve the performance of the dairy sub-sector.

To address the above multitude of challenges, the Ministry of Agriculture (MOA) has declared bold development,
and policy interventions targeting transformation of the dairy sector in the Ten-Year Development Plan and
associated programs including the Ten-in-Ten development initiative and ‘Yelemat Tirufat’. This Dairy Sector
Development Strategy will provide clear implementation pathways for different government intervention
measures that are indicated in the different strategic development plans.

The strategy document considers the conceptual, technical, socioeconomic, organizational, policy and capacity
challenges that should be addressed for the transformation of the Ethiopian dairy sector. The strategy document has
also recognized the roles and responsibilities of different stakeholders in implementation of specific interventions.

The strategy was developed in a collaborative process involving a taskforce of experts from MOA, LDI, EIAR,
representatives from regional states, universities, non-government Organizations (NGOs) and other partners,
GAIN and ILRI. The strategy development process was financially supported by ILRI and GAIN.

On behalf of the Ministry of Agriculture, we would like to extend our appreciation to Ato Segni Chemeda of
MOA and Dr. Getachew Legese (Research Project Coordinator, ILRI) for leading the development of the different
aspects of the strategy. Our special gratitude goes to members of the technical task force: Drs. Ulfina Gelmessa,
Temesgen Jenbere, Tamrat Degefa, and Mr. Seyoum Bediye from EIAR; Prof. Daniel Temesgen from ESAP; Ato
Tariku Teka from LDI; Ato Yohannis Tesfu from GAIN; and Ato Dejene Takele, Ato Asmelash Berhie, Ato Lemma
Gemeda, Dr. Geshaw Beyene, Ato Gebeyew Belachew and Ato Girma Hailu from MOA. We thank all for their
active involvement in the process of developing Ethiopia’s National Dairy Sector Development Strategy.

HE Dr. Fikru Regassa Prof. Appolinaire Djikeng

State Minister, Livestock and Fisheries Resources Development Sector Director General
Ministry of Agriculture of the Federal Democratic Republic of Ethiopia ILRI

vi
Acronyms and abbreviations

ADPLAC Agricultural Development Partners Liaison Advisory Council

AEMFI The Association of Ethiopian Microfinance Institutions

AFC Age at First Calving

AHI Animal Health Institute

AI Artificial Insemination

AIT Artificial Insemination Technician

AOSS Agricultural One Stop Service

ART Assisted Reproductive Technology

ATI Agricultural Transformation Institute

ATVET Agricultural Technical and Vocational Education and Training

AU-PANVAC African Union – Pan African Veterinary Vaccine Centre

CADU Chilalo Agricultural Development Unit

CBPP Contagious Bovine Pleuropneumonia

CCPP Contagious Caprine Pleuropneumonia

CI Calving Interval

CRA Customs and Revenue Authority

CRGE Climate Resilient Green Economy

CSA Central Statistical Agency

DA Development Agent

DBDS Dairy Business Development Service

DBE Dairy Business Enterprise

DDE Dairy Development Enterprise

vii
viii Ethiopia National Dairy Development Strategy: 2022–2031

DOVAR Disease Outbreak and Vaccination Reporting

EAFIA Ethiopian Animal Feed Industry Association

EARO Ethiopian Agricultural Research Organization

EBI Ethiopian Biodiversity Institute

ECA Ethiopian Conformity Assessment

EDPPA Ethiopian Dairy Producers and Processors Association

EFS-TP Ethiopian Food Systems – Transformation Pathway

EIAR Ethiopian Institute of Agricultural Research

EPRDF Ethiopian People’s Revolutionary Democratic Front

ES Estrus Synchronization

ESAP Ethiopian Society of Animal Production

ET Embryo Transfer

EVA Ethiopian Veterinary Association

FAO Food and Agriculture Organization of the United Nations

FMD Foot and Mouth Disease

FTC Farmer Training Centre

GDP Gross Domestic Product

GHG Greenhouse Gases

GTP Growth and Transformation Plan

HF Holstein Friesian

HLI Higher Learning Institution

IAIP Integrated Agro-industry Park

IAR Institute of Agricultural Research

ICARDA International Center for Agricultural Research in Dry Areas

ICT Information and Communication Technology

ILRI International Livestock Research Institute

IVP In Vitro Embryo Production

LDI Livestock Development Institute

LITS Livestock Information and Traceability System

Ethiopia National Dairy Development Strategy: 2022–2031 ix

LN Liquid Nitrogen

LSA Livestock Sector Analysis

LSD Lumpy Skin Disease

M&E Monitoring and Evaluation

MAS Marker Assisted Selection

MCC Milk Collection Centre

MFI Microfinance Institution

MOA Ministry of Agriculture

MOET Multiple Ovulation and Embryo Transfer

MOOC Massive Open Online Courses

MOT Ministry of Trade

NAHDIC National Animal Health Diagnostic and Investigation Centre

NAHRC National Animal Health Research Centre

NAIC National Animal Genetic Improvement Centre

NARS National Agricultural Research Systems

NDB National Dairy Board

NGO Non-Governmental Organization

NVI National Veterinary Institute

PAD Pilot Advisory Services

PPP Public-Private Partnership

PPR Peste des petits ruminants

PTC Pastoralist Training Centre

RARI Regional Agricultural Research Institute

RBME Results-based Monitoring and Evaluation

SDG Sustainable Development Goal

SFE Sub-Regional Office for Eastern Africa

SLM Sustainable Land Management

SME Small and Medium Enterprise

SNNP Southern Nations, Nationalities and Peoples

x Ethiopia National Dairy Development Strategy: 2022–2031

SNV Netherlands Development Organization

SWOC Strengths, Weaknesses, Opportunities and Challenges

TAD Transboundary Animal Diseases

TB Tuberculosis

TMR Total Mixed Ration

TOT Trainer of Trainers

TV Television

TVET Technical and Vocational Education and Training

UHT Ultra Heat Treated

UN United Nations

USD United States Dollar

VAT Value Added Tax

VDFACA Veterinary Drugs and Animal Feed Administration and Control Authority

VRRM Veterinary Rationalization Road Map

WADU Wolaita Agricultural Development Unit

WHO World Health Organization

YSM Young Stock Mortality

Ethiopia National Dairy Development Strategy: 2022–2031 xi

Executive summary

Ethiopia has the largest livestock population in Africa. According to a CSA (2021) livestock sample survey, the
country possesses 70.3 million cattle, 42.9 million sheep, 52.5 million goats and 8.1 million camels. The livestock
sector contributes about 45% of the agricultural GDP, 18.7% of the total national GDP, and 16–19% of the total
foreign exchange earnings of the country (Behnke and Metaferia 2011). In Ethiopia, dairy production depends
mainly on indigenous livestock genetic resources of cattle, camels and goats. Cattle are the largest contributors to
the total national annual milk output, followed by camels (CSA 2021).

Ethiopia has a huge potential for dairy development. The large and diverse livestock genetic resources, existence
of diverse agro-ecologies suitable for dairy production, increasing domestic demand for milk and milk products,
developing market opportunities, and proximity to international markets all contribute to the potential and
opportunities for dairy development in the country. However, dairy development has been hampered by multi-
faceted, production system-specific constraints related to genotype, feed resources and feeding systems,
access to services and inputs, and low adoption of improved technologies. An inefficient marketing system and
absence of clear policy support, poor access to finance, weak regulatory system to enforce government rules and
regulations are also among the systemic constraints to the development of the Ethiopian dairy sector. Moreover,
the sector is constrained by poor rural infrastructure, high post-harvest losses, weak value addition and poor
product quality and safety.

The government of Ethiopia plans to increase milk production four-fold by 2031 through targeted interventions
aimed at improving the productivity of dairy cows, camels and goats. Investment in the dairy sector has been
prioritized in the ten-year perspective plan of the government. It is anticipated that the plan will contribute to
unlocking major bottlenecks in genetics, improved technologies, feeding, health, input and output marketing,
value addition, product quality and consumer safety. It is also envisaged to reduce post-harvest loss of milk
and milk products and enhance use of improved technologies in the dairy sector. This strategy document aims
to guide implementation of the ten-year perspective plan and associated initiatives such as the dairy project
in the Ten-in-Ten and Yelemat Tirufat initiatives developed to transform the dairy sub-sector. It highlights key
interventions to be implemented in the short-, medium- and long-term plan periods from 2022 to 2031.

The document identifies strategic issues and priority interventions in the short-, medium- and long-term in dairy
breed improvement, feeds and nutrition, biosecurity and dairy health management, milk quality and safety, dairy
business management and market development, investment in commercial farming and processing industry,
extension linkage, capacity development and some cross-cutting issues. It also highlights various roles and
responsibilities of different actors.

xi
1 Introduction

1.1 Background
Ethiopia has the largest livestock population in Africa. According to a CSA (2021) livestock sample survey, the
country possesses 70.3 million cattle, 42.9 million sheep, 52.5 million goats and 8.1 million camels. Livestock
are an integral part of agriculture and the daily life of the Ethiopian people. The livestock sector contributes about
45% of the agricultural GDP, 18.7% of the total national GDP, and 16–19% of the total foreign exchange earnings
of the country (Behnke and Metaferia 2011). In Ethiopia, dairy production depends mainly on indigenous livestock
genetic resources of cattle, camels and goats. Cattle are the key contributors to the total national annual milk
output, followed by camels and goats (CSA 2021). Besides milk and milk products, enhanced dairy production
and productivity can make a significant contribution to household incomes and improve access to animal source
foods which will also influence the physical and mental development of children, youth and women. Moreover,
increased access to consumption of camel and goat milk has an added advantage due to the better nutritional and
medicinal value of milk from these animals.

Ethiopia has a huge potential for dairy development. The large and diverse livestock genetic resources,
existence of diverse agro-ecologies suitable for dairy production, increasing domestic demand for milk and
milk products, improved market opportunities and proximity to international markets all contribute to the
growing potential and opportunities for dairy development in the country. However, the development of the
sector has been hampered by multi-faceted, production system-specific constraints related to genotype, feed
resources and feeding systems, access to services and inputs, and low adoption of improved technologies. An
inefficient marketing system and absence of clear policy support, poor access to finance, a weak regulatory
system that could ensure enforcement of government rules and regulations are also among the systemic
constraints to the growth of the Ethiopian dairy sector. Moreover, the sector is constrained by poor rural
infrastructure, high post-harvest losses, weak value addition and poor product quality and safety. The livestock
masterplan (Shapiro et al. 2015) projected increasing national cow milk production during the GTP II period
(2015–2020) by 93%, a surplus of 2501 million litres over projected domestic consumption requirements
on condition that proposed interventions are implemented. However, the proposed interventions were
not implemented, the challenges mentioned earlier remain unsolved. and the projected increase in milk
production was not realized. As a result, the daily average milk yield is estimated at 1.48 litres/cow, and 2.79
litres/camel (CSA 2021). The total annual milk production in Ethiopia from cows and camels is estimated at 7.1
billion litres; this could be translated into a per capita milk consumption of about 60 litres/year, which is only
about a third of the World Health Organization (WHO) recommended per capita annual milk consumption of
200 litres. The annual growth rate in milk production of 1.2% from 1998 to 2020 is less than the annual human
population growth estimated at 3% (GRM International BV 2007). Due to the huge gap between demand and
supply, the country spends significant amount of resources to import dairy products and fill the supply gap.
For instance, Ethiopia imported more than 19.43 million liters gross weight of milk and cream in different
forms from 51 countries for between 2009 and 2018 and spent over 2.23 billion Ethiopian birr to import these
products (Tesfaye et al, 2019).

1
2 Ethiopia National Dairy Development Strategy: 2022–2031

The government of Ethiopia has a plan to increase milk production four-fold by 2031 through targeted
interventions aimed at improving the productivity of dairy cows, camels and goats. Investment in development
of the dairy sector has been given top priority in the ten-year perspective plan. The government plans to unlock
major bottlenecks in genetics, feeding, health, input and output marketing, value addition, product quality and
consumer safety. It is also envisaged to reduce post-harvest loss of milk and milk products and enhance use of
improved technologies in the dairy sector. This strategy document provides guidance on implementation of the
ten-year perspective plan and associated initiatives such as the dairy project in the Ten-in-Ten and Yelemat Tirufat
initiatives developed to transform the sub-sector. The strategy proposes key interventions to be implemented in
the short-, medium- and long-term plan periods from 2022 to 2031.

1.2 Rationale for developing the strategy

The livestock sector analysis (Shapiro et al. 2017) and the dairy sector component of the Ten-in-Ten agricultural
development program revealed that dairy farming supports the livelihoods of over 3 million farmers in Ethiopia.
However, due to limited intervention, the productivities of indigenous cattle (97.3% of cattle population),
indigenous camels (100% of camel population), and indigenous goats (99.9% of the total goat population) have
remained very low. For instance, the dairy cattle population is characterized by slow growth rate, late age at
first calving (57 months), low milk yield (270–350 kg per lactation, and 1.48 kg per day), short lactation length
(180–240 days), and about 570 days of calving interval (Yilma et al. 2011).

The dairy component of the Ten-in-Ten development program targets improvement in production,
reproductive efficiency and productivity of dairy cattle, camels and goats through different interventions.
The plan anticipates increasing milk production from 7.1 billion liters in 2020 to 28.4 billion liters in ten years
(2031) and thus attain the WHO recommended per capita annual consumption of 200 liters. The plan also
anticipates improving value addition, marketing and consumer safety, and reducing post-harvest losses. The
strategy targets improvement in the productivity of indigenous dairy cows, camels and goats through genetic
improvement, improved feed and nutrition, and promoting health and better management practices. This
document has therefore been developed to guide strategic interventions to realize the targets anticipated
in the ten-year perspective plan and other government initiatives which aim to transform the Ethiopian dairy
sector.

1.3 Vision, mission, goal and objectives

Vision: To be self-sufficient in milk and milk products with a per capita milk consumption reaching the WHO
recommended level by 2031.

Mission: To transform milk production and productivity from dairy cattle, camel and goat for food to ensure
nutrition security, poverty reduction, social equity, import substitution, export promotion and environmental
sustainability.

Goal: To contribute to enhanced livelihoods, food and nutrition security, access to healthy and nutritious diets,
economic growth and environmental sustainability through improved dairy production, value addition and
marketing.

Objectives: The general objective of this strategy is to guide the Ethiopian dairy sub-sector’s future development,
move and transform existing fragmented development initiatives into organized, rationalized, scientific and
sustainable development programs through facilitating knowledge and technology transfer while improving the
efficiency and effectiveness of institutional service delivery.
Ethiopia National Dairy Development Strategy: 2022–2031 3

The specific objectives of the strategy are to:

• Establish a sustainable system of providing improved inputs, services and suitable technologies to improve
production and productivity, and ensure the quality and safety of dairy products.

• Strengthen existing milk and feed processing industries and support the establishment of new ones.

• Enhance institutional efficiency and effectiveness in implementation and service delivery in different dairy
production systems.

• Establish systems to build domestic and export market linkages that are critical to stimulate increasing
productivity and commercialization of dairy enterprises.

• Enhance linkages between development and research institutions and create enabling environments for
building strong public-private partnerships (PPPs).

• Enable development of climate smart dairy technologies and innovations to mitigate and adapt to climate
change/variability.

• Guide the development and capacity enhancement of the dairy sub-sector.

1.4 Scope of the strategy

This strategy aims to address dairy development at the national level. A timeline of ten years has been set to
revamp existing programs, identify priorities for new ones and develop a framework for development initiatives.
This document will promote future development interventions aimed at improving and promoting efficient
utilization of dairy resource potentials in Ethiopia. It addresses all value chains of dairy cattle, camels and goats in
the ten-year perspective plan, the dairy component of the Ten-in-Ten program and the Yelemat Tirufat initiatives of
the Ministry of Agriculture (MOA).

1.5 Guiding principles

The Dairy Development Strategy is guided by the following principles:

• Aligning with the development policy and plans of the country.

• Facilitating the capacity for information exchange and competitiveness of the dairy sector through application
of advanced science and technology.

• Strengthening linkages among national and international institutions working in the dairy sector.

• Capitalizing on globally available fundamental knowledge and best practices, and making good use of
experiences and practices from other countries.

• Establishing and sustaining collaborative development and research relationships among national and
international organizations.

• Accountability to clients and users, plus promotion of a vibrant private-public-partnership (PPP) in dairy
resource development and utilization.

• Availing information and technology to users.

• Considering cross-cutting issues such as socio-economic factors and nutrition sensitivity.

• Participatory planning, implementation, monitoring and effective technology transfer.

4 Ethiopia National Dairy Development Strategy: 2022–2031

• Ensuring job creation, inclusiveness (youth, gender) and social equity.

• Ensuring regenerative production practices and environmental sustainability in dairy production, processing,
distribution and marketing.

• Ensuring sustainable consumption practices.

• Creating a favorable environment for stakeholders for long-term engagement and shared responsibility.
2 Situation analysis

This section presents an assessment of the overall situation of the Ethiopian dairy sector. The major issues
covered include development goals of the dairy sector formulated in the country’s ten-year perspective plan and
associated documents, trends in the production and marketing of dairy products, the institutional capacity of the
dairy sector and research focusing on breeding and genetics, feeds and feeding, plus animal health. It provides a
comprehensive background for a SWOC analysis and identification of strategic issues and interventions.

