Biftu Berga Dairy Cooperatives Union

Biftu Berga Dairy Cooperative Union was established in 2009 and currently has 13 primary dairy cooperatives as members comprised of 698 individual smallholder dairy farmers (488 male and 210 female, or 43%). The Union is located in the West Shewa Zone which extends to 70 km from Addis Ababa, and is one of the main milk supply routes for Addis-based processors and consumers. The Union presently collects milk from nine of the primary dairy cooperatives that are located on main road and nearby, since the remoteness (off-road) of the other cooperatives would result in poor milk quality due to a lack of cold chain. The Union has a multipurpose truck and a 1500 lt chilling facility to collect and store milk, which it then supplies to major processors. Currently, the Union collects 3000 liters per day from milk suppliers (75% from members and 25% from non-members) and sells 75% of the milk to processors (Berta & Beral) and 25% to retailers and consumers. In addition to milk collection, the Union provides AI services to dairy farmers through three trained AI technicians with motor bikes.

Purpose of Grant

This grant will enable the Union to expand market access for all of its member cooperatives and farmers and to increase its milk collection from 3,000 lt/day to 7,000 lt per day by overcoming its major bottleneck, which is lack of sufficient cold chain equipment needed to maintain milk quality. Milk should be cooled immediately after reception at the collection centers or be transported immediately to the Union where it can be chilled. However, the Union has only one multipurpose track and one chiller which are located at its head office in Holeta town. The grant will enable the Union to develop two new milk chilling centers (and maintain the cold chain) in the major production sites of Adaberga and Ejere, whose evening milk is often wasted as it sours before it can be collected. Collection of this evening milk will be supplemented by milk sourced from non-member producers who will be encouraged to join the cooperative.