The successful merger of dairy cooperatives in Arsi Milk Shade

30-12-2024

The BRIDGE+ project has successfully revamped dairy cooperatives in Arsi Milk Shade, Oromia, Ethiopia, by merging 22 small, inactive groups into three strong cooperatives. This consolidation tackles key issues like weak governance and poor financial management, fostering collaboration among dairy farmers and enhancing their bargaining power against illegal traders.

With the establishment of Lemu Bokoji, Sagure, and Chilalo cooperatives, over 1,100 members—including many women and youth—are experiencing significant growth. Daily milk collection has risen to 10,550 litres from 3378 litres. Capital has reached approximately 78,434 USD (before it was 20,859.89 USD), supported by strong governance that empowers member participation.

The merger has also attracted local government support, providing essential resources such as office space and quality control equipment. This positions the cooperatives to better connect with local dairy processors, driving economic growth in the community. The collaborative effort between Agriterra, local cooperatives, and government stakeholders has set a precedent for future regional cooperative development, demonstrating that strategic mergers can lead to sustainable and effective transformation in the dairy sector.


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