2.1 Development goals in the dairy sector

The Ministry of Agriculture’s ten-year perspective plan and the dairy sector initiative in the Ten-in-Ten programs
have set targets for increasing milk production and productivity of dairy cattle, camels and goats. This plan targets
to increase total milk production from the three species from 4.3 billion litres in 2020 to 28.4 billion litres in 2031
(Table 1). The plan envisages to increase total milk production from indigenous cows, camels, crossbred cows,
goats and exotic cows to 13.5 billion, 8.7 billion, 5.8 billion, 326 million and 314 million liters, respectively.
The plan intends to achieve 17% annual growth in milk production through the right genetics and application of
biotechnological tools and proper management interventions. Project implementation areas have been identified
in all national regional states of the country. It is expected that about 85% of the milk production will be from four
major regions (Oromia, Ethiopia Somali, Amhara and SNNP), while the remaining 15% will come from the other
regional states.

Table 1: Livestock sector development goals

MOA 10-year perspective plan
Baseline year
Production type/sub-sector Unit of measure and Ten-in-Ten initiative
target (2019/20)
target for 2030

Milk from cows, goats and camels Billion litres 4.3 28.4
Meat from cattle, goats, sheep and camels Thousand tons 294.0 1,759.0
Skins and hide Million pieces 13.5 72.5
Chicken meat Thousand tons 48.0 106.0
Eggs Millions 2,854.2 5,546.3
Honey Thousand tons 59.0 152.0
Wax production Thousand tons 6.0 10.0
Silk production (cocoon) Tons 29.96 77.7
Fish Thousand tons 57.4 260
Number of milk-producing indigenous cows Million heads 15 10.8
Number of milk-producing crossbreed cows Million heads 0.313 1.03
Number of milk-producing exotic cows Thousand heads 37 260

5
6 Ethiopia National Dairy Development Strategy: 2022–2031

The Ministry of Agriculture identified three intervention options to realize its targets for improving milk production
and productivity. The three options are designed to match the different agro-ecologies and associated dairy
development potentials in these systems. Option 1 aims to enhance interventions based on the classical approach
for the production, processing and marketing of milk and milk products. Option 2 will involve making use of
high-yielding pure exotic breeds from abroad. However, this is a type of technology shopping from abroad, and
adopting the same is usually more costly. It will also be difficult to get best bet technologies adapted to different
production systems. Option 3 entails implementing interventions with crossbreeds of different blood levels
and desirable performances, along with production (feed, health and management), processing and marketing
packages with acceptable yield of quality and quantity which is also appropriate for youth and women members
of the community. Since 70% of the population in Ethiopia comprises the youth, involvement of this group will
be crucial to the achievement of project objectives. Option 1 might be appropriate for marginal areas that may
not be suitable for crossbreeding programs and where the other options cannot be implemented. Option 2
may be feasible for peri-urban and urban production systems with high-level marketing infrastructure, as well as
resource-rich farmers who can afford exotic breeds. Option 3 is perceived to be the most feasible since there are
tremendous proven technologies and best bet practices generated by EIAR/RARI breed improvement programs
which are in line with the objectives of this project.

The other important source of milk in Ethiopia is camel production that contributes about 15% of the
total production in the country. The ten-year perspective plan envisages improvement in camel milk
production through selection among pastoral camel herds. In this process, the target is to increase the
daily milk yield per camel from 2.9 liters in 2020 to 3.4 liters in 2031. There are also plans to reduce
post-harvest loss of camel milk from 10% to 5%, and increase the marketable quality of camel milk from
47% to 78% during the planned period.

Regarding goat milk production, the ten-year perspective plan aims to increase daily milk yield per goat from
0.46 litres in 2020 to 0.5 litres in 2031 through breed improvement using selection and crossbreeding with
exotic breeds. Post-harvest loss of goat milk will also be reduced from 10% to 5%. In addition, the quality of
goat milk will be improved to ensure that the amount sold to markets increases from 44% to 64% during the
same period.

2.2 Trends in dairy production and marketing

Total milk production in Ethiopia increased during the 1961–2000 period at an average annual rate of 1.55%,
though per capita production declined as a result of the high population growth rate. However, during the
last decade, production grew at the rate of 3%. The increased coverage of extension services (such as better
management skills) and increased use of improved inputs (improved breeds and feed) plus policy changes
aimed at promoting dairy production have contributed to faster growth of the sub-sector. Dairy product
imports during this period were relatively less compared to the previous three decades. Most of the growth
during the 1990s was concentrated in peri-urban and rural production systems. The emergence of private
processing industries and marketing units has stimulated producers in peri-urban areas and rural production
systems as a result of improved market access for dairy products. Overall, dairy processing and marketing
functions were performed at various levels; the parastatal Dairy Development Enterprise (DDE), dominated the
dairy industry from the late 1990s when the private and cooperative sectors appeared to play significant roles
in the collection and processing of milk. Under the current market-oriented economic system, private sector
involvement in milk marketing has emerged alongside co-operative marketing organizations. The privatization
of DDE in 2007 marked the end of the parastatal dairy production system in Ethiopia. As indicated above, dairy
is one of the priority intervention areas in the country’s ten-year perspective plan and associated programs
including the Ten-in-Ten government initiatives scheduled to be implemented in ten years (up to 2031). The
government intends to increase milk production from cattle, camels and goats from the current level of about
7.1 billion to 28.4 billion litres in 2031.
Ethiopia National Dairy Development Strategy: 2022–2031 7

2.3 Institutional capacity and policy framework

Different institutions have made tremendous efforts to improve the performance of Ethiopia’s dairy sector and
build capacities that can support initiatives to transform the sector. Efforts have been made to improve the
genetics, feeds and feeding, health care and marketing of dairy products. This section describes the institutional
capacity of the country and efforts that have been made to improve these capacities over time with respect to
thematic areas.

2.3.1 Genetics
The dairy sector enhancement activities date back to the early 1950s with the initiation of modern dairying with
the first batch of dairy cows received from the United Nations Relief and Rehabilitation Administration. Since
then, efforts have been made to crossbreed indigenous breeds with exotic breeds. In line with this, the then
National Animal Genetic Improvement Centre (NAIC) engaged in production and importation of semen for use
in the crossbreeding program. Additionally, research and higher learning institutions have been undertaking
technology development and demonstration activities. In terms of conservation, Abernosa, Dida Tiyura, Gobe,
Metekel and Mayweini ranches were engaged in improvement of indigenous cattle breeds in their respective
localities. However, the Abernosa and Gobe ranches were sold to private investors in response to EPRDF’s
market-led economic policy and privatization.

Currently, a number of institutions are engaged in dairy cattle genetic improvement, conservation and
multiplication. At federal level, the Ministry of Agriculture has the national responsibility of overseeing the
policy, regulation and technical domains. Additionally, the EIAR and NARs have overall responsibility for national
coordination of dairy cattle genetic improvement and research activities, while the Livestock Development
Institute (LDI) serves as an umbrella institution for improvement and continual supply of improved dairy genetic
resources. Moreover, LDI is in charge of preparing the national breeding policy, strategies and programs, plus
implementation, upon approval by the government. Technical institutions such as EIAR, the Biotechnology
Institute and Biodiversity Institute engage in their respective technical domains at the national level. They aim
to deliver improved genetics, promote conservation and ensure sustainable utilization of resources. Regional
Bureaus of agriculture, livestock and fisheries, regional research institutions and tertiary institutions also engage
in implementation of projects on genetic improvement, conservation and sustainable utilization of dairy cattle
genetic resources in their region and production systems. In addition, there are non-government institutions
and professional societies involved as a major development partner in dairy genetic improvement at different
levels in different areas of the country. These comprise the International Livestock Research Institute (ILRI), SNV,
Land O’Lakes, FAO, Heifer International, the Ethiopian Society of Animal Production (ESAP) and other non-
governmental development organizations (NGOs).

The long-awaited National Livestock Breeding Policy of Ethiopia was approved and issued in 2016. With respect
to dairy animals, the policy recognizes key tasks of identification, systematic characterization, conservation,
genetic enhancement through selection or crossbreeding, multiplication, and sustainable utilization of dairy
animal genetic resources.

2.3.2 Animal reproductive biotechnology

Dairy cattle genetic improvement and availability of replacement heifers has great potential to boost national
milk production, improve reproductive efficiency and productivity per cow, and increase household incomes.
Nevertheless, despite the great effort made in dairy cattle genetic improvement in Ethiopia since its inception
in 1947 through application of assisted reproductive technologies, there has been little impact, resulting only
in a 2.6% exotic gene inheritance, including crosses, hybrids and exotics, from the total cattle population in the
country. This is due to the inconsistent use of artificial insemination (AI) as a result of factors such as infrastructural
8 Ethiopia National Dairy Development Strategy: 2022–2031

problems, high turnover of AI technicians (AITs), lack of incentives on non-working hours and public holidays,
inefficiency of AI service due to inferior quality semen, poor handling and management, skill gap among AITs and
inconsistent or unreliable supplies, particularly liquid nitrogen.

Furthermore, unlocking the reproductive efficiency of the indigenous cattle and unveiling their innate potential
such as heat and disease tolerance remains untapped. Nucleus herd multiplication for domestic semen
production had an insignificant impact on fulfilling the demand for improved dairy animals despite very high
demand for improved dairy cows and replacement heifers in the dairy industry.

2.3.3 Animal health

Maintaining dairy cattle health goes beyond the safety and the well-being of the animal. It also includes producing
safe and surplus food and securing the well-being of the consumer, thus reflecting the effective interface of
veterinary public health. This requires provision of quality veterinary service and biosecurity measures by availing
an adequately trained workforce, laboratory and field logistics, veterinary drugs, plus biological and diagnostic
kits. Furthermore, with the wide distribution of dairy cattle in almost all agro-ecologies, the country needs to
ensure accessible and competent veterinary service coverage for dairy producers, with a set minimum standard
(one health post for three kebeles). Although the current 15 regional laboratories provide diagnostic, surveillance
and investigation services, and the national referral laboratory, Animal Health Institute (AHI) and National Institute
for the Control of Tsetse fly and Trypanosomiasis are currently rendering veterinary services, strengthening
capacity and ensuring accessibility to cutting-edge technologies is important.

In Ethiopia, there is only one quality control laboratory (VDFACA Quality Control Lab) working on quality
assurance and residue testing, and a national vaccines production institute (NVI) with some capacity of anti-
helminthics production. This production capacity needs to be upgraded particularly to address the limitation in
production of vaccines for the prevention and control of some transboundary animal diseases (TADs). Currently,
there is a shortage of veterinary drugs due to scarce foreign currency. In general, despite improving coverage
of service delivery, the quality has been hampered by several factors: dependence on government structure,
plus limited availability of equipment, consumables and logistics. The regulatory and inspection service is not
strong enough to control movement of animals and set stringent requirements that minimize the risk of disease
introduction and spread. Hence, recent strengthening and reformation need serious attention and support to
advance the regulatory and monitoring service by the government.

2.3.4 Feeds and nutrition

The institutional landscape of animal feeds and nutrition pertaining to dairy animals began with establishment
of the feeds and nutrition department/various projects of the MOA, higher learning institutions, research
institutions and various NGOs. Within the ministry, a series of feed development projects (the first, second, third
and fourth livestock development projects) pertaining to forage/pasture, range and crop residues were carried
out. A number of public (research, higher learning), NGOs (international, national) and private organizations
were also involved in dairy feed development and utilization. National/regional research institutions, higher
learning institutions and NGOs have also carried out a series of interventions aimed at removing key barriers and
enhancing feed supply and nutrition of dairy animals. Besides public institutions and NGOs, private institutions
were engaged in dairy feed development particularly in improving the supply of feed ingredients, specialty feeds
(minerals, premix and vitamins) and compound feed production. The Ethiopian Animal Feed Industry Association
(EAFIA) and the forage seed producers’ association are the key private institutions engaged in compound dairy
feed production and supply of improved forages, respectively. With respect to dairy feed quality analytical
services, there is a national laboratory at Holetta Research Centre of EIAR and satellite laboratories in regional
research/higher learning institutions. Additionally, private laboratories are also coming on board to cater for dairy
feed quality and safety analytical services. The VDFACA quality control laboratory is also engaged in the analysis
of feed safety and quality assurance.
Ethiopia National Dairy Development Strategy: 2022–2031 9

2.3.5 Dairy commercialization in Ethiopia

The dairy sector has great potential for growth in Ethiopia. The transformation of smallholder subsistence dairying
into market-oriented commercial dairy production requires engagement of smallholder farmers in commercial
dairy farming plus massive private investment, input supply, service delivery and milk value addition to overcome
fluctuations in raw milk demand and supply due to seasonal consumption of animal products associated with
fasting seasons in the country.

Development and promotion of policies that support private sector participation and investment in the dairy
sector is one of the priority areas of the Ethiopian government. The private sector has invested and continues to
invest in commercial dairy farms, milk processing plants, feed processing, and supply of dairy inputs and services.
Meeting the increasing demand for milk and dairy products cannot be realized without rapidly increasing the
number of high-producing tropically-adapted cows, the number of commercial dairy herds, plus the number
of cows per herd and productivity per cow. However, in Ethiopia, the sector is yet to fully realize its potential
to produce enough milk and dairy products to meet the domestic demand. As a result, the country is forced to
import powdered milk and other milk products.

Current efforts by different actors in the dairy value chain are worth acknowledging but are not adequate.
They are usually fragmented, project-driven, and lack continuity in area and type of intervention. Thus, both
government-led platforms of actors and private sector investment are necessary to address the current dairy
development challenges. Private sector investment must be encouraged to lead the transformation of the sector.
The sustainability of commercial dairy development will only happen if the private sector fully participates and
takes a lead in the overall development of the dairy sector.

Figure 1: Commercial dairy farm growth plan of Ethiopia

Source (Ten-in-Ten program)

Different developing countries have pursued a range of business models. Ethiopia adopted a government-
dependent system to address improved breed supply through semen supply and AI services. The emerging practice
and current focus of the government is, however, commercialization of breed improvement services. It could be
realized by establishing and/or strengthening public or private sector-based improved heifer multiplication centers/
ranches. Community-based multiplication helps to widen the base for improved heifer supply.
10 Ethiopia National Dairy Development Strategy: 2022–2031

2.3.6 Dairy marketing

Dairy products in Ethiopia are channeled to consumers through both formal and informal dairy marketing
systems. The informal milk market involves direct delivery of fresh milk by producers to consumers within
the neighborhood and sale to itinerant traders or individuals in nearby towns. The term ‘informal’ is often
used to describe marketing systems with minimal government involvement. Producers sell the surplus milk
to their neighbors and/or in the local markets, either as liquid milk or in the form of butter and/or homemade
fresh cheese (Ayib). The characteristics of this system include the following: no license to operate, low cost
of operation, high producer prices when compared to the formal market and no regulation of operation. The
hygienic conditions of milk and milk products channeled through this system is also poor. This is mainly due to
the prevailing situation where producers have limited knowledge on how to handle dairy products, coupled
with the inadequacy of infrastructure such as cooling facilities and unavailability of clean water in production
areas.

In the formal milk marketing system, milk is collected at the cooperative or private milk collection centers and
transported to processing plants. In this system, milk quality tests are performed on delivery, thereby assuring
the quality of milk. This has encouraged producers to improve the hygiene conditions, storage and transportation
of milk in order to avoid rejection of the product upon delivery to collection centers. The formal milk market has
been expanding in the last two decades with the private sector leading the dairy processing industry in Addis
Ababa and other major regional towns. The vast majority of milk produced outside urban centers in Ethiopia
is processed into products by the farm household and sold to traders or other households in local markets.
Although the cost of different inputs into the dairy production varies and is constantly increasing, milk producers
continue to earn minimal returns for their products. Formal milk markets are particularly limited to peri-urban
areas and Addis Ababa. Over 85% of the milk produced by rural households is consumed within the producer
households, with the proportion marketed being less than 7%.

2.3.7 Value addition

There are over 40 dairy processing companies in Ethiopia, with a total processing capacity of 1.2 million
liters per day (TRAIDE Ethiopia 2021). From 2010, the number of processors increased from 18 to 40, and the
volume of processed milk increased from 150,000 liters to 350,000 liters a day. These processors are currently
operating at only 28% of their maximum production capacity. They process a mere 2.6% of the annual milk
production of the country. This small proportion can mainly be attributed to the poor quality of the supplied
milk, caused by poor handling, absence of cooling facilities, unstable power supply (Gebreselassie 2020),
adulteration, as well as low supply of milk within the formal system. Shortage of supply is also linked to the
limitation in the collection domain of processors around main roads, while producers located far from main
roads are struggling with lack of access to markets, as milk collectors do not reach remote areas. Processors
collect milk from milk collection centers (MCCs), cooperatives and unions, private milk collectors and/or
individual farmers. They produce fresh milk, pasteurized ultra-heat-treated (UHT) milk, fermented milk, fruit
flavored (UHT) milk, cream, butter (used to make bread, cosmetics, table and cooking butter), cheese (e.g.
gouda, mozzarella, cottage cheese, provolone, smoked, ricotta, fontina, feta and cream cheese), and yoghurt
(natural and fruit flavored).

