The Contributions of Dairy Cooperatives in Reducing Poverty A Comparative Study of Small Scale Value Adding and Marketing Dairy Cooperatives in Ethiopia

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Addis Ababa University


The major objective of the research is to examine the role of dairy Cooperatives in reducing poverty in terms of promoting opportunities, facilitating empowerment, and enhancing security in Ethiopia. The comparative analysis of small scale dairy value adding with small scale nonprocessing or marketing only dairy cooperatives is done for this purpose. , The case of Ada'a Dairy Cooperative as a processing one and the case of Selale Dairy Cooperative Union as milk marketing are selected in the study. In both cooperative sides, simple random sampling was mainly used with survey questionnaire, interview with different bodies in the cooperative activities, and Focus Group Discussion. Moreover, the study is descriptive and exploratory. As a result of the study, the change in the living conditions of the farmers after their membership, the underutilized potential of the processing unit in Ada'a, the opportunities and readiness of Selale Dairy Union, the management problems of the cooperatives, the after membership poverty , level of the farmers, the actors who are supporting the cooperative activities, and the overall socio- economic situations of the farmers are clearly described. Moreover, it is verified that most of the farmers are not benefited from the cooperative activities so far because of different internal reasons though they are in a better condition than before their membership. In general, in before - after analysis the cooperatives are successful in promoting opportunities for the farmers. There is a change in different indicators such as income, expenditure, price of milk and access to better markets. Unlikely, both are not successful in facilitating empowerment and enhancing security for the farmers. Key Words: Poverty, Poverty Reduction, and Dairy Cooperatives



Poverty, Poverty Reduction, and Dairy Cooperatives