Agricultural innovation in a changing Ethiopian context : the case of dairy farming and business in the Addis Ababa milk shed, Ethiopia.
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Date
2014
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Abstract
Ethiopia’s economy remains largely dependent on agriculture, where smallholder farming is the
main feature. Historically, a dominant smallholder economy came into existence during the
communist regime (1974–90), when the government confiscated rural land from the aristocracy
and redistributed it to the citizens. The communist regime paid more attention to state farms,
with private agriculture being limited to smallholder farms. Following the change of government
in 1990, private-sector agriculture developed quickly, although land remained state-owned. The
land lease policy of the state allowed for the rapid growth of the private sector in agriculture,
manufacturing and trade.
Livestock is an important subsector in the country. Ethiopia has the largest livestock population
in Africa, but does not benefit sufficiently from this resource. Technical reasons such as genetic
limitations of the indigenous animals for milk production, poor quality feed resources, poor
artificial insemination (AI) and veterinary health services are as important challenges. However,
important but less explored factors of interest in this study include interactional (linkage and
communications) limitations, institutional issues, policy and scarcity of knowledge.
Development actors, including the government of Ethiopia, need to pay attention to these issues.
The role of government on the livestock sector is increasing in some areas. For example, the
Growth and Transformation Plan of the Ethiopian Government considers live animal exports an
important source of foreign exchange earnings. The plan also recognizes the contribution of
small ruminants and poultry to household food security. Dairy development is at the crossroads
as there is a growing interest and participation of diverse actors in production, processing and
marketing, which has created impetus for innovation. On the other hand, dairy innovation is
constrained because of several important challenges. Explaining this paradox and identifying the
key leverage points that could help to transform the dairy subsector into a more functional
system is, therefore, the main focus of this study. The Addis Ababa Milk-shed is used as a case
study.
The Agricultural Innovation System (AIS) framework, an alternative to the Transfer-of-
Technology (ToT), is the theoretical framework used in this study. The conventional ToT
approach has limitations for understanding complex systems and functions. It only recognises the
traditional actors in research, extension and farming, while undervaluing the private sector
actors.
The AIS framework explains how innovation takes place through interactions of people, policy
and institutions. It is used in this study to firstly outline important historical episodes in the dairy
subsector, and analyse how policies and other factors affect innovation over different periods.
Secondly, it analyses the dairy resources and how innovation is enhanced. The third dimension
places emphasis on understanding the complex interaction of actors outside the mainstream ToT
model. Finally, the fourth area is on policy and institutional issues. This study is therefore
premised on developing new insights into the innovation system framework by using concepts of
resilience, leverage points, trust building and the implications of historical legacies in shaping
contemporary innovation.
The innovation capacity assessment model is used to develop the methodology of this study.
Data collection, guided by the key components of the innovation system framework, include
sector mapping, historical evolution of the sector, resource base analysis, interactions between
actors, the policy environment, habits and practices, and resilient features and leverage points.
Both qualitative and quantitative methods were used for data collection and analysis within this
framework. Key-informant interviews, questionnaire surveys, document review and consultative
workshops were the main methods used to generate data. For quantitative data analysis, SPSS
software was used, while the qualitative data were analyzed using tools such as systems drawing,
linkage matrix, typology of linkages, habits and practice analysis, and content analysis.
The lessons learned from history were used to identify key leverage points and formulate
recommendations for innovation. Analysis considered dairy resources such as land, feed, genetic
resources and services. The current system was compared to the previous regime in relation to
how dairy innovation was affected. This study has shown a reduction in milk productivity by
smallholder farmers in the Addis Ababa milk shed. The policy of the current government, based
on a free market economy, privatization and investment, is contributing to diversification and
innovation, but mainly in the processing industry and commercial farmers.
The study has also identified productive interactions of dairy actors. These interactions are
growing over time, but the impacts on the lives of the smallholder farmers have not been as
beneficial as expected. For example, the critical problem of access to markets for smallholder
farmers is not yet a main agenda item of any of the networks. This study, furthermore, found that
four factors contribute to the existing market problems, namely the extended fasting season (196
days per annum) of the Orthodox Church believers; a limited tradition of milk drinking in Addis
Ababa; high milk prices when compared to low incomes of the majority of citizens; and
underutilization of the capacity of the milk processing industry, mainly as a result of a limited
domestic market and the dominance of the informal milk market.
The initiatives to enhance innovation to overcome these challenges are few. Promoting
smallholder dairy production without addressing the market problems inhibits innovation. The
study also concludes that interactions of the actors in the dairy innovation networks and the
economic policy measures taken by the government have contributed to the development of the
sub-sector. The government needs to consider a “bridging policy” to support the dairy subsector
to become competitive in the export economy. Developing the dairy subsector in Ethiopia is
urgently needed because the population is increasing as is the emerging middle class. This
situation calls for urgent institutional innovation in research and extension agencies, NGOs and
the private sector.
Description
Ph. D. University of KwaZulu-Natal, Pietermaritzburg 2014.
Keywords
Dairy cattle--Ethiopia., Dairy farming--Ethiopia., Agricultural innovations--Ethiopia., Milk trade--Ethiopia., Theses--Agricultural extention and rural resource management.