ISSN 2360-798X
Abstract: The aim of this study was to analyze the milk value chain in urban and semi-urban areas of Ambo and Dendi districts of West Shewa Zone. The study made use of both primary and secondary data collected from 146 smallholder farmers, 30 consumers, 10 hotels and cafeterias, and 2 primary milk cooperatives through the application of individual interview schedules, focus group discussions, and key informant interviews. We conducted the analysis using both descriptive statistics and value chain aThe value chain analysis identified input suppliers, milk producers, collectors, processors, and consumers as the major actors in the districts' milk value chains. Therefore, the value chain activities included input supply, production, processing, marketing, and consumption. Four milk marketing channels were identified, and relative to all other fresh milk marketing channels, producers get a higher proportion of total gross marketing margin when they sell milk The results of the profitability analysis for dairy production showed that a dairy producer in the study areas achieved an average gross margin of 83.65 per improved cow per day, indicating that dairy production was a profitable venture for smallholder dairy producers. The milk value chain in the study areas faced several challenges, including a shortage of feeds, a continuous increase in feed prices, inadequate AI services, a lack of genetically improved cattle breeds, limited access to credit services, a lack of extension services, poor feeding and animal husbandry practices, a low level of market linkage among value chain actors, the absence of a milk processing plant, and a non-market-oriented milk production approach. Therefore, we recommend policies that aim to increase farmers' access to modern inputs, promote feed conservation practices, provide adequate training to AI technicians, develop and improve infrastructure, foster cooperative development, and enhance extension services to accelerate the development of the milk value chain in the study areas. the study areas.
Keywords: inputs, marketing channel, gross margin