Camel Milk Value Chain Development

Jijiga, Somali Regional State

Stakeholder Workshop – Report

Strengthening Drought Resilience in Somali Region (SDR-SR)

Deutsche Gesellschaft für internationale Zusammenarbeit (GIZ) GmbH

 Table of content

Table of content

Table of content ...............................................................................................................................I

List of tables................................................................................................................................... II

List of figures ................................................................................................................................. II

List of abbreviations ................................................................................................................... III

1 Introduction ............................................................................................................................ 1

2 Background information ....................................................................................................... 1

2.1 Somali Regional State ................................................................................................................ 1

2.2 Camel milk .................................................................................................................................. 3
2.3 Camel milk value chain in Jijiga ............................................................................................... 3

3 Methodology ........................................................................................................................... 7

4 Overall process of the workshop .......................................................................................... 8

5 Outcome of the workshop ................................................................................................... 10

6 Recommendations for potential future activities of SDR-SR .......................................... 14

Annex ............................................................................................................................................. V

I
 List of tables

List of tables

Table 1: Recommendation for potential activities ......................................................................... 14

List of figures

Figure 1: Camel milk value chain map ............................................................................................ 4

Figure 2: Yellow transportation canisters ........................................................................................ 6

Figure 3: Conference room .............................................................................................................. 9

Figure 4: Preparation of participants self-introduction .................................................................... 9

Figure 5: Group work..................................................................................................................... 11

Figure 6: Presentation of group work results ................................................................................. 11

Figure 7: Challenges, opportunities and recommendation ............................................................ 13

II
 List of abbreviations

List of abbreviations

ACPA Aged Children Pastoralist Asociation

AHC Animal Health Clinic
ASAL Arid and Semi-Arid Lowlands
BoLPD Bureau of Livestock and Pastoralist Development
BoANRD Bureau of Agriculture and Natural Resource Development
FAO Food and Agriculture Organization
FBS Farmer Business School
GIZ Deutsche Gesellschaft für international Zusammenarbeit
PRIME Pastoralist Areas Resilience Improvement through Market Expansion
SDR Strengthening Drought Resilience
SDR-ASAL Strengthening Drought Resilience in Arid and Semi-Arid Lowlands of
Ethiopia
SDR-SR Strengthening Drought Resilience – Somali Region
SoPARI Somali Region Pastoral and Agro-pastoral Research Institute
USAID United States Agency for International Development
VC Value Chain

III
 Introduction

1 Introduction

In Somali region, the most prevalent and sustainable land use system is pastoralism, largely based
on camel and goat. It is generally well adapted to dryland environments, able to operate
effectively in low rainfall conditions. Due to advancing natural resource degradation, pastoralists’
livelihoods are becoming increasingly vulnerable to both natural and man-made disasters.

As part of the programme, Strengthening Drought Resilience of the Pastoral and Agro-pastoral
Populations in Arid and Semi-Arid Lowlands in Ethiopia (SDR-ASAL), the joint German-Swiss
support project “Strengthening Drought Resilience in Somali Region” (SDR-SR) has identified
camel milk as one of the supported Value Chains (VC).

On the 04th and 05th of July 2017 the Deutsche Gesellschaft für internationale Zusammenarbeit
(GIZ) Strengthening Drought Resilience – Somali Region conducted a stakeholder workshop in
Jijiga with VC actors and staff members from SDR-SR. A GIZ headquarter specialist from
Germany came to assist in the preparation and conduct of the workshop. The two -day workshop
was facilitated by an external Somali speaking facilitator. Based on the analysis, the objective of
the workshop was to identify and design concrete recommendation for action and prioritize them
to promote the regional camel milk sector.

In order to understand the gaps and bottlenecks of the camel milk VC, the documentation report
provides a short overview regarding socioeconomic and agricultural background of Somali
Regional State as described in Chapter 2. This section also shows the importance of camel milk
and the major finding on the camel milk VC pre-assessment in the surrounding of Jijiga.
Subsequently, in Chapter 3 and 4, the applied methodology and overall process of the workshop
is described. Afterwards, the generated results of the workshop are explained and outlined in
Chapter 5. Chapter 6 presents recommendations for further action.

