Whey as a new source of nourishment in Ethiopia
Melkam Endale’s whey drinks prove a popular source of nutrition in Ethiopia
Past the grazing pack mules and donkeys, you are met by a small but busy group of children, their parents and their extended family. Gathered around a small farmhouse in Ethiopia’s Chancho district, they come to sell the milk from their small herds of cattle. Zago Milk’s staff test it for purity and freshness then pour each load into a milk churn for transport back to Zago’s factory in Sululta, an hour and a half’s drive away. This is the last pickup after a busy morning for the drivers of travelling around Ethiopia’s lowlands, where dairy farming is more common a part of agricultural life.
Owner Melkam Endale tells how he began. “I started dairy farming in 2011 and expanded to milk processing in 2017. When I first started the milk processing business, I produced raw milk and would sell it in Addis.” With such a short shelf life for raw, unpasteurised milk Melkam explains that. “Marketing was a real problem. I started to think how I could extend the shelf life of the milk. So, I started pasteurising the milk. This extended the shelf life a little. But not enough.“
Each year as Ethiopia begins a period of fasting, Melkam would see his demand drop dramatically and he would have to reduce the number of farmers he bought from. “People who are fasting don’t consume milk or other dairy products. Consumption, including meat, drops by 50 or 60%.” When asked how he got through these periods he explains. “The maximum fasting period is two or three months. So, we made butter and cheese with the excess milk. Once the fasting ends there is suddenly a huge demand. I would have to expand the number of smallholder farmers for raw milk.” This cycle would repeat year on year.
As a waste product, whey remained an issue. Melkam saw a potential market for flavoured whey drinks. With malnutrition pervasive across all age groups in Ethiopia. The young and the elderly being especially at risk from its negative consequences. Even in Addis Ababa, as many as 11.4 percent of children are malnourished. Whey, although perceived as a possible addition to the diet, until recently was neither widely available nor accessible in Ethiopia. Although a simple by-product of milk processing, whey contains high-quality protein, lactose, minerals, vitamins, and bioactive compounds. These have been shown to have health benefits. Amongst them improving immune function, reducing blood pressure, enhancing muscle growth, and preventing osteoporosis. Whilst UNICEF questioned the ‘awareness and acceptability of whey products, and the cost-effectiveness and sustainability of whey interventions.’ It seemed that Melkam had found a market. Still, to fund this planned expansion into the processing, flavouring and packaging of whey, Melkam would need additional financing.
“It’s inclusive. It’s not only me. It helps smallholder farmers. I’ve expanded my sourcing by double so now I can reach more smallholder farmers.”
Melkam applied for a government development loan 18 months ago. It is still pending. He is quick to point out that. “This is not exceptional to me. All the people will wait and go through the same process. Never knowing if it will come or not.” This difficulty in accessing funding sees him absolutely committed to the idea that there is more room for challenge funds in Ethiopia.
He cites IAP for the necessary shifts in his business model. Saying that. “It’s inclusive. It’s not only me. It helps smallholder farmers. I’ve expanded my sourcing by double so now I can reach more smallholder farmers. So, this funds supports the farmers as well as end users through the outlets we use to sell to low-income people.” Discussing the grant he received he says that it was mostly for marketing. “We bought marketing equipment for the street vendors so they can sell our product. They have a pushcart, an icebox, and an umbrella with the Zago Milk logo.” With these new street vendors working alongside small shops and stalls, Melkam says that. “We used to sell maybe 5000 litres per day now we sell 9000, 10000 litres a day.”
On the general principal of challenge funds, he is more than positive. “There are a lot of people who need challenge fund support. There are people who have the skills, but the limitations of resources mean they cannot implement their plan. They can use these grants and run an inclusive business. In my case, it is involving the farmers and the consumers, I’m in the middle, just the actor in the middle. There are people engaged in similar businesses who could really benefit.”
Without people like Melkam, farmers would have very little access, if any, to this market. As he explains. “In this country, it is an agrarian economy, you know, most people are engaged in agriculture. They need to improve their productivity. They should have good marketing; they need to sell at a good price. Entrepreneurs are important to activate this process. Then an agricultural product can be processed and delivered to its consumers. So, Intervention in this area will also help the farmers improve their productivity and sustainability.”
On farmers he says that. “In the case of the dairy sector, they produce raw milk, a very perishable product. When sales fluctuate, they would maybe decide to shift to crop farming instead. So, it is the marketing that is very important, so they can sell their product.” Incomes and supply are clearly on the growth. “Now I have increased the number. I used to have maybe 300 or 350 smallholder farmers, now I have over 750.” Small holder farmers were not the only ones to benefit from his new supply chain. Melkam also found a new market in urban low-income people.
“Now I have increased the number. I used to have maybe 300 or 350 smallholder farmers, now I have over 750.”
On farmers he says that. “In the case of the dairy sector, they produce raw milk, a very perishable product. When sales fluctuate, they would maybe decide to shift to crop farming instead. So, it is the marketing that is very important, so they can sell their product.” Incomes and supply are clearly on the growth. “Now I have increased the number. I used to have maybe 300 or 350 smallholder farmers, now I have over 750.” Small holder farmers were not the only ones to benefit from his new supply chain. Melkam also found a new market in urban low-income people.
Melkam is very confident that he is reaching the low-income community. “We also have kiosks, small shops, in many residential areas and we have our street vendors. I would say that at least 80% of our products are sold through these small urban outlets. To low-income people.”