Bogale, A.

Gebremedhin, Berhanu

Getahun, Y.

Hoekstra, Dirk

Jemaneh, S.

Shiferaw, K.

Tegegne, Azage

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Developing the butter value chain in Ethiopia

• Use of GIS technologies with varying coefficients to simulate different potential butter production areas in a dynamic context  • Bulking and processing of the milk produced by individual households and use of modern churners by such groups for improved efficiency of labour and fat extraction  • Aggregation/bulking of butter to increase producers bargaining position may be obtained by forming larger scale butter processing and selling cooperatives in the rural areas  • Production of milk or butter can be increased by  • introducing mass insemination with the help of hormones and mobile teams to improve breeds for  butter production • Provision of extension services on fertility management combined with feeding/fodder development  Developing the Butter Value Chain In Ethiopia  Berhanu Gebremedhin*, Azage Tegegne, Dirk Hoekstra, Samson Jemaneh, Kaleb Shiferaw, Aklilu Bogale and Yasin Getahun Ethiopia has large potential for dairy production. However, it lags behind relative to many other African countries in dairy production. The low consumption of milk and milk products coupled with the huge potential for dairy development indicates that there is ample opportunity to improve the sector. This is even more appealing given the considerable potential of dairy production in creating income-generation opportunities and its further contribution in improving human nutrition, particularly for women and children.  Within dairy, the butter value chain receives  little attention in both research and development. This study analzes the Ethiopian butter value chain and is based on two sets of data: the Improving Productivity and Market Success of Ethiopian Farmers (IPMS) project’s  rapid butter market appraisal and the Livestock and Irrigation Value Chains for Ethiopian Smallholders (LIVES) project’s  baseline data. Berhanu Gebremedhin  b.gebremedhin@cgiar.org ● P.O. Box 5689 Addis Ababa, Ethiopia  ● Tel  +251 116 172405   ●   www.ilri.org     Funding: Canada’s Department of Foreign Affairs Trade and Development (DFATD) This document is licensed for use under a Creative Commons Attribution –Non commercial-Share Alike 3.0 Unported Licence                                         October 2014 The butter value chain system On-going activities by LIVES Approaches towards improved butter value chain • Traditional (lactic) butter production and marketing is highly commercialized in that 84 % of the farm households who produce butter sell it and 75 % of the butter produced is sold  • Distance/travel time to fluid milk markets is a key consideration in targeting butter production • Unlike the sale of fluid milk, which mainly takes place in and near urban centers, butter is produced and sold also in rural areas   • Butter churning takes place at household level mainly by females, both in male and female-headed households • Production of milk/butter is hampered by availability of feed/fodder and longer calving intervals • The relative price of butter to fluid milk appreciated by 73% between 2005 and 2012 Results of LIVES and IPMS studies • Improving oestrus synchronization and mass insemination services • Testing of churning technologies and business models   • Establishing butter processing and marketing groups in rural areas • Introducing improved fodder technologies • Implementing grazing  land improvement and management interventions   Research outputs and documentation • Berhanu Gebremedhin, et al. 2009. Sustainable land management through market oriented commodity development: case studies from Ethiopia  • Blog stories on LIVES website Spices  Heating Fresh Milk Aging/ Fermentation Butter Milk Separation   Sour Milk/ Yogurt/Ergo Churning Skim Milk Cream Whey Heating Churning Fresh/Sweet Cream Butter Heating    Local cheese/Ayib   Butter Oil Lactic  Butter   Ghee Local cheese/Ayib   Whey Traditional versus modern butter making  Butter Producers Assembler/  Collector Butter  Shops/ Retailers  Rural Consumers Urban Consumers  Market Channel I  Market Channel II  Market Channel III)  Minor market channels  Butter Market channels   

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Developing the butter value chain in Ethiopia

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