2 Background information
2.1 Somali Regional State

Somali Regional State occupies 350.000 km2, with international borders in the norths to Djibouti,
Somalia to the east and north-east, and Kenya to the south. Within the country, Somali Region
has borders with Oromia Region to the west and Afar Region to the north-west. The region is
1
 Background information

divided into 11 administrative zones, 68 woredas (districts), and 786 kebeles (communities). The
average population density is 16 inhabitants/km2. An average household consists of 5.9 members.
Further studies indicate that the number and the size of households are increasing due to early
marriage practices. Following customary rules households and religious institutions are headed
by men. On a daily basis, the households are mostly controlled by women. The local economy is
closely linked to that of neighbouring countries such as Somaliland/ Somalia, Djibouti, and
Kenya and the neighbouring regions of Ethiopia. In Somali region four livelihoods systems are
predominate:

Pastoralism: about 60% of the rural population is engaged in mainly mobile livestock rearing.
Pastoralism is characterized by shortage of rainfall and variability in space and time. The
fundamental strategies for nomadic pastoralism are mobility, territorial fluidity, and reciprocity.
Its flexibility and adaptation to the prevailing political landscape and ecological changes attribute
to its continuity.

Agro-pastoralism: comprising about 25% of the rural population, pursue a mixed livelihood
system wherein they are engaged in livestock herding and rain fed crop farming, e.g. maize and
sorghum.

Farmers: living a settled existence produce rain fed crops for consumption and trade (15% of the
rural population).

Urban: residents making a living from formal and informal employment.

The percentages of households involved in the different livelihood systems are highly variable, as
this is strongly dependent on the suitability of lands for crop production, the distance to markets,
and local traditions. Migration towards larger settlements is increasingly taking place. The rural
population searches for daily labourer jobs to supplement and diversify their income. Due to
advancing natural resource degradation, pastoralists’ livelihoods are becoming increasingly
vulnerable to both natural and man-made disasters. The weakness of early warning and crisis
response systems, poor infrastructure, limited access to markets as well as basic animal and
human health services have further exacerbated the decline of resilience mechanisms to shocks.

Somali Region mainly belongs to the agro-ecological zone called Kolla, which is defined as hot
2
 Background information

to warm arid lowlands between 500 and 1.500 meters. A small area corresponds to sub-moist
lowland (around Babile). Average temperatures range from 16-20°C (min.) and from 28-38 °C
(max.). The majority of the territory receives less than 400 mm of rainfall during the year with a
moderate to high variability measured in the last 35 years. A small portion of the region including
south-west of Siti Zone, and part of Fafan Zone receive a higher amount of rains (ranging from
400 to 800 mm).

2.2 Camel milk

Arid and Semi-Arid Lowlands (ASAL) are prone to drought and the camel is better adapted to
these conditions than other forms of livestock, e.g. cattle. Ethiopia has one of the largest camel
herds in the world estimated to be 2.5 million, traditionally kept mostly by Somali and Afar
communities. They can produce milk all the year round, and can yield from two to four litres/day.
The milk has nutritional qualities which are not found in the milk of other livestock, e.g. bovine.
Recent research has shown that it is close to human milk and has properties for treating several
ailments including anti-immune diseases, allergies, and juvenile diabetes. The Food and
Agriculture Organisation (FAO) rates camel milk as rich in iron, unsaturated fatty acids and
vitamin B, while containing three times as much vitamin C as cow’s milk. Camel milk has been
reported to be not easily fermentable because of its antibacterial and anti-viral properties of the
protective proteins.

2.3 Camel milk value chain in Jijiga

The camel milk VC in Jijiga was analysed the previous two months. The main questions were:
where are gaps and bottlenecks and what can GIZ SDR-SR in cooperation with the national
partners do in short- or long-term view to improve and diversify the producers’ income,
specifically women and young drop-outs? In the first step a literature review was done to find out
which institutions and organizations are already working in the same field. Moreover, a current
VC map was created. The subsequent Figure 1 gives an overview of the VC map and entailed
service supplier, producer, transportation, processor, traders and retailers.

3
 Background information

Figure 1: Camel milk value chain map

In a second step the data collection started according to the identified stakeholders in Jijiga.
Various semi-structured interviews were carried out to identify the most complete set up of
stakeholders. These included all selected VC members, organizations, and institutions in and
around Jijiga (see Annex 3; List of contact persons). The interviews indicate that the producers
are mainly located in Fafan Valley and the milk is brought to Jijiga town as a trading centre.
Further there are different ways to sell the camel milk. If the producers are connected to a village
or next to Jijiga town they sell their milk along the road or at the market in Jijiga. If the producers
cannot sell directly then they transport the milk to a milk cooperative. Additionally, there are
several ways to trade the milk as they use relatives, milk collectors (only transporting the milk to
town), city transporter, and milk traders. There seems to be a strong demand for camel milk,
especially among the Somali population in Jijiga. Subsequent a detailed description of the
specific parts:

Service suppliers: the availability of medicine for animals is given in Jijiga and Fafan, However,
for producers in rural and remote areas it is difficult to obtain them. In addition, pastoralists often
rely on rarely available veterinarians or their own knowledge. There is a state-subsidized
veterinary medicine but access and coverage are limited. Also, the extension service is scarce
because of a lack of human resources, trained personnel, and poor infrastructure. In general, it is
difficult for government institutions to reach the producers in rural and remote areas of Somali
Region. To solve this problem the state and different NGOs trained Community Animal Health
Workers (CAHW). They got a 15-day basic training in animal health to support the producers
and to increase the coverage of veterinary service and also continuous training sessions. The
participants are chosen by the community. In addition, there are vet pharmacies’ in the area and

4
 Background information

the Government has established in some kebele Animal Health Clinics or Post (AHC). The AHC
is providing state-subsidized medicine for pastoralists or livestock herders one or two-times a
year but the access and coverage is limited.

Producers: the camel milk producers in the surrounding of Jijiga are predominantly pastoralists
with a few agro-pastoralists and small-scale farmer. The producers are mainly located in Fafan
and Babille valley. Usually the men are the owner of the camels. There was no clear information
on who is milking the camels, traditionally men milk the camels. A baseline study from 2015 in
Fafan Zone mentioned only men milking the camels. But in our interviews mostly the women
were milking the camels. However, only women transporting and selling the milk. The producers
face a low productivity of camel milk. This can be explained through limited water, fodder
availability as well as camel diseases. Especially the camel diseases are a major issue because
they not fully studied, yet. In this area camels are mainly affected by: camel trypanosomiasis,
anthrax, camel respiratory syndrome, brucellosis, camel pox, internal and external parasite
infestation, mastitis, and neck wry. The camel milk business is a seasonal business, production
being significantly higher in rainy season and strongly affected by droughts in the last years.
There is no additional or supplementary fodder source. Usually the camels are fed on natural
vegetation in rangeland which is used by the community. However, the rangeland is degraded
nowadays because of overgrazing, wood collection, invasive species, and climate change. The
milk price depends on the season (rainy or dry) and is between 20 to 25 birr per litre if sold
directly to consumers. Sold to Berwaqo or other milk cooperatives the average price is between
15 to 20 birr per litre all year round. There is a major lack of appropriate cooling and storage
facilities, which leads to hygiene problems of the milk, causing for example the milk to become
sour very quickly.

Transportation: a majority of producers use for transportation purposes a donkey and recycled
yellow plastic canister. The main challenge is the hygiene risk which arise out of difficult to clean
these canisters having a very narrow opening and parts which cannot be reached by any cleaning
equipment. A common way of disinfecting is smoking after rinsing the cans with water but this
technique affects the taste of the camel milk depending on the used wood. In general, the Somalis
like the smoky taste of the camel milk, though for Berwaqo it is difficult to sell a uniform

5
 Background information

product. Mercy Corps in consequence introduced easy to clean five litre aluminium cans/
container. However, the producers are saying that loading it on a donkey is difficult.

Figure 2: Yellow transportation canisters

Processor: the milk processing factory Berwaqo is the only company which is selling processed
camel milk and a small amount of cow milk. The plant is funded by USAID PRIME and
supported by Mercy Corps. The overall the processing capacity is 15.000 litres, however at this
stage they are processing maximum around 2.500 litre only with a high variability. In dry season
the production reduces to 300 litres per day. The production and collection is affected by daily
problems such as power cuts or break downs of trucks and not-functioning cooling facilities in
the trucks. This leads to an unreliable and unsafe milk production. The milk collection starts at
around 8 am and each milk canister is tested regarding the freshness (alcohol test). Berwaqo
owns three trucks, which should collect every day. In addition, the company has contracts with
different milk cooperation’s. The price paid depends on negotiation and contracts between the
company and the cooperatives are renewed every six months. Whatever is the price confirmed,
there is no difference between the selling price for the dry season or the rainy season. After the
processing, the milk is mainly sold in 0.5 litre bottles in Jijiga but also in Harar and Dire Dawa.

Also, traders on different selling sites (market or next to streets) process the milk which means
they boil the milk for a longer shelve life.

6
 Methodology

Trader: in the surrounding of Jijiga most of the milk is traded by milk cooperatives. The
cooperatives have a collecting site, usually with a shade but also collect the milk directly from the
producer. Common transportation possibilities are donkeys, cars or trucks to transport the milk to
Jijiga or other bigger cities such as Harar or Togochale. In addition, there is an informal milk
trade to Somaliland which affects the milk prices and the availability in this area. From
Togochale the milk is transported to markets in Somaliland. Only one visited milk cooperative
(Berwaqo Cooperative; Jijiga South) has cooling facilities which is used in dry season. Cooling
and hygiene are two major bottlenecks because if the milk is sour, it cannot be sold to Berwaqo
milk factory or sent to town. The use of natural fermented milk seems according to the interviews
not common, however in the literature and other studies it is mentioned as home consumed. In
Jijiga town are different milk selling sites. The women selling around 40 to 80 litres per day.
Sometimes the women trading in milk received from their relatives, but in most cases the milk is
transported from Fafan valley by cars to Jijiga and there handed over to public transport and
collected from traders such as the women selling the milk next to the road. In recent times
tetracycline was added to the camel milk to extend shelve live.

