Milk Value Chain Analysis in Sebeta District, Center High land of Ethiopia

The government of Ethiopia realized that if dairy sectors are well supported, it can contribute to the food security at the household level and increase income to the small holder farmers and processers which are operating under its capacity at this time. Dairy has a lot of constraints that are hampering it from delivering the desired good production. The research was carried out to identify these constraints using desk study and analytical tools such as PESTEC, SWOT and problem tree. This report attempts to analysis the dairy value chain in Sebeta district through identifying the different stakeholders, their functions and constraints. Afterward, looking at quantitative and qualitative analysis of the sector, quality management and product quality was also taken into consideration in helping to solve these constraints. Conclusions are included for the development of Sebeta dairy value chain.Ethiopia is a country located in the Eastern part of horn of Africa Continent. Being the first largest contributor to the GDP, the country’s main economic activity is agricultural production. Being a under developed country in the tropical region large scale dairy production activities are crucial for social and economic development and food security. The incentive of Ethiopia geographical location, growing demand, cheap labor and input costs makes milk production an economical rewarding activity. With present day technology communication between all actors is good. The information flow between retailers and wholesalers and the milk collectors and processor helps maintains quality standards and positive working relationships between actors