Abstract

Describing the sustainability of dairy value chain and showing the clear gaps of the sector is important for bringing continual improvement that can support the livelihoods of dairy farmers and the wellbeing of environment. To facilitate a balanced practice on the three pillars of sustainability (people, planet and profit), a regular updating of the existing situation of dairy production is crucial. Therefore, the objective of this report was describing the sustainability of dairy value chain in Aksum district, and shows clearly the gaps of the sector that needs urgent action for continual improvement. Desk study for gathering secondary information was employed. Different analytical tools were used to analyze and present the result. In Aksum, milk is produced by mainly smallholder farmers, dairy cooperatives and few commercial medium scale farms. The production system is operated by gender inclusive system which is in line with sustainable dairy. The production potential of milking cows is very poor that is mainly due to poor genetic makeup and management system. The common feed is roughage that causes to the low production performance (poor economic viability) and high greenhouse gas emissions from enteric fermentation (risky for environment). The highest value addition, risks and costs are belonged to producers but the high share of margin is for processors and retailers. Therefore, this unfair share of profits, costs and risks is not a good sign of sustainable dairy development. Hence, an attempt to improve the dairy sector should consider the three pillars of sustainability. © Scienceline Publication.