2.3.8 Dairy products quality and safety

Milk is the most popular food for human consumption and is considered a complete and nutritious food.
However, it serves as an excellent growth medium for a wide range of microorganisms. In Ethiopia, the
major source of milk is smallholder farmers where milk hygiene and safety standards have failed to meet the
requirements due to improper handling practices, poor quality and safety of the feed, poor pre-milking and post-
harvest handling practices like improper storage, transportation and retailing (Tsedey and Asrat 2015; Fufa et al.
Ethiopia National Dairy Development Strategy: 2022–2031 11

2019). Milk quality and safety is also affected by the health and hygiene of the dairy stock, environment, available
storage facilities and management (FAO 2013). Lack of enforcement of milk quality and safety standards, which
include the use of poor quality livestock feed and non-food grade containers for milking and transportation,
inconsistent testing and rejection at collection points, is an entrenched problem. This is further exacerbated by
limited consumer awareness, processor competition for milk volumes at the expense of quality, lack of quality-
based payment for farmers, and poor milk handling practices along the value chain. Consumption of poor quality
and unsafe milk can pose several hazards to human health. Unsafe milk may contain food-borne pathogens
and toxic chemicals from fungi (aflatoxin) that cause diseases. Moreover, antibiotic residues in milk may cause
antibiotic resistance, which makes treatment of illnesses more difficult. A milk quality control system will test
milk and milk products for quality and safety, and ensure that producers, collectors, processors and marketing
agencies follow the proper procedures.

2.4 Dairy cattle improvement in Ethiopia

2.4.1 Research in dairy cattle genetic improvement
Existing sources indicate that modern dairying started in Ethiopia in the 1950s. The first attempt to improve dairy
production involved receiving of 300 Friesian and Brown Swiss dairy cattle in 1947 from the United Nations
Relief and Rehabilitation Administration. In addition, 109 in-calf Holstein heifers were imported from Kenya in
1959 (Amsalu 2012). The modern dairy development efforts were thereafter adopted by various institutions.
Agricultural teaching institutions, namely Jimma Teaching School, Ambo Agricultural School and College of
Agriculture at Alemaya (now Haramaya University) are pioneers in dairy research for development in Ethiopia. The
adaptation of purebred Friesian as well as their crosses with native Zebu in terms of milk production was studied
by Haramaya University at the university center since 1963.

The centralized livestock research was launched in 1966 in four livestock research stations, namely, Holeta, Bako,
Adamitulu and Melka-Werer. Data were pooled from these stations for overall evaluation. The program began
by assessing the different characteristics and milk production potential of four indigenous Zebu cattle, namely
Borana, Horro, Barka and Fogera, which are considered distinct and relatively uniform, and represent different
agro-ecologies of the country. The assessment conducted by then indicated that the average lactation milk yield
from 4–6 lactation records of each of these indigenous breeds did not exceed 700 liters under relatively improved
management conditions.

Several projects were later launched, all aimed at improving these indigenous cattle for milk production. The
contribution made by the Chilalo Agricultural Development Unit (CADU) is worth mentioning as the first step
in introducing crossbreeding at farm level. After recognizing the possibilities of genetic improvement through
crossbreeding, similar development units like Wolaita Agricultural Development Unit (WADU), funded by the
World Bank, was established and made an immense contribution.

Results of the series crossbreeding program from different projects revealed a dramatic milk improvement
of 300–500% over the performance of the indigenous breed. As a result, a long-term crossbreeding
research program was proposed in 1972. The exotic breeds used were Friesian, Jersey and Simmental.
The study involved contemporary comparisons among the first generation (F1), second generation (F2)
and ¾ exotic breeds. The performance of 50% and higher grade crossbred dairy cows were evaluated and
recommendations made for different production systems. However, the genetic progress made so far was
not commensurate either with the genetic resources available or with the efforts made to improve them
due to several impediments. A major reason could be that projects were limited to specific areas and failed
to address issues affecting other parts of the country. Therefore, formulating an operational strategy that
could evaluate applicability of technologies and capacity building in the use of modern technology was a
challenge.
12 Ethiopia National Dairy Development Strategy: 2022–2031

2.4.2 Research in assisted reproductive biotechnologies

Reproductive biotechnologies are a set of methods, procedures or operations whose main purpose is to
maximize genetic potential and to obtain more offspring under optimal conditions beyond the characteristic limit
of the species. Thus, acceleration of reproduction management, optimization of biological and economic output
at farm level and genetic improvement are some of the advantages that this technology could provide for the
livestock industry. AI, recognized as the best biotechnological technique for increasing reproductive capacity,
has received widespread application in large farm animals, and is the first and only technology applied in Ethiopia
with some success recorded. However, the conception rate in field AI programs, as in other developing countries,
is very low, and therefore the desired effect in terms of animal genetic improvement and increase in the number of
breeding stock has not been achieved. AI with sexed semen brings about great advantages in terms of reduction
of cost of acquiring breeding stock by a preferential use of female sexed semen and herd expansions. Hence,
altering the sex ratio could increase the effectiveness of AI progeny testing programs, effective use of multiple
ovulation and embryo transfer (MOET) and in vitro embryo production (IVP) programs, thus offering additional
opportunities for the breeders.

Estrus synchronization is a manipulation of the reproductive process and reduces or eliminates the need to
detect estrus and allows the herd manager to schedule breeding activities and create a more uniform calf crop.
In the context of smallholders, hormonal estrus synchronization could be used to produce a large number of
crossbred dairy animals within a short period of time, match calving with feed availability and improve the
effectiveness and efficiency of AI services. Although there has been immense effort in research capacity building
on application of assisted animal reproductive technology in EIAR with physical and human capacity building,
further targeted training and expansion would enable the effective use of internal and external genetics in dairy
animal development. Furthermore, mitigation of identified technical and non-technical constraints affecting the
AI service efficiency (infrastructure, input supplies and skills gap) and effectiveness of estrus synchronization has
to be the core points of intervention to utilize the potential of these technologies in improving genetics and the
reproductive performance of dairy animals.

2.4.3 Research in animal feed and nutrition

Research on dairy animal feed and nutrition in Ethiopia in the last 50 years has covered aspects of feed resource
development and utilization with a special focus on improved forage, natural pasture, crop residues, agro-
industrial by-products and rangelands. To date, more than 70 improved forage varieties have been released
for the different agro-ecological zones of Ethiopia. Beyond feed resources development, interventions in
enhancing nutritional efficiency of dairy animals (cattle, goats and camels) and development of feed packages
have been among the key areas of research. In terms of availing technological alternatives, development of
multi-nutrient blocks, urea treatment, use of total mixed ration, application of effective microbes, use of strategic
supplementation and application of early warning systems were the key thematic areas addressed to enhance
nutritional efficiency of dairy animals.

Despite availability of information and technological alternatives, past research in dairy animal feed and nutrition
were constrained by the piecemeal approach in technology/information generation, transfer, and extension.
Possible reasons for low adoption of dairy animal feed and nutrition technologies include lack of adequate
demonstration on comparative advantages of the technologies, lack of specialization in livestock production
and underdeveloped market-oriented livestock enterprises, lack of inputs such as forage seeds, the overall low
attention paid to feed development by the extension service, absence of private sector engagement and actor
convergence in feed technology development, plus transfer/extension. Historically, most development efforts
in Ethiopia in terms of feed resources have been associated with different short-term projects run by external
sources, which lacked strategic and sustainable development approaches. Therefore, strong coordination and
institutional linkages should be established among various actors (research, higher education, extension, seed
enterprises, private sector, investment commission, etc.) for advancement and optimal utilization of feed and
nutrition technologies for dairy animals.
Ethiopia National Dairy Development Strategy: 2022–2031 13

2.4.4 Research in animal health

Rampant animal diseases have a negative impact on the economy in the form of production loss or loss of animals,
the cost of health care, and imposition of trade bans on livestock products. It is also a public health threat due
to zoonosis. Hence, investment in animal health research is important if livestock farmers are to benefit from
the resource wealth and productivity potential. Moreover, competent animal health research is critical for the
development of evidence-based policies and introduction of legislative measures to govern disease surveillance,
prevention, control and eradication strategies.

Animal health research in Ethiopia was launched in the 1980s under the Department of Animal Science. Its main
aim was to complement research in the improvement of dairy animals and offer veterinary services. However, in
the early 1990s, the research was restructured at division level following decentralization of the political system.
This led to the division of the national agricultural research system (NARS) into federal and regional agricultural
research institutions (RARIs) and higher learning institutions (HLIs). With the establishment of EARO in 1997,
animal health research was centralized and the National Animal Health Research Centre (NAHRC) from the
regional animal health diagnostic laboratory based in Sebeta. Following the restructuring of NAHRC to form the
National Animal Health Diagnostic and Investigation Centre (NAHDIC), animal health research in EIAR underwent
a further restructuring process: Department, Program, and Division cross-cutting discipline (from 2007–2012),
Case team (2013–2014), Commodity (2015–2016) and National program (from 2016 to present).

Despite the rigorous restructuring process, today, the animal health program is coordinating research in Holeta,
Bishoftu, Werer, Asosa, Pawe, Kulumsa, Welkitie, Tepi, Jima, Ambo, Abobo, Debremarkos and Mehoni research
centers. The EIAR animal health research program is working with different institutions and NGOs with the aim
of improving livestock production efficiency, animal welfare and public health safety by developing improved
animal health technologies and systems for disease control, containment, and prevention. An example is the
identification of circulating local strains of some pathogens used for vaccine production (strains of FMD viruses,
respiratory disease complexes, lumpy skin disease viruses). Currently, a number of research activities with respect
to the dairy sector are focusing on mastitis, young animal mortality, abortion, respiratory diseases, tick and tick-
borne diseases, internal and external parasites, vector-borne diseases, herbal medicines, public health and food
safety. The diverse indigenous livestock resources and their production potential have not yet been adequately
exploited. The incidences of endemic, emerging, re-emerging and zoonotic diseases, plus resistant pathogens
are increasing over the years and remain major threats to the dairy operation at large. Thus, the realization of the
dairy development strategy demands the existence of a strong animal health research wing.
 14

2.5 Strengths, Weaknesses, Opportunities and Challenges (SWOC) analysis

Developing a country-specific dairy strategy that transforms the sector requires critical assessment of the opportunities and challenges, plus possible interventions.

Table 2: SWOC analysis for dairy development in Ethiopia

Strengths Weaknesses Opportunities Challenges

2.5.1 Dairy genetic improvement

2.5.1.1 Dairy genetics and breeding
• Low external input requirement for milk • Low productivity of milk-producing animals • Huge potential in terms of population, • Low productivity of indigenous
and milk production • Inadequate supply of improved dairy breed of production and diversity of milk-producing dairy animals
• Most indigenous cattle, goat and camel cattle, camels and goats animals (cow, camels and goats) • Poor reproductive performance
populations characterized at phenotypic • Limited breed choice of dairy cattle, camels and • Conducive climate that supports high yielding of indigenous animals
level and some at molecular level goats dairy breeds • Climate change/recurrent
• Presence of a research program for dairy • Lack of strong animal records and traceability system • Availability of national dairy cattle, camels and drought
cattle, camels and goats small ruminant breeding policy and research • Small herd and flock size in
• Poor logistics support and incentive mechanisms
• Presence of community-based breeding strategy highland areas
for dairy extension service
program initiatives for goats • Availability of research centers, HLI, LDI and • Mobility in pastoral areas
• Inefficiency of dairy farms (synchronization, AI,
• Availability of some established dairy other organizations working on the dairy value
MOET, etc.) • High prevalence of animal
cattle breeding herds in different research chain
• Inability to meet international sanitary and zoo/ diseases
centers, plus ranches and stations • Presence of professional associations (ESAP
phyto-sanitary standards
• Presence of institutional structure including and EVA)
• Poor utilization of milk products
MOA, LDI, EIAR, RARIs and universities • Growing demand for milk and milk products
• Absence of well-established and sustainable
• Availability of FTCs and livestock • Attention given to the dairy sub-sector by
breeding program and schemes for different milk-
development agents at Kebele level and government bodies, donors and other
producing animals
presence of dairy extension packages funding organizations
• Uncontrolled animal movement and marketing
• Capacity building at various levels (HLI, EIAR,
• Low level of community involvement on genetic
RARI, ATVET and others)
improvement of dairy animals
• Presence of international research centers
• Poor and inefficient extension system (e.g.
(ILRI, ICARDA) providing backstopping for the
limited advisory and technical support for genetic
NARS
improvement)
Ethiopia National Dairy Development Strategy: 2022–2031
Strengths Weaknesses Opportunities Challenges

• Genetic erosion and dilution among indigenous

cattle
• Negative selection (selling and castrating fast-
growing young bulls (cattle, camels and bucks)
• Critical shortage and inefficiency of multiplication
centers for breeding animals and conservation of
indigenous animals
• Absence of animal breeders’ society
• Lack of well-organized and consistent breeding
program (with defined breeding goals) designed
particularly for dairy camel improvement
Ethiopia National Dairy Development Strategy: 2022–2031

• The indigenous cattle, camel and goat population

are not adequately characterized, especially at
molecular level
• Poor intra- and inter-institutional collaboration and
partnerships
• Underutilization of technologies to promote
production and productivity of dairy animals
• Lack of strong quality standard (certification) and
regulatory mechanism for dairy breeds

2.5.1.2 Assisted reproductive technology in dairy cattle, camel and goat breeding
• Widely adapted use of cattle AI and ES in • Poor expertise and lack of infrastructure for the • Availability of policy and government • Low level of trust on reproductive
cattle breeding in the country wider application of ART in wider dairy production support in utilization of modern reproductive technologies of dairy cattle
• Existence of regional AI centers and LDI potential areas biotechnologies for dairy cattle breeding breeding

• Existence of substantial number of cattle • Poor efficiency of AI service and delivery system • Tax exemption on all reproductive • Poor/No recording system on
AI technicians in different agro-ecologies • Absence of regulatory service on the quality biotechnology tools and technologies, plus reproductive performance
throughout the country assurance of semen and AI service ease of transportation
15
 16

Strengths Weaknesses Opportunities Challenges

• Initiation of private cattle AI services • Lack of baseline information on reproductive • Initiation of teaching and trainings of • Dependence on imported inputs
• Initiation of cattle ART research and potential and characteristics of indigenous breeds biotechnologists in universities and TVETs and some technologies for dairy
teaching in NARS & HLI in the country • Low adoption of reproductive technologies other animal breeding,

• Availability of ART-related facilities, than conventional AI • Weak capability of private sector

supplies, technologies and germplasms in • Low availability/absence of technology tools for investment on technological
the global market camel and dairy goat breeding in the country input supplies

• Existence of livestock breeding policy, • Lack of hands-on practical training in the HLI on • Lack of involvement of private
LSA, agricultural biotechnology research artificial breeding of dairy animals sector in semen and other inputs
strategy, livestock research strategy etc., production

• Identified dairy development corridors in • Critical shortage of ranches and

the country multiplication centers for dairy
cattle, camel and goat breeds
2.5.2 Dairy feeds and nutrition
2.5.2.1 Institutional dimension of dairy feeds and nutrition
• Presence of key public institutions (MOA, • Absence of strong linkage and complementarity • The move toward pluralistic extension • Absence of feed processing
higher learning institutions, and federal among public institutions (teaching, extension, • Presence of ILRI gene bank and biodiversity sub-sector representation in
and regional agricultural research) research, regulatory, and standards) institute the agricultural research and
• Presence of NGOs and the private sector • Poor linkages among public, private companies, extension linkage at various
farmers’ organizations, and NGOs levels
• Presence of Ethiopian Animal Feed
Industry Association (EAFIA) • No national platform for the private sector
• Professional societies (ESAP, EVA)

2.5.2.2 Supply and quality of basal dairy feeds

• Presence of packages of: • Absence of national policy and strategy for • Presence of grazing lands and rangeland • Population pressure, conversion
• Improved forage production sustainable use of grazing land resources of grazing lands to crop lands,
• Limited attention and awareness by community • Existence of traditional institutions for and environmental change both
• Pasture/range management &
and public institutions about best practices and management of community grazing land in the highlands and lowlands
• Forage crops
packages resources.
• Presence of government initiatives for
sustainable forage intensification
Ethiopia National Dairy Development Strategy: 2022–2031
Strengths Weaknesses Opportunities Challenges

• Limited forage seed and planting material supply • Availability of suitable agro-ecologies for • Limited land allocation for dairy
• Lack of incentives for forage seed production forage production under irrigation and rain- • High investment requirement for
investment fed conditions improved forage production and
• Absence of modern database on grazing • High demand for livestock and livestock range resources
resources (location, coverage, status) products
• Increasing demand for quality livestock feeds
in the local and export market

• Government commitment towards • Limited awareness in economic benefit of forage • Availability of water for implementing • High investment cost for
irrigation-based agricultural development production under irrigation irrigation-based feed development. irrigation schemes
• Lack of compelling evidence on economic benefit • Availability of irrigation potential for forage
of irrigation-based forage production development in high livestock production
Ethiopia National Dairy Development Strategy: 2022–2031

potential areas
• Opportunity for job creation to women and
youth

• Presence of farmers’ experience in use of • Little attention given to improve, conserve and • The presence of proven and emerging • Wastage of crop residues and
crop residues as livestock feed utilize crop residues technologies to conserve crop residues lack of proper storage
• Limited knowledge on the potential of crop (densified block and TMR) • Low nutrient density and
residues as livestock feed in some areas • Increasing price of milk attracting investment bulkiness
in feed production

