ILO Call for Proposals for an Implementing Partner to Develop the Dairy Value Chain in Somali Region of Ethiopia” Jobs
ILO Call for Proposals for an Implementing Partner to Develop the Dairy Value Chain in Somali Region of Ethiopia” Jobs
Background Somali region is the second largest region in Ethiopia by area covering 327,068 square km. It had a population of 10,318,000 by 2013.
The region has large populations of refugees and host communities and refugees who are mainly Somali.
One of the key economic activities is livestock with most people being pastoralists. Livestock activities are only second to trade.
The Central Statistics Agency of Ethiopia in 2019 stated the livestock population in Somali region of 36.7million with 3.6 million cattle, 6.1 million camels, 9.1 million sheep and 17million goats.
The cattle, goats, sheep and camels are 97.76 to 99% indigenous. The region faces challenges of low production and productivity of milk. The livestock on average produce 1-7 litres of milk per animal (cow or camel) per day.
The lactating period for cows is 6 months while that for camels is 9 months.
Total milk production in 2019 was 177,582,308 litres from cows and 144,288,580 litres from camels1.
The main feeding system is by grazing or green fodder on own or communal land holdings which accounts for 90% of feeding while the other feeding systems include is use of crop residues, hay, animal feed, improved feed and others each accounting for 6.29%; 0.58%; 0.31%; 0.16%; and 2.48% respectively1.
The farmers, who are dispersed across the region, expressed challenges in marketing of their milk as the value chain is not well developed. There is also a challenge of not having enough feeds and water for the animals especially during the drought seasons that usually occurs once every 2 years.
The milk storage containers are mainly plastic cans that not only reduce the shelf life of the milk but also affect the milk quality.
There are few milk cooling and processing facilities.
The farmers need to be organised to address the aforementioned challenges while also increasing on their incomes by engaging in entrepreneurial activities.
The milking, milk collection, transportation and local marketing in Somali region is mainly a female dominated activity with some estimates putting it at 96% female dominated.
There are women owned and managed cooperative societies that are actively involved in the milk value chain.
It is estimated that there are 3.9 million pastoralists or approximately 600,000 households in the milk value chain in Somali region. The estimated annual production of milk by Value from Somali region was ETB13.3 Billion or USD632 Million2.
The annual per capita milk consumption in Ethiopia is averaging 30 litres. This highest consumption is in Addis Ababa that is 52 litres per annum.
This milk consumption per capita is very low when compared to annual per capita consumption of 120 litres in Kenya.
Moreover about 25% of the milk produced is lost through production losses. Most of the milk consumed is sold through informal channels from farmers through milk collectors to the consumers. It’s estimated that only 20% of the milk produced in Ethiopia is formally processed3.
The analysis of the milk value chain in Somali region revealed the following constraints:
Low production, productivity and quality milk
Limited access to fodder and water for animals especially in the dry season
Animal health challenges affecting milk production
Limited value chain linkages between producers, collectors and processors for milk and milk products
Limited access to finance for the milk value chain actors
The constraints faced in the dairy value chain in Somali region are due to the following underlying causes:
Low knowledge and skills by farmers on good animal husbandry methods and feeding practices
Inadequate access to animal health workers and veterinary services to prevent or control diseases
Limited access to quality inputs
Limited skills in commercial fodder production
Lack of skills in entrepreneurship, financial education and low development of dairy cooperative societies for milk aggregation.
Limited access market information, few linkages between actors within the value chain and markets for the milk
Low processing capacity for the milk produced in the region
Financial service providers not having appropriate
financial products for the value chain actors
In light of the aforementioned, that ILO is seeking an implementing partner who can be an organization or company with a local presence in Somali region to work with women and youth in existing or new cooperatives societies.
There should be strong focus on building the capacity of actors to deliver and include refugees in to their regular programs and services.
The cooperative societies will mainly comprise of women and youth from host communities and refugees in the Fafan zone of the Somali region with a mission to serve their members in the dairy value chain.
The women and youth, grouped in 9 cooperatives, will be supported in the production and marketing of the dairy products including camel and cow milk together with fodder production for the animals to cater for the drought season.
Establish cooperative societies (with membership from host and refugee communities) comprising of mainly women will be directly engaged in milk production and marketing.
The cooperative societies with mainly youth (from host communities) will be involved in fodder production and fabrication of milk storage containers and marketing.
The members of the cooperative societies will be skilled in the areas of good animal husbandry practices, fodder production, cooperatives, entrepreneurship and financial education to engage in agricultural and other enterprising activities.
The dairy cooperatives will be supported with solar powered milk cooling facilities to lengthen the shelf life of milk before marketing at local level or through processors.
This project will be implemented over a period of 18 months.
Project objectives
Increase production and productivity of milk in Fafan Zone of Somali region
Increase access to markets for milk and other products
Improve the competitiveness of the milk value chain in Somali region
Support entrepreneurship and cooperatives development for women and youth
Project outcomes
Enhanced capacity of women and youth in the production and marketing of quality camel, goat and cow milk
Empowered youth in metal can fabrication and commercial fodder production
Empowered women and youth in cooperatives, entrepreneurship and financial education
Improved linkages for women and youth to inputs, markets and finance.
Conducive business environment for milk production and marketing
Eligibility Criteria
The potential implementing partner must fulfil the following requirements:
Must be a registered and licenced organization or company operating in Ethiopia.
Must have office and staff presence in different parts of Somali region
Must have been in operation for a period of not less than 3 years.
Should have experience in working with the local communities and refugees
Should demonstrate experience in working in the livestock or dairy value chains and market systems development
Should be ready to work with the regional government, private sector actors and other stakeholders best placed to deliver on the different outputs in the implementation of the project.
The proposal should provide a mechanism to ensure sustainability of the interventions started after the end of the project.
Experience working with government and relevant bodies as well as target communities, preferably FDPs and host communities
The implementing partner should be capable of assembling/ providing a team of technical experts that can deliver the above activities and outputs.
Willing to collaborate with ILO in co-creating and implementing inclusive and sustainable milk value chain push and pull interventions.
Budget
The proposal should not exceed USD 300,000. The applicant should also show their commitment and contribution to the project.
How to apply
Interested applicants that meet the eligibility requirements should submit their detailed technical and financial proposals including CV of the key personnel to work on this project electronically to:
ADDIS_PROCUREMENT@ilo.org
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