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| Feasibility Study to Establish Milk Collection Centres In Bahir Dar District, Ethiopia
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Getachew Melese Belay
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Abstract:
This study has been carried out to develop a milk-marketing infrastructure to create opportunities to farmers to sell their milk with special reference to Bahir Dar District, Ethiopia. It has been done basically on the survey study. Background information of Ethiopia as well the region and related literature review has been used as supplementary materials. Bahir Dar District is found along the main road at four directions and as same time it is a capital city of Amhara Regional State, where farmers from both directions are able to bring their milk to the milk collection unit. In this district 7.3 million litres of milk per year is produced where the milk density is 3,587 litres per km2. The study employs both qualitative and quantitative research methodology. Based on the finding from the total amount of milk produced 41% remain at home for consumption and processing. The balance 59% is brought to market for sale. This shows raw milk marketing is affected by mainly lack of milk collection centres and far distance of market, and high transport cost. These problems affect farmers' household income, compete with farmers working time, and create fluctuation of milk market. As indicated from the finding the demand of raw milk in Bahir Dar City is high and it has a deficit of 2.5 million litres per year considering of the population less than 15 years old. To overcome these and other related dairy marketing problems, establishment of milk collection centres to create a linkage between rural production areas with urban consumers is needed and feasible, and this will help to promote dairy development in the study area. Based on the above findings discussion and recommendations were made. Discussion was made on the feasibility of establishing milk collection centres in the area based on points that are essential for establishment of milk collection centres: these are high demand of milk and production (morning and evening milk). Lack of milk collection centres is the real problem of farmers; there is hydroelectric power, road in all seasons at four directions. Considering these, establishing collection centres is feasible in the district. And according to this study, recommendations are summarized as follows: A secured market and establishing of milk collection system, efficient processing and product marketing structure, marketing information system, input supply and services, and conducive environment for dairy policy should be taken in to consideration to solve the raw milk marketing problem in the study area. And issues for further study also drawn are that comprehensive policy recommendations require a more detailed study of the structure and determinations of transaction costs and their impacts on the behaviour of economic agents.
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