Review on Characteristics of Dairy Value Chain: Way Forward to Design Viable Strategies for Upgrading in Ethiopia

Ethiopia is endowed with diverse and large livestock populations resides in suitable environmental condition. The aim of this review is to review characteristics of dairy value chains as a way forward to design viable strategies for upgrading of the Ethiopian dairy sector. Dairy production systems are classified as small scale, peri-urban and urban based on climate, production intensity, land holding and integration with crop productions. Moreover, considering market orientations, scale of operation and production intensity, it is classified as traditional smallholder, private state far, and urban and peri-urban systems. Ethiopian value chain is characterized by both formal and informal channels and exist complex. From the total amount of milk produced nationally only 5% of it is marketed. In Ethiopia, the dairy sector has an immense role in securing household income and job creations. Understanding the value chain definitely starts with consumer demand and continues with different levels of production, processing and marketing. For describing all activities, actors, relationship among different levels of the chain and connections between producers and intermediaries the designing value chain map is found vital. There are various challenges that restrain the dairy sector to express to its potential. There is limited contribution from the scholars with regard to dairy value chains and designing viable strategies for upgrading. Therefore, it is found difficult to realize, formulate and implement desirable intervention measures to upgrade the dairy value chain development actions. Hence it is vital to go with construction of viable strategies for upgrading existing value chain systems.