2.5.2.3 Supply and quality of feed ingredients and compound feeds

• Increasing trend in the number of food • Absence of regulations to control marking of • Development of agro-industrial parks • Unregulated price and high
processing industries producing by- industrial byproducts created a gray area for ever interference of middlemen in
products for livestock feed increasing prices of animal feed marketing
• Presence of feed processing companies, • Lack of proper marketing channel for feed • Emerging trend on value addition of • Lack of sustainable and adequate
and farmers’ unions engaged in ingredients and compound feeds agricultural commodities supply of feed ingredients
compound feed production • Low production level of compound feeds • Macro-economic policy supporting • High cost of ingredients and
investment and commercialization compound feed
17
 18

Strengths Weaknesses Opportunities Challenges

• High potential for increased domestic • Underutilization of some potential feed resources • Emerging trend in intensification of livestock • Limited direct and efficient
production of compound feed and (sugarcane by-products). production demanding quality feeds market linkage of ingredient
ingredients • Limited knowledge of ration formulation for • Possibility of attracting domestic and foreign producers and compound feed
different animal species direct investment in specialty feed ingredients producers

• Inadequate policy support • Limited technical capability to

support production of formula
• Limited financial support for investment in the area
feeds, and utilization of agro-
industrial by-products
• Absence of domestic production
and reliance on importation and
high cost of premixes and feed
additives

• The move towards exporting agricultural • Exporting agricultural products without value • Emerging trend on value addition of • Agro-industries are running
products after value addition addition agricultural commodities below their capacity due to
• Limited investment in processing of agricultural • Macro-economic policy supporting shortage of raw materials,
products investment and commercialization which affect compound feed
processing
• Feed companies operating
below installed capacity
• Continued export of whole grain
of oil seeds

2.5.2.4 Rangeland rehabilitation, restoration and conservation

• Presence of formal (government) and • Fragile rangeland demanding proper • Availability of research centers/research • Climate change/variability and
informal (community) pastoral institutions management strategies drought
• Lack of proper understanding of rangeland and • Availability of undergraduate and graduate • Lack of clear policy on rangel and
pastoral livelihood by policy makers programs on rangeland management land tenure system
• Land degradation (e.g. vegetation, soil) • Restriction of mobility
Ethiopia National Dairy Development Strategy: 2022–2031
Strengths Weaknesses Opportunities Challenges

• Lack of appropriate pastoral training centers with a • Availability of different rangeland • Expansion of alien herbaceous
focus on rangelands management projects and woody species
• Knowledge gap on the status of rangelands • Inter- and intra-clan conflicts

• Policy focus to pastoral areas • Weakening of pastoral customary institutions • Presence of early warning system and • Frequent drought and poor
implementation manual preparedness
• Poor drought response
mechanism

2.5.2.5 Feeding system/nutrition of different categories of dairy animals

Ethiopia National Dairy Development Strategy: 2022–2031

• Long years of research experience and • Limited on-farm demonstration and technology • High demand for improved feed technologies • Land allocation for forage
strategic supplementation, plus feeding transfer initiatives and information development
packages for various categories of dairy • Limited efforts in digitalizing promising • High potential for compound feed/ • Limited supply and ever-
animals technologies ingredient, forage crops and range increasing feed price
• Mismatch between nutrient requirement and development • Limited supply of feed
supply for various categories of dairy animals • Strategic supplementation based on the ingredients and compound feed
quality of basal diet and productivity level
• Expert advice and use of home- made mixture

2.5.2.6 Supply of feed inputs (forage seed, fertilizer) and machinery (feed processing equipment, mower, baler, tractor, chopper)
• Huge demand for inputs in domestic and • Lack of experience in responding to market signals • Policy supports for investment • Lack of working experience and
regional markets competence

2.5.2.7 Dairy feed safety and quality regulation

• Presence of national institutions (Ethiopian • Limited public awareness on feed quality and • Use of public media and electronic means for • Traditional society and
Agricultural Authority and Ethiopian safety standards public awareness creation institutions that are not product
Standard Institute) quality and safety conscious
• Emerging private institutions in feed safety • Limited analytical capacity in service delivery • Possibility for domestic/foreign direct • Expensive analytical service
and quality analytical service investment charge
19
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Strengths Weaknesses Opportunities Challenges

2.5.3 Climate smart dairy development

2.5.3.1 Climate change/variability and greenhouse gas emissions
• Government commitment to build green • Lack of attention in targeting climate change and • Global and national focus on climate change • Limited human, physical and
economy mitigation and green economy financial capacity
• Lack of tailor-made livestock extension • Donors and development partners interested
in sustainable production systems

2.5.4 Biosecurity and dairy health management

• Presence of a number of regional • Weak regulatory service on dairy biosecurity, food • Availability of policy and strategy documents • Uncontrolled animal movement
laboratories and national animal health safety, drug use, movement control on livestock development (dairy cattle within and along borders
institutes (AHIs) engaged in disease • Unavailability of strong unit accountable for rapid breeding policy and strategy, LMP, feed • Occurrence of emerging and
investigation and diagnostic services response in epidemics and disasters strategy, disease control strategy, CRGE, etc.) re-emerging diseases due to
• Existence of animal health and animal • Lack of institute specifically dealing with diseases • Establishment of the Ethiopia Agricultural climate change, natural and
biotechnology research programs in EIAR affecting dairy sector and veterinary public health Authority that plays a regulatory role manmade hazards
• Presence of domestic institute producing • Weakness in regulation of dairy professional • Expansion of colleges and universities • Existence of rampant diseases
vet. vaccines competency creating skilled human resources in veterinary and disease vectors
• Functional quality control laboratory and dairy/animal biotechnologies • Market inflation and scarcity of
• Limited share of private sector in veterinary
to ensure quality and safety of animal service, pharmaceutical and diagnostic kits • High demand for food of animal origin foreign currency for importation
products of veterinary inputs
• Shortage of veterinary inputs (vaccines, equipment • Availability of advanced dairy technologies in
• Availability of animal health clinics and and drugs, quality laboratory consumables) the global market • Drug resistance
health posts at the village and PA levels • Presence of rich indigenous knowledge and
• Lack of national dairy herd/flock health
• Existence of established surveillance management guidelines and biosecurity herbs (ethno-veterinary practice)
system and risk analysis guidelines and standards • Implementation of control and eradication
• Availability of control strategy with • Poor infrastructure development (electric power, program for PPR (goat disease
implementation guidelines for some transportation, cold-chain facility) needed for
priority diseases of dairy animals (CBPP, competent veterinary services
LSD, FMD, tryps, brucellosis, TB, etc.)
• Unavailability of post entry quarantine for
imported animals
Ethiopia National Dairy Development Strategy: 2022–2031
Strengths Weaknesses Opportunities Challenges

• Lack of evidence on economic impact of animal

diseases on dairy industry
• Limited access to wide range of drugs and
vaccines, plus technologies used for dairy animal
disease control
• Lack of implementation of the identification and
traceability system

2.5.5 Dairy product quality and safety

• Government focus on dairy sector • High post-harvest losses and safety problem • High demand for safe, high-quality milk and • Unavailability of food grade milk
development with special attention on due to lack of market, lack of cooling facilities, milk products with a long shelf-life handling materials
quality and safety improvement inefficient transportation, lack of appropriate
Ethiopia National Dairy Development Strategy: 2022–2031

• Presence of development partners and • No system for control of

• Development and approval of 10-year technology, underdeveloped milk processing and stakeholders supporting the government on antibiotics residue
perspective plan to improve dairy product marketing system the issue of dairy product quality and safety • Illegal importation of sub-
quality and safety • Weak coordination of value chain actors in • Presence of standards for safety and quality standard dairy products
• Government commitment to develop maintaining quality and safety of milk/milk products sourced from cattle, (implications to human health)
milk marketing channel to link with IAIPs • Poor quality and inadequate hygienic practices at camels and goats
(Integrated Agro-industry Parks) farms, milk collection centers, transportation and • Increasing camel milk demand in
storage/bulking, plus marketing dairy products neighbouring and Middle East countries
• Limited access to food grade milking utensils, • Presence of dairy processing, collection, IAIP,
storage, transportation and chilling equipment; dairy unions and cooperatives
and facilities at collection centers and different
segments
• Limited and unreliable supply of utilities
(electricity, clean water, etc.) mainly in rural areas
• Limited access to credit and financial services to
improve milk quality and safety
• Lack of quality-based payment system
• Weak law enforcement of hygiene and safety
regulations to prevent adulteration of milk
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Strengths Weaknesses Opportunities Challenges

• Limited capacity of personnel on milk cold chain

maintenance and laboratory testing equipment

2.5.6 Dairy business management, market development and support for commercialization
2.5.6.1 Dairy business development services
• High government priority and • Limited understanding of dairy as a business • Expansion of business incubation centers • Limited understanding of the
development of initiatives to promote the • Poor development of dairy business services • Emerging experiences in Agricultural One dairy business and poor business
dairy sector Stop Service (AOSS) centers development capacity
• Limited business models to access inputs and
• Existing institutional arrangement/ marketing of outputs • Increasing demand for milk and milk products • Inadequate infrastructure to
government structures support the development and
• Poor business enabling environment • Diverse agro-ecology for dairy production
• Existing institutional capacity expansion of dairy business
• Poor focus on dairy entrepreneurial skill • Improved awareness of consumption of dairy
services
development products
• Limited incentives to encourage
• Trainable human resources (youth, graduates)
business service provision
• Emergence of integrated agro-processing
• High initial investment for dairy
industry parks in the country
farming and dairy processing
• Shortage of foreign currency
allocated for importation of
capital goods

2.5.6.2 Dairy market development

• Attempts to distribute cold chain facilities • Poor regulatory system • Promotion of dairy as priority development • Poor infrastructure for dairy
for milk collection and transportation • Poor transportation facilities, market infrastructure interventions in the food system marketing
• Emergence of integrated agro-processing transformation process • Lack of protection for local
• Limited access to market information
industry parks in the country • Rapid increase in demand for milk and milk producers
• Poor promotion of the nutritional value of dairy
• Development of dairy marketing legal products • Lack of legal framework on out-
products
framework • Increasing demand for camel and goat milk growers scheme
• Weak implementation of collection centers
• Initiatives to develop milk collection • High dairy product import demand in • Absence of strong regulatory
• Unorganized marketing system
centers neighbouring countries (Somalia, Kenya, body and weak enforcement of
• Lack of quality-based milk marketing system
Sudan, Djibouti, Eritrea and South Sudan) dairy marketing legal framework
Ethiopia National Dairy Development Strategy: 2022–2031
Strengths Weaknesses Opportunities Challenges

• Inadequate bulking and transportation systems • Continental free trade partnership and duty • Weakness in sustaining collective
• Lack of trained technicians to install and maintain free/quota free privilege action
cooling facilities • Development of integrated agro-processing • Limited concern for consumer
industries safety
• Increasing supermarkets and international • Seasonality of demand for dairy
hotels and restaurants products
• Presence of vibrant airline and development • Lack of business ethics
of railways • Lack of clear dairy input
• Emerging school feeding initiatives marketing business models
• Presence of Milk Day Event for promotion of
milk consumption
Ethiopia National Dairy Development Strategy: 2022–2031

2.5.7 Investment in dairy farming and processing industry

• Government commitment to developing • Poor ease of doing business in the dairy sector • Diverse and suitable agro-ecologies for dairy • Limited access to land and longer
the dairy sector (Homegrown economic • Exclusion of the dairy sector from provision of investment land transferring procedures
reform like Ten-in-Ten initiative) essential incentive packages (tractors, trailers and • Diverse species and breeds of dairy animals • Limited incentives to encourage
• Presence of system to develop/amend their spare parts) for crossbreeding and setting up ranches private sector
incentive packages • Lack of organized dairy information system • Positive economic outlook (population growth • Lack of commitment in
• Presence of relevant government • Shortage of experienced personnel in dairy and increasing demand for dairy products, enforcement of land use plans
structures to support dairy investment management improved awareness of dairy products (replacement of dairy farms by
• Experience in commercial dairy consumption) other enterprises)

• Emergence of integrated agro-processing • In vestment protection against nationalization • Poor access to finance
industry parks in the country /expropriation • Limited foreign exchange
• Existing institutional capacity allocated for import of dairy
goods and equipment
• Considering dairy investment as
urban organic waste
• VAT on dairy products
discourages value addition
23
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Strengths Weaknesses Opportunities Challenges

• Supportive policy (nutrition-sensitive

agriculture, job creation, food security, import
substitution, industrial parks development)
• Easily deployable human resource
• Availability of diverse financial institutions

2.5.8 Dairy extension/coordination and linkages

• Dairy is a government priority sector • Weak linkages among dairy value chain actors • Presence of research centers, universities, • Weak link between research and
• Presence of reform institutional structure • Weak institutional coordination ATVET extension
(MOA-LDI, TVET, research, and others) and • Lack of inclusive dairy extension advisory service • Development of 10-year perspective plan and • Unattractive incentives for
agro-industry park Ten-in-Ten initiative for dairy sub-sector extension agents
• lack of extension specific to the dairy sector
• Presence of different dairy projects led by • Involvement of development partners in the • Poor access to ICT infrastructure
• Lack of competency among extension agents
development partners dairy value chain and services
(DAs)
• Existing FTCs, and PTC services for farmers • High demand for milk and milk products • Seasonal movement of pastoral
• Weak promotion and practical demonstration of
and pastoralists • Availability of information channels (TV, radio, community
dairy technologies
• Experience of the farmer in dairy farming in and print media) to promote dairy and dairy • Recurrent drought in pastoral
• Lack of platform for dairy value chain actors
the cluster (like Bure, etc.) products areas
• Weak PTCs extension service in most pastoral and
• Availability of pilot dairy digital extension • Expansion of urbanization and emerging • Conflict among pastoral
agro-pastoral areas
service (PAD) middle-income society communities due to limited
• Low technology application in FTCs and PTCs for
resources (pasture and water)
dairy demonstration practice
• High turnover rate of extension
agents

2.5.9 Capacity building

• Availability of researchers, experts, and AI • Continuous turnover of experienced breeders, • The government’s attention for human • Inadequate budgeting for
technicians experts and AI technicians resource development genetic improvement and
• Availability of structure for implementing • Low level of breeding knowledge among experts, • Availability of HLIs capacity building
on-farm dairy breeding activities AI technicians and farmers • Limited focus on long-term
training
Ethiopia National Dairy Development Strategy: 2022–2031
Strengths Weaknesses Opportunities Challenges

• Availability of AI centers and liquid • Shortage of sufficient number of trained AI • Inefficient procurement system
nitrogen production plants in different technicians, experts and breeders for utilizing the available
parts of the country • Limited coordination, complementarity and resources
• Establishment of modern biotechnology integration among MOA, research institutions,
laboratory at Holeta HLIs and other development institutions related to
the dairy industry
• Inadequate and un-sustained financial support for
the promotion of the dairy sub-sector
Ethiopia National Dairy Development Strategy: 2022–2031
25
26 Ethiopia National Dairy Development Strategy: 2022–2031

2.6 Benchmarking
Benchmarking is a process of improving performance by constantly identifying, understanding and adapting
best practices and processes followed inside and outside the industry and implementing the results (Dragolea
and Cotîrlea 2009). The main emphasis of benchmarking is on improving a given business operation or a
process by exploiting best practices. There are two types of benchmarking, namely, internal and external.
Internal benchmarking involves benchmarking against its own units or branches, for instance, business units of
the company situated in different locations. External benchmarking is used by companies to seek the help of
organizations that have succeeded on account of their practices. This kind of benchmarking provides one with an
opportunity to learn from high-end performers.

Targets to transform the Ethiopian dairy sub-sector into a regionally and globally competent entity by 2030
was benchmarked against Brazil and India (Table 3). These countries have well developed dairy research and
development platforms, and have made significant progress in dairy development and research. Therefore,
Brazil and India are used as reference points in the preparation of Ethiopia’s 10-year Dairy Sector Development
Strategy.

2.6.1 The Indian dairy sector

India is the world’s largest producer of dairy products by volume, accounting for more than 13% of the world’s
total milk production. It also has the world’s largest dairy herd. As the country consumes almost all of its own
milk production, India was neither an active importer nor an exporter of dairy products prior to the year 2000.
However, since implementation of the Operation Flood Program, the situation has changed significantly;
domestic production increased, and importation of dairy products reduced to very small quantities. Since 2003,
India has become a net exporter of dairy products. Yet, the country’s share in global dairy trade remains minor, at
0.3% and 0.4% for exports and imports, respectively.

India’s dairy sector has a unique smallholder milk production system, wherein more than 70% of dairy farmers
own one to two animals. Dairying in India is more about livelihoods for about 80 million rural households than
simply a business. It provides a stable cash flow compared to crop cultivation. There is a large network of dairy
institutions, all providing market access to the dairy farmers. Around 60–70% of consumer money flows back to
producers, which is the highest in the world. Milk is India’s single largest agricultural commodity in terms of value,
amounting to about USD 118 billion.