Retailers: in addition, hotels, restaurants and supermarkets in Jijiga town receive camel milk
from Berwaqo almost every day. Small kiosks/ shops receive 50 bottles, supermarkets 200, and
hotels up to 250 bottles. The cooling and storage facilities are given.

It was possible to identify several bottlenecks and gaps. In general, there is limited water and
fodder availability, lack of knowledge about camel diseases, treatments and vet service as well as
lack of cooling facilities and equipment, such as proper transportation cans or butter making
equipment. To identify short or long-term intervention a stakeholder workshop was organised.

3 Methodology

The GIZ methodology “Value Links”, define VC as socioeconomic systems or sequence of

related business activities that include all actors cooperating to serve a specific market, in the
present case the one of camel milk. The actors involved forming the VC and interact constantly,
means buying and selling products and services, exchanging information and cooperating to
pursue shared interests. The actors are the core of a wider VC community that consists of private
associations, specialized service providers, and industry-specific public organizations providing

7
 Overall process of the workshop

support. The overall objective of the VC approach is to produce a maximum yield or value for the
smallest possible amount of cost sand create a competitive product or sector. Simultaneous
economic growths should be respecting the expense of natural resources and the climate. In
addition, generating social benefits and protecting the rehabilitated environment using the natural
resources wisely is another focus. As a result, the VC approach “Value Links” aims to generate
growth within the limits of the ecological capacity.

A stakeholder workshop is a structured, facilitated discussion with selected VC participants who

are responsible for critical market functions, service provision, and the legal, regulatory and
policy environment. The use of a stakeholder workshop is to:

- validate the findings of the VC analysis,

- identify opportunities and challenges,
- facilitate the development of a stakeholders’ vision of an improved VC, and
- begin to identify recommendation for action and prioritize them.

The stakeholder workshop aims to bring together VC actors who have interests to invest in
upgrading the VC and to develop an action plan to bring the sector forward. For preparation of
the workshop and a successful implementation, getting the right participant is the crucial aspect.
To develop recommendation for action the key stakeholder of the study area must be invited.
Regarding Jijiga in Somali region this includes the following parties: producers, camel herding
community elders, milk cooperatives, Berwaqo milk processing factory, Bureau of Livestock and
Pastoralist Development (BoLPD), Bureau of Agriculture and Natural Resource Development
(BoANRD), Somali Region Pastoral and Agro-pastoral Research Institute (SoRPARI), Jijiga
University, Haramaya University, Jijiga South Woreda/ Administration, Oxfam, Mercy Corps
and Aged Children Pastoralist Asociation (ACPA) (see Annex 2; List of contact persons).

4 Overall process of the workshop

The workshop was conducted on the 4th and 5th of July in the regional GIZ office in Jijiga town.
Overall 19 stakeholders attended the workshop and shared their experience and knowledge (see
Annex 6; Attendance sheet). Most of the participants were interviewed before and selected
according to criteria. The facilitator, Ismail Handule led through the programme, presentations,

8
 Overall process of the workshop

and discussions. For the workshop the necessary tools and materials, such as projector, writing
blocks, cards, flip charts, and pens were provided. The workshop was mainly held in Somali
language for a better understanding of the participants. Only the key information was translated
into English during the workshop. The team members Mahat Daud and Abdishukri Omar
participated in the workshop both days to support us with translations, taking notes, summarizing
discussions and to capture important statements made by participants without interrupting the
flow of the discussion.

Figure 3: Conference room Figure 4: Preparation of participants self-

introduction

The course of the workshop is described as follows (see Annex 3 Programme):

Introduction: short presentation of the project and purpose of the workshop followed by a self-
introduction of the participants regarding name, occupation/ experience, and expectations.

Presentation of the value chain approach with general information: introducing the GIZ “Value
Links” methodology for a general understanding (see Chapter 3).

Presentations on findings, Berwaqo, and Haramaya University: providing an overview on the

camel milk VC in the surroundings of Jijiga to facilitate the discussion on ideas to improve the
camel milk sector (see Chapter 2). In addition, Berwaqo (see Annex 1) gave an introduction to
their company as well as the Haramaya University on their current research.

