SNV Milk Sub-sector Analysis
SNV Milk Sub-sector Analysis
Source: http://www.business-ethiopia.com/milk.html
Milk Value Chain Intervention· Economic Background
· Constraints
· Intervention Points
· Suppliers/Equipment
· Markets and Marketing
· Standards
· Coordination Group
· Achievements
o Activities implemented
o Outcome
o Impact
Economic Background[top]
Entrance to filtrationand cooling chamber
Hand washing prior to milking
Handmilking
Dairy cream seperator / People enjoy drinking milk in its natural form and also use it to make a wide range of food products, including cream, butter, yogurt, ricotta, cheese, and ice cream. Humans drink the milk produced from a variety of domesticated mammals, including cows, goats, sheep, camels and others. In Ethiopia the vast majority of milk used for commercial production and consumption is from cows. This value chain analysis focuses on dairy cow milk business from farm to processing. Dairy Farming is concerned with production and use of milk and milk products. Dairy husbandry includes the management of dairy cows, the cultivation of crops for feed, the production of milk and cream, and the manufacture of butter, cheese, and ice cream.
Ethiopian livestock breeds are with low milk production and difficult to think business out of milk at household level. Very few entrepreneurs have started milk and milk products using exotic dairy breeds around and in big cities like Addis Ababa. Presently, in most of the big shops and supermarkets of Addis there are milk and milk products in short supply.
Ethiopia has the largest livestock herd and accounts an estimated 30 million cattle, 37 million sheep and goats, and 7 million pack animals according to a survey in 2003.
Estimated average annual production of milk is about 938,000 tones. Market –oriented dairy production technologies involving the introduction of crossbreed cows and utilization of complementary feed and management for increased dairy production, is being undertaken in pre-urban and highland areas of the country. Milk production is treated as a commercial commodity as milk sales generate regular cash income. Market-oriented milk production has many food security-related benefits for pre-urban and highland smallholder communities. Dairy industry has multi purpose benefit in terms of food availability, regular cash income and more employment opportunities.
The selected regions economy is livestock based and using milk as direct consumption or selling milk as regular cash income is the way of life. However, dairy technology is not yet promoted. Market oriented dairy production in and around Addis Ababa has 60 years of existence. Shola dairy processing is the largest dairy processing plant belongs to government. Small-scale dairy producers and processors are also provided fresh and processed milk and milk product for urban consumers. Sebeta Agro Industry is a modern dairy plant established on April 1998 and is the leading private company on milk and milk product supplies in and around Addis Ababa.
This dairy farm is located 40 km West of Addis Ababa at Sebeta town of Oromia state. It has its own dairy farm and raw milk suppliers from different sources in Addis Ababa and Oromia. Raw milk sources are own farm, smallholders and milk collectors with in a radius of 100 kilometres from the processing plant. The dairy processing enterprise has applied quality standard measures such as Hazard Analysis Critical Control Practice (HACCP) in the processing and distribution of the milk and milk products.
Constraints[top]
Although milk and milk products plays an important role in the economy, the low productivity of local breeds, shortage of feeds, limited veterinary services and a general shortage and high cost of feed and exotic dairy breeds are some of the major constraints of the milk industry. Introduction of crossbreed cattle, improving feeding and management practice could bring remarkable positive impact in the future prospect of the sub sector.
Sebeta Agro-Industry (Dairy Processing Enterprise) mentions the following general constraints:
· Quality control is made using physical and chemical laboratories and the company doesn’t have bacteriological laboratory.
· Lack of chilling and cooling centre at potential milk producing and supply area is non-existence.
· Milk suppliers need to have technical support and Milk collection centres with enough capacity and safety.
· Milk collecting utensils and buckets for up lifting the milk from the supply centres where many smallholders are doing their sells can improve the supply quality.
However the core problem of this value chain is shortage of raw milk supply, access to reach the raw milk and method and means of milk collection should be tackled. Lack of infrastructures that reaches the rural community has limited the production of milk to be at a reduced scale. Even if farmers have the capacity to produce more milk than they are doing today, they are not encouraged to make effort on milk production they can not sell. On top of inconvenient infrastructures the milk collection centres are not at the level of what they should be and needs special attention at different cites.
Intervention Points[top]
In Oromia and SNNP regions except farmers and small scale dairy farms there is no private investor both in production and processing of milk and milk products. Sebeta agro industry is the only private company involved in modern milk industry business in Addis Ababa sourcing farmers in Oromia as suppliers of raw milk. The low level of raw milk supply is critical for the company and at the same time many farmers cannot use the raw milk market opportunity. Therefore the objective of the value chain intervention should focus on resolving the gap that can bring mutual benefits for raw milk suppliers and the company.