Having achieved the status of the largest milk-producing nation in the world, India offers a number of important
lessons for dairy development, and the associated policies including the regulatory framework in food quality and
safety, genetic improvement, milk processing and responding to demand for traditional products by the formal
sector, market linkage and continuous support to the sector. The government of India issued and implemented a
number of acts to regulate the food quality and safety issues. Prevention of Food Adulteration Act is the main food
safety act that focuses on establishment of regulatory standards for food safety. The standard applies equally to
domestic and imported foods including livestock products.

The Indian dairy sector has also benefited from the multiplier effects of the Green Revolution which brought
dramatic change in the crop sector and related infrastructure development. The livestock sector benefited from
improved irrigation infrastructure which enabled year-round availability of fodder and feed. Genetic improvement
of dairy animals through selection and crossbreeding also played a key role in India’s dairy development. The
success of cattle crossed with exotic dairy genes offers important lessons for similar approaches in tropical
settings.

India has more than 120 million goats and about 70% are nondescript and meat type (Pal et al. 2011). In 2017–
2018, the country produced 6.16 million tons of goat milk which is expected to increase to 8.2 million tons in
Ethiopia National Dairy Development Strategy: 2022–2031 27

2022–2023. Available information indicates that goat milk contributes about 3% of the total milk consumed in
India. Each milking goat provides about 0.5 to 2 litres/day and is milked for about six months. A good quality
dairy goat can produce up to 2.7 litres of milk per day.

Globally, the population of goats is showing an increasing trend. A similar trend has been observed in Ethiopia
where the goat population has increased by about 214% between 1995 (about 16.7 million) and 2020 (52.5
million). According to CSA (2021), there are close to 3 million goats used for milking in Ethiopia. On average,
these animals are milked for about 75 days with an average yield of approximately 0.5 litres per day. There are
various options of increasing the milk production from goats in Ethiopia including increasing the population
of goats to be used for milking, increasing the productivity of individual goats beyond 0.5 litres per day and
increasing the lactation length of goats, among others. Hence, exploiting these genetic resources is important
using the experiences of India as a benchmark.

2.6.2 The Brazilian dairy sector

The Brazilian dairy sector is the fourth largest dairy industry in the world. The number of milk cows in Brazil
reached 19.7 million in 2016, according to the Municipal Livestock Research (IBGE 2018). This value is equivalent
to 9% of the entire national cattle herd. Brazilian milk production grew even when cow numbers were falling
because of impressive increases in milk yield per cow. The milk yield has been consistently increasing by 4.3%
since 1993. Current average lactation milk yield per cow is about 2,849 litres for 50% crosses and 1,490 litres for
indigenous breeds (Table 3). Because most dairy farms use grazing as the primary source of feed, milk production
in Brazil exhibits a seasonal pattern. Monthly production in the fall months of April, May and June, when cool, dry
weather slows grass growth, is 20–25% less than during the warmer, wetter spring and summer months. Brazil’s
milk production is much more stable than in countries such as Ireland that rely even more heavily on rotational
grazing and seasonal calving. Hence, seasonality does not appear to present a significant problem for the
processing sector or serve as a constraint to expanding exports.

Brazil’s dairy processors are part of a rapidly evolving, multi-faceted industry. Fluid milk constitutes about one-
third of total dairy products processed and marketed in Brazil. UHT milk represents 70–75% of fluid milk sold in
the country. The informal market constitutes about 35% of the milk consumed in the country. Milk powder—a
major export item for Brazil’s dairy industry—represents a growing segment in the dairy processing business.

Brazil has a good supply of dairy service providers in the primary producing regions. Veterinarians are especially
in ample supply. Many DVMs are employed in other segments of the dairy sector besides animal health.
Concentrates, by-product feeds and dairy supplies appear to be readily available. Of particular note, the large
frozen concentrated orange juice industry of Brazil is located in close proximity to the major dairy region, thus
making citrus pulp readily available to most dairy farms.

Table 3: Proportion of cattle population, milk production and reproduction performances in Brazilian, Indian and
Ethiopian dairy cows

Proportion (%) Lactation milk yield (kg/cow) Lactation length (days) Age at first calving (month)
Country of crossbred/
pure exotic
50% cross Indigenous 50% cross Indigenous Cross Indigenous

Brazil 80 2,849 1,490 281 312 34.5 36.0

India 20 3,594 2,300 322 313 34.6 38.9

Ethiopia 2.7 2,200 550 340 230 36.3 45.0

3 Strategic issues and interventions

Based on the analysis of strengths, weaknesses, opportunities and challenges in the dairy sector, this section
identifies the major strategic issues and interventions for development of the Ethiopian dairy industry. It begins
with a brief description of the issues followed by a detailed Table that clearly outlines the short-, medium- and
long-term interventions.

3.1 Description of strategic issues and

interventions
3.1.1 Dairy breed improvement
In Ethiopia, despite the huge number of cattle, camels and goats for milk production, productivity remains
disproportionately low when compared to other sub-Sahara African countries including Kenya and Sudan. The
breeds available in the country are evolved for adaptive traits with multi-purpose uses and not specialized for
a particular type of production. Low productivity of indigenous milk-producing animals, genetic dilution of
indigenous animals through uncontrolled breeding, inefficient use of animal biotechnology, lack of national
level animal recoding and traceability system, lack of emphasis on establishing different breeders’ societies, lack
of an agro-ecology-based dairy development strategy for milk-producing animals, and lack of improved heifer
multiplication centers are the major strategic issues/challenges that should be addressed in order to transform the
Ethiopian dairy sector.

With respect to assisted reproductive technology, various techniques have been developed and refined
globally to obtain a large number of offspring from genetically superior animals or obtain offspring from
infertile (or sub-fertile) animals. Among these techniques, artificial insemination, estrus induction and
control, embryo transfer, in vitro fertilization, and sexed semen technologies have impacted the dairy
sector and were promoted to the commercial dairy industry due to the double and more advantage they
render to the producers. Artificial insemination, the most commonly used and valuable biotechnology,
has provided dairy producers an opportunity to transform the herd structure through proper use of proven
semen. It has been in operation in Ethiopia for over 30 years, but with minimal efficiency and impact in
productivity and genetic improvement. A successful artificial insemination operation requires acquisition
of quality semen, proper estrus detection, and ability to properly place the semen at the right place in the
reproductive tract of the fully fertile and conditioned female animal. Estrus synchronization is the second
most widely implemented technology with lower success in all regions in Ethiopia that participated in the
campaign-based implementation. Nevertheless, in comparison with other AI, its impact has remained low
due to a number of technical, system-related, financial and managerial problems. For instance, if proper
levels of nutrition, the right body condition and health, plus heat management situations are not optimal, the
program is likely to fail.

28
Ethiopia National Dairy Development Strategy: 2022–2031 29

3.1.2 Dairy feeds and nutrition

Dairy is among the key and high value livestock commodities offering multiplier effects for boosting economic
and social growth through vertical and horizontal linkages. Despite the presence of a huge resource base, dairy
production in Ethiopia is constrained by limited supply/poor feed quality, traditional feeding practices and
skyrocketing feed prices. Animal feed is a key determinant of biological/economic feasibility and environmental
sustainability of dairy production since it accounts for about 60–70% of the total cost of production. The 10-year
Ethiopian feed perspective plan and Ten-in-Ten initiative envisages increasing dairy feed production from 23
million tons in 2022 to 39 million tons in 2030. To realize this goal, it is worth identifying strategic issues and
interventions on aspects of dairy animal feeds and nutrition. The major strategic issues limiting growth in the
Ethiopian dairy feed and nutrition sector include poor institutional development, poor quality and insufficient
quantity of feeds, poor rangeland rehabilitation, restoration and conservation, traditional feeding practices,
limited private sector engagement, low participation of youth groups in production, processing and marketing of
dairy feeds.

3.1.3 Biosecurity and dairy health management

The dairy sector in Ethiopia is highly influenced by widespread trans-boundary and production diseases that
are prevalent in the country. According to data from the national animal disease surveillance system (DOVAR-II),
anthrax, contagious bovine pleuropneumonia (CBPP), contagious caprine pleuropneumonia (CCPP), foot and
mouth disease (FMD), lumpy skin disease (LSD), brucellosis, peste des petits ruminants (PPR), and trypanosomiasis
are the most commonly reported diseases. These are also among the 15 prioritized national list of animal diseases
in the country which are cited as important diseases in the livestock sector analysis report (Shapiro et al. 2017).
Other diseases include mastitis, ecto- and endo-parasites. Young stock mortality, plus pre parturition loss due to
abortion and stillbirth are the other factors that are hindering development in the dairy sector. Thus, a production
system and species-specific young stock mortality reduction package should be implemented to reduce the
mortality rate. This will help to increase the number of replacement stock in the herd/flock from 15% to over 35%,
and will allow producers to increase their herd sizes. As informed by the SWOC analysis, the major biosecurity
and dairy health issues to be addressed in this strategic plan are dairy biosecurity standards and guidelines,
disease surveillance and traceability system, veterinary service delivery and accessibility of inputs, mortality of
young stock, and regulatory service on standardization of inputs and dairy products. Addressing these strategic
issues will play a key role in improving productivity and enhance the benefits from the dairy sub-sector.

3.1.4 Milk quality and safety

Despite its strategic importance, Ethiopia’s dairy sector remains largely unregulated, with the bulk of milk sold
in its raw (unprocessed) form in informal markets. Suppliers are paid based on the quantity of milk produced
rather than on its quality. Since most consumers prefer to purchase low-cost raw milk, a major challenge for the
dairy value chain production has been to make formal dairy marketing more attractive. Lack of adherence to milk
quality and safety standards, which includes the use of poor-quality feed, non-food grade plastic containers for
milking and transportation, and minimal testing and rejection at collection points, are among the entrenched
problems. This is further exacerbated by limited consumer awareness, processor competition for milk volumes at
the expense of quality, poor milk handling practices along the chain, and minimal enforcement of milk quality and
safety standards. The major challenges that need to be addressed to improve the quality and safety of milk along
the dairy value chain include:

• Poor dairy husbandry practices and dairy extension services to support quality and safety of milk production at
farm level.

• Inadequate milk handling facilities and milk quality laboratory and required quality testing equipment at milk
collection centers.
30 Ethiopia National Dairy Development Strategy: 2022–2031

• Lack of technical, managerial and marketing skills in the dairy value chain to maintain the quality and safety of
dairy products.

• Inadequate infrastructure, inappropriate transportation of raw milk and inconsistent testing of the product at
delivery, bulking points and milk collection centers.

• Lack of milk quality-based payment system.

• Weak regulatory system.

3.1.5 Business management and market development

Marketing is the pooling factor in stimulating production and productivity improvement. It is effective in the
creation of new and activation of the current demands if supported with effective promotion. Marketing facilitates
the development of technical innovations and provides employment opportunities for all actors engaged in
the dairy value chain. However, dairy and dairy products marketing is very complex and constrained by several
factors related to product quality, lack of a strong regulatory system, poor infrastructure and lack of a well-
coordinated system to lead the input and output marketing.

3.1.6 Investment in commercial farming and processing industry

The ten-year perspective plan of the Ethiopian government clearly promotes commercialization of the dairy
sector. The government fully recognizes the potential for commercialization of dairy farming to increase
production and create employment opportunities in rural, urban and peri-urban areas. The government program
promotes the development of the sector through close engagement with smallholder and commercial farms.
Government support for investment in dairy farming in Ethiopia aims to achieve multiple targets including
increased production and productivity, plus job creation and improved livelihood for youth, women and other
actors involved in the dairy value chain. Enhanced food and nutrition security, and achievement of targets set in
the Ethiopian Food Systems Transformation Pathway are also among the targets of dairy commercialization in the
country. Various regulatory and investment-oriented policy measures in the form of both fiscal (tax holidays, tax
exemption, etc.) and non-fiscal (land allocation, one-stop-shop services, etc.) provisions will be put in place to
bolster the government’s capacity to support medium and large commercial farms.

3.1.6.1 Access to land

Access to land is typically one of the significant constraints that dairy entrepreneurs face when investing in
new operations. Obtaining land for initial investment and expansion is extremely difficult. Land in Ethiopia is
considered a public property. It can be leased by those who want to use the commodity. There are two broad
classifications of land for rent or lease purposes: rural land is mainly used for agricultural purposes, while urban
land is mainly used for industrial purposes or other activities. Land lease or rental rates differ depending on
location. The lease price of rural land is set by authorities and may depend on factors such as the development
level of the area, distance from all-weather roads, quality or grade of the soil, irrigation possibilities, and
agricultural activity. The duration of the lease contract can also vary depending on the same factors. Land prices
in urban areas can be set by auction. Companies that contribute to regional welfare can occasionally lease land
without any payments.

3.1.6.2 Access to financial institutions and services

Though the financial sector in Ethiopia is liberalized, it is not adequately serving the dairy industry. Despite the
availability of over 12 new private commercial banks and one cooperative bank, their involvement in provision of
services is limited to large investors who are not usually interested in investing in the dairy sector. This is mainly
Ethiopia National Dairy Development Strategy: 2022–2031 31

due to long reproduction cycles of the species that result in long gestation period for the investment in dairy cattle
and camel farming, plus the overall high level of risk involved in livestock farming. These commercial banks have
been involved in credit services through government incentives for special programs and NGO support.

The other major source of credit is from microfinance institutions (MFIs) that flourished after the issuance of
Proclamation 40/1996, which provides for the establishment, licensing and supervision of microfinance
institutions. Up to 2005, there were 23 licensed MFIs reaching about 905,000 clients in the country (Gobeze,
2005). Though most of the MFIs support the dairy sector, smallholder farmers are constrained by unfavorable
loan sizes, repayment periods and the long application procedures. The maximum loan amount is Birr 5000,
which is not enough to start a single dairy cow farm. According to the latest Directive No MFI/13/2002 (Ibid), the
interest rates are high (up to 20%) when compared to the bank interest rate (7.5%). In addition, the ceiling interest
rate can still be decided by the board of directors. The MFIs are also loosely linked to other actors in the service
delivery system, including government personnel. This is because these institutions work independently once
they obtain a certificate from the National Bank. Wolday (2002) pointed out that the National Bank of Ethiopia
has limited capacity to supervise MFIs and there was no government department or other institution tasked to
supervise or support these institutions.

3.1.7 Extension, coordination and linkages

Extension, coordination, and linkages are systems that facilitate access of farmers, their organizations, and other
market actors to knowledge, information and technologies. It also facilitate farmer’s interaction with partners in
research, education, agribusiness, and other relevant institutions; and assist them to develop their own technical,
organizational and management skills and practices. The Ethiopian dairy extension system is dependent on farmer
training centers (FTCs), pastoralist training centers (PTCs) and trained DAs that provide extension services to
farmers and pastoralists. FTCs/PTCs serve as entry points for providing effective and efficient extension services.
They also serve as hubs for knowledge and information sharing and centers for promoting best practices.
Proper documentation ensures that smallholder farmers can access crucial information in a timely manner,
which consequently increases dairy production and productivity, thus addressing food insecurity. Successful
dairy production knowledge and information management requires strong institutions, infrastructure, facilities
and skilled human resources to generate, capture, store and disseminate tailor-made services to all farming
communities.

3.1.8 Capacity development

Human and institutional capacity development in the Ethiopian dairy sector needs to be emphasized. The
infrastructure development that plays a pivotal role in the production, processing and marketing, is inadequate.
Labour, while affordable and abundant, lacks the necessary skills and therefore requires continuous training and
education. Enhancing the capacities of institutions in both the public and private sectors (including research
and development institutions) to support the breeding and multiplication of appropriate dairy animals, feeds,
and animal health is essential. It is crucial that financial institutions enhance their marketing systems, and that
conventional financial institutions provide working and investment capital to sustain the activities of dairy
industry actors. They must come up with feasible and practicable development, research, extension and policy
intervention options to help address the challenges and enhance dairy farming and processing efficiency.

3.1.9 Cross-cutting issues

Mainstreaming cross-cutting issues in any development intervention is critically important. The national
cross-cutting issues in agricultural development comprise gender sensitivity, nutritional sensitivity and CRGE
development initiatives. Besides the issue of human rights, there are strong economic reasons why gender
32 Ethiopia National Dairy Development Strategy: 2022–2031

equality needs to be promoted across the agriculture sector. If equal access to agricultural inputs and support
is not guaranteed, women will be less productive and will not share the benefits with their male counterparts.
Similarly, failure to mainstream nutrition sensitivity and climate change issues in agricultural development,
particularly dairy farming, limits the relative gains from the dairy sector. Therefore, this strategy document will
significantly contribute to mainstreaming the cross-cutting issues. It will ensure that due consideration is given to
the issues of gender and youth, human nutrition and climate change in the overall dairy value chain.

3.1.10 Monitoring and evaluation

Monitoring and evaluation (M&E) should be an integral part of all the interventions, generating reliable and timely
data, and providing information to stakeholders and the ministry on progress of activities, results and outputs
achieved, plus the challenges faced during implementation. The absence of a well-established M&E system in
dairy development activities remains a key weakness. Hence, establishing context-specific and tailored M&E
systems will have multiple benefits. Having a proper M&E framework enables the Ministry of Agriculture and
other stakeholders to monitor and evaluate planned interventions and take appropriate corrective actions at
different levels. This will help the ministry and its partners to fine-tune the strategic interventions and establish
accountability during implementation. The M&E activities will be carried out by a group of experts in the ministry
and partners at different levels.

