AN INTEGRATED APPRAISAL OF PRODUCTIVITY ENHANCING INTERVENTIONS IN ETHIOPIAN DAIRY FARMING

The study evaluates economic and financial returns of the shift from indigenous type of breed to cross-breed dairy cattle for milk production. Ethiopia is characterised by the high cost of cross-breed heifers making the transition for the poor households almost impossible without a support from the government or international donors. The deterministic cost-benefit analysis revealed a very positive net present value of the activity. Sensitivity analysis was performed to identify the main risk factors affecting the households. In addition the design of the study allowed to use the sensitivity analysis to identify the economic feasibility of a wide range of the government or donors support interventions in the dairy value chain. These include the estimation of the economic benefits of the sexed semen provision, veterinary access, feed cost reduction and improved artificial insemination services. The additional analysis was performed to compare economic returns of the farms with and without fodder production.