9
 Outcome of the workshop

Group work to identify opportunities, challenges, and recommendation: the group work aimed to
make the participants think about each constraint and opportunity and disuses their ideas of an
improved camel milk VC.

Discussion on results: presenting and brief discussion on the results developed during the group
work.

Participatory prioritizing of recommendation for action: sum up the group work, discuss the
recommendations and rank them.

5 Outcome of the workshop

During this presentations and discussion rounds the participants had the opportunity to reflect the
camel milk VC. There was a major discussion after the presentation of Berwaqo regarding failure
to fulfil agreements between cooperatives and the company. The milk cooperatives were
complaining that the milk factory is not fulfilling their commitments, e.g. the agreement on
quantity of milk taken per day (600 litres). They claim that Berwaqo changes the amount from
taken from day to day. And sometimes, according to cooperatives, Berwaqo does not collect milk
at all. Additionally, the agreement included a compensation for the case the milk is not collected,
which is not complied with either. The factory responded that they inform the cooperatives and
that Berwaqo is facing internal problems such as limited capacity. The result of the discussion is
that the agreements should be renewed between the cooperatives and Berwaqo with the
facilitation of the BoANRD and Mercy Corps. As well as stronger commitment to the agreement
of all partners. In addition, there are also possible improvement within Berwaqo.

On the second day, we started with the group work. Each team identified opportunities,
challenges, and recommendations for the camel milk VC around Jijiga. The groups were
autonomous working in separated rooms and we tried to have stakeholder of all parts of the VC
in each group (see Figure 5).

10
 Outcome of the workshop

Figure 5: Group work

Afterwards each team presented its results (see Figure 6).

Figure 6: Presentation of group work results

There were major discussions on the following issues:

- To improve animal health and the quality of milk it should be paid attention to the
nutritional value of minerals, e.g. phosphor. Therefore, the fodder sources should be
improved. Depending on the season fodder shortages are challenges. The participants
discussed the potential of supplementation fodder sources, i.e. spineless cactus. The
recommendation was to focus on fodder production to improve the fodder quality and
supply which will positively affect the health condition of the animals.
11
 Outcome of the workshop

- The producers and milk cooperatives need to have more technical to produce butter and
cheese. Butter and cheese production is seen as very interesting possibility for value-
added products to increase the income of producers and cooperatives. Nowadays there are
not able to produce this products due to lack of knowledge, technology/ equipment.
Additionally, the possibility of value-added products from cattle milk for cooperatives
was discussed.
- Need for protection mechanism for milk cooperative to reduce the risks of not fulfilled
contracts.
- Marketing challenges - the informal cross-border trade is viewed differently depending on
the actors. While some participants think it should be allowed for cooperatives and
producers to sell their milk to other countries because it is a good potential market, others
said it affects the local prices. In general, there is a high interest by all VC actors to
establish other market possibilities and in creating market links with other countries, such
as Arab countries.
- Perception of the producer is very important because they need to support the potential
improvements.
- Camel urine has a nutritional/ medical value and is for example used in Afar region.

All participants agree that the animal health sector has to be improved. Subsequently, the
participants sorted the recommendations and removed duplications. Then all participants had
three dots to give to prioritize the recommendations (see Annex 5).

The following Figure 7 shows the results of the group work including opportunities, challenges’
and the developed recommendation of action.

12
 Outcome of the workshop

Figure 7: Challenges, opportunities and recommendation

13
 Outcome of the workshop

6 Recommendations for potential future activities of SDR-SR

The developed recommendations for action were again discussed in a debriefing meeting together with Dr. Ernst Mill regarding their
potential to future activities of SDR-SR. Subsequent the Table 1 shows the result of this discussion.
Table 1: Recommendation for potential activities

Value chain partner Intervention area Intervention

Producer Fodder Total fodder potential analysis
Vet service 1. Assessment of capacities à Swiss
Tropical and Public Health Institute
à Cooperation with Jijiga
University
2. Assessment of the Government
Health Service and CAHW
3. IGAD TC facility project –
assessment/baseline regarding vet
service and supply in Somali Region

Animal husbandry 1. Analysis of Best Management

Practice à Why is one producer
more successful than others- what
are the influence factors?
2. Improvement of animal husbandry,
fodder, hygiene (including milking),
protective storage and transportation
as well as business skills à
Trainings – possible combination
with Farmer Business Schools(FBS)
// Review of the given training

