In the rolling hills just outside Debre Birhan, where the horizon seems to stretch endlessly, Haile Meskel tends to his farm with a quiet determination that belies the challenge he faces. With hands weathered by labor and a spirit unyielding, he has devoted himself entirely to the task of supplying milk to the local cooperative. As we step into his home, Haile Meskel welcomes us warmly, his eyes reflecting the pride he takes in his work. His small garden, a verdant oasis amidst the dusty plains, is where he spends the majority of his days, tending to his cows with a tenderness born of years of practice.
Similar to many Ethiopian farmers, Haile Meskel upholds traditional milking practices. Before daybreak, he rises early and milks his cows, ensuring their utmost comfort and well-being. With practiced hands, he meticulously prepares the milk for transport to the milk collectors, exemplifying his unwavering commitment to maintaining the highest standards in milk production. For several years in milk production, this is what Haile Meskel and his family have been doing.
H/Meskel’s and his fellow farmers’ journey towards providing quality milk for milk suppliers is still far from smooth and easy. He has faced numerous hardships along the way, particularly in sourcing livestock food and receiving the necessary training to ensure the milk’s quality. The most significant challenge he encounters is the financial burden of purchasing livestock food, which consumes a substantial portion of his income, approximately 50 to 70%. Even after affording the livestock food H/Meskel understood that the key to producing quality milk lay in the cows’ and also in the tenderness of their care. However, it is also crucial for him to understand the methods and strategies he can employ to enhance his abilities in producing milk of high quality.
In Ethiopia, dairy production is generally based on the subsistence of smallholders like Haile Meskel with a relatively small number of small and medium commercial dairy farms. Within the smallholder specialized urban and peri-urban dairy production system, which is predominantly practiced in and around cities and towns, farmers raise crossbred and exotic breeds of cows specifically for milk production and sale.
Milk is sold either directly to processors or to cooperatives. Except in a few areas where dairy producers are organized into milk marketing cooperatives. Milk marketing is predominantly through informal/unorganized channels where raw milk is sold primarily on a contractual basis and butter in nearby open markets.
Filagot Dairy Cooperative is one of the cooperatives with more than 50 farmers supplying milk including Haile Meskel. Holland Dairy is the one who won the Bid to receive milk from the cooperative. According to this, the cooperative has been supplying milk to Holland Dairy.
Collaborating with milk cooperatives has had a significant positive impact on the lives of farmers, as their income has significantly increased. Today, H/Meskel stands as a testament to his unwavering spirit and the positive change that can be achieved when farmers are supported and empowered. ‘’ Previously, we used to supply milk to traders, without having the authority to negotiate or discuss the price of their own milk. However, our situation has improved since partnering with Holland Dairy’’ said H/Meskel. His dedication to supplying quality milk to the dairy factory has not only improved his own life but also uplifted his community, creating a ripple effect of progress and prosperity.
Explaining how they are working with the dairy Factory, every three months, they enter into contractual agreements with legal counsel. If necessary, they initiate a bidding process, allowing the winning bidder to collect the milk from the cooperative, as explained by Workneh Assefa, The chairman of Filagot Dairy Cooperative.
Holland Dairy, a dairy factory that has been receiving milk from Filagot Dairy Cooperative for the past several years, has provided the farmers full contract with a fair price. As the farmers stated, compared to private traders, supplying to Holland has helped them secure income even in the fasting times when there will be a very low demand for dairy products.
Holland Dairy collects milk at five different locations outside of Addis Ababa, on these locations Holland has so-called, Milk Collection Points. There are cooled tanks to store the milk before they transport it to the factory in Bishoftu daily.
Jean-Paul Rieu is the Commercial Director of Holland Dairy, it has been a year since he joined the Ethiopian Dairy industry. For him, the relationship with farmers and the cooperatives is crucial to ensure the best quality. And provide qualitative yogurt to the market. ‘’The relationship with our farmers is key to the success of our yogurts. We support them wherever possible’’ said Jean-Paul Rieu.
The marketing of dairy products encounters difficulties during the extended fasting periods observed by followers of the Coptic Orthodox Church, particularly in areas where there is no value addition to ensure extended shelf life. This lack of preservation facilities poses an additional challenge, especially during fasting periods that can last up to 55 days. In this case, the market will be very volatile. It will get hard for farmers to sell their milk.
In contrast to other dairy factories, Holland Dairy stands out by continuing to receive milk from suppliers even during fasting seasons. When we inquired about how Holland Dairy ensures fair pricing throughout the milk process, farmers supply milk consistently throughout the year without the need for reservations. Taddese Ketema, Deputy General Manager of Holland dairy, explained that this approach creates a safer and more stable market for farmers, enabling them to concentrate on delivering high-quality milk without concerns about price fluctuations.
‘’Our aim is to create a reliable and trustworthy dairy industry. An industry built on transparency that delivers high quality product adhering to food safety regulations and is trusted by its customer. It would be a huge success if all Ethiopians could access high quality and safe dairy products, so that they can trust every dairy product available, every single day. A product that they can provide it to their children without hesitation for pure enjoyment.’’ Said Tadesse.
The owners of Holland Dairy are renowned worldwide for their expertise in the dairy industry, making the knowledge and skills they possess highly valuable for farmers. Holland is providing comprehensive training programs that cover various aspects of dairy farming, including livestock feeding and milk supply. The emphasis on training is driven by their commitment to producing high-quality dairy products.
The dairy sector in Ethiopia faces a range of challenges that hinder its growth and development. The development and extension approach in this sector suffers from fragmentation and lack of cohesion, resulting in scattered interventions and limited continuity. Disease surveillance, prevention, and control measures are inadequate, leading to increased risks and losses. The high cost of production further adds to the challenges faced by the sector. Milk quality remains a concern, with high losses and inadequate quality control measures in place. Every Ethiopian household holds a shared concern for the quality of dairy products.
Despite all challenges, there is an opportunity to leverage several favorable factors for its growth and development. These include the ongoing projects and successful experiences that can serve as valuable lessons for scaling up the industry. The presence of private sector investments in dairy processing, feed processing, and input supply further contributes to the industry’s potential.
