Merging for a Better Dairy Sector
09-01-2025The Story of Torban Burka Ashe Primary Dairy Cooperative
Written by Seifu Bogale, Cooperative Advisor in Ethiopia
Located in Fitche town, North Showa zone of the Oromia region, Torban Burka Ashe (TBA) Dairy Primary Cooperative stands as a remarkable example of how strategic mergers can drive growth and transformation in the dairy sector. Established in 2023, TBA is a product of the consolidation of four smaller cooperatives, supported by Agriterra through the BRIDGE+ project. This merger has empowered local farmers, enhanced productivity, and set new standards for cooperative success.
The Necessity for Merger: A Vision for Greater Impact
Torban Burka Ashe’s formation was driven by a clear need to consolidate resources, streamline operations, and build a more impactful cooperative. Before the merger, four separate cooperatives—Fitche, Bekelcha Bari, Torban Ashe, and Gende Guda—operated independently in the same locality. Despite their shared goals, each cooperative faced challenges that hindered their individual growth. Collectively, they managed a daily milk collection of 6,400 liters from 458 farmers. However, under the cooperative proclamation that discourages multiple cooperatives from offering the same service in one area, the need for consolidation became undeniable.
The solution came in the form of a strategic merger, which Agriterra facilitated through technical assistance, capacity building, and financial support. Agriterra’s intervention was critical in helping the cooperatives navigate the complexities of merging, improving management practices, and ensuring the cooperative's future sustainability.
The Birth of Torban Burka Ashe Dairy Primary Cooperative
In 2023, the four cooperatives officially merged to create Torban Burka Ashe Dairy Primary Cooperative. This merger was not just an administrative change; it was a bold move to create a larger, more resilient cooperative that could leverage economies of scale, improve market access, and offer better services to its members.
This strategic shift marked the beginning of a new era for the cooperative. Since its formation, the cooperative’s membership has surged to 711, including 161 women and 159 youth. This inclusive approach reflects a commitment to community development, empowering diverse groups within the region. Additionally, the daily milk collection has grown significantly, now ranging between 19,000 to 25,000 liters—a remarkable increase from the previous 6,400 liters.
Empowering Growth and Market Leadership
A major success for Torban Burka Ashe has been its ability to negotiate better prices for its milk. Before the merger, the four cooperatives sold milk at an average price of 45 Ethiopian Birr (ETB) per liter to processors and local traders. However, as a united entity, the cooperative negotiated higher prices with major processors such as Holland Dairy and Lame Dairy, securing a price of 55 ETB per liter. This 22% increase has directly boosted the income of its farmers, encouraged higher milk production, and improved their livelihoods.
The cooperative's professional management has also played a pivotal role in its success. A skilled professional manager, recruited from Selale University, now oversees all activities, ensuring efficiency and sustainability in the cooperative's operations. Additionally, an accountant and store manager have been employed to ensure financial accountability and proper resource management.
Community Impact and Service Delivery
Torban Burka Ashe has also made significant strides in improving its service delivery to the community. Two yogurt shops have been established in Fitche town, offering affordable dairy products to residents. This initiative provides a stable market for the cooperative's milk and promotes the consumption of nutritious dairy products, benefiting the broader community.
Innovative Financial Strategies for Sustainability
To further enhance its operations, Torban Burka Ashe has implemented an innovative financial strategy to raise capital. During a recent general assembly, members agreed to contribute 2 ETB per liter of milk over five months, converting these contributions into shares. This initiative is expected to raise approximately 7.5 million ETB, which will be used for critical investments, including purchasing a milk collection vehicle, a chiller for milk storage, and a motorbike for the manager to monitor the 52 milk collection points (MCPs).
The cooperative has already made significant progress in these plans. A motorbike has been purchased, and an agreement with Awash Bank has secured an interest-free loan, using the members' contributions as collateral. These efforts demonstrate the cooperative’s forward-thinking approach to financing and sustainability and its commitment to the long-term development of the sector.
New Acquisitions: A Motorbike and ISUZU Truck
The acquisition of a 150-horsepower Boxer motorbike and an ISUZU truck has greatly enhanced the efficiency of milk collection and distribution. The motorbike enables the manager to oversee the activities at all 52 milk collection points, ensuring timely collection of milk early in the morning and late in the afternoon. The ISUZU truck facilitates the transport of milk from the collection points to the processors' milk bulking centers and the delivery of animal feed to the members, further boosting the cooperative’s operations.
The Model for Future Cooperatives
The success of Torban Burka Ashe Dairy Primary Cooperative highlights the transformative potential of strategic consolidation in the dairy sector. By combining resources, expertise, and scale, the cooperative has increased its efficiency, competitiveness, and financial stability. This merger serves as a model for other cooperatives in the region, demonstrating the significant benefits that can be achieved through professional management, innovative financial practices, and a clear vision for growth.
Through Agriterra’s continued support via the BRIDGE+ program, the lessons learned from Torban Burka Ashe are helping to drive sustainable economic development in the dairy sector. This success story is not just about the growth of a single cooperative—it is a beacon for other farmers and cooperatives to explore the power of collaboration and strategic consolidation to improve their livelihoods and the future of the dairy industry.