14
 Outcome of the workshop

activities (ACPA, Mercy Corps) and

any existing training centre
Cooling/ Storage Analysis of on-farm-storage possibilities –
evaporation cooling and solar.
University of Hohenheim/ GIZ project on-
farm solar milk cooling Tunisia and Kenya
à exchange of experiences already in
contact
Natural fermentation Analysis of the use of sour milk and
potential marketing
Transportation equipment Mazzican (milk can) was not appreciated
because of size (5 litre would be better),
form (transport on a donkey)? à Trial in
the field to test the cans and report back
Milk Cooperative Structure 1. Organization, function, and setup
analysis à in cooperation with
ACPA?
2. Analysis Best Management Practice
à Why is one cooperative more
successful than others - what are the
influence factors?
Organization Improvements through trainings activities
focus on hygiene, storage, buying and
selling, financial management/business
skills, leadership skills à could be
connected to FBS
Processor Management 1. Audit
2. Exchange visit to Kenya
3. Creating an information flyer /
leaflet
4. Contact to Tiviski Mauretania

15
 Annex

Annex

Annex 1: Presentation ...................................................................................................... VI

Annex 2: List of contact persons ................................................................................... XII

Annex 3: Workshop programme on camel milk value chain development .................. XIV

Annex 4: Challenges and opportunities ........................................................................ XVI

Annex 5: Recommendation for action ........................................................................ XVII

Annex 6: Attendance sheet ........................................................................................ XVIII

V
 Annex

Annex 1: Presentations
Value Links – introduction

Why promote value chains?

The answer of public policy:

Economic development generates social benefits
• By promoting rural / agricultural growth:
• jobs are created and revenues of smallholders and SMEs increase
• Poor people can be integrated into markets, directly or indirectly
• Prices can be kept low
• more tax income is generated that can be spent on education, health
etc.
• marginal regions can catch up
The environment needs to be protected and resources wisely used
• No development at the expense of natural resources and the climate,
growth within the limits of the ecological carrying capacity.
6

Value Chain – a definition

“Value chain” means….

• the sequence of related business activities (functions) from the
provision of specific inputs for a particular product to primary
production, transformation, marketing and up to final
consumption
• the set of enterprises that performs these functions i.e. the
producers, processors, traders and distributors of a particular
product

The value chain map

Basic sequence of functions in an agricultural value chain

Specific Trans-
Inputs Production formation Trade

Provide Grow crop Classify Transport

- equipment Harvest Process Distribute
- inputs Pack Sell
Categories of operators in value chains and their relations
Specific Farmers, Packers, Consumers of
Input (primary Agro- Traders pineapple juice
providers producers) industry (sales pt.) (the market)
4

VI
 Annex

Why promote value chains?

The answer of private enterprises:

Markets do not always develop & function on their own!
The growth potential remains unused, because of
• There is a lack of trust, market coordination, transparency…
• Lacking skills, solutions, technology
• Infrastructure is insufficient
• Missing or inappropriate legal & administrative rules
• Public support services often insufficient
Economic globalisation calls for…
• close coordination of production and distribution along the chain to
comply with quality requirements and reduce cost of logistics

The global dimensions of VCD

Economic growth
= greater volume and higher value generated (“a growing pie”)

Environmental protection Benefits for the poor

Natural resources and the climate are Poor people benefitting at least
utilized sustainably, generating a “one equally or above average from the
planet footprint” (“green” growth) income generated (“pro-poor,
“inclusive” growth)

VII
 Annex

Objectives SDR – project

Sustainable Value Chain development – Introduction

Value Chains – a perspective on development

• Objective
• Camel Milk
• Value Chain Map

2
Camel Milk Value Chain Development

Camel Milk

• One of the largest camel herds in the world estimated to be 2.5 million
traditionally kept mostly by Somali and Afar communities
• Camel is becoming the subject of increasing scientific and commercial interest
• Composed of 3.5% fat, 3.1% protein, 4.4% lactose, 0.79% ash, and 11.9% total
solids à comparable to bovine
• Difference in relative composition, distribution, and the molecular structure of
the milk proteins
• Nutritional importance because of Vitamin C
Challenges: Pastoral and agro-pastoral productions systems depend on
unpredictable rainfall, degraded rangelands, and rainfed agriculture à irregular
production

3
Camel Milk Value Chain Development

VIII
 Annex

Objective

The main objective of the project is to generate/improve the income for

the producers concerning gender issues. With focus on our intervention
Woredas

Questions

• Where are gaps and bottlenecks?

• What can we do in short- or long term?

