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Evolution and challenges of dairy supply chains: Evidence from supermarkets, industries and consumers in Ethiopia

Listed author(s):
  • Francesconi, Gian Nicola
  • Heerink, Nico
  • D'Haese, Marijke

In developing countries the demand for products of animal origin is expected to grow rapidly in the coming years. Using data collected from 200 urban households this study examines the evolution of the dairy market in Ethiopia. In particular, this study suggests that although the Ethiopian dairy market remains extremely thin and volatile, the commercialization of processed dairy products through supermarkets is expanding and is expected to keep doing so in the foreseeable future. Increasing urbanization and corresponding changes in consumer preferences, behaviour and purchasing power are the identified causes for the rise of supermarket-processor dairy chains. This study shows also that emerging dairy chains provide new market opportunities to Ethiopian farmers, but the existence of retail-industrial monopolies and monopsonies jeopardize farmers' economic benefits to a great extent. The study concludes with some implications for policy and further research.

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Article provided by Elsevier in its journal Food Policy.

Volume (Year): 35 (2010)
Issue (Month): 1 (February)
Pages: 60-68

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Handle: RePEc:eee:jfpoli:v:35:y:2010:i:1:p:60-68
Contact details of provider: Web page: http://www.elsevier.com/locate/foodpol

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  11. Jansen, Hans G. P., 1992. "Dairy consumption in northern Nigeria : Implications for development policies," Food Policy, Elsevier, vol. 17(3), pages 214-226, June.
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