3.1.11 Enabling policy and regulatory frameworks

An appropriate policy and legal framework that supports the private sector’s active engagement will ensure
transformation of the sub-sector. Hence, formulating and implementing comprehensive policy and legal
frameworks is crucial for success in improving the production and productivity of the sector. Over the last six
years, various policies and strategies have been developed and implemented in the Ethiopian dairy sector. The
most important document that benefited the dairy sector was the livestock masterplan that was designed for
implementation from 2016 to 2020. Even though the masterplan was phased out in 2021, the livestock sector
analysis which contains scenario analyses for the dairy sector is still providing useful information for development
of important policies, strategies, and emergence of important institutions like LDI, AHI and important systems
like LITS, the national livestock breeding database and feedback system. The sector analysis was a foundational
document that helped development of the livestock masterplan, livestock breeding strategy, feed development
strategy, dairy cattle breeding strategy, camel breeding strategy, and small ruminant breeding strategy.
Moreover, sample breeding programs for dairy cattle have also been developed based on this document.

As a result of recent moves by the United Nations Food Systems Summit that intended to realize the UN
sustainable development goals (SDGs), the government of Ethiopia has developed its food systems
transformation pathway (EFS_TP). This document is promoting a diet-centred approach in which dairy
development has been highly emphasized. In line with this, MOA has developed and started implementing
nutrition-sensitive agricultural development. Dairy sector transformation is at the heart of the nutrition-sensitive
agricultural development policy. Today, dairy sector transformation initiatives, Ten-in-Ten and Yelemat Tirufat are
active implementation tools at hand for the transformation of the sector.

A review of the Ethiopian dairy industry reveals that existing policy frameworks are characterized by multiple
and complex laws and regulations touching on access to land and finance, supply of inputs, plus import and
export of products. Access to land and finance for small- and medium-scale commercial production remains a
key challenge, even in rural areas. Despite recent policy reforms to support the agricultural sector in general,
inadequate incentives and subsidies, double taxation and issues related to import duty on dairy inputs, especially
feed, are vital challenges which still require due attention. The role of the public and private sectors in providing
inputs and services should also be clearly streamlined at different levels of the value chain. As indicated earlier,
the current initiatives that aim to transform the dairy sector, Ten-in-Ten and Yelemat Tirufat, are designed to
overcome these policy challenges and could result in a profound transformation in the sector.
3.2 Detailed strategic issues and interventions
Table 4 presents details of strategic issues and interventions for the Ethiopian dairy sector development in the short-, medium- and long-term, from 2022 to 2031.

Table 4: Strategic issues and interventions

Strategic Issue Strategic interventions (2022–2031)
Short-term (2022–2023) Medium-term (2024–2027) Long-term (2028–2031)

3.2.1 Dairy animal breed improvement

• Limited evidence on • Undertake phenotypic and genetic characterization • Undertake phenotypic and genetic characterization • Genetic characterization of
genetic characteristics of • Undertake diversity and similarity studies of dairy • Undertake diversity and similarity studies of dairy different dairy animals under
indigenous dairy cattle, animals genetic resource animals genetic resource different dynamic production
camel and goat breeds systems
• Undertake performance evaluation of milk-producing • Undertake performance evaluation of milk-producing
Ethiopia National Dairy Development Strategy: 2022–2031

animals animals
• Identification and development of breeding objectives
under different production systems for different milk-
producing animals

• Low productivity • Promote good dairy farming practices to enhance dairy • Enhance dairy productivity and reproductive • Enhance dairy productivity
of indigenous milk- productivity and reproductive performance performance through good dairy farming practices and reproductive performance
producing animals • Improve performance of indigenous animals through • Improve performance of indigenous animals through through good dairy farming
• Shortage of milk selection selection practices
and milk products • Strengthen the existing crossbreeding activities using • Strengthen the existing crossbreeding activities using • Improve performance of
• Poor reproductive ART (AI, ET, sexed semen) or improved bulls ART (AI, ET, sexed semen) or improved bulls indigenous animals through
performance (long selection
AFC, open days • Strengthen the existing
and CI) crossbreeding activities using
ART (AI, ET, sexed semen) or
improved bulls

• Shortage of improved • Strengthen the existing effort for improved bull/quality • Establish new nucleus herd/new bull stations • Produce quality semen
breeding bulls/quality semen production for better efficiency and full capacity • Import improved bulls/quality semen • Import improved bulls/quality
semen operation semen
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Strategic Issue Strategic interventions (2022–2031)

Short-term (2022–2023) Medium-term (2024–2027) Long-term (2028–2031)
• Inadequate systems for • Implement the breed conservation strategy jointly • Enforce rules and regulations, and capacitate institutions • Enforce rules and regulations,
conserving endangered developed by MOA and Ethiopian Biodiversity to conserve endangered breeds and take care of animal and capacitate institutions to
breeds Institute (EBI) genetic diversity conserve endangered breeds
• Enforce rules and regulations, and capacitate and take care of animal genetic
institutions to conserve endangered breeds and take diversity
care of animal genetic diversity
• Absence of well- • Identification and development of breeding objectives • Optimize the genetic improvement efforts using modern • Implement well organized breed
established dairy cattle, under different production systems for different milk- genetic improvement technologies improvement tools – Genomic
camel and goat breeds producing animals. • Establish nucleus breeding programs testing, Marker assisted
genetic improvement Selection/MAS, ART (AI, ET,
• Implement well organized breed improvement tools –
programs MOET)
Genomic testing, Marker assisted Selection/MAS, ART
(AI, ET, MOET)
• Lack of focus on • Awareness creation on the need for dairy animal • Establish breeder societies on the identified breeds • Operationalize and strengthen
developing different breeder societies the established breeders’
breeders’ societies societies
• Genetic dilution of • Awareness creation on dangers of genetic dilution • Determine the level of genetic dilution • Implement mechanisms to
indigenous animals • Adhere to breeding policy and strategies control genetic dilution and the
through uncontrolled breeding policy
• Develop and implement mechanisms to control genetic
breeding
dilution and incorporate into the existing breeding
strategy
• Insufficient use of dairy • Evaluation of breed response, testing & standardizing • Timely optimization of synchronization protocols • Timely optimization of
animal biotechnology synchronization protocols for dairy animals (cattle, • Construction/maintenance of animal handling facilities synchronization protocols
• Inefficiency of camel, goat) breeding for different species of dairy AI service • Maintenance/construction of
estrus detection • Exercising estrus characterization in dairy cattle for • Import quality semen (sexed and unsexed), embryo, and animal handling facilities for
• Inefficiency of AI indigenous breeds live animals different species of dairy AI
services • Develop necessary facilities for embryo production, service
• On-the-job training of experts on anatomy and
• Limited/no use of preservation and transfer and adapt protocols for reproductive physiology of dairy animals • On-the-job training of experts
ET technology quality evaluation and implementation on anatomy and reproductive
• Develop standards for animal handling facilities physiology of dairy animals
compatible to different breeds and species of animals
Ethiopia National Dairy Development Strategy: 2022–2031
Strategic Issue Strategic interventions (2022–2031)
Short-term (2022–2023) Medium-term (2024–2027) Long-term (2028–2031)
• Construction of animal handling facilities for different • Encourage and promote innovative research to develop • Encourage and promote
species of dairy AI service alternative technologies for AI and heat detection in innovative research to develop
• On-the-job training of experts on anatomy and dairy animals alternative technologies for
reproductive physiology of dairy animals • Monitoring and evaluation to ensure proper AI and heat detection in dairy
implementation of standards on AI facilities and service animals
• Encourage and promote innovative research to
develop alternative technologies for AI and heat delivery guidelines • Monitoring and evaluation to
detection in dairy animals ensure proper implementation
of standards on AI facilities and
• Set standard regulatory modality to control AI kits,
service delivery guidelines
quality of produced/imported semen and devising
monitoring schemes
• Develop standards for AI technicians to service ration
Ethiopia National Dairy Development Strategy: 2022–2031

and implementation modalities (guidelines)

• Develop human capacity for ART
• Gap in the competence • Implement occupational standards developed for AI • Regular training of AI technicians • Regular training of AI technicians
and effectiveness of the AI technicians at some agricultural colleges • M&E of the training system • M&E of the training system
training system • Review and standardize curriculum for training of AI • Review of the curriculum • Review of the curriculum
technicians
• Develop strong monitoring and evaluation system to
ensure production of the required quality of human
resources

3.2.2 Dairy feeds and nutrition

• Limited supply and quality • Inventory of feed resources available for dairy animals • Implementation of feed development for dairy cattle: • Continue implementation
of dairy animal feeds • Training of trainers document/module, preparation • Improved forage (ago-ecology based) of feed production for dairy
and training for capacity building of experts, DAs, animals
• Natural grazing and rangeland
dairy farmers and pastoralists on feed production and
• Crop residue management, improvement, and
utilization
utilization
• Agro-industrial by-products and compound feed
• Specialty feed ingredients (premix, vitamins and
mineral supplements)
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Strategic Issue Strategic interventions (2022–2031)

Short-term (2022–2023) Medium-term (2024–2027) Long-term (2028–2031)
• Unavailability of special • Explore potential for domestic production (demand • Encourage foreign and domestic investment in the • Encourage foreign and domestic
feed ingredients (premix, and resources for production) sector investment in the sector
vitamins and mineral • Encourage foreign and domestic investment in the • Follow-up and support to investors • Follow-up and support to
supplements) in domestic sector investors
markets
• Degraded rangelands • Assessment, delineation, and mapping of rangelands • Scaling up of available and additional rehabilitation • Scaling up of rehabilitation
based on extent of degradation (light, medium and technologies for bush encroachment and invasive plants technologies for bush
heavy) • Scaling up of animal impact tool encroachment and invasive
• Implement available rehabilitation technologies for plants, continued
• Scaling up of appropriate soil and water conservation
bush encroachment and invasive plants structures and biological interventions suitable for • Scaling up of animal impact tool,
• Implement animal impact tool for range management rangeland rehabilitation continued
and rehabilitation • Implementing feed conservation practices, continued • Scaling up of appropriate
• Implement feed conservation practices soil and water conservation
• Review of progress, challenges and lessons learned
structures and biological
• Implement appropriate soil and water conservation
interventions suitable for
structures and biological interventions suitable for
rangeland rehabilitation,
rangeland rehabilitation
continued
• Implementing feed conservation
practices, continued
• Review of progress, challenges
and lessons learned

• Reliance of the rangelands • Initiate schemes for feed production and feed reserve • Awareness creation and skill training for youth in • Awareness creation and skill
on highland areas for feed under lowlands (in good years where possible) pastoral areas in forage conservation training for youth in pastoral
during drought seasons through: • Encourage inclusive engagement of highland forage areas in forage conservation
• Identification of forage production potential of producers in the pastoral areas • Encourage inclusive
rangelands during good rainy seasons • Proper business enabling actions (finance, facilities, etc.) engagement of highland forage
• Build on experiences of sustainable land producers in the pastoral areas
• Forage harvesting and conservation
management (SLM) projects in pastoral areas to • Forage harvesting and
• Implement schemes for feed production and feed
close some areas for rehabilitation. conservation
reserve under lowlands (in good years where possible)
Ethiopia National Dairy Development Strategy: 2022–2031
Strategic Issue Strategic interventions (2022–2031)
Short-term (2022–2023) Medium-term (2024–2027) Long-term (2028–2031)
• Create ways of experience sharing and business • Continue implementation and
models to enable pastoral youth learn from review of progress
highland forage producers
• Encourage highland forage producers to join
pastoral areas through formal business models
identified and agreed upon
• Harvesting and storage of forage during good
years to use them as buffer for drought seasons
• Traditional feeding • Preparation of guidelines for improved feeding • Implementation of best-bet feeding practices for • Continue implementation of
practices for different package for various categories of dairy animals different categories of dairy animals and intended best-bet feeding practices
categories of dairy animals production level: for different categories of
Ethiopia National Dairy Development Strategy: 2022–2031

• Calf, kids, lamb dairy animals and intended

production level
• Heifer, doe
• Review of progress, challenges
• Pregnant cows, goats, camels
and lessons learned
• Lactating cows, goats, camels
• Dairy bulls, bucks
• Limited private sector • Develop business plan and financial feasibility • Implementation of special incentives in dairy feed, • Implementation continues
engagement in of commercial scale production of cultivated forage herbage/seed production and feed ingredients: • Monitoring and evaluation of
commercial dairy feed forages in selected agro-ecologies • Availing land, credit, and other incentives private sector engagement in
development • Identify and put in place the required incentives forage and feed development
• Encouraging contract farming among feed
for commercial scale production of animal feed ingredient suppliers and processors
• Establish platform for private sector engagement • Market development for forage seeds and forage
• Develop and implement incentive mechanisms planting materials
to access land, credit and other inputs for
forage and forage seed production
• Scoping study on demand and supply of forage
seed/planting material in Ethiopia
• Mapping actors engaged in multiplication of
forage seeds/planting material
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Strategic Issue Strategic interventions (2022–2031)

Short-term (2022–2023) Medium-term (2024–2027) Long-term (2028–2031)
• Limited private sector • Map specific areas of feed technology worth • Continue implementation of PPP • Continue implementation
engagement in improved considering for private sector involvement • Support full scale engagement of private sector in • Undertake final evaluation and
feed technology • Promote PPP and delivery models for enhanced improved feed technology multiplication draw lessons for subsequent
multiplication access to multiplication and utilization of existing feed action
• Results-based monitoring and evaluation and make
technologies refinements
• Limited participation of • Review of higher education and TVET curriculum on • Implementation of trained youth groups engagement in • Continue implementation of
youth groups in dairy animal production to include practical, hands-on feed micro-business: engaging youth groups in feed
animal feed production, training on feed production, processing/technologies • Provision of service in animal feeding, ration micro business
processing, and marketing including ration formulation and marketing formulation and feed processing • Review of progress, challenges
• Inclusion of business orientation in higher learning • Collecting and marketing of feeds/forage and and lessons learned
education curriculum forage planting materials from surplus areas
• Preparation of training document on feed micro- • Marketing of feed ingredients and compound feeds
business for capacity building of youth groups in feed
• Engaging trained youth in forage production
production, processing, and marketing
(herbage or seed)

• Low level of cultivated • Assess comparative advantage of feed production • Awareness creation among different actors • Continue implementation
forage production relative to other crops and availing evidence for • Technical capacity building, linking with finance • Review progress, technology
at household and decision-making components, challenges and
• Demonstration of feasible production practices
commercial scale • Awareness creation among different actors lessons learned
• Making seeds and other planting materials accessible
• Technical capacity building, linking with finance
• Promoting household and commercial level forage
• Demonstration of feasible production practices production
• Making seeds and other planting materials accessible • Results-based monitoring and evaluation
• Promoting household and commercial level forage
production
• Limited supply of feed • Creating an incentive mechanism for the private sector • Implement supply of feed inputs and machinery at • Continue supply of feed inputs
inputs (Land, forage seed, and public enterprises to invest in input supply affordable prices and machinery/feed processing
fertilizer) and machinery • Design modalities for use of input machineries equipment
(feed processing
• Demand creation through promotion, capacity
equipment, mower, baler,
building and incentives
tractor, chopper)
Ethiopia National Dairy Development Strategy: 2022–2031
Strategic Issue Strategic interventions (2022–2031)
Short-term (2022–2023) Medium-term (2024–2027) Long-term (2028–2031)
• Develop policy framework to provide land and other • Monitoring and evaluation of
inputs including finance for enhanced participation of progress made by private sector
private sector engagement in improving
• Develop business models for service provision supply of feed inputs
in operation and maintenance of technologies/
machinery
• Absence of the national • Undertake background assessment and identify the • Prepare a manual for implementation of the standards • Review the progress made
regulatory and standard standards to be developed • Prepare a manual on Good Agricultural Practices in • Identify key challenges and
framework to support • Prepare the draft standards and get it approved Forage Production develop interventions
commercial scale
• Create awareness
production of cultivated
• Build capacity of key actors in implementing good
Ethiopia National Dairy Development Strategy: 2022–2031

forages
agricultural practices and the standards

• Absence of modern • Identify the location, coverage and status of key • Digitalize and develop national database of grazing • Wider use of the application
database on grazing grazing resources nation wide resources • Review and update
resources (location, • Translate into various languages
coverage, status)
• Pilot test and refine the application
• Institutionalize and put the application to wider use

3.2.3 Biosecurity and health management of dairy animals

• Lack of dairy herd/flock • Develop contextualized, mandatory dairy herd/flock • Regular monitoring on implementation of the standards • Review and update the standard
health management health management and biosecurity standard and • Periodic awareness creation for pertinent stakeholders • Regular monitoring on
standards and guidelines guidelines (sanitation, facility, animal, manure) implementation of the standards
• Capacity building for dairy farmers and extension agents
at national level • Awareness creation for pertinent stakeholders in the
• Streamline the standard and guidelines in the extension • Awareness creation for pertinent
biosecurity guidelines stakeholders
service
• Capacity building for dairy farmers and extension • Capacity building for dairy
agents farmers and extension agents
• Streamline the standard and guidelines in the
extension service
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Strategic Issue Strategic interventions (2022–2031)

