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

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  • Francesconi, Gian Nicola
  • Heerink, Nico
  • D'Haese, Marijke

Abstract

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.

Suggested Citation

  • Francesconi, Gian Nicola & Heerink, Nico & D'Haese, Marijke, 2010. "Evolution and challenges of dairy supply chains: Evidence from supermarkets, industries and consumers in Ethiopia," Food Policy, Elsevier, vol. 35(1), pages 60-68, February.
  • Handle: RePEc:eee:jfpoli:v:35:y:2010:i:1:p:60-68
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    Cited by:

    1. Kydd, Jonathon, 2015. "Ex-post evaluation study of IFPRI’s research on high-value agriculture, 1994–2010," Impact assessments 39, International Food Policy Research Institute (IFPRI).
    2. Negassa, Asfaw & Rashid, Shahidur & Gebremedhin, Berhanu & Kennedy, Adam, 2012. "Livestock production and marketing," IFPRI book chapters,in: Food and agriculture in Ethiopia: Progress and policy challenges, chapter 6 International Food Policy Research Institute (IFPRI).
    3. Hussain, Safdar & Ahmed, Wasim & Rabnawaz, Ambar & Jafar, Rana Muhammad Sohail & Saqib, Zulkaif Ahmed & Ullah, Sana & JianZhou, Yang, 2016. "Client Intentions and Buying Behavior with Regard of Dairy Products-Review," MPRA Paper 70383, University Library of Munich, Germany.
    4. Alemu, Abebe Ejigu & Adesina, Jimi, 2015. "Effects of cooperatives and contracts on rural income and production in the dairy supply chains: Evidence from Northern Ethiopia," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 10(4), December.
    5. repec:pal:eurjdr:v:29:y:2017:i:4:d:10.1057_s41287-016-0062-3 is not listed on IDEAS
    6. Bobojonov, Ihtiyor & Teuber, Ramona & Oshakbayev, Dauren & Glauben, Thomas, 2015. "Agrifood sector transformation and its implications on development of small farmers in Kazakhstan," 2015 Conference, August 9-14, 2015, Milan, Italy 211357, International Association of Agricultural Economists.
    7. Klerkx, Laurens & Nettle, Ruth, 2013. "Achievements and challenges of innovation co-production support initiatives in the Australian and Dutch dairy sectors: A comparative study," Food Policy, Elsevier, vol. 40(C), pages 74-89.
    8. repec:bla:afrdev:v:29:y:2017:i:2:p:259-271 is not listed on IDEAS
    9. Kebebe, E. & Duncan, AJ & Klerkx, L. & de Boer, I.J.M. & Oosting, S.J., 2015. "Understanding socio-economic and policy constraints to dairy development in Ethiopia: A coupled functional-structural innovation systems analysis," Agricultural Systems, Elsevier, vol. 141(C), pages 69-78.
    10. Fuentes Navarro, E. & Faure, G. & Cortijo, E. & De Nys, E. & Bogue, J. & Gómez, C. & Mercado, W. & Gamboa, C. & Le Gal, P.-Y., 2015. "The impacts of differentiated markets on the relationship between dairy processors and smallholder farmers in the Peruvian Andes," Agricultural Systems, Elsevier, vol. 132(C), pages 145-156.
    11. Boniface, Bonaventure & Umberger, Wendy J., 2012. "Factors influencing Malaysian consumers’ consumption of dairy products," 2012 Conference (56th), February 7-10, 2012, Freemantle, Australia 124243, Australian Agricultural and Resource Economics Society.

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