Discover how Kabe Arbo Dairy Primary Cooperative transformed its dairy operations by merging resources, increasing milk collection, and investing in an ISUZU truck. A success story of growth, efficiency, and sustainability in Ethiopia’s dairy sector.
Kabe Arbo Dairy Primary Cooperative’s journey from humble beginnings to a thriving, successful entity is a testament to the power of vision, teamwork, and bold decision-making. Established through the merger of ten smaller cooperatives on 23 May 2024, the cooperative has come a long way since its formation. With an initial capital of 6 million ETB and a membership of 566, the cooperative set out with a clear goal—to improve the dairy industry in its region and provide better livelihoods for its members.
At the outset, the cooperative was collecting an average of 13,220 litres of milk per day, using a small vehicle to collect milk from 45 Milk Collection Points (MCPs) spread across ten Kebeles (districts). The distance between the MCPs and the bulking centre, sometimes reaching up to 30 km, posed a significant logistical challenge. With only a small vehicle to cover such vast distances, the cooperative struggled to maintain efficiency, and daily operations were hindered.
Growth and Professionalisation
Despite the challenges, Kabe Arbo continued to grow. Over the course of the next few months, the cooperative’s efforts began to bear fruit. By hiring a manager, an accountant, and a saleswoman, the cooperative professionalised its operations, leading to improved management and greater business capacity.
As a result, the cooperative’s capital soared to over 10 million ETB, and membership grew to 718. This growth was also reflected in the milk collection, which increased to an average of 18,451 litres per day. The cooperative’s expanded reach, now covering 19 Kebeles, was a clear indication that its impact was growing.
The Turning Point and the Need for a Larger Truck
Despite the significant strides made, one challenge persisted—transportation. The small vehicle was no longer sufficient for the cooperative’s needs. The long distances between the Milk Collection Points and the bulking centre, coupled with the increasing volume of milk collected daily, made it clear that a larger, more efficient vehicle was necessary. The cooperative was facing logistical bottlenecks that were holding back its full potential.
Recognising the urgent need for a solution, the cooperative's leadership took bold action. They understood that a big-sized truck, specifically an ISUZU, would be the ideal solution. It would significantly reduce transportation delays, ensure the milk reached the bulking centre fresh, and optimise the overall milk collection process.
The Game-Changing Decision to Purchase the ISUZU Truck
With this vision in mind, the cooperative’s committee approached the general assembly to present the plan for purchasing a new ISUZU truck. The decision to invest 5.4 million ETB in the truck was not an easy one, but the committee convinced the members of its necessity. After thoughtful deliberation and unanimous support from the general assembly, the cooperative secured the funds and made the purchase.
On 14 March 2025, Kabe Arbo Dairy Primary Cooperative proudly took delivery of their new ISUZU truck. The acquisition of this vehicle marked a new era for the cooperative. The truck, designed for heavy-duty transportation, is now capable of efficiently collecting milk from even the most distant MCPs, which are up to 30 km away.
The Powerful Impact of the ISUZU Truck
The new ISUZU truck is already transforming the cooperative’s operations. With its larger capacity and ability to handle long-distance transportation, it has eliminated the inefficiencies that once plagued the milk collection process. The cooperative can now collect milk from all 45 MCPs more quickly and reliably, ensuring that the quality of milk remains high and that no milk is wasted due to delays.
This strategic investment has not only streamlined the cooperative’s day-to-day operations but has also positioned Kabe Arbo for continued growth. The improved transportation system will support the cooperative’s expansion into even more Kebeles and facilitate further increases in milk collection.
Looking Ahead to New Opportunities
The purchase of the ISUZU truck is a landmark achievement for Kabe Arbo Dairy Primary Cooperative. It marks the culmination of hard work, bold leadership, and a commitment to continuous improvement. The cooperative's story is one of resilience, adaptability, and a relentless drive to overcome obstacles and build a sustainable future.
As Kabe Arbo moves forward, the leadership remains focused on expanding the cooperative's reach and improving the quality of service provided to its members. The acquisition of the ISUZU truck is just one step in a larger vision to strengthen the cooperative’s position in the dairy industry and increase the profitability and well-being of its members.
In conclusion, Kabe Arbo Dairy Primary Cooperative's success story is a bold example of how determination, strategic decision-making, and investment in infrastructure can drive lasting positive change. The purchase of the ISUZU truck symbolises the cooperative’s resilience and commitment to growth, setting the stage for even greater achievements in the future.
