Ethiopia dairy industry: opportunities in milk processing

Ethiopia dairy industry: opportunities in milk processing

Opportunities in the dairy sector in Ethiopia

Growth in the Ethiopia dairy industry

Last year, the Ethiopian GDP increased substantially owing to the country’s booming dairy sector. The volume of milk products being produced in Ethiopia has tripled in the last fifteen years. In fact, the government of Ethiopia plans on doubling their domestic milk production volume by the year 2020; thus increasing milk exports and decreasing imports from other nations. This will greatly affect the economical rise in the country and open various opportunities for foreign investment.

It is also predicted that the Ethiopian dairy sector is likely to surpass some of the world’s leading milk producers.

Market research on this subject could highlight vast amounts of possibilities for the aspiring foreign investor who wants to set up camp in the Ethiopian dairy sector or create a harmonious trading relationship with the country.

 

Challenges, interventions and opportunities for a dairy farm in Ethiopia

There are various challenges in the Ethiopian dairy sector. These challenges could well prove to be opportunities for companies intending to lend a hand on revolutionizing the sector.

However, if you are planning on investing in Ethiopian industry, you will need to be aware of the hurdles that you may face in the planning stage:

Challenges for milk farming in Ethiopia

  • Ethiopia is facing a shortage of feed, land and fodder for their cattle. More land and subsidies are needed to assuage this problem.
  • Majority of cow holders only own a few cows (1 cow holder: 1-3 cows) and the quality and quantity of milk produced by each cow is highly lacking and inefficient. However, cow hygiene and additional sterilizing and chilling materials could easily remedy this issue.
  • Poor housing facilities and weak services from veterinarians come from lack of financial support, but if offered the right amount of funding, this problem can be fixed.
  • Farmers lack entrepreneurial skills and manure management. Educating them on both would produce significant results on the country’s overall export goals.

Opportunities for foreign companies in milk processing in Ethiopia

  • Entrepreneurs should establish and introduce new fodder crops and grass varieties. This will benefit both the businessman and the dairy production industry of Ethiopia.
  • Concentrating on feeding and rearing young stock with proper hygiene training will increase the number of cows and enhance the quality of milk.
  • Presenting technology that stabilizes Artificial Intelligence (AI) services and upgrades genetics will improve the quality of the cow-herder’s entrepreneurial skills.
  • Fund or launch efficient mobile veterinary clinics or national programs that can cater to the health needs of cattle.

Prepare before you export your milk technology to Ethiopia

Further market research pertaining to government policies shows that processing and marketing activities should put more efforts on the diversity of dairy products to meet the various needs of consumers. There are policies that focus on genetics and improved breeding programs to counter the negative effects of inadequate health practices in the country. These policies will give rise to a stabilized and centralized dairy sector that could compete with other world producers of milk.

To know more about the opportunities and challenges in Ethiopia’s dairy production industry, conduct intensive market research and read more on their national policies on dairy production.

 

This entry in Africa & ME was updated on March 22, 2018 by specialist.