4
Camel Milk Value Chain Development

The value chain map camel milk

5
Camel Milk Value Chain Development

IX
 Annex

Distribution channels

6
Camel Milk Value Chain Development

Data Collection

• Interviews with:
• Berwako Milk Processing Factory and Milk Collection Side
• Mr. Amir
• Somali region Pastoral and Agro Pastoral Research Institute (SoRPARI)
• Mr. Hassen Abdurehman; Dr. Muhumed
• Aged and Children Pastoralist Association (ACPA)
• Mr. Amednur Mohamed
• Mercy Corps
• Milk Cooperatives (2 in Fafan Valley; 1 Jijiga South; 1 Jijiga North)
• Oxfam
• Mr. Million Ali/ Elias
• Livestock & Pastoral Development Bureau à now Jijiga University
• Mr. Nimaan Abdullahi Hamarrie
• Haramaya University
• Milk ladies in Jijiga (Market and selling sites next to the GIZ office)

7
Camel Milk Value Chain Development

Gaps and bottlenecks

• Low productivity
• Animal health
• Water availability
• Hygiene
• Cooling facilities
• Transportation
• Lack of equipment

8
Camel Milk Value Chain Development

X
 Annex

Berwaqo milk factory

• “Berwaqo” means prosperity in Somali language

• Berwaqo milk processing factory is located in Eastern Ethiopia

• The factory was established in 2012

• Production of organic, fresh, and pasteurized camel and cow milk

• 90 % of the factory product is camel milk bottled in 500ml

• Jijiga, Harar, and Dire Dawa are product destinations within Ethiopia

• Djibouti and Somaliland are among countries reached

• While countries from Europe and Asia are interested

• The factory aims:

• to creating sustainable milk business linkages with vast milk producer of

the pastoral community, and

• to insuring profits margins of the factory and for pastoralists

• to share the daily livelihood of the producers Berwaqo enters to the centre
of each village in order to reduce work load and long journey to sell milk

• The factory has a processing capacity of 10,000-15,000 litre of pasteurized milk

per day

• Since the milk business is seasonal the job opportunity varies

• More than 35-40 possible job positions according to the market demand and
resource availability

• 27 employees are employed to undertake labour duties and skill demanding

positions

• The factory is linked with group of milk producer cooperatives located within 50
km radius of Jijiga town

• For example: the Fafan site and Bombas area milk producer cooperatives

• Unlike the rest individual producers, cooperative members have their own
internal regulation and have a legal body to deal with any partner

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• The amount of milk, the quality of milk, testing procedures, and pricing of milk
are fixed in an agreement signed between Berwaqo milk factory and each
cooperative

• From the Fafan area: Berwaqo milk producer cooperative is the largest in terms
of milk yield and membership (70 households)

• Located in different villages namely Golohajod and Qubijara. El Girr Kebele

located in Bomb Woreda.

• For a better relationship, the factory has a written agreement with each
cooperative

• Price determination, milk quality parameter, collection time, and other rules and
regulations are in place

• Having a collection centre next to the villages is an advantage for producers to

save time and long-distance travel to sell their milk

• Cash payment, delivering household consumption (e.g. sugar and cereals) from
Jijiga on their own expenses help them

• Season based milk yield variation affects the market

• Hard to reach to the collection centres during rainy session

• Inconsistent cost variation on raw materials and expensive transportation costs

• Unfair competition from informal venders who encourages adulteration and the
purchase of untested milk

• Frequent power supply interruption at the factory

• Absence of committed business partners to work with

Annex 2: List of contact persons

Contact person Institution / Contact

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organization
Mr Amir (Owner) Berwaqo milk [email protected]
Mr Anteneh Feleke processing factory
(Operational Manager) [email protected]
Mr Hassen SoRPARI [email protected]
Abdurehman
Dr Muhumed SoRPARI N/A
Mr Farrah Mercy Corps 0911902138

Mr Mohamed ACPA [email protected]

Mr Hamrrie Jijiga University [email protected]
Mr Kurtu Haramaya University [email protected]
Mr Ali Oxfam [email protected]
Milk ladies Market/ Milk selling N/A
sites
Haweya Berwaqo 1/ Milk 0937474406
cooperative (Jijiga
South)
Aamina Milk cooperative/ 0915230706
Tigdem Kebele
Sh Abdi Mahamed Berwaqo 2/ Milk 0915414171
cooperative
Hawa Iftim/ Milk cooperative 0972321868
(Jijiga North/ Cow
milk)

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Annex 3: Workshop programme on camel milk value chain development

