SMALLHOLDER DAIRYING IN SOUTHERN HIGHLANDS OF ETHIOPIA: FOCUS ON MILK AND BUTTER PRODUCTION, QUALITY AND IMPORTANCE TO PRODUCER HOUSEHOLD LIVELIHOOD

Abstract

This study aimed to classify smallholder dairy production systems (DPSs) in southern highlands of Ethiopia by analyzing land allocation for various crops and characterizing their integration with livestock/dairy. After the classification, the study primarily characterized DPSs based on feed types and feed resources, feeding methods, breed types and breeding methods, milk yield and income variation. Additionally, as an objective it evaluated milk and butter handling, production, and consumption, assessed supply chains and physicochemical quality, and examined the livelihood status of smallholder dairy producers across the different DPSs in the Southern Highlands of Ethiopia. Interviews with 360 smallholder farmers from the former SNNP and Sidama regions provided firsthand data, supplemented by secondary sources. The classification of these farmers, using K-means clustering, categorized them into four DPSs: 31% were classified as Diversified Crop-Based (DCB), 28% as Enset-Based (EB), 24% as Cereal- Based (CB), and 17% as Cash Crop-Based (CCB), where coffee, khat, vegetables, fruits, and sugarcane are predominant. Based on this classification, sampling for the analysis of the physicochemical properties of milk and butter focused on two contrasting systems, CCB and EB, which varied in the types of feed used. Sixty milk samples were collected from each system, with 20 samples from each actor (producer, retailer, and consumer). For butter, 12 samples were collected from each system, with 6 samples from each actor (producer and retailer). The CCB system, which dedicated 56% of farmland to cash crops, reported the highest income and intensive dairy practices compared to the other DPSs. Ownership of improved dairy cattle breeds, use of agro-industrial byproducts as feed, and practicing stall feeding were among the better practices observed in this DPS, indicating a move towards intensification of dairy production. In contrast, the EB system's 33% enset allocation provided significant feed residues for local cattle and had more local breed ownership. The CB system allocated 47% of land to cereals, making cereal residues the primary type of residue used as dairy feed. Cultivating grasses like Pennisetum pedicellatum and Phalaris arundinacea was also highly valued in this system. The DCB system, with its diverse crops, provided varied residues for dairy feed. These findings revealed unique characteristics across dairy systems, indicating a positive correlation xvi between crop commercialization and dairy intensification. Over two-thirds of respondents in the CCB system used modern milk handling devices, compared to just 21% in the EB system. Cleaning practices varied, with Eucalyptus globulus used in CB, DCB, and EB systems, while enset plant residues were specific to CCB. Producing 1 kilogram of butter required more milk from crossbred cows (18 liters) than from local breeds (13 liters). Significant variation (P<0.05) in butter production was observed between the CB and EB systems, requiring 15 and 13 liters, respectively, for local cows. The CB system required the least milk from crossbred cows (15 liters) for 1 kg of butter. Milk production was highest in the CCB system and lowest in the DCB system, while whole milk consumption remained consistent across all DPSs; however, butter production was highest in DCB and lowest in CCB. Raw milk quality declined along the supply chain, With fat content dropping from 5.3% at producers to 4.3% at a retailers, and TS from 13.2% to 11.8%, likely due to adulteration. Similarly, butter quality deteriorated, with fat content decreasing from 85% at producers to 80% at retailers, and moisture increasing from 15% to 20%. The EB system exhibited higher fat and total solids (TS) levels in raw milk compared to the CCB system, likely due to better grazing conditions and feed diversity. Overall, the EB system demonstrated superior quality in both raw milk and butter compared to the CCB system. Social, physical, and financial assets varied significantly across DPSs, with the CCB exhibiting the highest levels. CCB had better physical capital due to improved cattle housing and higher financial capital from increased dairy income and savings, while DCB and EB had more natural capital from abundant grazing land. Positive correlations were found between social, financial, and physical capitals. The livelihood capital radar diagram revealed that dairy farming had the greatest impact in the CCB system and the least in the EB system. The CCB dairy production system shows strong potential for intensification and comparatively better in their livelihood, with higher adoption of improved dairy production and milk and butter handling technologies. In contrast, the EB system relies on extensive practices, while the CB and DCB systems fall in between. Targeted interventions are needed to enhance productivity and technology adoption across all systems. For CCB, effors should enhance feed efficency and handling practices, while for EB , the focuse should be adopting technology, improving milk handling and supporting traditional dairy farming in all systems