Milking to potential : Strategic framework for dairy sector development in emerging economies

In emerging economies population growth occurs together with an increase in income per capita. In many of these economies dairy sector development is recognized as a crucial element to underpin the ongoing growth process. This paper provides an approach to achieve dairy sector development. The central framework of this approach consists of five steps. The first step is to organize stakeholders who are motivated to build a dairy sector development strategy. The second step is to make an analysis of (a) the present situation of the broader context around the sector, (b) the dairy chain and (c) farming systems. This analysis is the base for the diagnosis in the third step that results in opportunities and constraints for sector development. The fourth step for the stakeholders involved is to choose goals. The final step is to identify interventions to achieve these objectives. When working from constraints and opportunities towards goals and interventions, the stakeholders will have to deal with many dilemmas experienced in dairy development. These dilemmas are discussed in this paper, together with some lessons learned during the implementation of development activities in the past. The major dilemmas have to do with markets, sizes of farms and dairy plants, dairy farm management, cooperatives, milk quality, and training of skills and entrepreneurship