Possible interventions on the supply side could be strengthening of raw milk supply, improving milk collection centres, feed security, logistics and breed improvement. In the processing chain quality improvement, business linkages, training, and technology transfer are important activities to be considered. The value chain diagram indicated the intervention points marked with 8-point stars.
Raw milk supply has three possible sources the owner dairy farm, small farmers and milk collectors. The collected raw milk is transported to the processing centre and used as main raw material to end up to pasteurized milk and other milk products through various technological processes. In this value chain four intervention points are mapped the most critical and applicable can be finalised and get into plan of action. The possible intervention points are:
· Improving source of milk and get sustainable milk supply
· Supporting possible sources of raw milk such as small farmers who can able to work on through training and organization
· Introduce milk collection centres with the necessary facilities that can help to increase the volume of milk supply
· Improve the packing technology and quality of finished product during processing
Suppliers and Equipment[top]
TetraPak- International Packaging Companywww.tetrapak.com
Tetra Pak works for and with its customers to provide preferred processing and packaging solutions for food. Tetra Pak today supplies hundreds of different types of carton packaging formats. Tetra Laval is a private industrial group of Swedish origin headquartered in Switzerland.The industry groups´ activities focus on systems for processing, packaging and distributing food and accessories for dairy production and animal husbandry.
On the webpagewww.tetrapak.complease find details on: Business relations, Products, Processing Packaging, Distribution, Business stories and Documents for download on Packaging and other fields of intervention.
SUPPLIERS and / or PRODUCERS OF DAIRY /DAIRY PACKAGING EQUIPMENT AND OTHER MATERIAL
Information was provided by:
Hosein Aminy, DeLaval,
Gary Zeller ,Tetra Pak,
Luc Petit, CDE, email:
Company / Country / Specialized in / Email / Website
Tetra Pak / international / Whole range: processing, packaging &filling (dairy and other products), distribution / Contact Gary Zeller, Tetra Pak South Africa (Pty) Ltd
DeLaval / international / Whole range dairy systems (“all but the cow”) from the barn to chilled milk / Contact Hosein Aminy, Food for Dev’t Office, Tuma, Sweden
Packo / Belgium / Wide range / general equipment / /
www.packo.com
Nile Star Import Export / Ethiopia / Wide range / Tel. 011 - 6522751
Serac / Belgium / Cooling / Contact M. Petit
Elecster / Finland / Packing also UHT – Aseptic filling /
www.elecster.fi
Combiblock/
PKL/SIG / Germany / Aseptic filling / www.sigcombibloc.com
A.E.S. / France / Packing machines & materials / Mr. Laurent Vizzavona
Sersia-Breeding / France / (contact M. Petit) / Mr. Ali Haidar
I.P.I. / France /Italy / Aseptic packaging / M Paul Furioux
www.ipi-srl.com
Novopac / Germany / Form-Fill-Seal / Msses. Lang
www.novopac.de
Nova Socimec/
Serac / France / Filling machines / M R. Meneguz
www.nova-packaging.com
Actini / France / Processing / Filling / UHT-Aseptic / M-. Francois Quenard
www.actini.com
Promaco / Kenya / Everything in dairy / Mr. Mulinge
Promaco.wananchi.
Com
Bernhardt / France / Packing machines & materials /
www.bernhardt.fr
www.bernhardt-sa.com
Thimonier / France / Packing machines & material /
www.thimonnier.com
ALPES / France / Processing & Packaging materials /
www.alpes-is.com
Prepac / France / (Canada) / Packing machines & material /
Damy / France / Small equipment & packing machines /
TOMEGA / Belgium / Small equipment & ingredients /
www.tomega.be
Acb/Hydrolog / Sterilisation / www.acb-ps.com
Lagarde / Sterilisation / www.lagarde-autoclaves.com
Steriflow / France / Sterilisation / Tel. +33-1-40370845
TESSA I.E.C. GROUP LTDwww.iec-il.com/dairy.html
TESSA I.E.C. GROUP LTDfood processing and packaging equipment.specializes in manufacturing & upgrading of Mini Dairy lines of different production rates i.e. from 500 - 20,000 litres per day.TESSA I.E.C.mini factories are fully equipped with all necessities for a full technology cycle including the equipment for receiving and cooling of milk, pasteurisation, separation, fermentation, packing of ready products. Apart from these, the lines include all necessary auxiliary units and equipment such as: compressor, pumps, filter, auxiliary capacities, dairy pipes & valves, electrical communi-cations etc.Packing & Filing Machinesfor liquid & semi liquid products into laminated carton boxes such as:Tetra-Rex & Pure-Pack.
Model M-36. Production rate - 200-400 boxes/hour
Model M-40. Production rate - 1000-1600 boxes/hour
These machine are using the already printed cardboard sheets. The packing volume can be for 250, 500 & 1000 ml. The filling products: milk, yogurt, juices, fruit drinks and others.
