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Dairy Development in Sub-Saharan Africa Tool Box for advisers and planners |
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Step A |
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Is it advisable and feasable to invest in smallholder dairy sector development in the local context? |
The decision to keep dairy cattle and produce milk above household requirement is influenced by numerous factors. Milk price and access to a reliable market are the most important. Agro-climatic conditions and natural resources are also important but if price and cost relations are favourable, dairy cattle can be kept on almost any spot on the globe. Traditions are important but demand from consumers with purchasing power can, provided the right policy environment, lead to establishment of a vital dairy sector in a country without any tradition for dairying like in Thailand. Higher incomes leads to increased demand for livestock products in general and economic recession to the opposite, as seen for instance in Tanzania through the seventies and eighties.
The Purpose of assessment is to provide a basis for decisions of the extend, to which locally produced milk can compete with milk and dairy products from other sources – other districts, regions or countries. Such assessment needs to include the spin-off effect that dairying is known to have on rural economic development.
Smallholder systems range from systems with low or no inputs, with simple or no buildings and use of family labor with no opportunity cost to intensive systems with zero-grazing system and extensive use inputs. The later is more sensitive to variations in prices of inputs and sale products.
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Tool A1 |
Table with natural conditions required for dairy production
(1) “Environment Determinants of Animal Agriculture” In: Animal Agriculture in Sub-Saharan Africa, Winrock International 1992, p. 14-20
(2) “Multiple benefits of smallholder dairy production” In: SDP Policy Brief 7. URL: http://www.smallholderdairy.org |
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Tool A2 |
Increased milk production
(1) Kristensen, Eyvind et al. Livestock Production – The twenty first century’s food revolution. In: Livestock Research for Rural Development 16 (1) 2004. URL: http://www.cipav.org.co/lrrd/lrrd16/1/kris161.htm
(2) Mupeta, B. et al. ” The effect of feeding a sunflower cake and a commercial dairy concentrate on the performance of crossbred, Jersey and Red Dane cows in Nharira-Lancashire smallholder dairy scheme In: Integrated Livestock/Crop Production Systems in the Smallholder Farming Systems in Zimbabwe. Harare 2000 |
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Tool A2.1 |
Terms of reference for market study
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Tool A2.3 |
How to calculate costs of local milk production
(1) Calculation of cost of Milk Production per cow
(2) FAO. “Milk and dairy products: production and processing costs” In FAO Animal production and health papers 62, 1988, p. 24-55. URL: http://www.fao.org/docrep/003/x6931e/x6931e00.htm
(3) Mupeta, B. et al. ” The effect of feeding a sunflower cake and a commercial dairy concentrate on the performance of crossbred, Jersey and Red Dane cows in Nharira-Lancashire smallholder dairy scheme In: Integrated Livestock/Crop Production Systems in the Smallholder Farming Systems in Zimbabwe. Harare 2000
(4) Ngigi, M. “The case of smallholder dairying in Eastern Africa”. In: IFPRI/EPT discussion paper 131, 2005. URL: http://www.ifpri.org/divs/eptd/dp/papers/eptdp131.pdf
(5) DFID. Livestock in challenging environments - Coping Strategies for progress, 2006
(6) Draaijer, Jurjen. Milk testing and payment systems. FAO 2007. (Under preparation- expected ready in spring 2007)
(7) “Competiveness of the Smallholder – Dairy Enterprise in Kenya” In: SDP Policy Brief 3. URL: http://www.smallholderdairy.org/ |
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Tool A3.1 |
How to calculate
profit margin on milk production
(1) Calculation of cost of Milk Production per cow
(2) FAO. “Milk and dairy products: production and processing costs” In: FAO Animal production and health papers 62, 1988, p. 24-55. URL: http://www.fao.org/docrep/003/x6931e/x6931e00.htm
(3) Mupeta, B. et al. ” The effect of feeding a sunflower cake and a commercial dairy concentrate on the performance of crossbred, Jersey and Red Dane cows in Nharira-Lancashire smallholder dairy scheme In: Integrated Livestock/Crop Production Systems in the Smallholder Farming Systems in Zimbabwe. Harare 2000
(4) Ngigi, M. “The case of smallholder dairying in Eastern Africa”. In: IFPRI/EPT discussion paper 131, 2005. URL: http://www.ifpri.org/divs/eptd/dp/papers/eptdp131.pdf
(5) DFID. Livestock in challenging environments - Coping Strategies for progress, 2006
(6) Draaijer, Jurjen. Milk testing and payment systems. FAO 2007. (Under preparation- expected ready in spring 2007) |
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Tool A3.2.1 |
How smallholders can reduce production cost and/or increase profit
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Tool A3.2.2 |
Reduction in transaction and processing cost
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Tool A3.2.3 |
High and low price elasticity
(1) “Demand and supply changes in the livestock sector and their impact on smallholders” In: Responding to the livestock revolution. Vol. 33, 2004, p. 323-331
(2) “The Demand for Dairy Products in Kenya” In: SDP Policy Brief 1. URL: http://www.smallholderdairy.org/ |
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