4th and 5th of July in Jijiga; Project Office

04.07.17
Time Purpose Person Need
9.00-9.10 General Welcome Thomas Sommerhalter
9.10-9.20 Purpose of the workshop Thomas Sommerhalter
9.20-9.30 Facilitator presentation programme Ismail Handule Flip chart
Self-introduction of the participants and written expectation/ Focus
9.30-10.30 on occupation, expectation, experience Participants 3 cards per person
10.30-10.50 Coffee break
10.50-12.10 Introduction of value chain principles Ernst Mill Presentation/ projector
12.10-12.30 Questions on understanding of value chains Participants/ Ismail
12.30-14.00 Lunch break Universal Hotel
14.00-14.20 Camel milk value chain in Jijiga Sabrina Kimmig Presentation/ projector
14.20-14.50 Discussion on findings Plenary/ Ismail
14.50-15.20 Presentation Berwaqo Anteneh Feleke Presentation/ projector
15.20-15.30 Discussion Berwaqo Isamail Handule
15.30-16.00 Coffee break and prayer time
16.00-16.30 Camel milk value chain Haramaya University
16.30-16.45 Discussion Isamail Handule
05.07.17

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9.00- 9.10 Welcome, summary and outlook Ismail Handule Flip chart
9.10-10.10 Group work on constraints and opportunities (2 constraints/ 2 Participants 3 rooms+ flips charts+ 15 cards per
opportunities) group
10.10-10.30 Coffee break
10.30-12.00 Presentation and discussion Ismail/ Participants
12.00-14.00 Lunch break
Participatory identification of recommendation for action/
14.00-15.30 Group work Ismail Handule 15 cards per group/ pencils
15.30-16.00 Agreements on further steps and summary Ismail Handule Flip chart
16.00 Closing and coffee Thomas Sommerhalter

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Annex 4: Challenges and opportunities

Number Opportunities Challenges

1 Drought resilience of the animals Limited water and fodder availability caused
by recurrent drought
2 More milk yields due to high population Lack of animal health service
3 Outstanding quality Frequent emergency disease
- Composition
- Medical/ nutritional value
4 High demand in Jijiga surroundings Lack of knowledge on animal husbandry,
milk handling storage, transportation
5 Camel milk activities support women Seasonal milk supply
6 Accessing new markets through improved transport Degraded rangeland
capacities (Toxic plants)
7 Technical support (material for milking) to improve Limited capacity of the processor
the quality
8 Strengthening milk market cooperatives Lack appropriate milking, transportation, and
storage equipment on trader site.
9 Lack of input suppliers (fodder and vet
medicine)
10 Informal cross-border milk trading – health
risks and affecting the local prices
11 Shortage of camel labour worker
12 No market sustainability – no commitments,
e.g. Berwaqo and Cooperatives

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Annex 5: Recommendation for action

Number Recommendation for action Rating*

1 Improved veterinary service through strengthening vet service provider such as pharmacies and AHP 13
- Promote service
- Create a revolving fund to CAHW’s for vet drugs procurement and use
2 Support the improvement regarding management and production skills of Berwaqo 8
3 Introduce improved feed sources such as spineless cactus, forage grass, and legumes 7
4 Create accessible information system with local channels (FM radio service) in cooperation with the Extension 6
division to extend local information on camel milk and market information
5 Strengthening the communication between the market actors à Follow up meetings/ communications platform 5
6 Training on hygiene and suitable equipment 4
7 Introduce new products (butter and cheese) 3
à research on camel milk processing
8 Improve the availability of water (water harvesting) 2
à maintain hand dug wells – technical support for community
9 Area enclosures as rangeland management activities 2
10 Evaluate former/ traditional camel milk handling, e.g. fermentation for future use 1
*Each participant had 3 points to distribute among the developed recommendations

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Annex 6: Attendance sheet

No. Name of Partner Organization Location

1 Semere Beyene BoANRD JigJiga
2 Dr. Badri Abadir BoLPD JigJiga
3 Abdi Kalib Sugule BoLPD JigJiga
4 Ahmed Isamil Mercy Corps JigJiga
5 Osman Hussein Aden OXFAM JigJiga
6 Dr. Niman Abdullahi JigJiga University JigJiga
7 Abdihakim Ma'alin JigJiga University JigJiga
8 Dr. Muhumed Ali SoRPARI JigJiga
9 Hassan Abdurehman SoRPARI JigJiga
10 Tekle Wolkare (PHD) Haramaya University Haramaya
11 Mohame Yusuf Kurtu (PHD) Haramaya University Haramaya
12 Ayanle Hassan JigJiga South Agriculture JigJiga South
13 Anteneh Feleke Berwaqo Milk Factory Opera. Manager JigJiga
14 Amina Hussein Kariye Tikdem Cooperative Tikdem
15 Abdi Mohamed Hasan Barwaqo Cooperative/Babili Babile
16 Nimo Abdilahi Gelle Dhuhusha Cooperative Dhuhusha
17 Howeya Mohamed Mohamud Barwaqo Cooperative JJ South
18 Ibrahim Haji Cooperative Member JJ South
19 Abdirahman Ahmed JigJiga JigJiga

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