Despite this large number of animals in Ethiopia, the consumption of milk per capita is amongst the lowest in the continent. There is an unmet and growing demand for fresh milk in urban centres whilst processing plants still operate at under-capacity. To ease this problem, donors and NGO’s undertake various support efforts aimed at strengthening production an improving access to markets; however there is hardly any rise in production and volume of marketed milk. While in the urban retail market, the perception exists that processed and packed dairy products are sold out quickly, small scale milk producers have difficulties entering the formal market chain. This report distinguish three areas of research: market and marketing issues (number and type of outlets for dairy products), organizational issues in the supply chain and technological issues (infrastructure; quality of inputs; farming systems).
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