Shrink machines,Labeling machine,Twist-off machines,Capping machines,Blisters,Vacuum Packing machine,Separators,Homogenizes,Chillers (Cooling systems),Mixers,Tanks such as: receiving, cooling, fermentation, balance ect.,Cooling tunnels,Bottle rinsing machine,Autoclaves,Cookers for: tomato ketch-up, mayonnaise, salad dressing
Pasteurization systems:
Plate Pasteurizer Production rate: 300-8000 L/Hour
Tube Pasteurizer Production rate: 300-2000 L/Hour
Batch Pasteurizer Production rate: 100-300 L/Hour
Products for pasteurizations: dairy, beverages and other liquids & semiliquids products.TESSApasteurizations systems can be supplied as separateequipment or in full production line.The full body material of this pasteurizer is built of Stainless steel as per world standards
EON Trading LLC
http://milkanalysers.com/
Automated multiparameter milk analyzerproviding rapid test results:FatnessSolids non fat (SNF),Milk density,Protein,Lactose,Freezing Point
Added water to milk,pH,Conductivity
Temperature,Measuring cycle - 45 seconds
and other milk processing equipment.
DeLaval - Milking Equipment
http://www.delaval.com/Products/MilkingEquipment/default.htm
Automatic milking, Parlour milking systems, Tie stall milking systems, Sheep and goat, Milking equipment, Milk quality, Pulsators, Milk meters/indicators, Clusters, Liners, Tubing, Milk receivers, Milk filters, Milk line, acuum, Automation, Herd management, Cooling, Cleaning, Feeding, Barn stalling, Manure handling, Cow comfort, Udder hygiene, Service, Electric fencing.
Markets ad Marketing[top]
Alibaba - Virtual Market Place
www.alibaba.com
Buying and Selling of milk and milk products
Standards[top]
see alsoLinksabout International Standards
Milk and Milk ProductsSpecificationfor DownloadPasteurized liquid milk specification- 145 KB
download\milk\es-549-001-pasteurized-liquid-milk-specification.pdf
Milkfat products specification- 184 KB
download\milk\es-554-2001-milkfat-products-specification.pdf
Coordination Group of the Value Chain[top]
The coordination group including the main stakeholders of each value chain
is the leading group for the value chain specific intervention.
See alsoCoordination Group workshop reportsin the library.
Value Chain Leader:
Election of the chain leader will be made after 3 months.
Value Chain Facilitator:Tamne Hilegiorgis-TAM Consult
Consultant /Moderator
P.O.Box 19522 Code 1000, Addis Ababa
Tel:+251-91-123 5090,E-mail:
Resource Persons
Gary Zeller-Tetra Pak, South Africa
Country Manager, Ethiopia,Awassa
P.O.Box Private Bagx2007 isando, 1600
Tel.+27824401244,Fax: +27115703148
E-mail:,Website:www.tetrapak.com
CoordinationGroup Members are the following:
· Ministries and implementing agencies:
o Ministry of Trade and Industry
o Ministry of Agriculture
o Oromia Bureau of Finance and Economic Developmen(BoFED)
o Oromia Cooperative Promotion Commission
o Oromia Micro and Small Enterprise Development Agency
o SNV-BOAM (Jürgen Koch, BOAM Coordinator
· National Support Institutions:
o Quality and Standards Authority of Ethiopia
o Ethiopian Chamber of Commerce
o Adama Chamber of Commerce
o Export Promotion Department
o International Livestock Research Institute (ILRI)
· PrivateMilk Processing Firms:
o Lema Milk
· Associations/Cooperatives:
o Selale Farmers Cooperative Union
o Adaa Milk Cooperative
o Adama Milk Producers' Association
o Adama Women Entrepreneurs' Association
· NGOsand Projects:
o Growing Ethiopian Market (GEM)
· Finance:
o Bank of Abyssinia
o Oromia Cooperative Bank
· Consultancy:
o Agonafir Consult Accessible Business Technology (ACABT)
o TAM Consult
Achievements[top]
· SNV-BOAM achieved the participation of the world leader in packaging and milk processing equipment Tetra Pak in thevalue chainmeetings. This led to a concrete Public Private Partnership perspective for the milk and milk products sector in Ethiopia: Consultancy and advice on market research (on a cost sharing basis for the study “Developing a Market led Strategy for the Ethiopian Diary Industry”), engagement on a school feeding programme, know how transfer and advice to optimising support to existent and newly to create milk collection centres.
· On request of various milk processing companies SNV-BOAM has successfully contributedtothe creation of the Ethiopia first Milk Processors Association. By doing so, it is expected to deliver direct impact on the four results of actual operation plan (particular results 4 and 5). Processed milk can be better promoted by effective service delivery to processing companies and farmers, policy issues can be better tackled by effective advocacy and lobbying and the coordination of the whole milk value chain could considerably improved.