Organizational strengthening and revival of the dairy marketing activities

ADA'A Dairy Cooperative Society is an organization formed by 425 dairy member farmers. The overall purpose of the cooperative is to improve its members' income through establishment of well-organized access to market system for its members. For this, it collects raw milk for fair price from members and adds value on it by processing and resale to consumers using different channels. Currently the daily milk intake is around 2000 liters a day. A substantial drop compared with some years ago, where ADAA maanged to collect between 8000-10.000 liters a day from over 900 members. ADAA has a processing factory, where it is able to process around 15.000 liters of milk a day, mainly into pasteurized milk. Next to that small amounts of butter, chees and yogurt are made. ADAA is in the phase of recovering from a serious management crisis. Currently the board is getting the cooperative back in its feet. It managed to stabilize the cooperative and make some steps towards expanding the business. The largest challenge is to acquire adequate management staff that brings the cooperative to further business expansion (increasing supply, more contracts, professional marketing and sales). Next to that it is supported to be geared to attract more investment and working capital for business expansion, cooperative strengthening (financial management, business planning) and assessing the viability and feasibility of getting the feed equipment operational and profitable. Key objectives of the ADAA action plan are: • To install a sound management capacity at ADAA and clearly divide roles and responsibilities of board and management bodies • To develop a bankable business plan and attract finance for expansion of the dairy intake and business • To develop a adequate marketing and branding strateegy for the dairy products of ADAA • To assess the feasibility of involving in feed processing and relaunch the feed processing business

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€ 42987.17
Ethiopia
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The Netherlands

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