Short-term (2022–2023) Medium-term (2024–2027) Long-term (2028–2031)
• Weak disease surveillance • Strengthen diagnostic capacity of regional laboratories • Capacity building on dairy health data management and • Capacity building on dairy
and traceability system and AHI analysis health data management and
• Strengthen monitoring, surveillance, and data • Strengthen diagnostic capacity of regional laboratories analysis
recording at farm level and AHI • Strengthen diagnostic capacity
• Apply national LITS in the dairy sector • Strengthen monitoring, surveillance and data recording of regional laboratories and AHI

• Strengthen risk analysis at farm and household level • Strengthen monitoring,

• Apply national LITS in the dairy sector surveillance and data recording
at farm and household level
• Review risk analysis and response mechanisms
• Apply national LITS in the dairy
• Implement control strategy for priority dairy diseases
sector
• Review risk analysis and
response mechanisms
• Implement control strategy for
priority dairy diseases
• Weak veterinary service • Improve coverage and quality of veterinary service • Empower private vet services and other modalities of • Empower private vet services
delivery and limited through equipping clinics and health posts operation and other modalities of
accessibility of inputs • Review and endorse the veterinary rationalization • Capacity building for private sector and other actors operation
road map (VRRM) that encourage private service, PPP through training and access to finance • Capacity building for private and
approach, and universities community service • Review and endorse the VRRM other actors through training
• Design a modality for sustainable supply and access of and access to finance
• Sustainable supply and access of laboratory
laboratory consumables, quality drugs and vaccines consumables, quality drugs and vaccines • Monitor implementation of
• Enhance application of solar energy generator for the VRRM
• Enhance application of solar energy generator for the
maintenance of vaccine cold chain maintenance of vaccine cold chain • Sustainable supply and access of
• Design a mechanism for use of mobile veterinary laboratory consumables, quality
• Implement mobile veterinary clinic services with proper
clinics drugs and vaccines
monitoring mechanisms
• Identify and institutionalize promising indigenous • Build new inland drug and
• Operationalize indigenous knowledge and
knowledge and ethnoveterinary practices vaccine production facilities and
ethnoveterinary practices
strengthen the existing one
Ethiopia National Dairy Development Strategy: 2022–2031
Strategic Issue Strategic interventions (2022–2031)
Short-term (2022–2023) Medium-term (2024–2027) Long-term (2028–2031)
• Enhance application of solar
energy generator for the
maintenance of vaccine cold
chain
• Implement mobile veterinary
clinic services with proper
monitoring mechanisms
• Capacitate ethnoveterinary
practitioners

• High mortality rate of • Train farmers on young stock mortality reduction • Train farmers on young stock mortality reduction • Train farmers on young stock
young and adult stocks packages (management, health) package (management, health) mortality reduction package
Ethiopia National Dairy Development Strategy: 2022–2031

due to poor husbandry • Make inputs required for implementation of YSM • Provide inputs required for implementation of YSM (management, health)
and disease management reduction packages accessible to farmers reduction package • Provide inputs required for
• Regular monitoring of YSM reduction package implementation of YSM
implementation reduction package
• Regular monitoring of
YSM reduction package
implementation

3.2.4 Dairy product quality and safety

• Milk quality deterioration • Dissemination of guidelines, working procedures, • Enhance demonstration and experience sharing • Enhance demonstration and
at farm level due to faulty and demonstration of materials for dairy animal good • Strengthen implementation of quality-based payment experience sharing
milking procedures husbandry practices for dairy products • Strengthen implementation of
• Awareness creation for dairy farmers (pastoralists) on • Monitoring and evaluation of good dairy husbandry quality-based payment for dairy
good dairy husbandry practices practices products
• Develop mechanisms for quality-based payment of • Application of milk marketing directives • Monitoring and evaluation of
dairy products good dairy husbandry practices,
• Monitoring and support on application of good dairy
• Application of milk marketing directives quality-based payment, and law
husbandry practices
enforcement
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Strategic Issue Strategic interventions (2022–2031)

Short-term (2022–2023) Medium-term (2024–2027) Long-term (2028–2031)
• Improper handling, • Awareness creation for dairy value chain actors on safe • Awareness creation and training for milk collectors and • Awareness creation and training
storage and transportation and proper milk handling, collection/bulking, storage collection centre actors for milk collectors and collection
of dairy products across and transportation • Implement standards and guidelines centre actors
the dairy value chain • Develop standards and guidelines for milk collection • Strengthen digitalization of dairy
• Digitalize the dairy value chain information system to
centers control quality and safety value chain information system
• Implement standards and guidelines to control dairy quality and
• Monitoring and evaluation of overall milk handling,
safety
storage and transportation practices
• Monitoring and evaluation of
overall milk handling, storage
and transportation

• Insufficient storage • Organize and capacitate milk collection points in • Strengthening existing and establish new milk collection • Monitoring and evaluation of the
facilities and inaccessibility inaccessible areas and SMEs at village level to collect centers with facility and equipment in production areas milk collection system
of milk collection centers, quality milk and supply to dairy cooperatives • Monitoring and evaluation of milk collection system • Review and maintain the
dairy cooperatives and • Link collection centers to dairy processing enabling environment for
• Create enabling environment for actors engaged in
unions cooperatives and unions actors engaged in production/
production/distribution of food grade milk handling and
• Create enabling environment for actors engaged in transportation utensils/facilities distribution of food grade milk
production/distribution of food grade milk handling handling and transportation
• Inservice training for technicians engaged in
and transportation utensils/facilities utensils/facilities
maintenance and supply of spare parts for milk facilities
• Link dairy producers with producers and dealers of • Sustain linkage between dairy
• Monitor and strengthen cold chain with innovative
food grade milk handling facilities producers with producers and
technologies
dealers of food grade milk
• Establish the cold chain with innovative technologies
handling facilities
such as solar powered facilities
• Inservice training for technicians
• Building the capacity of technicians (through TVET
engaged in maintenance and
colleges) on installation, operation, and maintenance
supply of spare parts for milk
of dairy equipment and machinery
facilities
• Monitor and strengthen
cold chain with innovative
technologies
Ethiopia National Dairy Development Strategy: 2022–2031
Strategic Issue Strategic interventions (2022–2031)
Short-term (2022–2023) Medium-term (2024–2027) Long-term (2028–2031)
• Poor quality and safety of • Awareness creation for all value chain actors on dairy • Awareness creation for all value chain actors on dairy • Awareness creation for all value
dairy inputs inputs quality and safety inputs quality and safety chain actors on dairy inputs
• Gap assessment and development of interventions on • Enhance the implementation of quality and safety quality and safety
quality and safety of dairy inputs and technologies control measures, and law enforcement • Enhance the implementation
• Monitor the quality and safety measures, and law • Monitor the quality and safety measures, and law of quality and safety control
enforcement enforcement measures, and law enforcement
• Monitor the quality and safety
measures, and law enforcement
• Weak/no law • Finalize proclamation on dairy product marketing and • Implement the dairy product marketing and quality • Implement the dairy product
enforcement measures on quality production directive marketing and quality
milk quality and safety • Develop directive for implementation of the • Monitoring and evaluation of the implementation production directive
Ethiopia National Dairy Development Strategy: 2022–2031

proclamation process • Monitoring and evaluation of

• Awareness creation on dairy quality and safety the implementation process
standards, plus enforcement measures

• Absence of incentives for • Develop attractive modality for quality- and quantity- • Implement automated milk testing, quality confirmation • Implement automated milk
high-quality milk (absence based payment mechanism for milk suppliers system for quality-based payment systems testing, quality confirmation
of a quality-based • Provide automated technologies for milk quality testing • Monitor proper implementation of quality control system for quality-based
payment system) incentive mechanism payment systems
• Awareness creation on incentive mechanisms
• Monitoring and evaluation of the
• Implement automated milk testing, quality confirmation
incentive mechanism
system for quality-based payment systems

3.2.5 Dairy business development services, input and output marketing

3.2.5.1 Dairy business development services
• Lack of defined business • Identify business opportunities along the dairy value chain • Popularization of different dairy business enterprises • Implement incubation and
catalogue for enterprises • Develop indicative business plan for the different dairy (mass media, workshops, websites, social media and engagement
along the dairy value chain business enterprises (DBEs) in different contexts print media outlets) • Periodic review of the business
• Develop context-specific dairy business catalogue for • Incubating/capacity building for actors interested in DBEs catalogue and incubation
youth, women and any interested actors • Engage different actors in DBEs service

• Develop dairy business incubators

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Strategic Issue Strategic interventions (2022–2031)

Short-term (2022–2023) Medium-term (2024–2027) Long-term (2028–2031)
• Lack of dairy business • Develop and capacitate the dairy business incubation • Build the capacity of dairy cooperatives, youth/women • Build the capacity of dairy
incubation centre/unit centre/unit groups, individual business operators in dairy business cooperatives, youth/women
• Review the dairy business catalogue and prepare for ventures groups, individual business
respective interventions • Engage the new business groups operators in dairy business
ventures
• Provide technical support/business advisory services to
already existing dairy businesses found at different levels • Engage the new business
to improve their efficiency and effectiveness groups

• Follow up and offer support service • Provide technical support/

business advisory services to
already existing dairy businesses
found at different levels to
improve their efficiency and
effectiveness
• Follow up and offer support service
• Review process of expansion, re-
orientation and other necessary
adjustments
• Poor dairy business • Develop pluralistic dairy business development service • Institutionalize the dairy business development services • Review the process and make
development service provision system provision system necessary adjustments
(DBDS) provision • Design capacity building program on dairy business • Capacitate private sector actors to provide DBDS • Ensure continued service of
development services (DBDS) • Operationalize dairy BDS provision public and private dairy BDS
• Develop dairy business service provision package providers

• Develop standards and guidelines for dairy business

development service provision and regulatory framework

• Poor business enabling • Design one window service for dairy sector actors • Institutionalize one window service • Provision of one window
environment • Prepare standards and guidelines of services to be • Popularization of the one window service services
obtained from different service providers to the • Implement one window service for dairy businesses • Periodic revision of the service
dairy sector and make it accessible for the public in a provision to align with the
• Provision of one window services
transparent way (notice boards, brochures, website, etc.) dynamics and emerging demands
Ethiopia National Dairy Development Strategy: 2022–2031
Strategic Issue Strategic interventions (2022–2031)
Short-term (2022–2023) Medium-term (2024–2027) Long-term (2028–2031)
• Create and operationalize a joint task force for periodic
review of progress, and to listen to grievances and put
in place corrective actions

3.2.5.2 Dairy input and output market development

• Lack of quality-based milk • Develop a quality-based pricing framework • Awareness creation for relevant dairy value chain actors • Implement quality-based pricing
pricing and functioning • Develop policy framework for reward and restraining on the pricing system at scale
quality control system mechanisms • Piloting quality-based pricing system • Periodic review of the system
• Acquire the necessary technology and facilities for • Scaling at national level and updating
quality testing • Periodic review of the system and updating
• Engage the regulatory body to co-develop the system • Strengthen dairy associations
Ethiopia National Dairy Development Strategy: 2022–2031

and build its capacity to aggressively implement the

• Support establishment of statutory bodies that can
pricing and enforcement mechanisms
support public action
• Enable consumers to get them involved in the
implementation process
• Lack of incentive • Develop raw milk marketing policy framework that • Enforce premium price and other incentive mechanisms • Enforce premium price and
mechanism to encourage encourages suppliers of large volume of standard for large volume standard quality milk suppliers other incentive mechanisms for
supply of large volume of quality milk • Implement contract enforcement mechanisms large volume standard quality
standard quality milk • Develop legal framework for dairy out grower schemes milk suppliers

• Develop strong contract enforcement mechanism in • Implement contract enforcement

the dairy sector with clear accountability of contracting mechanisms
parties
• Lack of dairy input and • Map dairy input and output value chain actors and • Develop a consolidated, user friendly, comprehensive • Continue implementation at
output tracking digital functions digital platform for the input and output production, national level.
platform • Review existing digital applications in the dairy sector distribution, bulking, transportation, processing, • Review the platform to align with
marketing and consumption of dairy inputs and dynamism
outputs
• Validate, institutionalize and pilot the digital platform
• Review the platform based on feedback obtained at
piloting phase
45
 46

Strategic Issue Strategic interventions (2022–2031)

Short-term (2022–2023) Medium-term (2024–2027) Long-term (2028–2031)
• Popularization of the platform
• Implement at national level

• Poor milk bulking and • Promotion of bulking centers that can accommodate • Establish bulking centers in major supply areas • Establish bulking centers in
transportation services large volumes of evening milk in major supply areas • Encourage private sector actors to invest in bulking and major supply areas
• Develop business models for provision of cold storage transportation facilities • Encourage private sector
services that can accommodate collection of evening • Regular monitoring and evaluation to ensure successful actors to invest in bulking and
milk implementation of the bulking and transportation system transportation facilities
• Develop investment incentive packages for actors to • Regular monitoring and
be engaged in raw milk bulking and transportation evaluation to ensure successful
services implementation of the bulking
• Develop proper monitoring and evaluation system and transportation system
• Review the system and make
necessary adjustments

• Poor development of dairy • Design inputs marketing plan • Engage different actors including youth groups, women, • Engage youth groups and
inputs marketing/supply • Develop innovative business models for dairy input cooperatives, individual business entities in the different women in the different input
system marketing including heifer growing, feed supply, AI input supply models after building their capacity in supply models after building
service provision, mobile vet clinic services, etc. business incubation service their capacity in business
• Promote private sector engagement in dairy input incubation services
• Develop incentive mechanisms to attract different
actors to the input marketing venture marketing • Promote private sector
• Formalization and licensing of business enterprises engagement in dairy input
• Establish community of practice involving relevant
marketing
government offices including MOA, MOT, CRA, • Convene regular meetings of the community of
media, NGOs, input suppliers and other relevant practice to evaluate successes and challenges, and take • Convene regular meetings
actors to periodically review the activity of input corrective action of the community of practice
supplies and provide necessary support to evaluate successes and
• Monitoring and evaluation
challenges, and take corrective
• Engage youth groups and women in the different input
action
supply models after building their capacity in business
incubation services • Monitoring and evaluation

• Promote private sector engagement in dairy input

marketing
Ethiopia National Dairy Development Strategy: 2022–2031
Strategic Issue Strategic interventions (2022–2031)
Short-term (2022–2023) Medium-term (2024–2027) Long-term (2028–2031)
• Demand and supply • Promote private sector investment in product • Awareness creation on consumption • Investment in processing
fluctuation of dairy diversification including production of longer shelf-life • Investment in processing industry to produce products industry to produce products
products products including UHT with longer shelf-life with longer shelf-life
• Media campaign and awareness creation forums • Build links to agro-processing industry parks • Build links to agro-processing
• Build links to agro-processing industry parks industry parks
• Consider export of milk and processed products
• Promote innovative marketing strategies including • Consider export of processed
roadside dairy shops for probiotic yoghurt and products
integration of dairy products into other instant foods
such as potato chips, roast chicken, etc.
• Push dairy consumption into school feeding
initiatives to create a sustainable market for dairy
Ethiopia National Dairy Development Strategy: 2022–2031

products and enhance the nutrition and well-being

of children

3.2.6 Investment in commercial farming and processing industry

• Inadequate and ineffective • Review existing dairy sector investment packages and • Implement provision of incentive packages • Implement provision of incentive
remunerative incentive set attractive adequate packages • Awareness creation and support to the private sector to packages
packages • Awareness creation and support to the private sector access incentive packages • Awareness creation and support
to access incentive packages • Results-based M&E framework to ensure effective to the private sector to access
• Devise feedback mechanisms to provide follow-up utilization of the incentive packages incentive packages
support to investors • M&E framework to ensure
• Results-based M&E framework to ensure effective effective utilization of the
utilization of incentive packages incentive packages

• Limited clustering in the • Assess feasibility of alternative dairy clustering options • Establish innovation platforms and community of • Arrange comprehensive
dairy sector (e.g. Dairy villages, Dairy clusters, etc.) practice to enhance the efficiency and effectiveness of incentive mechanism to
• Delineate and map milk shed areas based on dairy investment stimulate cluster farming and
production and marketing potential vertical integration

• Establish dairy hubs for support coordination • Review progress and take
corrective measures
• Strengthen investment cluster development initiative
to link with integrated agro-processing industrial parks
47
 48

Strategic Issue Strategic interventions (2022–2031)

Short-term (2022–2023) Medium-term (2024–2027) Long-term (2028–2031)
• Lack of investment in raw • Assess feasibility of different raw materials for • Encourage investment of raw materials production for • Encourage investment of
materials production alternative uses (food/feed) compound feed processing raw materials production for
for compound feed • Encourage investment of raw materials production for compound feed processing
processing compound feed processing
• Lack of effective public- • Identify dairy investment areas suitable for PPP • Sign binding contractual relationship among partners • Review and continue PPP in the
private partnership (PPP) • Design the duties and responsibilities of potential • Expand areas of dairy investment in PPP model dairy sector investment
in dairy investment partners to minimize the risk of crowding out one another
• Develop modalities of partnership and invite the
private sector for partnership
• Less allocation of suitable • Rationalizing suitable land for dairy investment, • Provision of basic infrastructure to dairy investors as per • Provision of basic infrastructure
land for dairy production • Develop suitability map for dairy development with clear agreed contract terms to dairy investors as per agreed
and processing including analysis of comparative advantage of alternative uses • Develop mechanisms for protection of dairy investment contract terms
feed development from external factors • Regular follow-up and support
• Review land leasehold policies and transfer
procedures, and make necessary amendments • Regular follow-up and support for private sector for private sector investors

