Ethiopia's Dairy Market: An Emerging Giant

Ethiopia is quickly emerging as a pivotal player in the dairy industry, fueled by significant investments and strategic initiatives to boost dairy production and processing.

Dairy Cattle Numbers

Ethiopia is home to a vast number of dairy cattle, currently estimated at approximately 12 million heads. This positions the country as a major hub for dairy production in Africa.

Milk Production Volume

The annual milk production in Ethiopia is estimated to be around 3.5 billion liters, contributing significantly to the country’s agricultural output.

Milk Processing Volume

The milk processing industry in Ethiopia is developing, with current processing volumes approximating 500 million liters per year. With new investments, this volume is set to increase substantially.

Cheese Production Volume

Ethiopia's cheese production is relatively small at present, with an annual production of around 10,000 tons, but is expected to grow as processing capacity expands.

Production of Milk Powder and Whey

Currently, Ethiopia produces around 5,000 tons of milk powder and whey annually, catering mostly to local demands.

Key Dairy Enterprises

• Addis Dairy Factory
• Lame Dairy Plc
• Faffa Foods
• Sholla Dairy

Major Dairy Farms

• Genesis Farm
• Heritage Dairy Farm
• Kunu Dairy Farm
• Selale Dairy Cooperative

Significant Market Event

One of the most notable events in the Ethiopian dairy industry is the collaboration with UK private-equity firm Asset Green. This partnership with the Ethiopian government involves a commitment of $600 million to enhance dairy farming and processing capabilities. This investment is poised to revolutionize the industry by improving infrastructure, technology, and production capacity.

Dairy Products Export and Import

Ethiopia's export of dairy products remains limited but growing, with annual exports estimated at $2 million. Imports, however, are significant, approximating $50 million annually, as the country still relies on external sources for certain dairy products.

This comprehensive investment in the dairy sector not only underlines Ethiopia's commitment to enhancing its dairy industry but also aims to achieve self-sufficiency and reduce import dependency in the coming years.

Modified: 2025/02/21

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