Scalable Business Models for Solar Milk Cooling in Rural Ethiopia: - A Case Study of Denkaka Cooperative to Support adoption and Sustainability
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Date
2025-09
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Addis Ababa University
Abstract
Post-harvest milk spoilage remains a significant barrier to dairy sector growth in Ethiopia, where smallholder farmers lack access to reliable cold chain infrastructure. Solar Milk Cooling (SMC) technologies offer a renewable energy-based solution to this challenge, yet their adoption and scalability remain limited. This research investigates how a sustainable and scalable business model for SMC can be developed and implemented within Ethiopia’s unique socio-economic and geographic context. Using a mixed-methods approach, the study draws on surveys (n=178) and qualitative interviews across smallholder farmers, cooperative members, and institutional stakeholders. The findings highlight widespread milk spoilage (10–30% loss), strong interest in SMC, and key barriers such as high capital cost, limited financing, and technical support gaps. Leadership within cooperatives and stakeholder collaboration emerged as critical enablers. The study proposes a cooperative-based, service-oriented business model grounded in the Business Model Canvas framework, supported by tailored financing, stakeholder engagement, and capacity building. The results offer strategic recommendations for policy makers, development partners, cooperatives, and the private sector. This research contributes to the growing body of knowledge on renewable energy for agriculture and provides a practical roadmap for scaling SMC in Ethiopia by aligning technology, cooperative governance, and financing to the country’s rural dairy ecosystem
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Keywords
Solar Milk Cooling (SMC), Business Model Canvas (BMC), Smallholder Farmers