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Fluid Milk Value Chain Analysis of Small Holder Farmers in Central Highlands of Ethiopia

Abiro Tigabie Mersha Amsalu Abie Kebede Beneberu Tefera Kasa
Vol 8(5), 57-68

The study was conducted to analyses the fluid milk value chain of cow milk produced by small holder farmers with the objectives of identifying the key value chain actors, evaluate the amount of milk distribution and importance in the livelihood improvement of small holder farmers and identifying the major production and marketing constraints of milk along the value chain in the local market. A total of 132 sample small holder dairy farmer households and value chain actors were selected randomly to collect both primary and secondary data. Descriptive statistics and qualitative data analysis was used to analyze the data. The study revealed that the major actors of milk value chain were primary producers, semi-wholesalers, dairy cooperatives, milk processing private organizations and retailers. The study found that 97% of milk produced in the area supplied to milk markets through value chain actors. Smallholder farmers generate large proportion of house income and covered nearly half of house hold expenses from the milk market. The major constraints identified in this study were lack of enough market for milk during the fast seasons, market information, feed cost and in adequate veterinary services.

Keywords : Bassonawerana and Angolelanatera Fluid Value Chain

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