• Design and implement legal framework to regulate investors

effective utilization of transferred land only for
intended purposes
• Limited number of • Set up remunerative incentive packages for financial • Roll out credit schemes for dairy sector investment • Improve regulatory environment
financial service providers institutions to serve the dairy sector • Strong monitoring and evaluation to protect diversion of for financial institutions to serve
and low financial inclusion • Encourage insurance companies to develop policies loans to unintended purposes the dairy sector
for the dairy sector for dairy investment • Strengthen dairy input
• Put in place a coordinated capacity building program credit provider rural financial
of stakeholders on both supplier and customer side institutions

• Roll out credit schemes for dairy sector investment

3.2.7 Dairy extension service/coordination and linkage

• Lack of defined dairy • Develop pluralistic dairy extension system • Implement dairy extension system with RBME • Review the dairy extension
extension system • Improve competencies of extension agents (DAs) in • Increase scale and coverage of dairy advisory and system and proceed with
technical skills and attitudes extension services in production systems and all dairy implementation
animals
Ethiopia National Dairy Development Strategy: 2022–2031
Strategic Issue Strategic interventions (2022–2031)
Short-term (2022–2023) Medium-term (2024–2027) Long-term (2028–2031)
• Set up dairy extension and advisory services • Build the capabilities of farmers, other actors, and • Increase scale and coverage of
demanded by farmers and other actors in dairy systems their organization in entrepreneurship, business and dairy advisory and extension
• Promote transfer of technology and linkage with management skills and practices services in production systems
support services (demonstrations, visit of extension • Facilitate access to technologies, agri-business, and all dairy animals
agents, etc.) processors, input providers, and other relevant • Build the capabilities of
• Assist farmers to access knowledge and information institutions by farmers, their organizations and other farmers, other actors,
through an educational process to improve dairy actors and their organization in
production methods, health, feed, and techniques that • Create an enabling environment for private extension entrepreneurship, business and
enhance productivity and production efficiency agents to engage in extension service delivery management skills and practices

• Build the capabilities of farmers, other actors, and • Promote extensive use of informative mass media • Facilitate access to technologies,
their organization in entrepreneurship, business and programs and ICT tools in dairy extension agri-business, processors, input
Ethiopia National Dairy Development Strategy: 2022–2031

management skills and practices providers, and other relevant

• Promote online dairy skill training programs such as
institutions by farmers, their
• Revise available standard extension tools such as MOOC and other digital extension support services
organizations and other actors
guidelines, leaflets, posters and handbooks in the dairy using different modalities including participation of
production system private sector and professional associations • Create an enabling environment
for private extension agents to
• Improve knowledge management of MOA including
engage in extension service
further development and accessibility of websites and
delivery
databases
• Promote extensive use of
• Scale up best practices in the dairy production system
informative mass media
programs and ICT tools in dairy
extension
• Promote online dairy skill
training programs such as
MOOC and other digital
extension support services
using different modalities
including participation of
private sector and professional
associations
49
 50

Strategic Issue Strategic interventions (2022–2031)

Short-term (2022–2023) Medium-term (2024–2027) Long-term (2028–2031)
• Improve knowledge
management of MOA including
further development and
accessibility of websites and
databases
• Scale up best practices in the
dairy production system
• Weak linkages among • Establish working and sustainable forum of key dairy • Strengthen a statutory body that coordinates the sector • Strengthen a statutory body that
dairy value chain actors sector actors (Dairy Board) (Dairy Board) coordinates the sector (Dairy
• Use existing formal linkage between research, • Strengthen involvement of the dairy sector in the Board)
extension, farmers and training for the dairy sector ADPLAC • Strengthen involvement of the
dairy sector in the ADPLAC

• Weak institutional • Strengthen coordination among the different sectors • Joint planning and progress review of different sectors • Joint planning and progress
coordination and sub-sectors of MOA through joint planning, and and sub-sectors of MOA review of different sectors and
progress evaluation • Promote the dairy agenda in the existing food systems sub-sectors of MOA
• Use the institutional coordination between different transformation platforms (annual dairy conference, milk • Promote the dairy agenda
ministries in the food systems transformation in the days, show cases) in the existing food systems
dairy sector • Undertake regular meetings of dairy stakeholders’ transformation platforms (annual
• Create sustainable coordination forum for all platform dairy conference, milk days,
stakeholders of the dairy sector mainly through the show cases)
Dairy Board • Undertake regular meetings of
dairy stakeholders’ platform

3.2.8 Capacity development

3.2.8.1 Institutional capacity development
• Weak milk producers and • Undertake rapid assessment and strengthen the • Follow-up and continuous engagement • Follow up and continuous
processors association existing milk producers and processors association engagement
• Enable the association to become self-reliant, both
technically and financially
Ethiopia National Dairy Development Strategy: 2022–2031
Strategic Issue Strategic interventions (2022–2031)
Short-term (2022–2023) Medium-term (2024–2027) Long-term (2028–2031)
• Absence of a National • Establish the dairy board • Strengthen the NDB • Review progress made,
Dairy Board (NDB) challenges encountered and
responsible for dairy identify key interventions
development • Implement interventions and
strengthen the established
NDB
• Inadequate public/ • Strengthen existing public/private/community • Strengthen existing public ranches • Strengthen and establish new
private ranches as ranches • Establish new ranches for dairy animals public, private and community
a source of genetic • Encourage private investment in the development/ ranches
materials for production of establishment of dairy animal multiplication centers
replacement dairy animals
Ethiopia National Dairy Development Strategy: 2022–2031

(cows, camels and goats)

• Inefficient regional • Strengthen capacity of regional veterinary laboratories • Strengthen capacity of regional veterinary laboratories • Establish new and standardized
veterinary laboratories regional veterinary laboratories
on disease diagnosis and
surveillance

• Absence of dedicated • Review gaps and strengthen the current works in • Support research centers to engage in the development • Implement the dairy institute and
dairy institute to supply different research centers of improved breeds for milk production strengthen its activities
improved dairy breeds • Establish fully fledged National Dairy Institute

• Inadequate dairy • Strengthen and scale up the national dairy • Ensure dairy performance recording and traceability is • Implement and strengthen the
recording and traceability performance recording efforts conducted at federal and regional levels modalities
system

3.2.8.2 Human and physical capacity development

• Inadequate AI technicians • Assess the human resource demand and capacity of • Refreshment training and training of new AI technicians • Refreshment training and
training institutions • Provide long-term training and career development training new AI technicians
• Build the capacity of training institutions structure
• Train new AI technicians
51
 52

Strategic Issue Strategic interventions (2022–2031)

Short-term (2022–2023) Medium-term (2024–2027) Long-term (2028–2031)
• In adequate skills and • Specialty training for livestock DAs in selected milk • Specialty training for livestock DAs in selected milk shed • Specialty training for livestock
knowledge of DAs on shed areas areas DAs in selected milk shed areas
dairy production
• Inadequate skills and • Training of LN technicians • Training of LN technicians • Training of new LN technicians
knowledge of Liquid
Nitrogen (LN) processing/
maintaining technicians

• In adequate knowledge • Training of technicians on semen processing • Training of technicians on semen processing • Training of new technicians on
and skills of semen semen processing
processing technicians

• Inadequate knowledge on • Specialty training on nucleus herd management and • Specialty training on nucleus herd management and • Specialty training on nucleus
nucleus herd management improvement improvement herd management and
improvement
• Insufficient LN production • Maintain the existing LN plant • Establish quality LN production units in strategic • Strengthen PPP in LN production
plants • Capacitate the LN technicians through training locations
• Stimulate PPP involvement

• Under capacity • Enhance the existing semen processing laboratories to • Capacitate the semen processing laboratories through • Continue with periodic capacity
laboratories for semen increase efficiency short- and long-term training building of semen processing
processing laboratories

• Insufficient AI kits and • Procuring and distribution of appropriate AI kits and • Procuring and distribution of appropriate AI kits and • Procuring and distribution
consumables consumables consumables of appropriate AI kits and
consumables
• Under production of the • Strengthen liquid N production unit • Train LN technicians for all regions • Train LN technicians for all
existing LN plants regions

3.2.9 Cross-cutting issues

• Gender imbalance in use • Gender mainstreaming in dairy extension services • Gender mainstreaming in dairy extension services • Gender mainstreaming in dairy
of dairy extension services extension services
Ethiopia National Dairy Development Strategy: 2022–2031
Strategic Issue Strategic interventions (2022–2031)
Short-term (2022–2023) Medium-term (2024–2027) Long-term (2028–2031)
• Lack of climate smart dairy • Review best-bet practices of mitigation strategies on • Implement guidelines for reduction of GHG emissions • Continue implementation
farming practices greenhouse gas (GHG) reduction • Reduce number of animals by maintaining more • Continue monitoring
• Prepare guidelines for reduction of GHG emissions productive animals and producing more climate smart
• TOT training of experts animal feeds
• Support and monitor performance

• Limited environment • Generate information on GHG emissions, biodiversity • Implementation of climate smart feed production, • Implementation of climate smart
and climate change and water footprints for feed production, conservation conservation and utilization activities continued feed production, conservation
sensitive feed production, and utilization • Implement mechanisms that reduce biodiversity loss and utilization activities
conservation and • Implement climate smart feed production, and water footprints for feed production, conservation continued
utilization practices conservation and utilization activities and utilization • Implement mechanisms that
Ethiopia National Dairy Development Strategy: 2022–2031

reduce biodiversity loss and

water footprints for feed
production, conservation, and
utilization, continued

• Low consumption of dairy • Promote nutrition-sensitive agricultural practices • Promote nutrition-sensitive agricultural practices • Promote nutrition-sensitive
products • Promote consumption of dairy products • Promote consumption of dairy products agricultural practices
• Promote consumption of dairy
products
53
4 Roles and responsibilities

The roles and responsibilities of different actors in implementation of this strategy are presented in Table 5.

Table 5: Roles and responsibilities of different actors

S/N Stakeholders Roles and responsibilities

1 Ethiopian Ministry of Agriculture • Approval of the dairy strategy

• Prepare guidelines for implementation of strategic interventions
identified in the strategy
• Oversee, guide and coordinate implementation of the strategy
• Mobilize and allocate financial and physical resources necessary for
implementation of the strategy
• Attract investors and motivate them to join the dairy development sub-
sector
• Facilitate ease of doing business for investors in the dairy sub-sector.
• Capacity building on dairy production and processing, forage
production, and on feed formulation

2 Ethiopia Agricultural Authority • Development of regulatory framework for the dairy sector
• Provide regulatory services including enforcement of directives/laws on
input and output quality
• Regulate product quality along the dairy value chain

3 Ministry of Irrigation and Lowlands • Promote and support dairy development in lowland areas of the country
• Promote and support irrigated forage development
• Promote development of ranches

4 Ministry of Innovation and Technology • Promote and support application of science and technology in the
Ethiopian dairy sector

5 Bio and Emerging Technology Institute • Promote and support proper use of biotechnology tools in the dairy
sector

6 Ministry of Planning and Development • Plan dairy development projects and programs, follow up funding,
monitor implementation and evaluate performances

7 Ministry of Finance • Allocate budget for development of the dairy sector, follow up proper
utilization of financial resources and take corrective actions

54
Ethiopia National Dairy Development Strategy: 2022–2031 55

S/N Stakeholders Roles and responsibilities

8 Regional Livestock and Fishery • Lead and implement the strategy in the region
Resource Development Agency/
• Put in place necessary government structures to support dairy
Regional Bureaus of Agriculture/
Pastoral and Agro-Pastoral development
Development Bureaus • Ensure proper staffing structures with capable human resources
• Allocate necessary resources for implementation of the strategy
• Compile lessons learnt towards further implementation of the strategy
• Cascade the strategy, closely monitor implementation and provide
feedback to MOA

9 Higher Learning Institutions • Revise and create appropriate curriculum to produce capable dairy
experts with practical skills
• Undertake technology shopping from global experience and generate
and avail impactful technology or knowledge for wider use
• Conduct research on dairy-related activities to avail contextualized,
problem-solving technologies
• Demonstrate improved dairy technologies and best practices, and
provide community services
• Import and adapt suitable dairy technologies to the Ethiopian context
• Provide training to nearby regional agricultural bureaus on dairy
production, processing and management

10 Livestock Development Institute • Conduct problem solving research in the dairy sector and support
implementation of research findings, government policies and
strategies.
• Multiplication of technologies, including heifers
• Build capacity of different actors in production, processing, marketing
and utilization of quality products

11 Ethiopian Agricultural Transformation Identify systemic constraints in dairy development by conducting studies
Institute (ATI) and providing solutions

12 International Livestock Research Generate technology and support the NARS and the dairy developments
Institute (ILRI) sector

13 National Veterinary Institute (NVI) Support the sector by producing effective vaccines and drugs

14 Animal Health Institute (AHI) Design and implement proper dairy disease surveillance and diagnostic
capacity

15 Ethiopian Biodiversity Institute (EBI) Dairy breed identification, characterization and conservation

16 Ethiopian Institute of Agricultural Conduct research to generate new technologies and adapt appropriate
Research and regional research technologies and evidence in different thematic areas of the dairy sub-
institutes sector

17 Ethiopian Standard Institute Develop necessary standards for the dairy sector including inputs,
outputs, processes, tools, machines, etc.

18 Ethiopian Investment Commission • Investment promotion and licensing

• Create enabling environment for investment in dairy sector
56 Ethiopia National Dairy Development Strategy: 2022–2031

S/N Stakeholders Roles and responsibilities

19 National Bank of Ethiopia Develop rules and regulations with respect to dairy sector’s access to
finance, monitor implementation and take corrective action

20 Financial institutions and insurance Provide financial support to dairy sector actors
companies

21 Ethiopian Ministry of Trade and Provide business licence, monitor implementation, take corrective action
Regional Integration

22 Federal Cooperative Commission Organize cooperatives and create inputs-outputs market linkage

23 Ministry of Labor and Skills Produce skilled human resources, enterprise development and promote
innovations

24 Ethiopian Ministry of Social and Women Ensure gender equity and social welfare
Affairs

25 Ethiopian Dairy Producers and • Create market linkages, organize platforms to facilitate the marketing of
Processors Association (EDPPA) inputs and products
• Lobby the government for development of the sector

26 Ethiopian Conformity Assessment (ECA) Ensure testing and certification of dairy inputs and outputs

27 Public Dairy Multiplication Centers Multiply and supply improved dairy animals

28 Private Input Supply Enterprises Provide improved inputs and services

29 Ethiopian Animal Feed Industry Coordinate private sector involvement in feed production and marketing
Association (EAFIA)

30 Non-government development Provide technical and financial support

partners

31 Ethiopian Ministry of Foreign Affairs Effect diplomacy work to attract Foreign Direct Investment to the dairy
sector

32 Ethiopian Airlines Provide transportation services for inputs, logistics and outputs

33 Ethio-Djibouti Railway Corporation

34 Ministry of Transport and Logistics Coordinate logistics in the dairy sector

35 Ethiopian Electric Power Corporation Develop and expand electric service infrastructure

36 Ethio Telecom Develop and expand telecommunication service, including digitalization

of the dairy sector

37 Ministry of Water and Energy Develop and expand water and energy

38 Ethiopian Custom Commission Facilitate rules and regulations to import and export goods and services

39 Ethiopian Ministry of Revenue Facilitate rules and regulations on revenue collection

40 AU-PANVAC Provide International Independent Quality Control of Veterinary Vaccines

produced in Africa and imported to Africa

41 National Policy Institute Identify policy gaps and propose policy options in the dairy sector

42 Ministry of Industry Promote and support industrial development in the dairy sector
5 Expected outputs

The expected outputs of the dairy development strategy include the following:

• Milk production increased four-fold from its current level of 7.1 billion litres a year.

• Per capita milk consumption level recommended by the WHO attained by 2031 (Self-sufficiency in dairy
products achieved by 2031).

• Tailor-made dairy development programs and projects for respective production systems designed.

• Commercialization of the dairy sector improved.

• Quality of dairy products enhanced, and food safety concerns significantly reduced.

• Reduced environmental concerns due to improved productivity and better efficiency in the dairy value chain.

• Enhanced employment opportunity in the dairy sector.

• Sustainable and affordable improved breed supply system put in place.

• Supply of quality feed and feed utilization in the dairy sub-sector substantially improved.

• Dairy disease surveillance and diagnostic capacity improved.

• Access to dairy inputs (breeds and dairy animals, vaccines, drugs, equipment, machinery, feeds) improved.

• Effective national and regional coordination and linkage mechanism in place.

• Technically and practically skilled extension service providers and related staff in place.

• Adequate infrastructure and suitable facilities established.

• Consistent market linkage to build consensus toward mutual benefit of partners developed.

• Business catalogues for dairy business enterprises and different agro-ecologies in place.

• Ease of doing dairy business improved to attract large number of potential and competitive private sector
entities.

• Importation of dairy and their products from abroad replaced by domestic supply.

• Duplication of mandates among different institutions minimized.

• Cross-cutting issues mainstreamed and contribution of dairy sub-sector to macro-level development goals
enhanced.

57
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